Introduction to Business
Que. 1 Explain the meaning of Business. Explain the features of business. (10
Marks)
Meaning of Business
Business refers to an economic activity involving the regular production,
purchase, and sale of goods and services with the main objective of earning
profit. It is a continuous process of satisfying human wants through exchange.
Features of Business
1. Economic Activity: Business is done to earn money or a livelihood, not
for psychological satisfaction or charity.
2. Production or Procurement: A business either manufactures goods or
buys them from others before selling them to consumers.
3. Sale or Exchange: There must be a transfer of goods or services for value
(money). Personal use of a product is not a business.
4. Regularity in Dealings: A single transaction is not a business. For
example, selling your old phone once is not a business, but running a
mobile shop is.
5. Profit Motive: The primary aim of any business is to earn profit. Without
profit, a business cannot survive for long.
6. Element of Risk: Every business involves some level of uncertainty and
risk of loss due to changes in market trends, competition, or natural
factors.
Que. 1 Explain the meaning of Business. Explain the features of business. (10
Marks)
Meaning of Business
Business refers to an economic activity involving the regular production,
purchase, and sale of goods and services with the main objective of earning
profit. It is a continuous process of satisfying human wants through exchange.
Features of Business
1. Economic Activity: Business is done to earn money or a livelihood, not
for psychological satisfaction or charity.
2. Production or Procurement: A business either manufactures goods or
buys them from others before selling them to consumers.
3. Sale or Exchange: There must be a transfer of goods or services for value
(money). Personal use of a product is not a business.
4. Regularity in Dealings: A single transaction is not a business. For
example, selling your old phone once is not a business, but running a
mobile shop is.
5. Profit Motive: The primary aim of any business is to earn profit. Without
profit, a business cannot survive for long.
6. Element of Risk: Every business involves some level of uncertainty and
risk of loss due to changes in market trends, competition, or natural
factors.
