TYPES OF ECONOMIC ACTIVITIES
Economic activities may be divided into three categories
CONCEPT OF BUSINESS
Business means keeping busy in economic activities. These activities aim to earn profit. The activities not connected with earning profit are not a part of business. For example, watching a television, playing a computer game are not undertaken to earn profit, so are not a part of business.
Definition of Business
L.H. Haney, "Business may be defined as human activities directed towards providing or acquiring wealth through buying and selling goods".
Peterson and Plowman, "Business may be defined as an activity in which different persons exchange something of value whether goods or services, for mutual gain or profit." Wheeler, "An institution organised and operated to provide goods and services to the society under the incentive of private gain".
Business refers to all those economic activities which are concerned with the production, purchase and sale of goods and services with the purpose of earning profit. The earning of profit is the reward for undertaking business activities. So business is the sum total of all those activities connected with manufacturing, trading, transport, banking, insurance, warehousing, advertising etc. which are undertaken to earn profit.
.jpg)
