Identify The Characteristics of Indian Business: 1. Economic Activity

Identify the characteristics of Indian Business
1. Economic activity:
Business is an economic activity of production and distribution of goods

and services. It provides employment opportunities in different sectors
like banking, insurance, transport, industries, trade etc. it is an economic
activity corned with creation of utilities for the satisfaction of human
wants.
It provides a source of income to the society. Business results into

generation of employment opportunities thereby leading to growth of the
economy. It brings about industrial and economic development of the
country.
2. Buying and Selling:
The basic activity of any business is trading. The business involves buying
of raw material, plants and machinery, stationary, property etc. On the
other hand, it sells the finished products to the consumers, wholesaler,
retailer etc. Business makes available various goods and services to the
different sections of the society.
3. Continuous process:
Business is not a single time activity. It is a continuous process of

production and distribution of goods and services. A single transaction of
trade cannot be termed as a business. A business should be conducted
regularly in order to grow and gain regular returns.
Business should continuously involve in research and developmental

activities to gain competitive advantage. A continuous improvement
strategy helps to increase profitability of the business firm.
4. Profit Motive:
Profit is an indicator of success and failure of business. It is the difference

between income and expenses of the business. The primary goal of a
business is usually to obtain the highest possible level of profit through
the production and sale of goods and services. It is a return on
investment. Profit acts as a driving force behind all business activities.
Profit is required for survival, growth and expansion of the business. It is

clear that every business operates to earn profit. Business has many goals
but profit making is the primary goal of every business. It is required to
create economic growth.
5. Risk and Uncertainties:
Risk is defined as the effect of uncertainty arising on the objectives of the

business. Risk is associated with every business. Business is exposed to
two types of risk, Insurable and Non-insurable. Insurable risk is
predictable.
6. Creative and Dynamic:
Modern business is creative and dynamic in nature. Business firm has to

come out with creative ideas, approaches and concepts for production
and distribution of goods and services. It means to bring things in fresh,
new and inventive way.
One has to be innovative because the business operates under constantly

changing economic, social and technological environment. Business
should also come out with new products to satisfy the growing needs of
the consumers.
7. Customer satisfaction:
The phase of business has changed from traditional concept to modern

concept. Now a day, business adopts a consumer-oriented approach.
Customer satisfaction is the ultimate aim of all economic activities.
Modern business believes in satisfying the customers by providing quality

product at a reasonable price. It emphasize not only on profit but also on
customer satisfaction. Consumers are satisfied only when they get real
value for their purchase.
The purpose of the business is to create and retain the customers. The
ability to identify and satisfy the customers is the prime ingredient for the
business success.
8. Social Activity:
Business is a socio-economic activity. Both business and society are

interdependent. Modern business runs in the area of social responsibility.
Business has some responsibility towards the society and in turn it needs
the support of various social groups like investors, employees, customers,
creditors etc. by making goods available to various sections of the society,
business performs an important social function and meets social needs.
Business needs support of different section of the society for its proper
functioning.
9. Government control:
Business organisations are subject to government control. They have to
follow certain rules and regulations enacted by the government.
Government ensures that the business is conducted for social good by
keeping effective supervision and control by enacting and amending laws
and rules from time to time.
10. Optimum utilisation of resources:
Business facilitates optimum utilisation of countries material and non-

material resources and achieves economic progress. The scarce resources
are brought to its fullest use for concentrating economic wealth and
satisfying the needs and wants of the consumers.

Identify The Characteristics of Indian Business: 1. Economic Activity

Uploaded by

Copyright:

Available Formats

Identify The Characteristics of Indian Business: 1. Economic Activity

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Identify The Characteristics of Indian Business: 1. Economic Activity

Uploaded by

Copyright:

Available Formats

Identify the characteristics of Indian Business

Business is an economic activity of production and distribution of goods

It provides a source of income to the society. Business results into

2. Buying and Selling:

Business is not a single time activity. It is a continuous process of

Business should continuously involve in research and developmental

Profit is an indicator of success and failure of business. It is the difference

Profit is required for survival, growth and expansion of the business. It is

Risk is defined as the effect of uncertainty arising on the objectives of the

6. Creative and Dynamic:

Modern business is creative and dynamic in nature. Business firm has to

One has to be innovative because the business operates under constantly

The phase of business has changed from traditional concept to modern

Modern business believes in satisfying the customers by providing quality

Business is a socio-economic activity. Both business and society are

10. Optimum utilisation of resources:

Business facilitates optimum utilisation of countries material and non-

You might also like