“Business is an institution organised and operated to provide goods and services under the incentive of private gain.” The statement is correct in this respect.
(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.