business activities

• business is any activity that is concerned with production or purchase of scarce goods and services.
• characteristics of business activities

  • sale, transfer, or exchange
  • dealings in goods and services
  • regular dealings
  • profit motive
  • creation of utilities
  • economic activity
  • risk
• hindrance of person


  commerce removes this hindrance by creating a link between producers and consumers.
• hindrance of place

  commerce removes this hindrance by moving goods from the places of production to places of consumption using transport.
• hindrance of time

  commerce removes this hindrance by holding and preserving goods in warehouses until sold to consumers.
• hindrance of risk

  commerce removes the risk of loss or damage due to theft, fires, accidents, etc. by means of insurance.
• hindrance of finance


  commerce removes this hindrance by providing finance through banking.
• hindrance of knowledge

  commerce removes this by providing information about goods and services to prospective customers through advertising.