Business is the sum total of all those activities which are carried on by various enterprises, regardless of size, in the production or marketing of goods or services to the consumer with the object of earning profit through the satisfaction of human wants.

Characteristics of Business

Entrepreneur

For establishing a business, there must be someone to take the project. The entrepreneur thinks about a business, joins different factor of production and set them into a going concern.

Deals in Good and Services

Every business whether it is carried on a small or on a large scale deals in goods and services. The goods may be a consumer good like cloth, shoes, pens, etc and producer goods like machinery or it may take the shape of services like the supply of electricity, water, gas, transportation of goods etc.

Economic Activities

The activities which are involved in the production or distribution of goods and services for with economic motive are a part of the business. Any activity is undertaken for personal consumption or is exchanged free, fall outside the scope of business.

Series of Deals

When a firm takes up manufacturing or distribution of goods or providing of services for profit purpose, there should be serious of deals in it.

Profit Motive

Profit is a motivating force in enterprise any business activity. Businessmen seek to profit from their operations and attempt to avoid loss.

Financing

Every business whether is small or large cannot move the step without finance. The funds are requiring for meeting the fixed and working capital requirements of busyness.

Creation of utilities

The business creates various types of utilities like the place, form, time, etc in goods so that consumers may use them. The business, if it exists, must produce goods an according to the tasks of the consumer.

Consumer satisfaction

Business and consumers exist for each other. Thee business if it exists must produce goods according to tasks of the consumer.

Organization

Every business needs organization for combing the various factor of production into production activities.

An element of risk and uncertainty

There is an element of risk and uncertainty involved in every business. If a firm is not able to anticipate or control or minimizes the risk involved in a business, it suffers losses.