A business enterprise in an important system which is created to satisfy human wants through the production and distribution of goods and services. Like any other system, it gets the inputs from its environment and supplies its output to the environment. The inputs of a business system include materials, machinery or equipment, manpower, money, information, etc. These human, physical and financial resources are converted into goods and services which constitute the output of the business system. In addition goods and services, business system also provides profits, employment, tax revenue, etc. The business system operates under the influence or environment consisting of economic, social, political, legal, cultural and other factors. Business system gets feedback or information from the environment or suprasystem. The feedback influences the future operation of the system. The supply of inputs to business system is reduced or increased depending upon the satisfaction provided by the outputs of business. Thus, "the business system is a combination of all resources, organisations and institutions which are directly or indirectly related to the production of good and services for the satisfaction of human needs". It is a total entity comprising innumerable interlocking sub-systems.
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