Name Akhtar Mohammad

Registration Number 301-1909069

Course Title Introduction to Business
Session Morning
assingment Number one
Contents.
1. Definition of Business
2. Characteristics of Business
3. And importance of understanding business

1. Definition of business:
any legal economic activity that consist of providing goods and
services for the purpose of profit is called business.
It means that any economic activity that has legal perception for
doing earning profit and providing goods and services for
satisfaction of human wants that satisfy human being.
2. Characteristics of Business: there are many characteristics of
business the following are the five important characteristics of a
business
 Deals in goods and services: every business carried on in a
small or large scale deals in goods and services.
 Production/exchange of goods: the most important
characteristics of business is production or exchange of goods
and services for the purpose of earn profit.
 Desire to earn profit: it is clear from the title that the business
purpose must be profit.
 Must be legal: a business must be doing activity according to
the rules and regulations of the country.
 Involve elements of risk: every business the element of the
risk.
3. Importance of understanding of business: The understanding of
its business environment helps an organization to make realistic plans
and ensure their effective implementation. It also helps
the business enterprise in identification of opportunities and threats.

Importance of Understanding of business there are two type of environment

forces which is affect the business positively and negatively, which we must
know these thing that is good for smooth of the business first we have
internal environment which is controllable with in the organization some
organization internal very strong for example the have enough capital,
experts workers, good brand name etc. when they have these qualities the
can use from the opportunities some of the organization not have these
qualities when they don’t have these qualities this is weakness of the
organization
Second we have external factors which is not controllable from the
organization for example the political situation and economy of the country
etc.
A businessman must also know the demographic factor which is very
important. It defines the characteristics of people and population.
For example, if a businessman not know the demographic factor of
Afghanistan and start a business of meal of pigs it is totally failed the
business.