Question

In your own words, define business and then explain the important functions of any business.

Answer 1

A business is an organization or a system which involves the exchange of goods or services. Such exchange may involve monetary consideration or may be in kind. The main functions performed in a business are planning, directing, controlling and monitoring. The planning is a forward looking function while monitoring is backward looking, where the performance has already been carried out. The directing function is an ongoing function which is real time and guides the resources towards the achievement of organizational goals. The controlling function is a byproduct of monitoring whereas the corrective steps are taken to ensure that all organizational resources work according to the plans formulated.