1. Economic activities
All activities are economic activities if theses are done for money. The businessman try to use scarce resources for production and exchange of goods and services. The people depend upon business to meet their needs.
2. Production of goods
Business is concerned with production or purchase of goods. the products can produce goods with the help of labor and capital
3. Demand for product
The customers is the king of the market. Products are made to meet the demand of customers. The businessman should produce goods and services that are needed by general public. The liking and disliking of customers must be kept in mind at the time of production of goods and services.
4. Exchange of services
Services are intangible things having money value. Theses services meet the demand of consumers and the money value. insurance companies, doctors, advocates and transport companies have services for sale to general public.
5. Management is essential
Management is essential for business. All business working is planned and controlled by management. The owners or managers can regulate the work to achieve business objectives.
6. Profit motive
Business is started for the sake of profit in private sector. Profit motive is driving force that puts the men, machines, materiel, methods, marks and money on work. All successful activities earn profit for that business.
7. Exchange of goods
Goods are tangible things having money value. The goods are exchange by people in order of satisfy their demand. Such goods may be industrial consumable. industrial goods are machinery and installations. The consumer goods are sugar tea and ghee like that.
