Concept:
Bioavailability is an important pharmacokinetic parameter. It tells how much drug reaches the systemic circulation in active form.
Step 1: When a drug is administered, it must be absorbed into the blood to produce systemic effect.
Step 2: The amount of drug that reaches systemic circulation is called the extent of absorption.
Step 3: How fast the drug reaches systemic circulation is called the rate of absorption.
Step 4: Bioavailability includes both rate and extent of drug absorption.
Step 5: Therefore, bioavailability refers to the rate and extent of drug reaching systemic circulation.
\[
\boxed{\text{Rate and extent of drug reaching systemic circulation}}
\]