Question

Which of the following is not a characteristic of business (a) production (b) exchange or sale (c)wages or salaries to investors (d)risk management

Answer 1

Answer:

wages or salaries to investors

Answer 2

A business organization does not compulsorily have investors so paying wages or salaries to investors is not an essential characteristic of all business organizations.

Explanation:

• A business organization can be defined as an economic activity where goods are produced for selling or exchange in turn of monetary consideration.
• It also involves risk management as the sale of a product might cover the expenses of the business and give profits.
• However, it is important to note that business organizations can be of multiple types. Some business organizations such as sole proprietorship do not have investors so wages and salaries to investors is not an essential characteristic.
• Therefore C, wages and salaries to investors if the correct answer.