Q.State any four characteristics of business.

Business has several defining features that separate it from a hobby or a one-off private sale; four commonly cited ones cover the economic-activity, continuity, profit, and risk angles together.

Any four of the eight standard characteristics are acceptable if correctly explained.

Business is marked by several features, of which the following four are among the most commonly tested:

1. Economic activity — business is concerned with the production, purchase, or sale of goods and services for economic gain; purely social or recreational activities are excluded.
2. Continuous and regular dealings — a single isolated transaction is not business; business requires dealings to be repeated with reasonable regularity.
3. Profit motive — earning a profit is the primary aim, rewarding the capital and effort invested.
4. Element of risk and uncertainty — the outcome of every business decision is uncertain, and losses are always possible alongside profits.

(Other acceptable characteristics: buyer-and-seller relationship, creation of utility, satisfying human wants.)