Features of business

• A business is an economic activity which includes the purchase & sale of goods or rendering of services to earn money.
• It is not concerned with the achievement of social and emotional objectives.

Example: Wholesaler sell goods to the retailers and retailers sell goods to the customers.

• Before offering goods to the consumer for consumption it should be manufactured or procured by businesses.
• Business enterprise converts the raw material into finished goods.
• Organisations also procure finished goods& services from the producers to meet the needs of the customers in the market.
• Goods can be a Consumer good like sugar, pen, ghee, etc. capital goods include machinery, furniture, services like transportation, banking, etc.

Example: Individual retailer buys the toffees from wholesalers in a specific quantity and sells it to the ultimate consumer.

• Every business activity includes an exchange or transfer of services and goods to earn value.
• Producing goods for the goal of personal consumption is not included in business activity.
• So, there should be the process of sale or exchange of goods or services exits among the seller and the buyer.

Example: A lady who bakes pastries and cakes at home and sells it to the pastry shop is a business activity.

• Every business, rendering either services or goods should deal on a daily basis.
• A one-time sale is not considered a business activity.

Example: If a person sells his old car through OLX even at a profit will not be considered as a business activity. But if he is engaged in regularly trading of cars at his showroom will be considered as business activity.

• No business can last for long, without making a profit.
• The purpose to conduct the business is to earn profits and minimise the cost.

Example: A business house tries to reduce the cost of production and the cost of raw material to earn high profits.

• The possibility of earning profit or loss is very uncertain and can’t be anticipated by the entrepreneur.
• Hence, no business can totally do away with risks.

love, sympathy, sentiments, patriotism,

etc.

(1)A teacher teaching student in the class

(2)A doctor treating the patient in the clinic

Or

State the different types of economic activities.{NCERT}

• The activities which are carried out for the purpose of earning money or money’s worth.
• It helps in fulfilling the basic financial, monetary and human requirements.

• It refers to the work in which people work for others and get paid in the form of wages or salaries.
• The persons who are employed by others are known as employees.
• The person who gives remuneration to the employees is known as an employer.
• In other words, it is a contract between the employer and the employee.

Example: People who work in factories and receive wages.

People who work in offices and receive a salary.

• Business refers to any occupation, in which people engage regularly to earn profits.
• In other words, it is concerned with being involved in economic activities which include:
• Production and sale of goods and
• Rendering services
• The objective of earning profits is to satisfy the customer’s needs for long-term survival in the society.

• The profession is an economic activity which requires specialised knowledge and skills.
• applies knowledge and skills in his work to earn money.
• Such activities are generally subject to guidelines laid down by professional bodies.
• The individual who is specialised in a particular profession is called a professional.

Example: A lawyer who is engaged in the law profession is governed by the Bar Council of India.

Or

Explain the concept of business.{NCERT}

• Business refers to any occupation in which people engage regularly to earn profits.
• In other words, it is concerned with engaged in economic activities which involves
• Production and sale of goods and
• Rendering services
• The objective of earning profits is to satisfy the customer’s needs for long-term survival in the society.

Or

Compare business with profession and employment. {NCERT}

Buying and selling of goods, rendering services to the consumer for monetary benefits.

b. Uncertainty of return

c. Both (a) & (b)

d. None of the above

b. profit

c. Both (a) & (b)

d. None of the above

b. profit

c. Both (a) & (b)

d. None of the above