define business.explain it's main features.
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Answer:
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Explanation:
Business is an economic activity that involves the exchange, purchase, sale or production of goods and services with a motive to earn profits and satisfy the needs of customers. Businesses can be both profit or non-profit organizations that function to gain profits or achieve a social cause respectively.
Features of Business:-
There are five broad features of business:
Dealings in goods and services :- Business deals with goods and services. Goods are divided into consumer goods like bread, butter, shoes, shirt etc. and producer goods like machinery, tools, equipment etc. It also deals with services like transport, banking, insurance etc
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Production and exchange :- Business is carried out only when goods and services are produced and exchanged for money. If goods are produced for self-consumption, such an activity is not treated as business. Buyer and seller are the two parties involved in a business activity.
Continuity and regularity in dealings :- An activity is said to be a business when it maintains continuity and regularity. For example—if a persons sells his house, it is not said to be a business because continuity is not there in dealings. If he repeatedly buy houses and sell them to others, such activity is treated as business.
Profit motive :- The main and the foremost motive of business is to earn profit. Profits are very important so as to enable the business to survive, grow, expand and get recognition.
Element of risk :- Risk is said to be the possibility of incurring loss. Risks are of two types—one whose probability can be calculated and insured. E.g.—fire, theft etc. and the other whose probability cannot be calculated and which cannot be insured. e.g.—fall in demand, changing fashions etc.
Hope this may help you a lot❣️
Business is an economic activity that involves the exchange, purchase, sale or production of goods and services with a motive to earn profits and satisfy the needs of customers. Businesses can be both profit or non-profit organizations that function to gain profits or achieve a social cause respectively.
Hope it's help you