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State any two characteristics of ‘business’. |
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Answer» Business:- Business may be defined as an economic activity involving the production or purchase and sale of goods and services with the main object of earning profit by satisfying human needs in the society. Characteristics of business 1. Business is an economic activity with the object of earning profit. 2. Business includes all the activities concerned with the production or procurement of goods and services. 3. There should be a sale or exchange of goods and services for the satisfaction of human needs. 4. Business involves dealings in goods or services on a regular basis. Normally, one single transaction of sale or purchase is not treated as a business. 5. One of the main objectives of business is to earn maximum profit. 6. Business involves risk and uncertainty of income. Risk means the possibility of loss due to change in consumer taste and fashion, strike, lockout competition, fire, theft, etc. |
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