Distinction between Traditional and Modern Concept

Category: Bank
Posted on: Monday, September 18, 2017


The literal meaning of the term business is the ‘state of being busy’ or business. But when the term is used in relation to the business world, it means much more specific. All the definition to business may be classified under the following three categories.

 Traditional Definitions : Traditionally, business was regarded as the institution organised for production and /or distribution of goods/ services for earning profit.

 Customer Oriented Definitions : Businessmen began to think about earning profits through customer service and satisfactions. Hence the academicians and professional the term business accordingly.

 Hopkins, Duff et.cl – “Business is the organised activities designed to satisfy people’s wants for goods and services.”

 Urwick and Hunt – “Business is any enterprise which makes, distributes or provides any article or service which other members of the community head and are able and willing to pay.”

 Social Definitions/ Modern Eclectic Definitions: A few such modern definitions from social point of view are reproduced as follows:-

Buskirk, Green and Rodgers – “Business is a system created to satisfy societies, need and desires.”

Keith Davis and Blomstorm – “The term business refers to both private and public institutions which develop and process economic values in a society.”