characteristics of business

characteristics of business :-

following are the characteristic of business. I am explain all the characteristic in points 

Economic activities :-

All the activities are the economic activities if these are done for money. The businessman try to use this scarce resources for production and exchange of goods and services. The person depend upon business to meet their needs.

Production of goods :-

Business is concerned with production or purchase of goods. The producers can produce goods with the help of lab ours and capital. The trader can buy these goods from producers.

Exchange of services :-

Services are intangible things having money value. These services meet the demand of consumers. The banks, insurance companies, doctor, and transport companies have services for sale to general public.

Exchange of goods :-

Goods are tangible things having money value. The goods are exchange by people in order to satisfy their demand. Such goods may be industrial or consumable.industrial goods are machinery and installations. The consumers goods and commodities are sugar,tea and ghee etc.

Exchange of ideas:-

The ideas are intellectual properties that have money value. The customers like to purchase these ideas for money. The patents, copyrights and trade marks are properties of businessmen

Management is essential :-

Management is essential for business. All business working is planned and controlled by management. The owners or managers can regulate the work to achieve business objectives.

Profit motive :-

Business is started for the sake of profit in private sector. Profit motive is driving force that puts the men, machines, material, methods, markets and money on work. All success activities earn profit for the business.

Regular work :-

A single transaction is not be treated as business. A series of transactions from year to year is considered as business. Business is regular work effort for production of goods and services in order to meet the demand of consumers

Sufficient finance:-

Business is possible when there is sufficient finance. The success of business is linked with reasonable amount of finance. Business fails due to shortage of finance.

Demand for products:-

The customer is kind of market.products are made to meet the demand of customers. The businessmen should produce goods and services that are needed by the general public.

Organization structure :-

Success of business is possible through sound organization structure. The whole amount of work is divided into departments or sections. The employees are hired for each department. The employees are placed on jobs according to their abilities.

Risk of loss:-

Every work of businessmen is linked with profit and loss. The uncontrollable factors can disturb the work of businessmen. The may be loss by theft. Advertisement may fail to increase the volume of sales. There is risk of losses of business.