Commercial Applications
Give two characteristics of business.
Commercial Orgs Intro
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Answer
Two characteristics of business are:
Sale, Transfer or Exchange — All business activities involve sale or exchange of goods and services for some consideration (price). If there is no sale, transfer or exchange for a price, it will not be a business activity. For example, cooking food for personal consumption is not business, but cooking and selling it to others for a price becomes business.
Profit Motive — The primary objective of business is to earn money and acquire wealth. A business is not charity. Profits are essential for the survival, growth, and expansion of business. However, business must earn profits by serving society.
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