Business organisation and management UNIT1.ppt

Business – Meaning, Nature, Scope
Objectives of Business
Essentials of a successful business
Business Environment
Internal Factors
External Factors
Emerging opportunities in business
E-Commerce
Introduction to Business Organization
Forms of Business Organization
National Business
International Business

1. WHATISABUSINESS?
Thetermbusinessreferstoanorganizationor
enterprisingentityengagedincommercial,industrial,or
professionalactivities.Businessescanbefor-profit
entitiesortheycanbenon-profitorganizationsthat
operatetofulfillacharitablemissionorfurtherasocial
cause.Businessesrangeinscalefromsole
proprietorshipstointernationalcorporationsandcan
rangeinsizefromsmalltolarge.

2. TYPESOFBUSINESSES
Manybusinessesorganizethemselvesaround
somesortofhierarchyorbureaucracy,where
positionsinacompanyhaveestablishedrolesand
responsibilities.Themostcommonstructures
include:
Soleproprietorships
Partnerships
Corporations
Limitedliabilitycompanies(LLCs)

3. Soleproprietorships:Asthenamesuggests,asole
proprietorshipisownedandoperatedbyasingle
naturalperson.Thereisnolegalseparation
betweenthebusinessandtheowner,whichmeans
thetaxandlegalliabilitiesofthebusinessfallon
theowner.
Partnerships:Apartnershipisabusinessrelationship
betweentwoormorepeoplewhojoinforcestoconduct
business.Eachpartnercontributesresourcesandmoney
tothebusinessandsharesintheprofitsandlossesofthe
business.Thesharedprofitsandlossesarerecordedon
eachpartner'staxreturn.

4. Corporations:Acorporationisabusinessinwhicha
groupofpeopleactstogetherasasingleentity.Owners
arecommonlyreferredtoasshareholderswhoexchange
considerationforthecorporation'scommonstock.
Incorporatingabusinessreleasesownersofthefinancial
liabilityofbusinessobligations.Acorporationcomes
withunfavorabletaxationrulesfortheownersofthe
business.
Limitedliabilitycompanies(LLCs):Thisisarelatively
newbusinessstructureandwasfirstavailablein
Wyomingin1977andotherstatesinthe1990s.
Alimitedliabilitycompanycombinesthepass-through
taxationbenefitsofapartnershipwiththelimited
liabilitybenefitsofacorporation.

5. NATUREOFBUSINESS
Businessisderivedfrom‘busy-ness,’i.e.keeping
oneselfoccupiedwithoneortheotherwork,butit
ismuchmorethanjustbeingbusy.
Tohaveabetterunderstandingofwhatabusiness
is,wemustgothroughthefollowingpoints:

6. RegularProcess:Itisanactivitywhichisperformed
repeatedlytogenerateprofit.
EconomicActivity:Thewholesolepurposeis
maximisingwealth.
CreatesUtility:Thegoodsorservicemustbesuchthat
itcreatesformutility–conversionofproductsina
consumableform,timeutility–makingthegoodsand
servicesavailablewhenneeded;andplaceutility–
availabilityofgoodsorserviceswhereverrequired,for
theconsumers.
CapitalRequirement:Anyventurerequiresfund
dependingonthesizeanditstype.
DealsinGoodsandServices:Itisrelatedto
manufacturingandofferinggoodsforsaleorcatering
services.

7. Risk:Allbusinesseshaveariskfactororuncertaintiesof
failureandloss.
ProfitEarningMotive:Theinitialmotiveofa
businessmanismakingaprofitoutofhisventure.
SatisfactionofConsumer’sNeed:Itisconcernedwith
thefulfilmentofthecustomer’sdemandsandneeds.
InvolvesBuyerandSeller:Therearemajorlytwo
partiesinvolved,thecustomerandthemerchandise.
SocialObligations:Ithassomesocialresponsibilities,
likecreatingjobopportunities,dealingwithlicensed
products,etc.

