Aristotle states that the human function is the life activity of the part of the soul that has reason. He extends this further by stating that some sort of activity of the past of the soul that has reason has to be according to virtue. This will create a good man. For Aristotle, in order to be happy, humans must perform their function well in accordance with virtue.
In Book II, Aristotle makes a distinction between two types of virtues; those which are considered ethical and those which are considered intellectual. Ethical virtues deal with actions of courage, generosity, and moderation. Intellectual virtues deal with wisdom and contemplation. Ethical virtues are created through habitual actions. Aristotle says that humans are not born with a natural capacity for virtue. He believes that education and cultivation as youth by one's parents are pivotal in setting up humans' ability in making virtuous acts habitual. He feels that humans have to perform virtuous actions as much as possible and through this humans can make a step in becoming virtuous. Aristotle also states that ethical virtues have to be attended by pleasure. He believes that humans cannot be pained when committing a virtuous action. If a human is pained by an action then it is not considered virtuous.
Aristotle goes on to create a distinction between virtuous actions and virtuous character.