Meaning

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.

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