8. TYPESOFBUSINESS
The previous instance has made it clear that
business involves goods or services or both. A
person has first to select the kind of business line
he wants to operate.
Thus, a business can be broadly classified as into
the following types:

9. Service:Anactivityperformedtoearnmoney
throughcustomersatisfactionisknownasa
service.Itinvolvesprofessionalskillsandexpertise.
E.g.Aprofessionalteacherearnsmoneybytaking
tuitionclass
Merchandising: Merchandising means
procurementofgoodsfrommanufacturersor
wholesalers,atalowpriceandsellingitatahigher
pricetomakeaprofit.Itisalsoknownasaretail
business.
E.g.Afloristsellingflowers

10. Manufacturing:Makingprofitthroughproductionor
creationofgoodsfromrawmaterialinsuchaway
thatitderivessomeutilitytotheconsumerisknown
as a manufacturing business.
E.g.Processingofsugarcaneinasugarmilltoget
finesugar
Hybrid:Abusinesswhichinvolvesallthethree
activities,i.e.manufacturingofgoods,
merchandisingofproductsanddeliveringservice
fallsunder the hybrid category.
E.g.Afurnitureseller,whomanufacturesfurniture,
buysoldfurnitureandsellsitatahigherpriceafter
repairingandalsoprovidesservicesforpolishing
oldfurniture.

12. SCOPEOFBUSINESS

13. Followingbusinesscomponentsplayanimportantrolein
thescopeofbusiness:
Industry
Theword“Industry”referstothebusinessactivities
whicharelinkedwiththeextractionandproductionor
manufacturingofproducts.Theproductformedbyan
industryiseitherusedbythevitalconsumersoragainby
theindustry.Iftheproductisusedbytheconsumeritis
calledconsumers’goodssuchasclothes.
Iftheproductisusedagainbytheindustryitiscalledthe
producer’sgoodsorcapitalgoods.Inacasewhena
productproducedbytheindustryisfurtherprocessed
intofinishedproductsforotherpurposestheyarecalled
intermediategoods.e.g.plastic.

14. Theindustryisfurtherdividedintotypesonthebasisof
businessactivity:
ExtractiveIndustries
Theindustrieswhichextract,raiseand
manufacturerawmaterialsfromaboveorunderthe
Earth’ssurfaceareknownasExtractiveIndustries
andtheyincludemining,fisheries,forestryand
agriculture,etc.
GeneticIndustries
Theindustrieswhichareinvolvedin
reproducingandmultiplyingcertainspeciesof
animalsandplantsandselltheminthemarketto
earnaprofitarenamedasGeneticIndustries.
Theseindustriesincludecattlebreedingfarms,
poultryfarmsandplantmarket,etc.

15. ConstructiveIndustries
Theindustrieswhichareinvolvedinthe
constructionofbuilding,canals,bridges,damsand
roads,etc.arecalledConstructiveIndustries.
ServiceIndustries
Theindustrieswhichareinvolvedinmanufacturing
theintangiblegoodswhichcannotbeseenbutfeltsuch
asservicesofprofessionalslikedoctors,lawyersare
examplesofServiceIndustries.

16. Commerce
Thesecondcomponentofthescopeof
businessisCommerce.Itinvolvesthebuyingand
sellingofgoodsandalltheactivitieswhichare
associatedwiththetransferofgoodsfromthe
productionsourcetotheultimateconsumersor
destination.Therangesofactivitiesrelatedto
Commercetakeplacethrough:
Trade
Theprocessofbuyingandsellinggoodsis
calledTrade.Itistheprocessofexchanginggoods
andservicesamongstthebuyersandsellersand
bothofthemearnprofits.Tradecanbeclassified
intotwotypes;internalandexternal.

17. InternalTrade:Theprocessofbuyingandselling
goodswithinacountryiscalledinternaltrade.The
internaltradecanbeeitherwholesaletradeorretail
trade.
WholesaleTrade:Inwholesaletrade,thegoodsare
purchasedinbulkfromtheproducersandsellthemto
theretailers.Theseretailersthensellthesegoodstothe
finalconsumers.
RetailTrade:Intheretailtrade,theretailersellsgoods
andservicestothefinalconsumers.
ExternalTrade:Theprocessofbuyingandselling
goodsbetweenthetwocountriesiscalledexternal
trade.Theexternaltradehastwotypes;import
tradeandexporttrade.

18. Theelementswhichhelpinthepurchasingof
goodsandservicesarecalledaidtotrade.There
arecertainconstituentsthatareessentialforthe
progressofthetradeandareasfollows:
Transport
Byusingdifferentwaysoftransport,thegoods
aretransportedfromindustrytotheconsumers.It
includesrailways,ships,airlines,etc.
Insurance
Insuranceisveryimportanttoaidtotrade.
Insurancereducestheriskofdamagetogoodsdue
tofire,floodorearthquake,etc.bypayingagood
amountinthisregard.

