What is Business?
In routine life, we are hearing a common word “Business”. This is the activity of individual or group of people for earning profit through doing something (Selling Product or Performing services against charges). It may be short term, one time or long term with repeating same or with a change. The process of earning profit against services or products is called Business.
Definition of Business by Expert Author
Types of Business
- Trading is the process of buying finished goods and selling them to other at profit/commission. Examples are shops, Stores, Boutiques.
- Providing Services; Here goods are not involved but services, like consultancy, coaching, Workshop, Academies, Hospitals, Schools, Colleges, Beauty salon,
- Manufacturing and selling Product. Here organization producing the finished goods and selling them in the market. For example, Mobile Companies producing cell and selling. Nike Company.
Forms of Business
- Sole Traders ship; as its name indicates, here only one person is involved. The owner is only one person. This is the simplest form of Business because only one person is directing the business activities, so organizing and operating is very easy in this form. One person will bear the profit and loss of the business.
- Partnership; in this form of business two are more than two people come into single plate form for the purpose of business as per predefined term and conditions. Capital and services (business involvement) are set in advance and the ratio of profit and loss also agreed in the deed.
- Companies; the Large group of business usually come into this organized unit. People come to the table and define the goal and objectives and make a company as per company’s laws. Here owners are shareholders. Nokia, Samsung, Microsoft, Apple, Facebook are examples.
Characteristic of Business
o Legal, It should be as per Rules and regulation of existing and operating authorizes.
o Ethical. Business should also meet the ethical values. It is not only trading and selling without any sense of Humanity. Like Smuggling, Cheating, Gambling is not part of it. (culture and country law varies by geographic so it should be as per them)
o Profit motive; Purpose of business is profit earning, so do that type of work which gives fruity result.
o Creative and innovated
o Leading and growing; working in such a way that business should grow and lead in the existing market.
o Risk-Free, Doing that type business which is have not risk in future. Should be as per innovation and with the creative mind. Supporting the clients as per their upcoming demand and needs.