A business actually has more than one key feature:
- Exchange of goods and services: They might be consumer goods (such as sweets, shoes, etc), producer goods (such as machinery, equipment, etc) and/or services (such as insurance, housekeeping, cooking, etc)
- Production or exchange: It becomes a business only when there is an exchange, transfer, production, or sale of goods and/or services.
- Perpetuity of transaction: Any of the mentioned activies are considered to be a business only when they are undertaken continually or recurrently.
- Usage of resources: Land, labor, capital and enterprise are the four productive factors that any given company must use in order for it to become a business.
- Profit motive: The primary goal of a business is to earn a profit. Social objectives can be a primary goal as well, however, they must also include a profit for them to be considered a business.
- Element of risk: Any business has the possibilty of incurring a loss. This is termed as risk, and any business has to recognize this element, and survive within these risk constraints.
A business is a great endeavour, I really encourage you to try having your own business at some point in your life. There is a great chance to learn many things that no school will ever teach you!
Have a succesful week! And a great day :)
