Business may be defined as an enterprise engaged in the production and distribution of goods for sale in the market or rendering service at a price. The chief characteristics of the business are:
Creation of utilities: Business denotes creation of utility and service for satisfaction of human wants. Business helps in the creation, distribution and production of utilities.
Recurring activities: Business activities are recurring in nature. Recurring purchase and sales are regarded as identifying marks of the business.
Transfer of title: The goods produced or purchased by the business are made with the intention of sale or transfer of title from the seller to the buyer. Because of this reason goods acquired for the sake of personal consumption are excluded from business.
Mutual benefit: Business activities are not sided affairs because both the parties are benefited. The buyer gets the benefit of having the goods and the seller gets the benefit of having money.
Expectation of earning: Business provides a way of living to the businessman because he intends to earn profit.