Question

Justify the following statement.

Business is part of economic activities.

Answer 1

1. Economic activities are those activities which are done with the intention of making money.
2. A person has to earn money for his livelihood.
3. However, all economic activities are not the same. They can be conducted mainly in three different ways.
   (a) Employment
   (b) Profession and
   (c) Business.
4. Business is conducted to earn a profit.
5. A businessman invests his own capital, takes decisions, and carries out business activities.
6. He also takes the risk of carrying business activities.
7. Business operations boost the economy by producing products and services, creating jobs, and raising tax money. It boosts economic growth and development.
8. Businesses innovate by upgrading products and services to fulfil consumer needs. Competition among firms offers consumers better products and more options at competitive rates.
9. Businesses create money for owners and shareholders and contribute to society. Many companies assist community welfare, environmental sustainability, and social causes through corporate social responsibility (CSR), improving society.
10. Thus, a businessman is responsible for business activities. The profit earned is enjoyed by a businessman. So business is a part of economic activity.