Q.Which of the following does not characterise business activity?

Business activity is characterised by producing and selling goods/services, dealing in them regularly, and bearing risk. Salary or wages describes employment income, so it is the odd feature out.

The essential characteristics of business activity include:

• Production of goods and services — creating utility.
• Sale or exchange of goods and services — regular dealings for value, not a single transaction.
• Presence of risk — uncertainty of returns is inherent to business.
• Profit motive and dealing in goods/services on a continuous basis. …

The answer is option (c) Salary or wages, which is not a characteristic of business activity.

The essential features that characterise a business activity are:

• Production of goods and services for meeting human wants.
• Sale or exchange of goods and services for value.
• Presence of risk, since profit is uncertain and losses are possible.
• Regular dealings carried on with a profit motive. …

The correct answer is (d) Salary or wages. Salary/wages describe employment, not the essential features of business activity.

In the Tamil Nadu HSC Commerce syllabus, the essential characteristics of business activity include:

• Production of goods and services — a core business function.
• Sale or exchange of goods and services — dealing in goods/services for value is essential to business.
• Presence of risk — every business involves uncertainty and the risk of loss.
• Profit motive, dealing on a regular basis, and creation of utility. …