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.