What Do You Mean By Business?

The term business is wide in meaning. It includes all those human activities made for the sake of earning profit through the process of production of goods or buying or selling of goods. Man starts business for the sake of earning of money, and money is earned by satisfying human needs and desires with certain things.

Business activities can be of various kinds. These may be fishing mining, agriculture, cultivation, banking or industry, whether these may be conducted by a limited company or by a partnership firm or by one man, whether the business is dine on wholesale or retail level. In short every human activity made to earn income or profit is known as business. If the goods are produced to fulfill personal needs only, this activity cannot be called business.

Earning of profit is the special mark of business. As compared with commerce and industry the word business is used in the wide sense. It also includes all those economic factors, which help a man to earn profit by satisfying material, spiritual and mental needs of human beings. There is close relationship among business, industry, trade and commerce and they are therefore taken in the same sense. Briefly speaking business means earning of profit, industry means production, commerce denotes means of distribution and transportation of goods. Trade is considered as a part of commerce.