Concept of business : Meaning, Definitions, Features or characteristics, and Importance
The word business has been derived from busy which means being busy. It means any work or activity which keeps busy to himself. In another words we said that business is an economic activity on continuous basis. involves production or purchases of goods for sale, transfer or exchange goods, or supply of services for the purpose of earning profit.
It is a regular process of exchanging goods and services which involve risk and uncertainty. In fact, business is an economic activity aimed to fulfill the need and wants of customers through the supply of goods and services for their satisfaction.
According to L.H Haney, “Business may be defined as a human activity directed Towards producing or acquiring wealth through buying and selling of goods.”
According to James Stephenson, “Economic activities performed for earning profits are termed as the business.”
Characteristics of Business
- Dealing in goods and services
Business refers to those organizations which deals in goods and services on daily basis and this process occurred for long time. And it is a continuous process.
- Regular dealing
Dealing in goods and services on regular basis which helps business in development and helps in market growth.
- Profit earning
Business is an organization which deals in regular basis and the main motive of business is to earn profit. The primary goal of a business is usually to obtain the highest possible level of profit through the production and sale of goods and services
- Customer satisfaction
Business refers to that institution which deals in exchange of goods and services and satisfying human needs. It helps in development of economy.
- Continuous process
Business is not a single time activity. It is a continuous process of goods and services. A single transaction of trade cannot be termed as a business. A business should be traded on daily basis and conducted regularly in order to grow and gain maximum return. Economic activity
Business is an economic activity of production and distribution of goods and services. It provides employment opportunities in different sectors like banking, insurance, transport, industries, trade etc. it is an economic activity corned with creation of utilities for the satisfaction of human wants.
Importance of Business
- It provides employment opportunity.
Business refers to those institutions which help in production and distribution of goods and services. It provides employment opportunity in different sectors like trade, industries, banking and sales and production sector.
- Income generation
Businesses are those institutions which deals in regular basis and also helps in generation of income. It is an economic activity concerned with creation of utilities for satisfaction of human wants and develops economy.
- Supply of goods and services.
Business refers to those organizations which deals in goods and services on daily basis and this process occurred for long time. Also develop economy and satisfy human.
- Social development
Business helps in social development by production of several goods with continuous process and also satisfies human which helps in development. It also provides employment opportunities to public
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