Definition of Business

Human being are encouraged to fill up own necessaries from the very beginning of human activities. Various financial activities of human have been derived from various needs. For filling up needs and wants, human being operate different works and activities as well as try to earn. Consequently, from their financial activities business derives.

Simply the ‘Business’ term refers to ‘a state of being busy’. But ideally it can’t be said as business being busy with any work. A condition of being busy that means being busy with financial activities can be referred to business. So all financial activities are called business in the purpose of filling out wants.

Again, all financial activities are not business too. To consider a financial activity as a business must be valid and legal. Not only that but also it must have utility, continuity, risk and uncertainty, profit as well as loss.

Louis E. Boone and L. Kurtz said, “Business consists of all profit seeking activities and enterprises that provides goods and services necessary to an economic system.”

Peterson and Plowman also said about business, “Business may be defined as an activity in which different exchange something of value whether goods or services for mutual gain or profit.”

Now-a-days, business have been gotten new dimension. The word ‘business’ or its various arena’s have been more organized, planned, developed from the beginning of civilization.

B.O. Wheeler said, “Business is an institution organized and operated to provide goods and services to the society under the incentive of private gain.”

L.H. Haney quoted about business, “Business may be defined as human activities directed towards providing or acquiring wealth through buying and selling goods.”

Skinner and Ivancevich said, “Business is the exchange of goods, services or money for mutual benefit or profit.”

Features of Business: Here some noticeable and important features of business are mentioned…
  1. Objective of making profit
  2. Entrepreneurship
  3. Risk and uncertainty
  4. Legality
  5. Continuity
  6. Finance
  7. Value of money
  8. Creation of utility
  9. Purchase and sale
  10. Ethics
  11. Forecasting
  12. Freedom
  13. Flexibility
  14. Service
  15. Specialization
  16. Increase of wealth
  17. Economy
  18. Research
  19. Public welfare
  20. Increase living standard

At the concluded point we can say that in the purpose of making profit, producing or purchasing and selling of products, services etc by which creation of utility and production, allotment are ensured as well as risk and uncertainty exist in that with continuity and filling up want of physical and unphysical is called business.