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Assignment Business Organization 1st

Business is a systematic economic activity focused on the continuous production and distribution of goods and services aimed at earning profit. It differs from other economic activities by emphasizing regularity, risk-bearing, and customer satisfaction, while also operating within legal boundaries. Unlike employment and professions, business involves self-management and is primarily profit-oriented.

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463 views4 pages

Assignment Business Organization 1st

Business is a systematic economic activity focused on the continuous production and distribution of goods and services aimed at earning profit. It differs from other economic activities by emphasizing regularity, risk-bearing, and customer satisfaction, while also operating within legal boundaries. Unlike employment and professions, business involves self-management and is primarily profit-oriented.

Uploaded by

vibelistener534
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Assignment – Business Organization

(B.Com 1st Year)

Q1. What are the main characteristics of business, and how does it differ from
other economic activities?
Answer:
Business is one of the most significant economic activities of human beings. It
refers to an activity which is concerned with the continuous and regular
production and distribution of goods and services with the purpose of earning
profit. Unlike other forms of economic or non-economic activities, business is
systematic, risk-bearing, and oriented towards customer satisfaction and wealth
creation.
Main characteristics of business are:
1. Economic Nature: Business is always economic in nature because it deals
with money, profit, and exchange of goods or services.
2. Regularity of Dealings: It involves continuous buying, selling, or providing
services, not one-time casual transactions.
3. Profit Motive: The main aim of business is profit, which works as a reward
for taking risks and helps in long-term survival.
4. Risk and Uncertainty: Every business decision carries some amount of risk
due to market competition, demand fluctuations, or government policies.
5. Production and Exchange: A business involves creating or adding value
through production and exchanging it for money.
6. Customer Satisfaction: Modern businesses focus on satisfying customer
needs to ensure loyalty and goodwill.
7. Legality: A business must operate within the boundaries of law and ethical
practices.
Difference from other economic activities:
 Business vs. Employment: In employment, people work under others and
receive fixed wages, while business involves self-management, profit-
making, and risk-bearing.
 Business vs. Profession: Professions (like doctors or lawyers) need special
qualifications and follow ethical codes, whereas business only requires
resources, management, and entrepreneurship.
 Business vs. Non-economic Activities: Activities like charity or voluntary
service are done for social satisfaction, not profit, while business is purely
profit-oriented.
Conclusion: Thus, business is a systematic and continuous activity directed
towards profit-making, which makes it different from other forms of economic
activities.

 Business vs. Non-economic Activities: Activities like charity or voluntary
service are done for social satisfaction, not profit, while business is purely
profit-oriented.
Conclusion:
Thus, business is a systematic and continuous activity directed towards profit-
making, which makes it different from other forms of economic activities.

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