Business is a very vast subject. Every commodity that we use in our daily lives is a result of the business activity carried on. The scope of business is so wide that, from the basic necessity of food grains to the luxury items such as sophisticated cars, everything constitutes business.
It encompasses the use of latest scientific know-how and technical know-how and includes all the challenges, difficulties and problems encountered in converting a raw material into a finished product, raising and spending money for the good of business, the task of bringing all the employees together to attain better product, the task of complying with legal restrictions etc.
The distinguishing features or essential characteristics of business activities are :
1) Business is an economic activity which involves production and distribution of goods and services.
2) It involves sale, transfer or exchange of goods.
3) It involves dealing in services.
4) It involves regularity or continuity of dealings.
5) It has profit motive.
6) It has always an element of risk and uncertainly.
7) Business requires capital investment.