Question -
Answer -
Business is the occupation where people engage themselves in activities that are related to purchase or production and sale of goods and services with the sole purpose of earning profit, and therefore produce or sell goods and services that are in demand.
Characteristics of business are:
1. Business is considered to be an economic activity as the sole purpose of starting a business is for earning profit.
2. Business deals with procuring of raw materials and converting them into finished products and selling to consumers
3. Sustainability and the future growth of business is determined by the profit it is earning.
4. Business involves exchange of goods and service using a common medium i.e money.
5. Any business whether small or big will face business risks
6. There will be uncertainty of returns as the business may incur loss or gain profits