Business is a human economic activity which is concerned with the production and distribution of goods and services with the aim of earning profit by satisfying human needs in the society.
- Literal meaning of business is state of being busy.
- Business is money oriented economic activity.
- The main motive of business is to earn profit.
Note: The production and distribution of goods and services for personal use and social welfare activities without any benefit or profit is not a business.
According to C.F Abbot, “Business without profit is not a business.”
In conclusion we can say that business involves all the human activities consisting of production, distribution, exchange and auxiliary functions like hotels, college etc to satisfy needs and demand of the customers to meet economic goal of the organization.
Characteristics of Business:
Its characteristics are explained below: