Characteristic of business studies
Business activities are distinct from other activities. They have certain distinct features in comparison to other activities which are known as characteristics of business. They are given below.
Thank you for reading this post, don't forget to subscribe!Entrepreneur
A person who recognizes the need for an entrepreneur. An entrepreneur plays an important role in product and takes the initiative to establish a business and know the process of economic growth. He looks after a business of production like capital combining various factors manpower, machines etc. And puts them in a place. The quality of entrepreneurship is determined to a large extent by the development of a particular sector.
Economic activities
All the activities which are related to the production and distribution of goods and services for generating wealth or earning profit are known as economic activities. All these activities are performed to achieve economic benefits. Business is carried out with a motto of earning profit. If any part of the activities are undertaken without economic consideration, it is not taken as a par business. So, business covers only the economic activities
Exchange of goods and services
All the goods and services which are produced or purchased are exchanged by the business. All the exchanges are made with economic motives. The production and purchase of goods for personal use are not taken as business. For example, if a cook cooks food in a hotel, it is a business but if a cook cooks food in his house for personal consumption, it is not taken as a business.
Profit motive
A businessman tries to earn maximum profit out of his business activities. The intention of earning profits keeps a person in business and inspires them to continue the business for a long period. Businessman exploits consumers for earn profit. Such exploitation ends the business in the long run. The responsibility of a businessman towards society restricts him from earning profit by exploiting the consumers.
Risk and uncertainty
Business involves elements of risk and uncertainty. businessman tries to see the future uncertainty and plans accordingly. The environment of business is uncertain, so the business opportunities are also
There may be shifts in demand, strikes by employees, wars, falls in price etc. which create risk and uncertainty. If a businessman can see all these uncertainties and risks and can bear them, then only he he successful; otherwise he may collapse his business. The risk elements in business keep a person vigilant and he tries to minimize the risk by executing policies properly.
Continuity of transactions
Business is the combination of all those transactions which are repeated time and again. If any transaction is not continued, it is not taken as part of business even though a person earns profit from such transactions. If a person builds a house for his use and sells it for profit after a long period, it is not a business but if a building society builds houses and sells them. then that is taken as a business. So, the transactions should have continuity and regularity in business; otherwise, they will not be considered as a part of business.
Creation of utility
The business provides goods to consumers who are in need. Business creates various types of utilities like place, time, and form utilities. Such utilities motivated the consumers to use them. When materials are converted into usable products, it creates form utility. Transfer of goods from the producer to the final consumer creates place utility and storage and supply of goods at the right time creates time utility. In other words, the process of storing goods when they are not needed and supplying them at the right time creates time utility. So, business creates many utilities so that the consumers may use them according to their preferences and needs.
Organization
Every enterprise needs an organization for its successful working. Business activities are divided into various departments, sections, and jobs. An organization creates the frameworks for managerial performance and helps to maintain coordination among various business
activities. Organizing is helpful in the smooth running of the business and to achieve its objectives.
Financing
Business organization at first requires finance to commence business and to provide fixed and working capital. The availability of other factors of production also depends on the achieving of finance. Business organization first estimates the need for finance and try to arrange finance from various sources like the issues of shares borrowings etc. A proper capital structure is a must for the success of the business.
Consumers’ satisfaction
Even though the main aim of business is to earn profits’ it is possible by achieving only consumer satisfaction. If consumers are not satisfied with the goods and services supplied to them, they stand to use alternative products. A business should try to satisfy the consumers so that the demand for its product is maintained The existence and expansion of a business depend on the links between the business and its consumers. A businessman should try to produce goods as per the needs and choices of consumers.
Satisfying social needs
Business is a social and economic institution; so it should serve to the society at most. A great emphasis is laid, now-a-days, on the social aspect of business. It is not only the public which needs business but business also needs public support. So business enterprises must serve public purpose by helping with the improvement of health, education and other rational of the public.
Conclusion
In conclusion, nowadays we can say that business is an economic activity that includes regular exchange of goods and services of earn profit through the satisfaction of human needs and wants.
