" Business in an institution organised and operated to provide goods and services under the incentive of private gain. " This statement is correct . The following points justify the given statement:
(i) Business is an economic activity as it is undertaken with the main objective of earning profits . Profit is essential to cover costs and risks of the business . Every business must earn a reasonable profit to survive and grow.
(ii) It involves sale , exchange , purchase of goods ( sugar , pen , textbook , machinery , furniture , etc.) and services ( transportation , banking , insurance , etc.) on a regular basis for mutual profit through the satisfaction of human wants.
