Define Business

Production of Goods and Services:

• The core function of business is the creation of products or services that meet the demands of consumers. This could be anything from manufacturing goods to offering professional services like consulting, healthcare, or entertainment.

Exchange of Value:

• Business operates on the principle of exchange—products, services, or resources are exchanged for money or other goods. The goal is to create value that satisfies customer needs, which in turn generates revenue.

Profit Motivation:

• Most businesses are profit-driven, meaning their primary objective is to generate financial gain for owners, shareholders, or stakeholders. Nonprofit organizations, however, aim for social or charitable goals rather than profit.

Economic Activity:

• Business involves economic activity, meaning it contributes to the flow of resources, including capital, labor, and raw materials, within a market or economy. Businesses can be small or large, local or global.