Define Business and its type

The term 'business ‘refers to all the economic activities carried on by people and organizations for generating incomes. It is concerned with producing and distributing goods and services for earning a profit. It is a regular process of exchanging goods and services which involve risk and uncertainty.

According to James Stephenson, “Economic activities performed for earning profits are termed as the business."

From the above definitions, it is clear that the business is the economic activity of individuals and organizations aimed at earning profit through the production and distribution of goods and services.

Generally, there are two concepts of business:

Traditional Concept:
The traditional concept explains that the business of business is to earn profit through production and marketing of products. Products may be different types for example physical goods, services, Ideas, and information etc. The main motto of business is to maximize only profit as per traditional concept.

Modern Concept:

Consumer satisfaction is the central point of the Modern concept of business. Profit can be earned by maintaining social responsibility. It strives to include every aspect of human civilization. It views the modern business as a socio-economic institution which is always responsible towards the society.