define business and its three characteristics
Answers
Answer:
buying and selling as a way of earning money
Hello !
Business is defined as an organised economic activity, wherein the exchange of goods and services takes place, for adequate consideration. It is nothing but a method of making money, from commercial transactions. It includes all those activities whose sole aim is to make available the desired goods and services to the society, in an effective manner.
Characteristics of Business:
Economic Activity:
Business is an economic activity, as it is conducted with the primary objective of earning money, i.e. for an economic motive.
Production/purchase of goods and services:
Goods and services are produced or procured by business entities, so as to add value and sell them to the consumer. Goods are either manufactured by the company or procured from the supplier, with the aim of selling it further to the consumer, for profit.
Selling of goods and services:
Business must involve the transfer of goods to the customer for value, through selling, meaning that if the goods are acquired for personal consumption, then the transaction will not amount to business activity.
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