"Business is an institution organized and operated to provide goods &services under the incentive of private gain".Justify.

Dear student,

Business is an institution organised and operated to provide goods and services under the incentive of private gain 

 because of certain characteristics of business. Following are the main characteristics of business:

1. Business involves sale or exchange of goods arid services. The production of goods or services for self-consumption is not business.
2. It must sell or exchange goods or services on a regular basis.
3. The main purpose of business is to earn profit. If the profit motive is missing in a transaction, then it cannot be considered as business transaction.
4. The presence of risk factor in the transaction is most important feature of business.

Regards