The main feature of business is that it is conducted in order to earn profit. This motive is at the core of all activities related to business. Business entities may be in the form of a sole proprietorship, partnership or corporation. The objective of all these entities is to make profits by providing goods and services that are demanded by the society. The society is ready to pay for these goods and services when they are of quality. The main reason behind this is that the society wants to get what they want in a quick and efficient manner. This in turn helps the businesses to make a good name for themselves and attract more customers in the future.
A business can be of any type such as a factory, a retail shop or even an advertising agency. The common factor that unites all these businesses is that they operate for profit.
Business can also be defined as any activity that leads to the creation of wealth in the form of commodities that satisfy human wants and needs. The primary function of business is to produce and exchange commodities for value or price on a regular basis. It is also important to note that there are certain things that cannot be considered as part of the business activities namely, production and/or exchange of goods or services for love, affection or charity or in return of gratitude.
Apart from production and exchange of goods, business activities include the purchase and sale of existing assets that are of value or price for the purpose of earning profit. This includes both – manufacturing and/or purchasing the raw materials, machinery and other resources necessary for production of the commodities as well as buying an already produced commodity, adding value to it and selling it for a profit.
Besides these, a business entity also engages in the provision of various services such as financing, insurance, banking, transportation etc. The word “business” is also used in the compound form to describe a specific vertical industry such as music business.
The main objectives of a business are to generate revenues, to maintain profitability, to provide value added products and services, to develop the market, to build brand recognition, to increase efficiency and productivity and to ensure the security of the employees. The achievement of these objectives depends on the right mix of people in the company, the proper planning and implementation of strategies as well as a strong commitment from all the business members to achieve success. This commitment can be seen in the way they take risks, put in their best efforts and sacrifice their personal lives for the sake of the business. Besides these, a successful business requires adequate and timely capitalization, effective marketing and advertising and a solid management team. All of these are crucial for the survival of a business. Business offers challenges, excitement and immense satisfaction for those who run it successfully.