4 Basic Features Of A Business
Every business comes with an office filled with great expectations. Every member Duties being assigned to several employees, and the sales person’s wrapping up sales. Every member of a team working in harmony towards a certain goal to see that the business is successful. The following are four features of a business.
1. Trading Of Goods & Services
When someone manufactures or purchases an item for self-consumption, the person is not said to have engaged in business. Engaging in business is when one manufactures or purchases goods or products for selling. Business consists of buying or producing goods and selling it to either retailer, the wholesalers or the consumers. The business makes certain goods available to various parts of society. In business, products have to be exchanged for something, be it money or goods. Without this exchange, it is not worthy of being termed a business.
2. Aims At Making Profit
Business is carried out with a basic goal of earning an income through profit. A business which is not making profits cannot stand in the long run. Profit indicates if a business is failing or succeeding. It is the force that drives every business activity. It is necessary for the expansion and the survival of any business. Business has several objectives but making a profit is the actual aim of all business.
3. Economic Activity
Business is also said to be an economic activity because it involves manufacturing goods and distributing for sales and consumption. It creates job opportunities in many sectors in companies, transport, banking and many more. It is associated with the provision of utilities to satisfy human needs and wants. The business gives birth to job opportunities which lead to the growth of an economy.
4. Accounting
This aims at providing financial information to the stakeholders of a business. The stakeholders could be management or investors. Accounting helps in measuring and reviewing various activities of a firm and communicates the result to the management and other parties involved. The management needs accurate financial data to make brilliant decisions and Quality Back Office accountants are reliable in creating and delivering pieces of information like this. The accounting process collects data and presents it in several kinds of reports, with the accountants explaining the implications of these reports and bringing up ideas on how to make use of these details to resolve issues in the business.
