A person sells his domestic furniture at a profit,will it be considere...
Introduction
When a person sells his domestic furniture at a profit, it cannot be considered as a business because it lacks certain characteristics that are essential for any activity to be classified as a business. In this response, we will discuss these characteristics in detail.
Characteristics of Business
1. Economic Activity: A business involves economic activity, which means that goods or services are produced or exchanged for a profit. In the case of selling domestic furniture, it is an isolated transaction and not a regular economic activity.
2. Profit Motive: The primary objective of a business is to earn a profit. While selling domestic furniture at a profit may indicate a profit motive, it is not a regular business activity.
3. Continuity: A business is a continuous activity that operates over a long period of time. Selling domestic furniture, on the other hand, is a one-time activity and does not involve continuity.
4. Risk and Uncertainty: A business involves taking risks and dealing with uncertainties. In the case of selling domestic furniture, there is no such risk or uncertainty involved.
5. Legal Entity: A business is a legal entity that is recognized by the law. Selling domestic furniture does not involve any legal entity.
6. Division of Labor: A business involves the division of labor, where different people perform different tasks. In the case of selling domestic furniture, there is no such division of labor involved.
7. Large Scale Operations: A business involves large scale operations that require a significant amount of resources. Selling domestic furniture does not involve large scale operations.
Conclusion
In conclusion, selling domestic furniture at a profit cannot be considered as a business because it lacks the essential characteristics that are required for any activity to be classified as a business. These characteristics include economic activity, profit motive, continuity, risk and uncertainty, legal entity, division of labor, and large scale operations.
A person sells his domestic furniture at a profit,will it be considere...
No, it's not considered as a business. he sell it property item which is an FIXED ASSEST . And for a business regular basis of exchange goods and services are important. It's not a regular business.
( matlb business regular basis or honi chahiye toh wo apni property ka part bech raha h toh wo apni fixed property daily nhi bechega. )
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.