Concept of Business
The term business is derived from
the word ‘busy’. Thus, business
means being busy. However, in a
specific sense, business refers to an
occupation in which people regularly
engage in activities related to purchase,
production and/or sale of goods and
services with a view to earning profits.
If you look around you will observe
that people undertake various activities
to satisfy their needs. These activities
may be broadly classified into two
groups — economic and non-economic
activities. Economic activities are
those by which we can earn our
livelihood, whereas, non-economicactivities are performed out of love,
sympathy, sentiment, patriotism,
etc. For example, a worker working
in a factory, a doctor operating in his
clinic, a manager working in an office
and a teacher teaching in a school
are doing so to earn their livelihoods
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
