Q.State the meaning of business.

The word business comes from busy — being occupied with something. In its economic sense, business is an occupation in which people regularly engage in the purchase, production and/or sale of goods and services with the aim of earning profit by satisfying human needs.

Business is distinguished from other human activities by a set of characteristics:

• An economic activity — carried on to earn a livelihood, not out of love or sympathy. It may be small (a shopkeeper) or large and organised (a company).
• Production or procurement of goods and services — a firm either manufactures goods or buys them from producers before selling them.
• Sale or exchange of goods and services — there must be a transfer for value between a buyer and a seller. Cooking food at home is not business; cooking and selling it in a restaurant is. …