Literally the word business means the state of being busy. When a person is busy in doing some work, he is said to make some business. In the above sense, eating, reading, writing and playing will be include in the category of business. Different authors have defined business in different ways. Some of the important definitions on business are:
According to Prof. Richard Owens, business means “an enterprise engaged in the production and distribution of goods for sale in a market or rendering service for a price”. This definition gives emphasis on the acquisition and distribution of goods.
According to Anshen, the word business means “the way men make their living”. Bookseller is termed as a businessman because he earns his living by selling books. According to Haney, Business may be defined “as human activity directed towards providing or acquiring wealth through buying and selling goods”. The business also include discharging of certain services on payment.
All activities are not business activities an thus the activities come under business must have the following characteristics:
- It involves creation of utilities.
- The activities must be a recurring one.
- It involves transfer of title by purchase and sale.
- It involves mutual benefit both to the buyer and the seller.
- It must be directed for earning one’s livelihood.