Business is defined as an important economic activity. It has various features or characteristics such as investing, entrepreneurship, risk bearing, creation of utility, customer satisfaction, continuity etc.
Some of the major characteristics of business can be described as follows:
1. Entrepreneurship
Business involves entrepreneurship. It exploits opportunities. A businessman starts business a new business. He assumes risks. he brings together various factors of production such as men, money, materials and management. Business without entrepreneurship is not possible. innovation is the key to entrepreneurship. Therefore entrepreneurship is a main characteristic of business.
2. Economic activities
Business involves money-oriented economic activities. They are related to production and marketing of products. Such activities involve costs. They are marketed at a price. Economic activities are performed by humans on a regular basis. They are measured in terms of money.
3. Capital investment
Business requires capital investment. Capital is needed to acquire factors of production. They can be land, labor, technology and management.
4. Utility creation
Business creates utilities for consumer satisfaction. Utilities add value. Business cannot exist if consumers are not satisfied. Utilities can be form utility, place utility and time utility.
5. Risk bearing
Risk bearing is another characteristic of business. Risk is the possibility of loss which reduces chances of profit. Changing environment and uncertainties in future create risk. Risks may be political risk, economic risk, social risk, technological risk and natural risk.
6. Competition
Business operates in competitive environment. Competition can be at local, national and international levels.
7. Customers satisfaction
Business creates and satisfies customer needs. Profit is made by satisfying customers needs.
8. Organization
Business is an organization. It is an association of people. It has objectives, structure and technology. It operates within the environment. it requires management. It prepares and implements plans.It is an organized activity.
9. Continuity
Business has continuity. It involves in dealing in products on a regular basis. It is dynamic. It changes with change to survive and grow. There is continuity is dealings. One time dealing is not business.
10. System
Business is a system. It consists of inter-related activities. They are inputs, processing, outputs and feedback.
Some of the major characteristics of business can be described as follows:
1. Entrepreneurship
Business involves entrepreneurship. It exploits opportunities. A businessman starts business a new business. He assumes risks. he brings together various factors of production such as men, money, materials and management. Business without entrepreneurship is not possible. innovation is the key to entrepreneurship. Therefore entrepreneurship is a main characteristic of business.
2. Economic activities
Business involves money-oriented economic activities. They are related to production and marketing of products. Such activities involve costs. They are marketed at a price. Economic activities are performed by humans on a regular basis. They are measured in terms of money.
3. Capital investment
Business requires capital investment. Capital is needed to acquire factors of production. They can be land, labor, technology and management.
4. Utility creation
Business creates utilities for consumer satisfaction. Utilities add value. Business cannot exist if consumers are not satisfied. Utilities can be form utility, place utility and time utility.
5. Risk bearing
Risk bearing is another characteristic of business. Risk is the possibility of loss which reduces chances of profit. Changing environment and uncertainties in future create risk. Risks may be political risk, economic risk, social risk, technological risk and natural risk.
6. Competition
Business operates in competitive environment. Competition can be at local, national and international levels.
7. Customers satisfaction
Business creates and satisfies customer needs. Profit is made by satisfying customers needs.
8. Organization
Business is an organization. It is an association of people. It has objectives, structure and technology. It operates within the environment. it requires management. It prepares and implements plans.It is an organized activity.
9. Continuity
Business has continuity. It involves in dealing in products on a regular basis. It is dynamic. It changes with change to survive and grow. There is continuity is dealings. One time dealing is not business.
10. System
Business is a system. It consists of inter-related activities. They are inputs, processing, outputs and feedback.
