CHARACTERISTICS

Following are the essential characteristics of Structural Diagram
a good business:

Capital
Capital is the lifeblood of every
business. It is the most essential and
important element of business. In case of
deficiency, loans can be taken from various
financial institutions.

Creation of Utility
Utility is an economic term referring to that characteristic of a certain commodity, which
can satisfy any human need. Business creates utility, which gives benefit to the entire society
as well as the businessmen.

Dealing in Goods and Services
Every business deals with sale, purchase, production and exchange of goods and services for
some consideration.

Employment
Business is a good source of employment for its owners as well as for other people, for
example, employees, agents, transporters etc.

Islamic Process
Business is an Islamic way of earning living. Income from business is known as profit, which is Rizq-e-Halal. The Holy Prophet Muhammad himself did prosperous business.

Motive
The motive of business is to earn profit. Otherwise it will not be termed as business.

Organization
Every business needs an organization for its successful working. A proper organization is
helpful in the smooth running of business and achieving the objectives.

Productions or Purchase of Goods
A businessman deals in production or purchase of goods. These goods are supplied to the
people. So, it is necessary that more goods should be produced so that demand of people
may be fulfilled.

Regular Transaction
Business has a nature of regular dealings and series of transactions. So, in business, only
those transaction s included which have regularity and continuity.

Risks and Uncertainty
Business involves a large volume of risk and uncertainty. The risk element in business keeps
a person vigilant and he tries to ward off his risk by executing his policies properly.

Sale or Transfer for value
Another characteristic of business is the sale or transfer of goods for value.

Social Welfare
Business does not only satisfy the producer, but also the consumer when products are offered
for sale at low prices in markets.