Human beings are continuously engaged in some activity or others in order to satisfy their unlimited wants. Every day we come across the word ‘business’ or ‘businessman’ directly or indirectly. Business has become essential part of modern world. Business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants. We should be aware of the importanceof business because according to Lawrence Robert Dicksee, a Lecturer in London School of Economics and Political Science.
Professor of Accounting at Birmingham University, Writer and Accountant , “Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted. ” Knowing the importances of business, its ins and outs should be underscored. It includes exchange of goods and services, buyer and seller relationship, and most importantly profit which basically aims to satisfy human wants and needs.
The research study entitled Profit Maximization deals with the classifications of business which include the primary sector that deals with the extraction of raw materials from mother nature like farming, fishing, logging and mining, the secondary sector involves the manufacturing process products from natural resources like garment factory, and car factory,and the tertiary sector which includes insurances, transport, banking, education and hospital.
These firms provides services to consumers and other businessess. The points to consider in order to be succesful in establishing a business are to be discussed in the following parts of the study. The three methods of profit maximization are also to be discussed in the study which is very beneficial in order to avoid losing money once one starts running a business.