"Business is an institution organised and operated to provide goods and services under the incentive of private gain." Discuss.
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yes it is a businessman bears the risks and run business with the main motive of earning profit. Profit is the reward given to business man for bearing the risk. Private gain is the main incentive of the business by providing goods and services as it is the means of livelihood for the businessman to survive in the market and then expand or grow
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Explanation:" Business in an institution organised and operated to provide goods and services under the incentive of private gain. " This statement is correct . The following points justify the given statement:
(i) Business is an economic activity as it is undertaken with the main objective of earning profits . Profit is essential to cover costs and risks of the business . Every business must earn a reasonable profit to survive and grow.
(ii) It involves sale , exchange , purchase of goods ( sugar , pen , textbook , machinery , furniture , etc.) and services ( transportation , banking , insurance , etc.) on a regular basis for mutual profit through the satisfaction of human wants.
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