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Kalyan City is a fast emerging residential township in the Thane district of Maharashtra state, India. It is a central suburban town and resides 54 kms north-east of Mumbai. This blog regularly shares quality academic materials. Here we also document our unique experiences and vivid memories of life. Read our lucid informative articles to excel your understanding, knowledge and success.

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Articles published on Kalyan City Life blog are inspired from our work experience, field research, study of various good books and papers, seminars and consultations from subject scholars. Our unique collection of useful study notes is an outcome of a team effort and hard work of Gaurav Akrani, Prof. Mudit Katyani and Manoj Patil.

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What is Business? Meaning Definitions Features of Business



square What is Business? Meaning


Human beings are continuously engaged in some activity or other in order to satisfy their unlimited wants. Every day we come across the word 'business' or 'businessman' directly or indirectly. Business has become essential part of modern world.


Business Meaning Definitions Features

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Business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants.

All of us need food, clothing and shelter. We also have many other household requirements to be satisfied in our daily lives. We met these requirements from the shopkeeper. The shopkeeper gets from wholesaler. The wholesaler gets from manufacturers. The shopkeeper, the wholesaler, the manufacturer are doing business and therefore they are called as Businessman.


square Definitions of Business


Stephenson defines business as, "The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants."

According to Dicksee, "Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted."

Lewis Henry defines business as, "Human activity directed towards producing or acquiring wealth through buying and selling of goods."

Thus, the term business means continuous production and distribution of goods and services with the aim of earning profits under uncertain market conditions.


square Features of Business


Characteristics or features of business are discussed in following points :-


1. Exchange of goods and services


All business activities are directly or indirectly concerned with the exchange of goods or services for money or money's worth.


2. Deals in numerous transactions


In business, the exchange of goods and services is a regular feature. A businessman regularly deals in a number of transactions and not just one or two transactions.


3. Profit is the main Objective


The business is carried on with the intention of earning a profit. The profit is a reward for the services of a businessman.


4. Business skills for economic success


Anyone cannot run a business. To be a good businessman, one needs to have good business qualities and skills. A businessman needs experience and skill to run a business.


5. Risks and Uncertainties


Business is subject to risks and uncertainties. Some risks, such as risks of loss due to fire and theft can be insured. There are also uncertainties, such as loss due to change in demand or fall in price cannot be insured and must be borne by the businessman.


6. Buyer and Seller


Every business transaction has minimum two parties that is a buyer and a seller. Business is nothing but a contract or an agreement between buyer and seller.


7. Connected with production


Business activity may be connected with production of goods or services. In this case, it is called as industrial activity. The industry may be primary or secondary.


8. Marketing and Distribution of goods


Business activity may be concerned with marketing or distribution of goods in which case it is called as commercial activity.


9. Deals in goods and services


In business there has to be dealings in goods and service.

Goods may be divided into following two categories :-

  1. Consumer goods : Goods which are used by final consumer for consumption are called consumer goods e.g. T.V., Soaps, etc.
  2. Producer goods : Goods used by producer for further production are called producers goods e.g. Machinery, equipments, etc. Services are intangible but can be exchanged for value like providing transport, warehousing and insurance services, etc.


10. To Satisfy human wants


The businessman also desires to satisfy human wants through conduct of business. By producing and supplying various commodities, businessmen try to promote consumer's satisfaction.


11. Social obligations


Modern business is service oriented. Modern businessmen are conscious of their social responsibility. Today's business is service-oriented rather than profit-oriented.




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3 Comments :

  1. Pranav Verma said...

    Nice explanation about business and its feature.

  2. Anonymous said...

    The way you simplify your articles makes one to be glued to this site. Its so wondreful to do research on this site! Keep it up with nice explanations!

  3. Subhakanta Barik said...

    Very good explanation about business and its characteristics.

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