Nature and Scope of Business — Flashcards

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Business is an occupation in which goods and services are produced and sold in return for money. It is carried out regularly with the prime objective of earning profit.

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Regularity is essential because a single sale or a one-time transaction is not enough to call an activity business. Business means repeated production, buying or selling with the aim of profit.

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Business has six main characteristics: it deals in goods and services, involves sale or exchange, is done regularly, requires investment, aims at profit, and involves risk and uncertainty of income.

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Profit is called the lifeblood of business because without profit no business can survive in a competitive market. Profit helps the owner earn a living and also expand the business by reinvesting part…

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Business involves risk and uncertainty because future income is not fixed. Even after investing resources and working hard, profit is not guaranteed, and losses can also occur.

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Business is mainly done to earn profit and does not require special qualifications or a fixed code of conduct. Profession needs specialized knowledge and training, is regulated by a professional body,…

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Employment is an occupation in which a person works regularly for another and gets wages or salary. The employer decides the terms and conditions, no capital is needed, and income is fixed. Business n…

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An economic activity is any activity performed with the objective of earning money. Examples include a farmer selling crops, an employee earning wages, and a businessperson earning profit.