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Characteristics of Business
1. An economic activity
2. Profit earning
3. Uncertainty of return
4. Element of risk
5. Production or procurement of goods and services
6. Sale / exchange of goods and services for satisfaction of
human needs
7. Dealings of goods and services on a regular basis
Objectives of Business
1.Economics objectives
(a) Profit earning
(b) Survival
(c) Growth
2.Social objectives
(a) Supply of desired quality of products
(b) Avoidance and anti- social and unfair trade practices
(c) Generation of employment
(d) Welfare of employees
(e) Community services
Business Risks
Business risks refer to the possibility of inadequate profits or
even losses due to uncertainties or unexpected events, e.g. ,
decline in demands for a firms product due to change in taste
and fashion of customers.
Types of Industries
1. Primary industries
(i)Extractive industries e.g., farming, mining.
(ii)Genetic industries e.g., poultry farms, pisciculture.
2. Secondary industries
(i)Manufacturing industries
Analysis industry e.g., an oil refinery separates
crude oil into kerosene, diesel.
Synthetical industry e.g., cement, soaps.
Processing industry e.g., sugar and paper.
Assembly industry e.g., car, computer.
(ii)Construction industries e.g., construction of
buildings, bridges, roads.
(ii)Retail trade
Auxiliaries to Trade
1.Banking
2. Insurance
3.Transportation
4. Warehousing
4.Communication
6. Advertising