NATURE AND PURPOSE OF BUSINESS

1) Characteristics of business activity
I) an economic activity
II) Production or procurement of goods and services
III) Sales or exchange of goods and services for the satisfaction of human needs
IV) Dealing in goods and services on a regular bases
V) Profit earning
VI) Uncertainty of returns
VII) Element of risk
2) Primary industries
Activities connected with the extraction and production of natural resources and re-production and development of living organisms
I) Extractive: drawing out products from nature
E.g.: farming, mining
ii) Genetic: breading plants and animal
3) Secondary industries: production of goods using material been extracted in primary industries
5) Tertiary industries: connected with providing support services to primary and secondary industries as well as activities related to trade
6) Trade refers to sale, transfer or exchange of goods.
7) Auxiliaries to trade are:
i) Transport and communication
ii) Banking and finances
iii) Insurance
iv)Warehouse
v) Advertising

9) Multiple objective of business
i) Market standings
ii) Innovation
iii) Productivity
iv) Earning profits
v) Workers performance and attitude