Irrespective of its scale,every business deals with sale, purchase, production and exchange of goods or services for some consideration. For the purpose, there are many factories, bank, insurance companies, doctors and lawyers etc. are in working.
2.PROFIT MOTIVE:
A business is not the charity. Earning of profit and acquiring of wealth are the primary objectives of every business. If an enterprise doesn't have the aim of earning profit, it wouldn't be a business. Moreover, if a business does not earn profit then it cannot survive for long.
3.ELEMENT OF RISK:
No doubt, business is started with a view to earn profit but it has to cope with some uncontrollable factors such as change in demand, taste, fashion and degree of competition etc. Hence, a business cannot run without some elements of risk.
4.MANAGEMENT;
Management is the backbone of a business. Every business, irrespective of its size and nature, has management to manage and control the various factors of production. The concept and importance of management is explained with the help of a experience person.
5.CAPITAL;
Capital is a basic and essential part of every business. No person can even imagine carrying on business without capital. In case of shortage of funds, the owners may obtain loan from their friends, relatives and financial institutions.
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