It is the sum total of all those activities which are carried on by various enterprises.It is not necessary that business regardless of size, in the production or marketing of goods or services to the consumer with the object of earning profit through the satisfaction of human wants.
For establishing a trad, there must be someone to take the project. The entrepreneur thinks about a business, joins different factor of production and set them into a going concern.
Deals in Goods and Services
Every business whether it carried on a small or on a large scale deals in goods and services. The goods many be consumer goods like cloth, shoes, pens, etc and producer goods like machinery or it may take the shape of services like the supply of electricity, water, gas, transportation of goods etc.
- Economic Activities
The activities which involved in the production or distribution of goods and services for with economic motive are a part of business. Any activity undertaken for personal consumption or are exchanged free, fall outside the scope of trade.
- Series of Deals
When a firm takes up manufacturing or distribution of goods or providing of services for profit purpose, there should be serious of deals in it.
- Profit Motive
Profit is a motivating forces in enterprise any commerce activity. Businessmen seek profit from their operations and attempt to avoid loss.
Every trade whether is small or large cannot move step without finance. The funds are requiring for meeting the fixed and working capital requirements of trade.
- Creation of utilities
The trade creates various types of utilities like place, form, time, etc in goods so that consumers may use them. The trade, if it is exist, must produce goods a according to the tasks of the consumer.
- Consumer satisfaction
Business and consumers exist for each other because the business if it is exist must produce goods according to tasks of the consumer.
Every business needs organization for combing the various factor of production into production activities.
- Element of risk and uncertainty
There is an element of risk and uncertainty involved in every trade because If a firm is not able to anticipate or control or minimizes the risk involved in a business, it suffers losses.