Business Meaning and Features
Meaning of Business
Business includes economic activities concerned with production and exchange of goods and services to satisfy human wants with the main purpose to earn profit.
Features/characteristics/nature of Business
1. An economic activity:
Business is an economic activity as the aim is to earn profit.
2. Production or procurement of goods and services:
Business can purchase or produce goods or/and generate services.
3. Sale of goods or services:
Goods produced and services generated are ultimately sold to the consumers.
4. Satisfaction of human wants:
The goods or services are bought or sold for the ultimate satisfaction of human wants.
5. On regular basis:
Business must buy, sell or exchange goods or services on regular basis. An isolated transaction cannot be called business.
6. Profit earning:
The main purpose of business is always to earn profit which is ultimately earned for various purposes.
7. Risk bearing:
There is always uncertainty of return, possibility of losses due to many factors within or outside the control. No business can run without any type or any degree of risk.