19. Warehousing
Warehousesareusedtokeepthegoodsand
arereleasedandaredeliveredtothemarketwhen
demanded.Thus,warehousingplaysanimportant
parttoovercomethebarrieroftimeandhelpsthe
goodsreachtheconsumersinashortspanoftime.
Banking
Commercialbanksplayanimportantrolein
financingtradeactivities.Theyprovidefundstothe
tradersforstockholdingandtransportingthe
goods.Theyalsosupporttheproducersin
purchasingandreceivingatbothnationaland
internationallevels.Thebanksalsooffercredit
facilityintheformofcashcredit,overdraftsand
loanstothetraders.

20. Advertisements
Advertisementsplayanimportantpartin
sellingthegoodtotheconsumers.The
advertisementiseithershownontelevisionor
printedinnewspaperormagazinesetc.andhelp
theconsumerstochoosetheirdesiredproduct.
Thus,advertisementsareveryimportantforthe
selleraswell.

21. OBJECTIVESOFBUSINESS
Objectivesaresomethingwhichabusiness
organizationwantstoachieveor
accomplishoveraspecifiedperiodof
time.Thesemaybetoearnprofitforits
growthanddevelopment,toprovide
qualitygoodstoitscustomers,toprotect
theenvironmentetc.Thesearethe
objectivesofbusiness.

22. CLASSIFICATIONOFOBJECTIVESOFBUSINESS
Itisgenerallybelievedthatabusinesshasasingle
objective,thatis,tomakeprofit.Butitcannotbethe
onlyobjectiveofbusiness.Whilepursuingthe
objectiveofearningprofit,businessunitsdokeepthe
interestoftheirownersinview.However,any
businessunitcannotignoretheinterestsofits
employees,customers,thecommunity,aswellasthe
interestsofsocietyasawhole.Forinstance,no
businesscanprosperinthelongrununlessfairwages
arepaidtotheemployeesandcustomersatisfactionis
givendueimportance.

23. Againabusinessunitcanprosperonlyifit
enjoysthesupportandgoodwillofpeoplein
general.Businessobjectivesalsoneedtobe
aimedatcontributingtonationalgoalsand
aspirationsaswellastowardsinternationalwell-
being.Thus,theobjectivesofbusinessmaybe
classifiedas–
a.EconomicObjectives
b.SocialObjectives
c.HumanObjectives
d.NationalObjectives
e.GlobalObjectives

24. ECONOMICOBJECTIVES
Economicobjectivesofbusinessrefertothe
objectiveofearningprofitandalsootherobjectives
thatarenecessarytobepursuedtoachievethe
profitobjective,whichinclude,creationof
customers,regularinnovationsandbestpossible
useofavailableresources.

25. Profit earning
Profitisthelifebloodofbusiness,withoutwhichno
businesscansurviveinacompetitivemarket.Infact
profitmakingistheprimaryobjectiveforwhicha
businessunitisbroughtintoexistence.Profitsmustbe
earnedtoensurethesurvivalofbusiness,itsgrowthand
expansionovertime.Profitshelpbusinessmennotonly
toearntheirlivingbutalsotoexpandtheirbusiness
activitiesbyreinvestingapartoftheprofits.Inorderto
achievethisprimaryobjective,certainotherobjectives
arealsonecessarytobepursuedbybusiness,whichare
asfollows:
Creationofcustomers
Regularinnovations
Bestpossibleuseofresources

26. Social Objectives
Socialobjectivesarethoseobjectivesofbusiness,which
aredesiredtobeachievedforthebenefitofthesociety.
Sincebusinessoperatesinasocietybyutilizingitsscarce
resources,thesocietyexpectssomethinginreturnforits
welfare.Noactivityofthebusinessshouldbeaimedat
givinganykindoftroubletothesociety.Ifbusiness
activitiesleadtosociallyharmfuleffects,thereisbound
tobepublicreactionagainstthebusinesssoonerorlater.
Socialobjectivesofbusinessincludeproductionand
supplyofqualitygoodsandservices,adoptionoffair
tradepracticesandcontributiontothegeneralwelfareof
societyandprovisionofwelfareamenities.
Adoptionoffairtradepractices
Productionandsupplyofqualitygoodsandservices
Contributiontothegeneralwelfareofthesociety

27. HUMANOBJECTIVES
Humanobjectivesrefertotheobjectivesaimedatthe
well-beingaswellasfulfillmentofexpectationsof
employeesasalsoofpeoplewhoaredisabled,
handicappedanddeprivedofpropereducationand
training.Thehumanobjectivesofbusinessmaythus
includeeconomicwell-beingoftheemployees,social
andpsychologicalsatisfactionofemployeesand
developmentofhumanresources.
Economic well being of the employees
Social and psychological satisfaction of employees
Development of human resources
Well being of socially and economically backward
people

