There is much more characteristics to a good business than the definition of business, which is an occupation or trade and the purchase and sale of products or services to make a profit.
Buying and Selling is the basic activity of any business. In simple, words business comprises buying of plants, raw material, stationary, property, machinery, etc. Then they sell finished products to the wholesaler, retailer, and consumer, etc. this is due to business that several products and services available to the people or society from different sections. Also learn more about 5 Characteristics Needed to Be a Modern Business.
Motive of Profit
Profit is the basic factor of failure and success of the business. Profit is the difference between expenses and income of the business. Mainly the motive of business is to get the highest and possibly profit level by the production of goods, sale of services and sale of goods. Without profit there is no business can drive forwards with all business activities.
Managing Uncertainty and Risk
The direct effect of reservation or uncertainty defines the risk factor, which arises through the business objectives. The risk is the defining feature yet linked with every business. There are mainly two forms of risk involved in business like insurable and non-insurable, though the insurable risk is expected. The management of the uncertainty and the low risk involved with it makes a good business.
Customer satisfaction is the key and major factor of all economic activities or business, yet it should be. The phenomena of modern business are majorly relying on the customer satisfaction through offering them the best quality product at affordable rates. It is also essential to emphasize on the profit margin along with customer satisfaction. Business sectors should know and realize that customers get satisfied when they receive the ultimate value of their purchasing costs in the form of quality.
Utilization of Resources
Businesses use major country resources, country material and thus they achieve economic progress. Limited or rare resources are also bringing to its complete utilization due to concentrate economic wealth and also satisfy the demand, need and want of the consumers.
Creative and Dynamic Factors
Dynamic and creative are the factors which are essential in modern business. Business organizations or business firms have to come with best creative ideas; concepts approach for producing and distributing services and goods. That means they should bring some new, innovative, fusion and inventive things to get costumer’s attraction. Without any fresh, creative and innovative concepts business do not get the ultimate hype or height on the open market, a business run with the constantly moderated economic, social and technological environment. It is also important in business to produce new products as per the growing costumers demand and need.
All the economic activities also contain social activity within, as the society and business are both independent in their way. Modern business grows in the sector or area of social responsibility. Obviously business has moral responsibilities towards their belonging societies. Thus, it ultimately needs the encouragement of different social areas like customers, investors, employees, creditors, etc. It is the hardcore responsibility of business to make goods available for all those sections of society, because business run with the vital social function, therefore, they have to meet social needs.
The process of production and distribution of goods and services, are known as business, the economic activity. Through these employment opportunities are delivered in diverse sectors such as transport, banking, insurance, trade, industries, etc. This economic activity preserved in the creation of utilities to satisfy human needs and wants.
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