Business is an economic activity that involves the exchange, purchase, sale, and production of goods and services with the motive to earn a profit. Everything that surrounds us is a chain of business, from a laptop to the bed, from the food we are eating and drinks we are enjoying drinking, everything is a part of the business. Humans are adaptive to the environment and conditions they are living in. As modernization occurs, the humans demand also started changing this gives businessmen them to grow their business. They just need to identify their ultimate customers and their need so that they can offer them what they want and earn a profit or run a productive business. Let’s have a look at some features and characteristics of this exchange and profit earning activity.
Following are the features or characteristics of a business:
Ø Economic activity.
As we defined earlier a business is an economic activity that includes the purchase and sale of goods and services to earn money. Its primary focus is on earning the profit rather than focusing on the achievement of social and emotional objectives.
Ø Satisfies the human wants.
As the production of goods is not the goal of personal consumption in business, the exchange of the product is a must in the business between the buyer and seller. Thus, it satisfies the consumers as they get what they need and generates income for the producers or its sellers.
Ø Manufacturing of goods and services.
Before selling the goods to their ultimate consumers, the manufacturers need to manufacture the goods. They convert raw material into finished goods like converting a raw apple to jam. Thus, after that, they offer their finished goods in the market so that their potential customers can purchase them.
Ø Dealing with products on a daily basis.
Every business needs to deal with its goods and services on a daily basis. One time sale is not considered a business activity.
Ø It should be profit earning.
Profit earning is a must in running any business. The purpose behind the business is to minimize the production cost and increase the market cost of any good or service offer by the business. Thus, the owner or entrepreneur will gain more profits.
Ø Uncertainty of return.
Every business has risk involved in it. The possibility of earning profit or loss is very uncertain and can’t be anticipated by the entrepreneurs thus no business can totally run or do away with risks.
CONCLUSION- Any business is conducted by the motive of earning a profit by satisfying their customers with their requirements. It wholly deals with the organized efforts and activities of individuals to produce and sell goods and services for profit. The above described were some of the features and characteristics that describe the business well. I Hope, this blog will be helpful in understanding its concepts.