Question

Define business.Explain the characteristic features.

Answer 1

$\underline{\huge{\gray{\textsf{\textbf Required\: Answer}}}}$

⠀

☆ Business

⠀

⇝ Business refers to an occupation in which people regularly engage in activities related to purchase, production and sale of goods and services with a view to earning profits.

⠀

☆ Characteristics/Features of Business

⠀

1. $\underline{\orange{\bf{An\: Economic\: activity}}}$

• Business is considered to be an economic activity because it is undertaken with the object of earning money or livelihood. There is no place for love affection sympathy for patriotism.

⠀

2. $\underline{\orange{\bf{Production\: of\: goods}}}$

• Before goods are offered to people for consumption, these must be either produced or procured by Business enterprises.

⠀

→ Goods main consists of consumption goods of daily use.

→ Services may include facilities offer to consumers.

⠀

3. $\underline{\orange{\bf{Exchange\: of\: goods}}}$

• The essential characteristic of business is that there should be sale or exchange of goods or services between the seller and the buyer.

⠀

4. $\underline{\orange{\bf{Regular\: transaction}}}$

• Business involves dealing in goods or services on a regular basis. One single transaction of sale or purchase therefore, does not constitute business.

⠀

5. $\underline{\orange{\bf{Earning\: profit}}}$

• One of the main purpose of business is to earn an income by a way of profit. No business can survive for long without profit.

⠀

6. $\underline{\orange{\bf{Uncertainty\: in\: return}}}$

• Every business invest money (capital) to run its activities with the objective of earning profit. But it is not certain as to what amount of profit will be earned.

⠀

7. $\underline{\orange{\bf{Element\: of\: risk}}}$

• No business can altogether do away with risk. Risk is caused by some unfavourable or undesirable event.

⠀

━━━━━━━━━━━━━━━━━━━━━━

Answer 2

Answer:

business is economic activity involved in production exchange distribution and sale of courts and services with an objective of making profits

Explanation

economic activity

activities is performed with the main motive of earning money or profit it does not include the activities undertaken out of love affection Charity and religious commitments

deals with goods and services

every business enterprise produces or Bioscope and services with intention of selling them to others so as to earn profits goods dealt in business may be consumer or capital goods

creation of utilities

business make foods more useful to satisfy human wants it at time place form and position utilities to various types of goods business enables people to satisfy their wants more effectively and economically it carry is good from place to production to the place of consumption please utility it makes foods available for the use of future use time utility

continuity in dealings

dealings in goods and services become business only if undertaken on regular basis a single isolated transaction of purchase and a sale does not constitute under business recurring or a repeater transaction of purchase and sale constitute under business

sale transfer or exchange

all business activities involved transfer or exchange of goods and services for some consideration the consideration called price is usually expressed in terms of money business delivery schools and services to those who need them are able and willing to pay for them

profit motive

the primary objective of business is to earn profits profits are essential for a survival as well as a growth of the any business this hope of earning profit only brings people into business profit must however been through the legal and fair means

risk and uncertainty

property is Revolt for resuming Risk risk means fear of loss eating place the uncertainty of profit or possibility of loss risk is a part in parcel of the business business Enterprises function in uncertain and uncontrollable environment

business is also a social institution

business is also social institution because it helps to improve the living standards of people through effective utilisation of scares resources of the society as well as to abolish employment

art as well as science

it is not because it requires a personal skills and experience it is also a science because is it is based on certain principles