State any four features of business
Answers
2. profits
3. take care of loss
4. a business should always be growing ,expanding.
Business is derived from the word"busy". Business means generating income out of economic activity by employing the factors of production in efficient manner.
Explanation: Following are the features of the business:
1. Business has profit motive: Profit is blood for a business survival just like a human being. Initially huge capital is required to form a business and then businessman puts efforts to raise the profit margins.
2. Risk and Return: Business has certainty of return and element of risk is always present. A businessman must be able to take risk because higher the risk higher will be the return. Risk in a business can be of any types internal or external.
3. It is continuous process: One time transaction of selling of goods does not suffice the category of business. It should be continuous.
4. Deals in goods and services on regular basis: Business has always something to offer, either goods or services. Without any consideration or anything to offer in exchange,there is no business.