28. NATIONALOBJECTIVES
Beinganimportantpartofthecountry,everybusinessmust
havetheobjectiveoffulfillingnationalgoalsandaspirations.
Thegoalofthecountrymaybetoprovideemployment
opportunitytoitscitizen,earnrevenueforitsexchequer,
becomeself-sufficientinproductionofgoodsandservices,
promotesocialjustice,etc.Businessactivitiesshouldbe
conductedkeepingthesegoalsofthecountryinmind,which
maybecallednationalobjectivesofbusiness.Thefollowing
arethenationalobjectivesofbusiness.
Creation of employment
Promotion of social justice
Production according to national priority
Contribute to the revenue of the country
Self-sufficiency and Export Promotion

29. GLOBALOBJECTIVES
EarlierIndiahadaveryrestrictedbusinessrelationshipwith
othernations.Therewasaveryrigidpolicyforimportand
exportofgoodsandservices.But,now-a-daysduetoliberal
economicandexport–importpolicy,restrictionsonforeign
investmentshavebeenlargelyabolishedanddutieson
importedgoodshavebeensubstantiallyreduced.Thischange
hasbroughtaboutincreasedcompetitioninthemarket.Today
becauseofglobalizationtheentireworldhasbecomeabig
market.Goodsproducedinonecountryarereadilyavailable
So,tofacethecompetitionintheglobalmarketevery
businesshascertainobjectivesinmind,whichmaybecalled
theglobalobjectives.
Raise general standard of living
Reduce disparities among nations
Make available globally competitive goods and services

30. ESSENTIALSOFASUCCESSFULBUSINESS
Thepresentdaybusinesssystemisvery
complexandelaborate.Thebusinessmanhasto
takecertainlineofactiontomakehisbusinessa
success.Theyare:
1.Objectives
Forthesuccessofanybusinessorganization,
determinationofitsobjectiveisveryessential.It
shouldbeclearlydescribedandalsoberealistic.It
maybeprimaryor/andsecondary.Eachactivityof
theorganizationshouldbedirectedtowardsthe
achievementofitsobjectives.

31. 2.Planning
Planningreferstotherationalandorderly
thinkingaboutthewaysandmeansforthe
achievementofthefirm’sobjectives.Itanalysesthe
problemandfindoutthesolutionswithreferenceto
theobjectivesofthefirm.Itenablesthefirmtorun
smoothlyandtherebyreducestheriskofloss.
Thus,itisconsideredastheessenceofbusiness.
3.Research
Researchisnecessaryfortheorganizationin
ordertoimprovethemethodsandtechniquesof
production,qualityoftheproductsandalsoto
introducenewproducts.Itenablesthe
businessmantomeetthechangingneedsof
customers,demandandalsocompetitionamong
theproducers.

32. 4.LocationandSize
Favorablelocationandsuitablesizehavea
greatbearingonthesuccessofanybusiness
concern.Thebusinessmaninselectingasuitable
locationandalsoindeterminingitssizemust
exercisepropercare.
5.SoundOrganization
itisveryessentialforthesuccessofany
business.Itisamediumforexercisingeffective
controlandmanagementofanybusiness.Agood
organizationalchartisnecessaryforstaffingthe
organizationwithsufficientnumberofpersonnel
withdifferenttalentsandskills,dividingworkamong
peopleetc.

33. 6.AdequateFinance
Financeisthelifebloodoftheorganization.
Inadequatefinancemayleadtolossesinthefirm.
Hence,arrangementsshouldbemadetomeetthe
short-termandlong-termrequirementsofthe
organization.Flowoffundsandemploymentof
fundsshouldbeplannedwellinadvance.
7.EffectiveManagement
Inordertoachieveitsobjectives,effectiveand
efficientmanagementisessential.Nofirmcan
achievesuccessunlessithasanefficient
management.Itispossibleonlywhenthe
managersarecompetentinperformingtheirduty.

34. 8.EffectiveDistributionSystem
Thegoodsproducedhavevalueonlywhen
theyaremadeavailabletotheconsumers.The
objectofproducinggoodsitselfistodistributeitfor
value.Therefore,ineverybusinessorganizationit
isessentialtohaveeffectivedistributionsystem.
9.MaintenanceofBetterEmployeerelationship
Cordialemployee-employerrelationshipisvery
essentialforthesuccessfuloperationofthe
businessconcern.Employeesaretoberewarded,
welltreatedandalsoprovidedwithallamenitiesto
ensurejobsatisfaction.Thiswilldefinitelyboostup
employeemoraleandensuretheircooperation.

