By Harshvardhan, the Subject Matter Expert at Edumarz
Solution: The term business is derived from the word “busy” which means being busy. Business refers to any occupation in which people regularly engage in economic activities related to the purchase, sale, and production of various types of goods and services with the prime objective of earning profits. The exchange of goods and services is done to satisfy the needs of other people in society.
Business is a major economic activity in all modern societies and the purpose behind most business activities is to earn money by meeting people’s demands for goods and services and business is central to our lives.
Business can be done at many levels. A shopkeeper selling tea is also a businessman and the Managing Director or CEO Of a big company Like Reliance is also a Businessman. In short, every non-profitable activity involving the exchange of goods and services for gaining profit is called business.
Business can be classified into two types. They are Industry and Commerce. Industry can be further be classified into Primary, Secondary, and Tertiary Industries. There is also a risk factor that is present in Business. Risk means uncertainty. Uncertainty of return refers to the lack of knowledge relating to the amount of money that the business is going to earn in a given period.