Generally business is divided into many types. It may be small, middle or large. Again it may be sole proprietorship, partnership, joint stock Company, co-operative, or national organization. Some organizations are involved in production and some are concerned for providing services.
The characteristics of business are discussed as follows:
- Production or acquisition of goods: The main task of business is to provide goods and services to the people for a price. Sometimes the products to be produced by the business organization or acquire from the different source of production.
- Economic activities: Basic characteristic of business is to involve with economic activities. Economic activities mean all the activities which are conducted to fulfill the needs of the human being. People have to provide assets, money, goods and services to satisfy their needs which fulfill these objectives.
- Sale or transfer of title: Goods which are produced or procured for sale in return of price. This activity is involved with the selling products or acquiring of Goods produced or acquired for personal consumption, it never be treated with the business. So through the business transaction title of the goods are transferred from sellers to customers.
- Creation of utility: Another characteristic of business is creation of utility of various products and Through the industrial organization, business create utilities, through the business ownership utility, through the transportation place utility, through the insurance risk utility and through the banking money utility are created. Those are involved to fulfill the demand of consumers.
- Dealings in goods and services: Business means dealing with goods and services. The goods may be consumer’s goods such as cloth, bread, jams, shoes, watches etc, or producer’s goods such as machinery and tools. Services consist of those items which are not stored by consumers, such as transport service.
- Service motive: Earning profit is not the only objective of business. Social welfare is another important objective of business in this moment. To keep the existence of business and to create popularity businessmen now try to serve the society. For these reasons they try to sell their products in reasonable price and the quality must be kept. So now a day’s service motive is a characteristic of business.
- Regularity of dealings: Regularity and recurring nature of buying and selling which ensures continuity of transactions is a characteristic of business. A single transaction is involved with buying and selling does not become business. For instance, if a person sells his motor car and makes profit, it is not a business. On the other hand, if he keeps a stock of cars and sells them to the customers is called business.
- Uncertainty or risk about future: Business is an economic activity that focuses on the future, the future is always uncertain because of risk. Through the risk taking any businessman earns profit. The conduct of industry or business always involves a certain amount of risk and uncertainty.
- Profits as reward for service rendered: Business is an activity which means to make livelihood or to earn profit. Making profit is an essential characteristic of business. Profit is the largest stimulus for maintaining the continuity of business. In other words, profit is essential for survival and development. In fact profit is in a sense, a reward for the individual ability or efficiency of the enterpriser and also for the service that he renders to the community.
- Flexibility: Businesses are always changeable because the environment of business is changed time to time. So to adjust with the changing environment businessmen have to change the pattern of business. Since the demands of the consumers are changed, businessmen try to fulfill all the demands. So businessmen should follow flexible strategy to carry on the business.
- Developing good relation: Good relation is one of the preconditions to be succeeded in business. Good relation between employees and employer is essential for the organization. As a result both the organization and the customers become happy.
- Forecasting: Forecasting is another important characteristics of business. Every business depends on the future and the future is always uncertain. So the demands of the customers of future are forecasted by the businessmen. If the forecasting is correct, the businessmen become successful in business.
At last we can say that, business is the part of economic activities of human beings that provide all kinds of goods and services to fulfill the demand of people. For this reason business is treated as important occupation of the human civilization.