35. BUSINESSENVIRONMENT
Conditionsorsituationsthataffectbusiness
activitiesmayberegardedastheenvironmentof
business.Inotherwords,businessenvironment
referstothesurroundingsandcircumstances,
whichinfluencebusinessoperations.This
environmentconsistsofforcesandfactorsinternal
orexternaltoabusinessfirm.Theskillandabilityof
employees,theirattitudetowork,relationsbetween
managersandsubordinatesetc.mayberegarded
asinternalenvironmentofbusiness.Theseare
importantfactors,whichmayaffectbusiness
operations.Butthesearewithinthecontrolofthe
businessman.

36. Bytakingsuitablestepstheconditionscan
beimproved.Ontheotherhand,external
environmentreferstoallthoseaspectofthe
surroundingofbusiness,whicharenotwithin
thecontrolofthemanagersandmayaffect
businessactivitiestoagreatextent.Youmay
havenoticedthatsometimesthereislessdemand
ofgoodsproducedbyaparticularfirm.Itmaybe
duetobetterqualitysubstituteswhichcustomers
findmoreuseful.Again,ifthegovernment
policychangessoastoallowforeigngoodstobe
importedatlowerratesofcustomsduty,similar
goodproducedinIndiamaynotsell,asthe
pricesofimportedgoodsmaybelower.

37. Theseconditionsaregenerallynotwithinthe
controlofthebusinessmen.Letusdiscussabout
theexternalfactorswhichinfluenceoraffect
businessactivitiesandoperationsandarenot
controllablebybusinessmen.Wemayclassify
thesefactorsas
Economicfactors,
Socialfactors,
Politicalfactorsand
Technologicalfactors.

38. CONCEPTOFBUSINESSENVIRONMENT
Managersmusthaveadeepunderstanding
andappreciationoftheenvironmentinwhichthey
andtheirorganisationsfunction.Theenvironment
ofbusinessisthe‘aggregateofconditions,events
andinfluencesthatsurroundandaffectit’
Sincetheorganisationispartofabroader
socialsystem,ithastoworkwithintheframework
providedbythesocietyanditsinnumerable
constituents.

39. Forthesakeofsimplicitytheenvironmental
forcescouldbeclassifiedintotwocategories:
1. Internal environment and
2. External environment.
1.InternalEnvironment:
Theinternalenvironmentconsistsofconditions
andforceswithinanorganisationthataffectthe
organisation’smanagement.Aspectsoftheinternal
environmentincludetheorganisation’smission,
corporateculture,ownersandtheboardof
directors,employees,otherunitsoftheorganisation
andunions.

40. 2. External Environment:
Theexternalenvironmentconsistsofthose
factorsthataffectafirmfromoutsideits
organisationalboundaries.Ofcourse,theboundary
thatseparatestheorganisationfromitsexternal
environmentisalwaysnotclearandprecise.For
example,shareholdersarepartoftheorganisation,
butinanothersense,theyarepartofits
environment.

43. E-COMMERCE

44. E-COMMERCE-MEANING
E-commerce(electroniccommerce)isthebuying
andsellingofgoodsandservices,orthe
transmittingoffundsordata,overanelectronic
network,primarilytheinternet.Thesebusiness
transactionsoccureitherasbusiness-to-business
(B2B),business-to-consumer(B2C),consumer-to-
consumerorconsumer-to-business.Thetermse-
commerceande-businessareoftenused
interchangeably.Theterme-tailisalsosometimes
usedinreferencetothetransactional
processesthatmakeuponlineretailshopping.
Inthelastdecade,widespreaduseofe-commerce
platformssuchasAmazonandeBayhas
contributedtosubstantialgrowthinonlineretail.In
2007,e-commerceaccountedfor5.1%oftotalretail
sales;in2019,e-commercemadeup16.0%.

45. HOWDOESE-COMMERCE WORK?
E-commerceispoweredbytheinternet,where
customerscanaccessanonlinestoretobrowse
through,andplaceordersforproductsorservices
viatheirowndevices.
Astheorderisplaced,thecustomer's
webbrowserwillcommunicatebackandforthwith
theserverhostingtheonlinestorewebsite.Data
pertainingtotheorderwillthenberelayedtoa
centralcomputerknownastheordermanager--
thenforwardedtodatabasesthatmanageinventory
levels,amerchantsystemthatmanagespayment
information(usingapplicationssuchasPayPal),
andabankcomputer--beforecirclingbacktothe
ordermanager.

