The three characteristics of business are as follows
(i) Economic Activity Business is an economic activity as it includes exchange of goods and services with the purpose of earning money or livelihood.
(ii) Profit Earning The main aim of every business is to earn profit. Earning profit is essential for the survival of the business.
(iii) Uncertainty of Return Another important feature of every business is uncertainty of return. A businessman invests money to run the business but he is not certain about the amount of profit that he may earn. Moreover, there is a chance of losses being incurred inspite of the best efforts put into the business by him.