Q.8 Answer the following.
1) Give comparative analysis of business, profes
2) Define business. Explain its features.
3) Describe various objectives of a business.
4) Explain the importance of profit in business.
Answers
Answer:
2. An Economic Activity. A business is an economic activity which includes the purchase & sale of goods or rendering of services to earn money. It is not concerned with the achievement of social and emotional objectives.
3. Similarly, business objectives are something which a business organization wants to achieve or accomplish over a specified period of time. These may be to earn profit for its growth and development, to provide quality goods to its customers, to protect the environment etc.
4. Profit equals a company's revenues minus expenses. Earning a profit is important to a small business because profitability impacts whether a company can secure financing from a bank, attract investors to fund its operations and grow its business. Companies cannot remain in business without turning a profit.