46. Thisistomakesurethatstoreinventoryand
customerfundsaresufficientfortheordertobe
processed.Aftertheorderisvalidated,theorder
managerwillnotifythestore'swebserver,which
willthendisplayamessagenotifyingthecustomer
thattheirorderhasbeensuccessfullyprocessed.
Theordermanagerwillthensendorderdatatothe
warehouseorfulfillmentdepartment,inorderforthe
productorservicetobesuccessfullydispatchedto
thecustomer.Atthispointtangibleand/ordigital
productsmaybeshippedtoacustomer,oraccess
toaservicemaybegranted.

47. Platformsthathoste-commercetransactions
mayincludeonlinemarketplacesthatsellerssimply
signupfor,suchasAmazon.com;softwareasa
service(SaaS)toolsthatallowcustomersto'rent'
onlinestoreinfrastructures;oropensourcetoolsfor
companiestousein-housedevelopmentto
manage.

48. TYPESOFE-COMMERCE
Business-to-business(B2B)e-commercerefers
totheelectronicexchangeofproducts,servicesor
informationbetweenbusinessesratherthan
betweenbusinessesandconsumers.Examples
includeonlinedirectoriesandproductandsupply
exchangewebsitesthatallowbusinessestosearch
forproducts,servicesandinformationandtoinitiate
transactionsthroughe-procurementinterfaces.
In2017,ForresterResearchpredictedthattheB2B
e-commercemarketwilltop$1.1trillionintheU.S.
by2021,accountingfor13%ofallB2Bsalesinthe
nation.

49. Business-to-consumer(B2C)istheretailpartof
e-commerceontheinternet.Itiswhenbusinesses
sellproducts,servicesorinformationdirectlyto
consumers.Thetermwaspopularduringthedot-
comboomofthelate1990s,whenonlineretailers
andsellersofgoodswereanovelty.
Today,thereareinnumerablevirtualstoresand
mallsontheinternetsellingalltypesofconsumer
goods.Themostrecognizedexampleofthesesites
isAmazon,whichdominatestheB2Cmarket.

50. Consumer-to-consumer(C2C)isatypeofe-
commerceinwhichconsumerstradeproducts,
servicesandinformationwitheachotheronline.
Thesetransactionsaregenerallyconducted
throughathirdpartythatprovidesanonline
platformonwhichthetransactionsarecarriedout.
Onlineauctionsandclassifiedadvertisementsare
twoexamplesofC2Cplatforms,witheBayand
Craigslistbeingtwoofthemostpopularofthese
platforms.BecauseeBayisabusiness,thisformof
e-commercecouldalsobecalledC2B2C--
consumer-to-business-to-consumer.

51. Consumer-to-business(C2B)isatypeofe-
commerceinwhichconsumersmaketheirproducts
andservicesavailableonlineforcompaniestobid
onandpurchase.Thisistheoppositeofthe
traditionalcommercemodelofB2C.
ApopularexampleofaC2Bplatformisamarket
thatsellsroyalty-freephotographs,images,media
anddesignelements,suchasiStock.Another
examplewouldbeajobboard.

52. Business-to-administration(B2A)refersto
transactionsconductedonlinebetweencompanies
andpublicadministrationorgovernmentbodies.
Manybranchesofgovernmentaredependentone-
servicesorproductsinonewayoranother,
especiallywhenitcomestolegaldocuments,
registers,socialsecurity,fiscalsandemployment.
Businessescansupplytheseelectronically.B2A
serviceshavegrownconsiderablyinrecentyears
asinvestmentshavebeenmadeine-government
capabilities.

53. Consumer-to-administration(C2A)refersto
transactionsconductedonlinebetweenindividual
consumersandpublicadministrationorgovernment
bodies.Thegovernmentrarelybuysproductsor
servicesfromcitizens,butindividualsfrequently
useelectronicmeansinthefollowingareas:
Education.Disseminatinginformation,distance
learning/onlinelectures,etc.
Socialsecurity.Distributinginformation,making
payments,etc.
Taxes.filingtaxreturns,makingpayments,etc.
Health.Makingappointments,providinginformation
aboutillnesses,makinghealthservicespayments,
etc.