BOMP-I notes of business, what is business, features of the business.

1. Business
Business is an activity which is
primarily pursued with the
objective of earning profit. The
word business means a state of
being busy.
A business activity involves
production, exchange of goods
and services to earn profits or
earn a living.

2. Features or nature of business
• 1. Entrepreneur :- the person who recognized the need
for a product or service is known as entrepreneur.
• 2. Economic activities :- business includes only economic
activities. All those activities relating to the production
and distribution of goods and services are called
economic activities.
• 3. Exchange of goods and services :- a business must
involve exchange of goods and services. A person cooks
his food at home, it is not business, but if the same
person cooks at a restaurant then it is a business.
Because he exchange his goods or services for money.

3. 4. Profit motive :- the profit motive is an important
element of business. Any activity undertaken without profit
motive is not business. The incentive of earning profits keeps
a person in a business.
5. Risk and uncertainty :- the factors on which business
depends are never certain. There may be shift in demand,
strike of employees, floods, war, fall in prices, fluctuations in
money market etc. the risk element in business keeps a
person vigilant.
6. Continuity or transactions :- in business, only those
transactions are included which have regularity and continuity
. If a person builds a house for himself but later on sells it on
profit. We will not call it business. On the other hand if a
house building society builds houses and sells them, this will
be called business.

4. 7. Creation utility (usefulness) :- goods are provided to
the consumers as per their likings and requirements.
The utility may be form utility, place utility, time utility
etc.
8. Organisation :- various activities are divided into
departments, sections and job. a proper organisation is
helpful in the smooth running of the business.
9. Financing :- business company can not move a step
without finance. A proper finance is a must for the
success of the business.
10. consumer satisfaction :- the aim of business is to
supply goods to consumers. The goods are produced
for the consumers, if the consumer is satisfied then he
will purchase the same thing again, otherwise he will
go in for an alternative product.

5. 11. Satisfying social needs :- the business should aim at
serving the society at large. It is not only the public
which needs business but business also needs public
support. So, business enterprise must serve public
purpose.