This document defines business as an economic activity involving the production and distribution of goods and services to satisfy human wants. It discusses the key characteristics of business including the creation of utility, the profit motive, risk, regular dealings, and the sale/exchange of goods and services. The document also explains how business satisfies wants through form, place, and time utility and helps drive economic development and capital generation.

1. DEFINITION AND CHARACTERISTICS

2.  BUSINESS IS AN ECONOMIC ACTIVITY
WHICH INVOLVES PRODUCTION AND
DITRIBUTION OF GOODS AND SERVICES
 IN WORDS OF URWICK AND HUNT
“ BUSINESS IS ANY ENTERPRISE
WHICH MAKES DISTRIBUTES OR
PROVIDES ANY ARTICLE OR
SERVICE WHICH THE OTHER
MEMBERS OF THE COMMUNITY
NEED AND ARE ABLE AND WILLING
TO PAY FOR “

3. ECONOMIC
ACTIVITY
CREATION
OF UTILITY
PROFIT
MOTIVE
REGULAR
DEALINGRISK
DEALING IN
GOODS AND
SERVICES
SALE ,
TRANSFER AND
EXCHANGE

4.  As its main motive is to earn money , wealth
and profit
 It helps in satisfying needs of businessmen and
their families on one hand and the general
public on the other
 It helps in economic development ( increase in
business, more dev. of country )

5.  Business satisfies human wants by creating
form utility, place utility and utilty of time
 Utility of form- changing the form and making
it useful for consumption
 Utility of place- transported from one place to
another as per the demand
 Utility of time- storage in warehouse to made
the goods available when required

6.  It is the essence of business
 Further capital is generated through profit
made in business
 For growth and expansion , profit is necessary
 However, some ethics must also exist

7.  Risk or Uncertainty of return refers to the lack
of knowledge relating to the amount of money
that the business is going to earn in a given
period.
 Every business involves money (capital) to
earn profits
 Now a days Risk is covered by insurance but
primary risks are always there in business

8.  Business cannot be stagnant, there has to be
continuity and regularity
 Once occurred activity cannot be called
business
 Student selling snacks in the school fair or
selling his old books to junior cannot be called
businessman
 But, for a student giving tutions to younger
student for money regularly will be his
business

9.  If goods are produced not for the purpose of
sale but for personal consumption, it cannot be
called a business activity.
 Selling goods and services for price is the
neccesity
 CAKE PARLOUR, MANISH DRINK CORNER
, LEKHIKA are well known shops. Imagine if
they start consuming their goods. What will
happen?

10. BUSINESS
INDUSTRY
PRIMARY SECONDARY
COMMERCE
TRADE
AIDS TO
TRADE

12.  Extractive industries FARMING

13. MINING

16.  POULTRY

20. TYPE A- Manufacturing industries

21.  ANALYTICAL INDUSTRIES

27. A manufacturing device typical of light industry
(a print machine).

28.  Heavy industry is industry that involves
one or more characteristics such as
large and heavy products; large and
heavy equipment and facilities (such as
heavy equipment, large machine tools,
and huge buildings);
 Light industry is industry that is
usually less capital intensive than
heavy industry, and is more consumer-
oriented than business-oriented