1. Economic activity:
Business is an economic activity of production and distribution of goods and services. It provides employment opportunities in different sectors like banking, insurance, transport, industries, trade, etc. it is an economic activity corned with the creation of utilities for the satisfaction of human wants.
2. Buying and Selling:
The basic activity of any business is trading. The business involves buying raw material, plants, and machinery, stationary, property, etc. On the other hand, it sells the finished products to consumers, wholesalers, retailers, etc. The business makes available various goods and services to the different sections of the society.
3. Continuous process:
Business is not a single time activity. It is a continuous process of production and distribution of goods and services. A single transaction of trade cannot be termed as a business. A business should be conducted regularly in order to grow and gain regular returns.
4. Profit Motive:
Profit is an indicator of the success and failure of business. It is the difference between the income and expenses of the business. The primary goal of a business is usually to obtain the highest possible level of profit through the production and sale of goods and services. It is a return on investment. Profit acts as a driving force behind all business activities.
5. Risk and Uncertainties:
Risk is defined as the effect of uncertainty arising on the objectives of the business. Risk is associated with every business. Business is exposed to two types of risk, Insurable, and Non-insurable. Insurable risk is predictable.
6. Creative and Dynamic:
Modern business is creative and dynamic in nature. A business firm has to come out with creative ideas, approaches, and concepts for the production and distribution of goods and services. It means to bring things in a fresh, new and inventive way.
7. Customer satisfaction:
The phase of business has changed from traditional concepts to modern concepts. Now a day, business adopts a consumer-oriented approach. Customer satisfaction is the ultimate aim of all economic activities.
8. Government control:
Business organizations are subject to government control. They have to follow certain rules and regulations enacted by the government. The government ensures that the business is conducted for social good by keeping effective supervision and control by enacting and amending laws and rules from time to time.