Definition of Business. Characteristic of Business. Classification of Activities.
Answers
Business:
It is an occupation or trade and the purchase and sale of products or services to make a profit. An example of business is farming. An example of business is a house sale.
The following are the ten important characteristics of a business:
• Economic activity:
• Buying and Selling:
• Continuous process:
• Profit Motive:
• Risk and Uncertainties:
• Creative and Dynamic:
• Customer satisfaction:
• Social Activity:
Hope it's helpful... ^_^
Answer:
Definition of business
Business is the buying, selling & exchange of goods & services for-profit service or motive is commonly known as business.
Classification of activities
In a specific sense, business activities refer to any occupation in which people regularly engage in an activity with a view to earning the profit. Into two broad categories, various business activities can be classified-
Industry
Commerce
Industry
The sector where raw material gets converted into useful products is called industry.
Industry can be classified into three broad categories.
Primary Industry
Secondary industry
Tertiary industry
Classification of Business Activities
Business is the buying, selling & exchange of goods & services for-profit service or motive is commonly known as business. The term business is derived from the word ‘busy’. In a specific sense, business activities refer to any occupation in which people regularly engage in an activity with a view to earning the profit. Let us take a look at the classification of business Activities
Classification of Business Activities
Into two broad categories, various business activities can be classified-
Industry
Commerce
Industry
The sector where raw material gets converted into useful products is called industry. Activities related to production & processing as well as activities related to rearing & reproduction of animals or other living species are all included in the industry. The purpose of industry is to create form utility by converting raw materials into useful forms of finished products.
An industry may produce consumer goods or capital goods. Goods such as bread, butter, cloth, radio, etc. are consumer goods. These goods are directly used by the consumer. Goods such as machinery, cement etc. are called capital goods as these are used further in the production process to make useful products.
Industry can be classified into three broad categories.
Primary industry
Secondary industry
Tertiary industry
Commerce
We can refer to commerce as all those activities which help directly or indirectly in the distribution of goods to the ultimate consumer. There will be no use of producing goods unless & until these goods reach the ultimate consumer. Goods are produced at one place & consumers are scattered at different places. Commerce can be classified into two broad categories:
Trade
Aids to trade
Characteristic of Business
The following are the ten important characteristics of a business:
Economic activity:
Buying and Selling:
Continuous process:
Profit Motive:
Risk and Uncertainties:
Creative and Dynamic:
Customer satisfaction:
Social Activity: