Question

Which of the following does not characterise a business activity?

(a) Production of goods and services

(b) Presence of risk

(c) Sale or exchange of goods and services

(d) Salary or wages

Answer 1

Salary or wages is not a characteristic of business. In a business activity, the entrepreneurs work for themselves, solely for the profit motive. A business involves production and exchange of goods and services. Risk is also involved in carrying on a business because of the unpredictable events associated with it.

Hence, the correct answer is option (d).