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Features of Business

Following are main features of business

 1. Economic Activity

Business is sum of economic activities. We can say all activities in which goods are produced, purchased and sold. Social welfare activities are not included in it. 

2. Aim of Earn Profit

 It is the feature of business that all activities are done for the aim of earning profit. If we collect donation for providing services to others, it will not be business. 

3. Risk of Loss

In business, businessman takes the risk of loss of his capital. He has to face internal and outside business environment. Risk and uncertainty are the inseparable parts of business. 

4. Regular Dealing 

Regular dealing in business transaction is must for a business. An isolated transaction can not be called as a business transaction. Thus, business involves regular dealing in transaction. 

5. Freedom 

Freedom is also an important element of business. The functioning of a business is at the discretion of the entrepreneur. Functioning of a business is at the discretion of the entrepreneur. 



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Objective of Business Environment

Following are main objectives of business environment:
1. Knowledge of Information 
By studying the business environment, we can know the changes of business. This information is very useful for our business. Every businessman should aware current environment of business. With this, he can think the future of his business in such environment. 
2. Basis of Decisions 
One of main objective of the study of business environment that it can provide all the information which is needed for taking good decisions. Suppose, you completed your internal business environment study. With this study, you can take decision relating to purchase, sale, salary and price because you know your competitor, you know your suppliers and you know your customers. 
3. Helpful in making of Policies 
For making good business policies, we need to know and scan business through business environment. 
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Factors of Environmental Scanning

Following are the main factors of environment scanning.

1. Events

Past events of business environment is the main factor of environment scanning. For example, if Govt. has to control food prices, it has to scan every week prices of vegetables, fruits, milk and other food items. For more simplification of price rise, Govt. will calculate wholesale price index.