The term business is derived from the
word ‘busy’. Thus, business means
being busy. However, in a specific
sense, business refers to any
occupation in which people regularly
engage in an activity with a view to
earning profit. The activity may consist
of production or purchase of goods for
sale, or exchange of goods or supply of
services to satisfy the needs of other
people.
In every society people undertake
various activities to satisfy their needs.
These activities may be broadly
classified into two groups — economic
and non-economic. Economic activities
are those by which we can earn our
livelihood whereas non-economic
activities are those performed out of
love, sympathy, sentiments, patriotism,
etc. For example, a worker working in
a factory, a doctor operating in his
clinic, a manager working in the office
and a teacher teaching in a school—
are doing so to earn their livelihood and
are, therefore, engaged in an economic
activity. On the other hand, a housewife
cooking food for her family or a boy
helping an old man cross the road are
performing non-economic activities
since they are doing so out of love or
sympathy. Economic activities may be
further divided into three categories,
namely business, profession and
employment. Business may be defined
as an economic activity involving the
production and sale of goods and
services undertaken with a motive of
earning profit by satisfying human
needs in society.
