Business is a common word because we often hear about business. Everything we use is produced by business like books, stationery, electronic equipment, vehicles etc. Various types of businesses exist in this world and the aim of all businesses is to make profits by providing goods and services.
Table of Contents
What is business?
Meaning of Business
Wherever economic activity takes place is called business. There are mainly two parties involved in business, one is the buyer, and the other is the seller. Sellers provide goods and services to buyers and the buyer pays in return.
The objective of the seller is to earn profit by providing goods and services to the buyer and the objective of the buyer is to get self-satisfaction by using the goods and services provided by the seller.
Definition of Business
According to Lewis H. Haney – “Business may be defined as human activity directed towards or acquiring wealth through buying and selling of goods.”
According to Peterson and Plowman: – “Business is an activity in which different persons exchange something of value, whether goods and services for mutual gain or profit.”
According to R N Owens – “Business is an enterprise engaged in the production and distribution of goods for sale in the market or rendering service for a price.”
Features of Business
Following are the features of the business:
1. Economic Activity:
Business is an economic activity because business is created only when economic activity is carried out. Economic activity means activity carried out for money or money equivalent. Under this, the seller sells goods and services to the buyer and the buyer pays for it.
2. Profit Motive:
The main objective of businesses is to make profits by providing goods and services to buyers. Every business tries its best to earn maximum profit because without profit survival of business is not possible.
3. Products:
Business is an economic activity and while doing economic activity at least two parties come together, they come together only when the product is available because one comes to sell and the other comes to buy.
4. Risk:
Every business involves risk and it comes in two ways, one by oneself and the other not by oneself. There is a positive attitude and negative attitude towards risk in business, different people have different thinking regarding risk.
5. Customer Satisfaction:
If the customer is satisfied with the product then it helps in the growth of the business as those customers remain associated with the business for a long time. Every business tries to provide more customer satisfaction by providing quality goods, quantity, and services.
6. Employment:
Every business provides employment whether it is for one or more than one but provides employment. Every person depends on business because every person earns money or its equivalent from business.
7. Innovations:
Innovation is the progress of business and it is very important for business because at this time it is very difficult for businesses to survive, only that business can survive which innovates in business again and again.
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QNA/FAQ
Q1. What is business?
Ans: Wherever economic activity takes place is called business. There are mainly two parties involved in business, one is the buyer, and the other is the seller. Sellers provide goods and services to buyers and the buyer pays in return.
The objective of the seller is to earn profit by providing goods and services to the buyer and the objective of the buyer is to get self-satisfaction by using the goods and services provided by the seller.
Q2. Write a definition of business.
Ans: According to Lewis H. Haney – “Business may be defined as human activity directed towards or acquiring wealth through buying and selling of goods.”
Q3. Write the features of the business.
Ans: Following are the features of the business:
1. Economic Activity
2. Profit Motive
3. Products
4. Risk
5. Customer Satisfaction
6. Employment
7. Innovations
Q4. Is business an economic activity?
Ans: Yes, business is an economic activity because business is created only when economic activity is carried out. Economic activity means activity carried out for money or money equivalent. Under this, the seller sells goods and services to the buyer and the buyer pays for it.
