Explanation:

- Option 1: Production of goods & services

- Business activities include creating products or services to meet consumer needs.

- Option 2: Presence of risk

- Risk is an inherent part of business activities as they involve uncertainty and potential loss.

- Option 3: Sale or exchange of goods and services

- This characterizes business activity, as transactions are essential for generating revenue.

- Option 4: Salary and wages

- This is a disbursement to employees and not a direct characteristic of business activities.

- Correct Answer