Business and Environment
Last modified by Jhonlyn Nucal on Saturday, 8 August 2020, 3:18 PM
This document was downloaded on Wednesday, 9 February 2022, 12:24 AM
Meaning, Nature and Kind of Business
What is Business? Business is defined as all profit-seeking activities and enterprise that
provide goods and services necessary to an economic system. In this definition,
we should understand that the term “business” could either be an activity or an
organization that aims to earn profit from a service or exchange of good. So,
what is profit? Profit refers to the reward for business persons
who take the risks involved in producing and marketing goods and services.
Investopedia defines profit as the money a business pulls in after accounting
for all expenses. Referring to business as an organization, it can be
classified based on the three principal activities they perform. Commerce,
Industry and Services.
Commerce
– Business firms, which are engaged in
buying and selling of goods and services, are classified as commerce.
Industry – Mainly engaged in production. Goods produced intended for
ultimate consumption are called consumer goods, while goods intended for use of
business and industry are called producer’s goods.
