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Why is a business called as economic activity

Posted by Srihari Balaji 4 years, 4 months ago

CBSE > Class 11 > Business Studies

1 answers

Yogita Ingle 4 years, 4 months ago

Consumption of goods and services, production and distribution are known as economic activities. The main aim for economic activities is production of goods and making sure that it reaches the end consumer.

Therefore business is considered an economic activity because it ensures production, sale, distribution of goods and services in order to satisfy consumer wants, with the purpose of making good profits.

An example of an economic activity within a business is a business distributing and delivering its products to the store.

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