Explain the meaning of business and its main characteristics.
Answers
Answer:Definition: 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 a business:
1. Economic activity
2. Buying and Selling
3. Continuous process
4. Profit Motive
5. Risk and Uncertainties
6. Creative and Dynamic
7. Customer satisfaction
8. Social Activity
9. Government control
10. Optimum utilisation of resources
Explanation:
Business is the activity of making one's living or making money by producing or buying and selling products (such as goods and services).[need quotation to verifySimply put, it is "any activity or enterprise entered into for profit. It does not mean it is a company, a corporation, partnership, or have any such formal organization, but it can range from a street peddler to General Motors.
Having a business name does not separate the business entity from the owner, which means that the owner of the business is responsible and liable for debts incurred by the business. If the business acquires debts, the creditors can go after the owner's personal possessions. A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business.
The term is also often used colloquially (but not by lawyers or by public officials) to refer to a company. A company, on the other hand, is a separate legal entity and provides for limited liability, as well as corporate tax rates. A company structure is more complicated and expensive to set up, but offers more protection and benefits for the owner