Question

Which of the following is not a characteristic of 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

The correct option is D Salary or wages

The following are the characteristics of business activity :

1) Production of goods and services : The production of goods and services are the most important function of business as business sells the products and services in the market and earn profit.

2) Presence of risk : Risk is available in any business activity where there is risk there is returns.

3) Sale or exchange of goods and services : The sale or exchange of goods and services which lead to generation of profits and revenue .

This are the characterisctics of business activity.

4) Salary or wages : Salary and wages are paid to employees or labour in the organization.

This is not business activity.