Question

Indu bought a readymade dress for 5000. Her friend liked the design of dress very much, so Indu sold the same dress to her friend for CP 5500 and made a profit of Rs. 500. After completing her studies Indu opened a shop of selling readymade dresses for girls.
(a) Can transaction between Indu and her friend be termed as business?
(b) State the features related to 'a'.
(c) Can the sale of dresses on her shop be called as business?

Answer 1

(a) No, the transaction between Indu and her friend cannot be termed as business.
(b) Business activity needs to be on a "Regular Basis". The transaction 'a' does not have continuity an hence cannot be termed as a business.
(c) Yes, as it is done on Regular Basis, the sale of dresses on her shop can be called as business.