State the meaning of business.
The term ‘business’ has been derived from the word ‘busy’, which means ‘engaged in an activity’. A person who is engaged in business trades goods or services for a profit, which is the sole motive of conducting business. In the pursuit of earning a profit, a businessperson aims to produce goods and services that are in demand. This is because it is economically prudent to produce such goods and services as they ensure higher profits. Thus, a business fulfills the need of the businessperson to earn a living while simultaneously fulfilling the needs of the consumers.