Business: Meaning, Definitions, and

Characteristics

PREPARED BY:
MARLON C. PATAL
BUSINESS (OR FIRM)
• an enterprise that provides products or
services desired by customers.

• refers to the economic activities concerned

with the production and exchange of
goods and services, primarily pursued with
the objective of earning profits.

• According to B.O. Wheeler, “Business is an

institution organised and operated to
provide goods and services to society
under the incentive of private gain.”
BUSINESS – DEFINITIONS

“Business may be defined as human

activity directed towards or acquiring
wealth through buying and selling of
goods.” – Lewis H. Haney
BUSINESS – DEFINITIONS

“Business may be defined as an activity

in which different persons exchange
something of value, whether goods or
services, for mutual gain or benefit” –
Peterson and Plowman
BUSINESS – DEFINITIONS

“Business is an enterprise engaged in

the production and distribution of
goods for sale in the market or
rendering service for a price.” – R. N.
Owens
BUSINESS IS BASICALLY
AN ECONOMIC ACTIVITY:

According to L.R.
Dicksee, “Business is a
form of activity pursued
primarily with the object
of earning profit for the
benefit of those on
whose behalf the activity
is conducted.”

This Photo by Unknown Author is licensed under CC BY-SA-NC

 BUSINESS IS BASICALLY
AN ECONOMIC ACTIVITY:

According to K. Ashwathappa
“Business comprises all profit
seeking activities and enterprises
that provide goods and services
necessary to an economic system.
It is the economic pulse of a
nation, striving to increase society’s
standard of living. Profits are a
primary mechanism for motivating
these activities”.
Whatever activity you do to earn profit
that should abide by the country’s law.
So, from the above definitions and
observations, we can come to a
conclusion that “Business is an economic
activity carried on by human to earn
profit in a continuous manner under the
purview of rules and regulations of the
country”.
 Business – Concept

• Study of the principles and

practices of business organisation
helps in understanding events in
their right perspective and in
tackling the problem of satisfying
human wants through the use of
available resources.
• The sum total of human activities
may broadly be divided into two
categories-economic
activities and non-economic
activities. 
 Business – Concept
• Economic activities are designed to attain
and use the material resources of life.
• Technically the term ‘business’ is derived
from the word ‘busy’. This means that
someone is busy in earning profit
through the process of purchase and sale.
• On the other hand, non-economic
activities are carried out not for earning
money but on account of the human
sentiments of charity, love, sympathy,
patriotism, religion, etc. For example, a
person goes to temple to offer his
prayers.
BUSINESS – TOP 5
CHARACTERISTICS

• It is a Human Activity
• Continuous Economic
Activity
• Profit Motive
• Entrepreneurship
• Creation of Utility