DEFINITIONS AND CHARACTERISTICS OF BUSINESS

The term "Business has been defined differently by various writers. According to Urwick and Hunt, "Business is any enterprise which makes, distributes or provides any service which other members of the community need and are within to pay for it".

In the words of Davis, Business may be defined as an activity in which different persons exchange something of value whether goods or services for mutual gain or profit". Ronald defines business as "as an organization that produces or goods sells and services to make profit". Business thus is the sum of total activities which are connected with the production or perchase and sale of goods and services with the object to earn profit (profit is the difference between a business's revenues and its expenses). The persons who are engaged is business are named as business or entrepreneurs. An organization formed for carrying on business activities is called business organization.