Commercial Activity – Buying and Selling – A business service can be defined as any kind of work that supports a business, without producing any palpable products. Information Technology is a perfect example of a vital organizational business service, which aligns itself with the company’s needs as well as customers’ satisfaction. Any successful business entity must, therefore, the basic activity of any business is trading. The business involves buying of raw material, plants and machinery, stationary, property etc. Business Characteristics – On the other hand, it sells the finished products to the consumers, wholesaler, retailer etc. Business makes available various goods and services to the different sections of the society.
Business is not a single time activity. It is a continuous process of production and distribution of goods and services. A single transaction of trade cannot be termed as a business. A business should be conducted regularly in order to grow and gain regular returns. Business should continuously involve in research and developmental activities to gain competitive advantage. A continuous improvement strategy helps to increase profitability of the business firm.
Profit is an indicator of success and failure of business. It is the difference between income and expenses of the business. Business Characteristics – The primary goal of a business is usually to obtain the highest possible level of profit through the production and sale of goods and services. It is a return on investment. Profit acts as a driving force behind all business activities. Profit is required for survival, growth and expansion of the business. It is clear that every business operates to earn profit. Business has many goals but profit making is the primary goal of every business. It is required to create economic growth.
Customer satisfaction – Create and Retain the Customer
Any successful business service puts great emphasis on customer focus. Prioritizing the need and complaints of customers is most critical when offering any business service. When customers feel their importance in running a successful business, they become loyal and ultimately bring in more customers through referrals. Modern business believes in satisfying the customers by providing quality product at a reasonable price. It emphasizes not only on profit but also on customer satisfaction
Business Characteristics | Social Activity:
Business is a socio-economic activity. Both business and society are interdependent. Modern business runs in the area of social responsibility. Business has some responsibility towards the society and in turn it needs the support of various social groups like investors, employees, customers, creditors etc. by making goods available to various sections of the society, business performs an important social function and meets social needs. Business needs support of different section of the society for its proper functioning.
Maximizing of Resources: Businesses facilitate optimum use of material and non-material resources and achieves economic progress. The scarce resources are brought to its fullest use for concentrating economic wealth and satisfying the needs and wants of the consumers.