Business literally means to be busy. However, the meaning of business more specifically is that of being busy to earn income. Thus, business includes all occupations in which people are busy earning income either by production or purchase and sale or exchange of goods and services to satisfy the needs of other people. Since the main objective of business is to earn an income or profits through business transactions, it is an economic activity.

According to Lewis H. Haney, “Business may be defined as human activity directed towards producing or acquiring wealth through buying and selling goods.” L.R.Dicksee has defined business as “a firm of activity pursued primarily with the object of earning profit for the benefit of those on whose behalf the activity is conducted”. Business involves production and/or exchange of goods and services to earn profits or, in a broader sense, to earn a living. Profit is not the sole objective of the business. It may have other objectives like promotion of welfare of the workers and the general public. Business achieves its objective by producing and distribution those goods and services which can satisfy human wants.

Business embraces those human activities which are directed towards producing or acquiring wealth through manufacturing, buying and selling goods. It includes all activities from predication to distribution of goods and services. It includes industry, trade and other activities like banking, transport, insurance and advertising which facilitate trade. In other words, the scope of business is wider than that of industry and trade.

Business activities are concerned with creation of three kinds of utilities as follows:

(i)    form utility through processing or manufacturing,
(ii)    time utility thought storage, and
(iii)    place utility through transportation.

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