1. Production or Procurement of Goods : Goods must be produced or procured in order to satisfy human wants.
2. Sale, Transfer or Exchange : There must be sale or exchange of goods or services. When a person weaves cloth for his personal consumption, it is not business because there is no transfer or sale.
3. Dealing in Goods and Services : Goods produced or procured may be consumer goods like cloth, pen, brush, bag etc., or producer-goods like plant and machinery. Services refer to activities like supply of electricity, gas or water, transportation, banking, insurance etc.
4. Regularity of Dealings : An isolated dealing in buying and selling does not constitute business. The transactions must be regular.
5. Profit Motive : An important feature of business is profit motive. Business is an economic activity by which human beings make their living.
6. Element of Risk : The profit that is expected in a business is always uncertain because it depends upon a number of factors beyond the control of the businessman.
