Any work which is done for profit earning is called business or any profit earning activity is known as business. The activity which does not involve profit we cannot say it a business. Examples NGO’S, the example of business is trading, wholesaling and shopkeeper etc. there are many characteristics of business. They are following: the business is a profit earning activity. It gives benefit to business man. The element of risk is involved in the business. Without risk business cannot be run. So risk is a necessary element.
Business should be continuous activity e.g. if a student sale books in his free time we cannot call it a business it does not involve regularity. A person who daily sale books for profit earning this is called a business. Business is liked social relationship with the society. Example A shopkeeper maintains relation with his customer etc. A business is also an economic activity. It should be done on economical basis.
Business is for the benefits of customers. It provides advantages to them. Business should be fair. There should not be any unfair thing. Illegal business should not be done. Avoid illegal business. There is always a competition in business. For improvement in business fair and healthy competition is necessary. The main and primary objective of business is profit earning so it should be fair. Business take care the needs of customers.
Business increases the living standard of people. It enhances the ability of person. Business provides employment opportunities in a country. Business can be done on crash basis as well as on credit basis.
Sometimes business create bad environment by creating monopolies and bad competition.