The basic elements of business may be described as follows–
- Production: Business mainly changes the figure of natural assets and its related to produce demanded able and applicable goods. In this way business plays a vital role in economic prosperity.
- Distribution: Consumers are the main target of producing products and services in business So its the primary activity of business to take the produced goods to the market place towards the consumers.
- Profit: Earning profit is the main purpose of a business with the hope of earning profit businessmen investing their labor and talent with capital and taking a little risk to establish or run.
- Risk: Risk is another element of business. Mainly the uncertainty of earning profit is the risk. In business a businessmen cannot neglect risk. Businessman can earn profit as reward by taking risk. As we can say, “No risk no gain.”
- Financing: Capital is another element of business. By taking initiatives with risk any one can come forward for business. But no business cannot be established and run until arrangement of money. So for this purpose necessary should be reserved.
- Value: Each mutual transaction has a monetary value. That transaction cannot be a transaction in business which is not measurable by the money.
At last we can say any types of activity cannot business if there are not exists these described elements.