Question

8- Explain the features of business? give answer sincerely​

Answer 1

Answer:

Features of the business :-

1. Creation of utilities:

Business makes goods more useful to satisfy human wants. It adds time, place, form and possession utilities to various types of goods. In the words of Roger, "a business exists to create and deliver value satisfaction to customers at a profit".

2. Dealings in goods and services:

Every business enterprise produces and/or buys goods and services for selling them to others. Goods may be consumer goods or producer goods.

3. Continuity in dealings:

Dealings in goods and services become business only if undertaken on a regular basis. According to Peterson and Plowman, "a single isolated transaction of purchase and sale will not constitute business recurring or repeated transaction of purchase and sale alone mean business.

4. Sale, transfer or exchange:

All business activities involve transfer or exchange of goods and services for some consideration. The consideration called price is usually expressed in terms of money. Business delivers goods and services to those who need them and are able and willing to pay for them.

5. Profit motive:

The primary aim of business is to earn profits. Profits are essential for the survival as well as growth of business. Profits must, however, be earned through legal and fair means. Business should never exploit society to make money.

6. Element of risk:

Profit is the reward for assuming risk. Risk implies the uncertainty of profit or the possibility of loss. Risk is a part and parcel of business. Business enterprises function in uncertain and uncontrollable environment.

7. Economic activity:

Only economic activities are included in business. Non-eco­nomic activities do not form a part of business.

8. Art as well as science:

Business is an art because it requires personal skills and experi­ence. It is also a science because it is based on certain principles and laws.

Answer 2

Answer:

Business is an economic activity that involves the exchange, purchase, sale or production of goods in order to earn money and satisfying the needs of the customers. Businesses can be both for- profit or non-profit organizations that work to gain profit or achieve social objectives respectively.

Explanation: