SCOPE OF BUSINESS

As it is known that whatever we do that brings money without being employed in a company is considered as a business – a situation that has made business to cover all aspects of human venture. Diplomatically speaking, it does not synchronizes with the operations, of a business as an enterprise. Business as an enterprise covers 100% of economic activity with the production of goods and services meant for the satisfaction of human needs and wants as its central focus. Such activities include data collection and the distribution of wants satisfying goods and services. This presupposes that business enterprise exists to satisfy human needs and wants. That overwhelmed by business enterprise are those ones that are neither illegitimate nor condemned by the society for whatever reason.

There situation in which an enterprise functions as a business entity and the society accepts it as such when the law is against it. The importation of second- hand fridges into the boundaries of Nigeria is a good example. There are other situations in which the society frowns at the existence of a business enterprise whereas the law encourages it. Fertilizer production confronted this case when it was started. Farmers in Nigeria detested its application as regards various reasons. However, the economic activities that come under the scope of business are usually described by a nation – state. For example, the production and sale of alcoholic drinks are economic activities in Nigeria while they are not defined as such in Saudi Arabia even in some state in Nigeria. In Saudi Arabia, any person who produces and is involved in the sales of hard drinks is prosecuted instead of being treated as a businessman. The discussion above made us to understand that business scope, therefore is associated with data collection, production of goods and services, distribution there of, and all other activities carried out beyond consumption. With this understanding we’ve known that certain factors limits the scope of business activities. These factors are laws of a country, religion, tradition and natural endowment.