Define concept of business

An idea for a business that includes basic information such as the service or product, the target demographic, and a unique selling proposition that gives a company an advantage over competitors. A business concept may involve a new product or simply a novel approach to marketing or delivering an existing product. Once a concept is developed, it is incorporated into a business plan.

Characteristics of Business
(i) Economic Activity Business is considered to be an economic activity because it is
undertaken with as aim of earning money or livelihood.
(ii) Production or Procurement of Goods and Services Goods are offered to consumers after they are either produced or procured by business enterprises. Thus, every business enterprise either manufactures the goods it deals in or it acquires them from other producers, to be further sold to consumers or users.
Goods may be consumer goods like television, tea, pen, etc or capital goods like machinery, furniture, etc. Services may include facilities offered to consumers in the form of transportation, banking, electricity, etc.
(iii) Sale or Exchange of Goods and Services Business involves transfer or exchange of goods and services for value addition. If goods are produced for self consumption and not for selling purpose, it cannot be called a business activity. Cooking food at home for the family is not business, but cooking food and selling it to others in a restaurant is business. Thus, one essential characteristic of business is that there should be sale or exchange of goods or services between the seller and the buyer.
(iv) Regular Dealings in Goods and Services Business involves dealings in goods or services on a regular basis. Therefore, one single transaction of sale or purchase does not constitute business.
(v) Profit Earning The primary objective of business is to earn profit. For this businessmen make all possible efforts by increasing the volume of sales or reducing cost. It is an essential factor as growth and expansion would be possible only when a business is making profit.
(vi) Uncertainty of Return Business should not be considered as bed of roses. At every step
problems and obstacles hinder the path of success. One cannot expect the actual returns an investment as there is always a possibility of losses.