The nature and purpose of business are humans have endless needs. So, to satisfy these we need the nature and purpose of business activities. So, it is the purpose of business to provide the economy and society with the goods and services it requires. Therefore, all economic, commercial and trading activities are parts of a business.
Concept of Nature and Purpose of Business (Business): – Business refers to those economic activities involving the purchase of production and sales of goods and services. Moreover, it undertakes with the motive of earning profit by satisfying human needs in society.
Business classified into two groups-:
- Economic Activities: It is the activity of making, providing, purchasing, or selling goods and services.
- Non-Economic Activities: It is an activity performed gladly, with the aim of providing services to others without any regard for monetary gain.
Characteristics of Business: Nature and Purpose of Business
1)A financial movement: Business is viewed as a monetary action as it is attempted with the goal of gaining cash. In any case, one single exchange of offer or buy doesn’t comprise business.
2)Production or acquirement of merchandise and ventures: Business incorporates every one of the exercises worried about the generation or obtainment of products and administrations available to be purchase administrations incorporate transportation, banking, Insurance and so on.
3)Sale or trade of merchandise and administrations: The movement may comprise of creation or acquisition of products available to be purchased or trade of merchandise or supply of administrations to fulfill the requirements of other individuals. In this manner in each general public individuals attempt different exercises to fulfill their needs.
4)Dealing in merchandise and administrations at an ordinary premise: There ought to be normality of dealings or trade of products and administrations. Also, one single exchange of offer or buy doesn’t establish the business.
5)Profit Earning: Therefore, the fundamental motivation behind the business is to procure benefits. A business can’t make do without making benefits. That is the reason businessperson endeavors every conceivable exertion to amplify benefits, by expanding deals at an ostensible cost.
6)Uncertainty of return: So, it suggests the vulnerability with respect to the normal profits for the speculations made the likelihood of real returns not equivalent to the normal returns.
7)The element of a hazard: All business exercises convey a few components of hazard since the future is unsure and business has no influence more than a few elements like strikes, fire, burglary, change in purchaser taste and so on. Nature and Purpose of Business.