The Nature of Business

Character, attributes, description, features, traits all of which mean a distinctive evidence of the difference between one thing and another there when we speak of the nature of business we refer to the characteristics that an activity or a venture must possess to make it a business. For an activity to be regarded or seen as a business it must have the following features:

Creation of goods and services. Business is the service to humanity with a view to satisfy the needs and desires of people. This implies that the main task of business activity is the creation or provision of the desired goods and services and distributing them to the end users as and at when required, and at satisfactory prices, before an activity can be called a business it must entails an exchange, sales or transfer of goods and services for a price.

Profit oriented. For a business to be seen as an activity a reward must be expected, that is there must exist an opportunity for profit. In other words, an activity is a business it the underlying motive is profit making. Every business activity is undertaking with a profit motive.
Uncertainty and risk bearing. What characterized a business activity is the risk it involves the element of uncertainty and risk. Here risk is defined as the possibility of loss, that is, uncertainty expected return on investment made in business.
Continuity and regularity in dealings. A business activity must be carried out continuously a one short activity does not constitute business except it is undertaken continually and regularly.
Acceptability by all. A business activity must be that which is acceptable within the limit of societal norms and the laws of the land. In other words, an illegal activity cannot be regarded as business since such activity would entail more harm than good to society at large.
Competitive in nature. Every business is a competitive venture and orientates itself in a manner that can achieve competitive advantage over its competitors while creating and serving the customer.

…End Notes.
As we can see there is similarities in all kinds of businesses; small or big. What is noticeable is that every business involves:
 Financing
 Purchasing
 Producing or servicing
 Selling or distributing
 Reward or profit making