Pros and Cons of Business Activities

Business activities are any activities that a business organization engages in for the purpose of making a profit. They include operating the business, investing and financial activities that create value to the shareholders.

Business activities are geared towards gaining profit and they run continuously. They involve buying and selling and satisfy the customer’s needs. It is taking risks and uncertainties as the liabilities in the business are to be met by the owner or owners.

Pros and Cons of Business Activities

Pros of Business Activities

  1. Financial rewards

When a business is able to make a profit then that is a reward it gets from it and the owner will be able to evaluate his or her business as running well.

  1. Independence

When owning a business you are your own boss. The things that you engage in you are the one who is accountable hence you have your own independence in life.

  1. Learning opportunities

It is a good learning opportunity as you will be able to learn the goods that are mostly used by the customers and through that, you will be able to stock them in large quantity hence it will facilitate the earning of profit as there will be a lot of sales.

  1. Creative freedom and personal satisfaction

When running a business you will be able to enjoy your own freedom as you will be the one to decide when to open and to close and will also trade in goods of your own choice hence creative freedom and personal satisfaction.

  1. Lifestyle

With the operation of the business, one can decide where to operate the business from and when to start it hence you are able to decide on the lifestyle you would prefer to have.

Cons of Business Activities

  1. Financial risk

There is no guarantee that when you invest in a business you will earn the profit. Sometimes the owner will earn a loss and they should look for means of recovering the loss got from the business. Sometimes there may be cases of theft but the owner has to look for ways of dealing with them.

  1. Time commitment

For the owner of the business to earn profit from a business, he or she has to commit himself or herself in the running of the business. The time input will be directly proportional to the output hence the owner has to really commit himself or herself in the running of the business.

  1. Undesirable duties

Sometimes the owner of the business has to do undesirable duties such as going for the stock and getting the things from the shelves for the customers for him or her to run the business effectively.

  1. Government involvement

The government involves itself in businesses in various ways. The owner of the business has to understand the ways so that he or she may do what is required or else sometimes it may turn out to be stressful when the owner of a business does not know yet he or she has been caught up in the situation. For instance, the owner has to obtain a license of operation which may be costly and has to follow the long procedures to obtain it.


Business activities have attracted many investors as the owners enjoy being bosses of their own and they are accountable to either the profit or the loss earned in the business.

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