Characteristic of Business

Following characteristic are Common In all  Business concern,a respective of their size and nature.

1. Goods and Services.

Irrespective of scale ,every business deals with sale, purchase ,production and exchange of goods and services for some consideration.For this purpose, there are many factories,banks,insurance companies,doctor and lawyers etc.are in working.

2.Profit motives.

Earning of profit and acquiring of wealth are the primary objectives of every business. if an enterprise dos not have the aim of profit earning, it would not be a business.

3.Element Of Risk:

No doubt, business is started with a view to earn profit but it has no cope with some uncontrollable factors such as change in demand, taste , fashion and degree of competition etc.Hence, there is no business without risk.

4.Management :

Management is the backbone of business.every business,irrespective of its size and nature, has management to manage and control all the various factors of production.the concept and importance of management is explained with help of  following diagram.

Management<Quality production<Machinery<Materiel<Labor<Capital<Profit>                             Image result for management

5.Capital:

Capital is a basic and essential part of every business. No person can even imagine to carry on business without capital. in case of shortage of fund, the owner can obtain loan from various financial institution.

6.Employment:

Business is good source of employment not only for  its owner but also for the other people like employees,agents, transporters etc.

7. Regular Transaction:

All business affairs and transactions have regularity and continuity.for instance, if student sell his book to shopkeeper or to a students, it is not business. on the other hand  if he regularly purchases and sell books in his spare time, then it will be a business activity.

8. Creation of Utility:

Utility is an economic term. it refer to that characteristic of certain commodity, which can satisfied any human need. Business creates utility in different goods and services,which benefit the entire society.

9.Transaction For A Price:

In business, goods and services are produced or exchanged for certain price or consideration. Donations are not considered as business.

10.Reasonable Profit.

Income from business is known as profit.A businessman should not deceive anyone or misstate the fact earn profit.He should keep his profit margin reasonable.

11. Exchange Of Ideas :

The expert of different s department exchange their views  for the smooth working and promotion of business. some times, the traders and costumers also share their idea for the growth of business.

Demands of goods: 

The businessman depend upon the demand by costumers for the sell of goods and services.that is why, demand for the goods and services is essential to do business activities.

Innovation :

The innovation is necessary in business due to change in the circumstance,fashion and development of the world. moreover, innovation works for the life of business as blood for human life.

Services of middleman :

Most of the time, agents or middleman  not only help in making  contact between buyer and seller, but also assist for the information of sell or purchase contracts.the remuneration of this agent is called commission.

Culture :

The culture and civilization cannot be ignored during the process of production of goods and services, because a customer always considered his cultural values in business dealing.