Explain briefly any four characteristics of business.

(a) An economic activity : Business is done to earn profits by producing and exchanging goods and services. 

(b) Production or procurement of goods and services : Business involves production or procurement of goods and services having utility for consumers. 

(c) Sale or exchange of goods and services : Exchange of goods and services on regular basis for price. 

(d) Profit earning : Business is done with an objective to maximise profits by producing and exchanging the goods and services for price.

1. An economic activity: Business is considered to be an economic activity because it is undertaken with the object of earning money or livelihood and not because of love, affection, sympathy or any other sentimental reason.

3. Profit earning: One of the main purpose of business is to earn income by way of profit. No business can survive for long without earning profit. That is why businessmen make all possible efforts to maximize profits, by increasing the volume of sales or reducing costs. 

4. Sale or exchange of goods and services: Directly or indirectly, business involves transfer or exchange of goods and services for value. If goods are produced not for the purpose of sale but say for internal consumption, it cannot be called a business activity.