What is Business
The term business is defined by different authors in different ways.
According to Ronald “As an organization that produces or sells goods and services to make profit”.
According to Urwick and Hunt “ business is any enterprise which makes , distributes or provides any service which other members of the community need and are within to pay for it”.
From the above definition of business, we find that the term business includes all human activities which are organized and operated for producing or purchases and sale of goods and services with the main object to earn a profit.
In other words, we can say that business is the sum of total activities which are connected with the production or purchase and sale of goods and services with the object to earn a profit.
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5 Main Characteristics of Business
The characteristic of business or features of business discussed below:
An entrepreneur is a person who combines the factors of production to produce goods and services. The presence of entrepreneur is essential in any business which may be operated on a small or on a large scale.
Business enterprise whether it is carried on a small or a large scale deals in goods and services .the goods may be consumer goods such as shoes, cloth, bread, milk etc or capital goods like building, plant, machinery etc or services like banking, financial, lawyer, advertising etc
Business consist of producing, purchasing or selling goods on a continuous basis.an isolated transaction is not treated as a business. For example, I sell my old books in the market is not doing business. However, if I purchase old books and sells them in spare time on regular basis to earn profit it will then be treated as a business.
There is an element of risk and uncertainty in every business. There is no certainty that business will always result in profit. The business may suffer losses due to change in demand for fashions fire robbery.
The primary objective of every business is to earn a profit. If an enterprise is to survive grow and expand it must yield a profit. Profit making thus is essential element and characteristic of business.