In this post, we will discuss the nature and features of business, before this, let’s understand the concept first.
Business is an economic activity. It is concerned with the continuous and regular production and distribution of goods or services for satisfying human wants. It also involves the exchange of things.
Business means buying and selling of goods and services for profit.
Definition of Business:
According to B.O. Wheeler, “Business is an institution organized and operated to provide goods and services to society under the incentive of private gain.”
According to L.H. Haney, “Business is a human activity directed towards producing or acquiring wealth through buying and selling activities.”
Nature and Features of business :
The following are the top 10 features of business –
1. Economic activity :
This is a common feature of business. because Business is a form of economic activity. It is a fruitful occupation for millions of people around the world like traders, bankers, industrialists, manufacturers, and many more including professionals and those employed.
2. Profit motives :
This is an important feature of business. Business is an income-oriented activity. Every businessman expects to profit from the transactions. The main object of business is to earn a profit. Businessman earns profit from the business transactions and the buyer satisfies his wants of goods and services.
3. Dynamic :
Business is a dynamic activity. There is a certainty of change in environmental factors like new products, methods, innovations in management, government regulation, war, changing consumer income, and new development in science and art. Hence, Business has to be dynamic in order to survive in these changing circumstances.
4. Creative :
Modern business is creative in nature. These days, consumers can’t be satisfied with the same type of goods and services. Hence business organizations have to be innovative or constantly search for new ideas and proposals to satisfy consumer needs.
5. Degree of scale :
Business can be undertaken at varied degrees of seals of operation. Some firms like Sole trading concerns may undertake business on a small scale and that too in a local area. However, some firms, like joint-stock companies may undertake business on a large scale, even at a global level.
6. Competition :
The present business world is called a competitive world. The basis of survival is to face the competition and make a place in this modern business world.
7. Buying and Selling :
All business activities are directly or indirectly connected with transfers or buying and selling of goods and services. Business is useful to buyers and sellers. Businessmen as Sellers of goods and services, provide convenience and satisfaction to buyers through the provision of form utility, place utility, and time utility. In return for the supply of utilities, businessmen receive profit benefits from the buyers.
8. Risk and Uncertainties :
Business activities are always risky and uncertain. A business is likely to suffer huge losses due to a number of possible reasons such as a change in fashion, tastes, preferences, government policies, technology, recession in the economy, natural calamities, etc. All business risks can’t be insured. A business, however, can minimize risks through proper foresight and planning.
9. Social Responsibility :
Professional business firms are conscious of their social responsibility. The firm tries to fulfill its social responsibility towards various groups i.e. investors, employees, consumers, creditors, and so on. It can’t function without active participation from these social groups. These features of business are getting more important in today’s era of globalization.
10. Government Control :
Business organizations are subject to government control. The government of each country enacts laws and regulations to control and regulate business activities. Business organizations are expected to adhere to such laws.
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