Business is an economic activity which involves the exchange, purchase, sale or production of goods and services with a motive to earn profits and satisfy customers’ needs. Businesses may be profit or non-profit organizations that function to gain profits or achieve a social cause.
Business deals with the continuous production and distribution of goods and services carried out to earn profits under uncertain market conditions. It also includes the acquisition of goods from suppliers to sell them for profit.
Productivity: A business should be efficient in its dealings, and a high level of productivity is essential for success. This can be achieved through reducing wastages, upgrading machinery and equipment, and using latest technologies. It also means making proficient utilization of human resources, cash and other capital.
In order to be effective, a business must have an understanding of its goals and objectives, as well as a set of values that reflect the integrity of the organization. It also must have a vision of what it wants to accomplish in the future and a plan of how to achieve those goals.
Consumer satisfaction: It is the primary objective of any business to provide products that are of good quality, at reasonable prices. If consumers are not satisfied with a company’s products, they will look for substitutes.
Employment generation: Another important goal of any business is to generate jobs for people in the community. This will help the economy grow, and increase tax revenue for the government.
Service-oriented: Modern businessmen are aware of their responsibility to society. They try to make their products and services more valuable to consumers, while avoiding wasteful practices such as boarding, black marketing and manipulative advertising.
Legal and Lawful: No matter what type of business a person is engaged in, it must be legal in the eyes of the law. This means that the business must be registered and licensed.
Continuity in dealings: Any dealings between a business and its suppliers or buyers must be regular to constitute business. In other words, a person who regularly deals in several transactions will not be considered as a business.
Profit earning: The basic purpose of a business is to make money from its activities, and this is the key to success in any business. The money that a business makes is used to pay its employees and investors.
The word business comes from the Latin phrase biznes, meaning “busy.” It refers to a business that works on a regular basis and makes money by selling goods or services to other people. It can be a small business or a large corporation.
In some cases, a business can be classified as a sole trader, Hindu Undivided Family, partnership firm or joint stock company. It can also be a cooperative enterprise.
There are many ways to define a business, and each way has its own set of characteristics. The definitions vary from place to place, and often depend on the type of business a person is trying to establish.