Answer:
Features of Business:
The Features of
Business are given below.
1. Exchange of
goods and services:
All business activities are directly or indirectly concerned with the
exchange of goods or services for money or money's worth.
2. Deals in
numerous transactions:
In business, the exchange of
goods and services is a regular feature. A businessman regularly deals in a number of transactions and not just one or
two transactions.
3. Profit is the
main Objective:
The business is carried on with the intention of earning a profit. The
profit is a reward for the services of a businessman.
4. Business skills
for economic success:
Anyone cannot run a business. To be a good businessman, one needs to
have good business qualities and skills. A businessman needs experience and
skill to run a business
.
.
5. Risks and
Uncertainties:
Business is subject to risks and uncertainties. Some risks, such as
risks of loss due to fire and theft can be insured. There are also uncertainties,
such as loss due to change in demand or fall in price cannot be insured and
must be borne by the businessman.
6. Buyer and Seller:
Every business transaction has minimum two parties that is a buyer and
a seller. Business is nothing but a contract or an agreement between buyer and
seller.
7. Connected with
production:
Business activity may be connected with production of goods or
services. In this case, it is called as industrial activity. The industry may
be primary or secondary.
8. Marketing and
Distribution of goods:
Business activity may be concerned with marketing or distribution of
goods in which case it is called as commercial activity.
9. Deals in goods
and services:
In business there has to be dealings in goods and service.
Goods may be divided into following two categories:-
- Consumer goods: Goods which are used by final consumer for consumption are called consumer goods e.g. T.V., Soaps, etc.
- Producer goods: Goods used by producer for further production are called producers goods e.g. Machinery, equipment etc. Services are intangible but can be exchanged for value like providing transport, warehousing and insurance services, etc.
10. To Satisfy
human wants:
The businessman also desires to satisfy human wants through conduct of
business. By producing and supplying various commodities, businessmen try to
promote consumer's satisfaction.
11. Social
obligations:
Modern business is service oriented. Modern businessmen are conscious
of their social responsibility. Today's business is service-oriented rather
than profit-oriented.
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