Business Definition: In simple words, a business can be defined as an activity which comes into existence for earning the profit with going concern concept. Business have some characteristics and features. It has a wide range. Here two Persons or entities exchange goods or services(in monetary values) for getting the profit.
“Business is an endeavor occupied with the generation and dissemination of products available to be purchased in market or rendering administrations for the cost.”
“Business is an organization which produces merchandise and enterprises requested by individuals.”
“Business is the sorted out exertion of people to deliver an offer for a profit, the products, and ventures that social orders Satisfy needs.”
The general business terms allude to every single such exertion inside a general public or inside the business
So the meaning is that an activity, having regular series, owned by one person (Sole proprietorship) or more than one Person (in shape of Partnership) or an organization (Company, Corporation, Societies) done for core objective of earning the profit by dealing in delivering goods or services is called business.
Mostly it is called an economic activity, because it is created with wealth and every step, an action is measured in terms of monetary value, because of earning the profit. Measuring the cost of goods or service and selling it with keeping the profit margin. In simple it can be divided into the Monetary livelihood.
Characteristics of business
To Earn Profit: The basic purpose of business to earn the profit, by selling goods or service. Where there is no objective of gaining the profit, It can not be called business.
Basic Objective/Goal: Objective of the organization should be set, on the basis of goal, you can lead in its market and also helps in the formation of it. Like Partnership, Societies, Companies Etc.
Going Concern concept: a One-time transaction is not called business, Like an employee sell his cell phone over market price and get some profit, it’s not business. There should be repeated transaction. If the same person purchased cell phones and sell in routine at profit its called trading business. Repeated transactions are mandatory.
Goods and Services Before establishing it, there should be a clear vision objective, what kind of services will be given or what will be produced which will generate the profit.
Finance: Wealth is the backbone and essential part of a business. No one can run it without capital. Is should be raised via own funds utilization or through debt financing.
Management & Leadership: It’s not only for the allocation of duties and responsibilities but the main concern is to assign the task to the right person for getting the better result in shape of growing trade.
Human Resources: In both cases, whether you are producing goods or services, Human resource play a vital role. Technical staff to labor, every organization need it for running and growing it. More expert and motivated resources results in more qualitative product.
Innovation: Innovation recognizes a pioneer and a devotee. It not only helps in maintaining your existing users but also helps in increasing more. Consumer always focuses on low cost and good quality and multiple uses.
Risk Management: At every Stage, the risk is expected; it may be in shape of natural mishaps (Earth Quake, Weather, Disaster) or change in the law of regularities authorities or competitors for competing. The organization should take steps to minimize them, and take precautionary steps for facing it. It can be via insurance and maintaining reserves for them.
Consumer Element. The end user of the product or services has a direct effect on the entity. So keeping the consumer needs and satisfaction goods are produced or services are delivered.
Social and Cultural Factor. Every business should follow the social and cultural aspects within the organization. It gives peace and security to the employees while working with organizations.
Governing authorities. Business should follow the rules and regulations of concerning government authorities, like taxation, companies laws, Federal and state rules, no working areas for factories, Etc