Features/Characteristics of Business

Business Introduction

The growth and development of an economy depends on the nature of business operating in it. A business in board terms may include an activity performed to earn income or profits. In this unit, we shall study the business and its nature, types of different businesses and their role in an economy. If we learn how a business is organized and operated, we can start our own business or become a part of a running business and may contribute in the economic growth of the country.

Features/Characteristics of Business

Following are some important characteristics of business:

  - Earning Motive

    The basic purpose and function of the business is to earn profit. The profit is the return to the owners of a business who have invested their capital in the business. A business exists to maximize its profits by selling the product to the customers.

  - Legal Activities

    All business needs to register with the government, otherwise their activities are regarded as illegal. Further, business that does not include illegal activities such as smuggling, bribery, and robbery or the like illegal activities is not covered under the business.

 - Satisfaction of Human Needs and Wants 

    The business exist in the markets to fulfill the different economic needs and wants of the customers. These wants are served through the provision of many products in the markets. The good quality of product of product help a business to grow and get more customers.

  - Benefits for Society

    The motive business concept is to serve society in terms of providing good and services, providing high quality employment opportunities & saving time of customers by providing high quality of goods.

  - Innovation

    This means to include new and advanced features in the production of goods and services. For example, adding a camera in a cellular phone, including memory card facility and video features etc are categorized as innovation in the business processes.

  - Employment opportunities

    Business provides employment to oneself and society. In this way, higher living standards and social progress are archived. The people are engaged in different professions through the conduct of business. It  impacts positively upon national income growth, economic development and employment level.