Very Short Question and Answers - Characteristics of Business Activities

The primary objective of business activities is to earn profit.

No, cooking at home for family is not considered a business.

Uncertainty of return means that profits are not guaranteed and can vary.

Regular dealings refer to consistent transactions over time.

Personal relationships are not a characteristic of business activities.

A business may procure both consumable and capital goods.

Businesses primarily seek profits as their form of reward.

Element of risk means there is a chance of financial loss in business activities.

A profession requires specific qualifications and expertise, while business does not.

The main form of compensation in employment is salary.

A business can be established through an entrepreneur's decision.

An unpaid internship is not considered a form of business.

Capital investment refers to funds needed to start and run a business.

Providing banking facilities is an example of a service.

Profit is typically earned by effectively managing sales and costs.

Machinery is classified as a capital good.

Factors like customer preferences, competition, and natural disasters can change business risk.

A business can be transferred through a formal sale.

Maximizing profits by increasing sales is essential for business success.

Effective management, market understanding, and financial planning are necessary for success.