Business needs to have some of its own identities and facts discussed as below.
(1)Economic activities : Business refers to minatory activities.Those activities of which value can measure in terms of money only are called business.Thus social,political and religious activities are not related as business.
(2)Dealing with gods and service : Business deals with goods and services.It satisfies costumers needs and wants by producing,buying and selling of consumers goods and services.Here, all tangible things are called consumer goods.Similarly ,services provided by teacher,layer,doctor are called consumers services as they do not sell tangible products to the consumers.
(3)Regularity in dealings : Business refers to the regular production and exchange of goods and services.For example,if om books centre kumaripati,supplies books and stationary materials to different schools in a regular manner then it is a business.
(4)Profit motive : business has the objective of earning profit.It is done only for providing services then it cannot be treated as business.For example,Ramesh makes a house at the cost rs.120,000 then it is business.But if he makes a house for his own purpose but not for profit then it is not called for business.
(5)Risk and uncertainty : No doubt,business is not done for profit.But there is not certainty runs at loss.change in the taste and demand of costumers,government business policy,competition and market condition,social constraints are some of the internal and external forces because of which business organization may have to bear loss.
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