Business is the activity preformed by an individual or a group of people with a view to earn profit within the government rules and regulations.
Some of the important characteristics of business are given below:
Characteristics of business
- Profit: This very important criterion of business that distinguishes it from other types of activities. People start business just to earn profit although there are the possibilities of boss at least in the initial stages.
- Risk: Risk is inherent in businesses although the degree may vary from one kind to another. It is possible that there may be loss instead of gain. There is no business activity, which is not subject to loss.
- Legality: The subject matter of business is to be legal. Business can operate through government rules and regulations of a country. Illegal business is not to be considered as business.
- Creation of utilities: Business leads to the creation of utilities and thus satisfies human wants by modification of product features, size, color, style, design etc.
- Exchange of goods and services: Exchange of goods and services is the foundation of business. If there exists no exchange function there cannot be any business. Exchange function is the means to an end of maximizing profits.
- Forecasting: Forecasting is indispensable for growth and survival of a business. Some of the factors that a businessman must have to predict are:
- Demand and supply of the product
- Qualities of the product
- Existing and potential customers of product
- Observation of the competitors movement
- Technological changes
- Economic and political changes etc.
7. Rendering service to the society: Rendering service to the society is another important feature of business. Business must have some responsibility towards society as well as the whole community. The responsibility of businessman is the deliver the goods and services in way that is beneficial to the society.
Other Content of Business:
- What is the Definition of Business?
- Nature and Scope of Business
- Components / Elements of Business
- What are the Objectives of Business?