business

The word 'Business' is derived from the word 'Busy' which means 'the state of being busy'.But this is not the proper concept of business.Business is an economic activity directed with earning money and acquiring wealth.It is the human activity directed towards the acquisition of wealth through the production and exchange of goods and services.Business as an economic institution is engaged in the production and/or distribution of goods and services in order to earn profit and acquire wealth.Simply all the human activities done for economic benefit is known as business.If a housewife is busy in cooking food for the family consumption is not known as business because her intention is not to earn economic benefit (profit) by cooking food.But if she prepares food at the restaurant with the intention of earning of earning profit,it will be considered as business.Purchase of commodities for personal use or donation is not business.It should be understood that business is an economic activity of human beings which creates various types of utilities in goods.Generally,there are three types of utilities,from utilities i.e., process of finished goods from raw materials & parts; place utilities i.e., transport of goods from the place of production to the place of consumption and time utilities, i.e., process of storing goods when they are not required and supplying them when they are required.