Table of Contents
It’s hard to find someone who isn’t familiar with the word business. According to the Oxford English dictionary, “ the state of being busily engaged in anything is called Business.”
But engaging in non-economic activities such as walking, gossiping etc. can not be called business.
In fact, business refers to being engaged in those activities whose main purpose is to make profit.
In a word, economic activities with an objective to earn profit are termed as business.
In broad sense, a set of valid organized economic activities for production and exchange of goods or services with an objective to earn profit where a certain amount of risk involves is called business.
To make it more clear, let me give you an example, if you grow vegetables to make a profit, it will be treated as business but if you cultivate it for your family members won’t be considered as business because no intention of making profit is involved.
In conclusion, it can be said that business must have four characteristics:-
