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Meaning and characteristics of business

Meaning:- business is an economic activity which is concerned with production and distribution of goods and services and which is conducted on regular basis to earn profit through the production and sale of good and services.


Definition:- according to LH Haney,"business may be define as human activitiy directed towards producing or accquiring wealth through buying or selling goods.


Characteristics of business,

1. An economic activity

2. Exchange of goods and services

3. Regular in dealing

4. Profit motive

5. Element of risk

6. Creation of utility

7. Human activity

8. Consumer satisfaction

1. An economic activity:- business includes only those activity which are performed by human Being. Economic activity mean the exchange of goosd and services with the purpose of earning money.

2. Exchange of goods and services:- for business the exchange of goods and services is essential. It means that if an individual purchases a thing or service for his personal use, this activity will not be called business.

3. Regular dealing:- in reality business is that economic activity which is done by regularly purchase sale should regularly done.




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