Question

Long Answer Questions :
Explain the characteristics of business.

Answer 1

The characteristics of business are :-

• Economic activity: Business is considered as an economic activity since it is carried out with the purpose of earning money.
• Buying and selling: Business involves buying and selling of goods and services. Goods produced for own consumption is not considered as business.
• Continuous process: Business is not a one time activity. It is a continuous process of production and distribution of goods and services.
• Profit motive: The primary objective of business is earning profit. A business cannot survive for long without earning profit. Profit is required for expansion of the business.
• Uncertainties: Business always involves risk and uncertainties. It is impossible to ascertain how much a business would earn or if there will be loss involved.
• creative and dynamic: business organization is dynamic and changing in nature. business has up come with new and innovate ideas to improve their status in competition.
• customer satisfaction: it is also if important which will help the business in long run of the success of the company. if the company cheats the consumer in products and services it will be successful in short term but will get a high downfall in long run.