What is business? and Its types

What is business? and Its types

What is Business? Its types , Business is nothing but the activity of making one’s living or making money by producing or buying and selling products or services. Simply put, it is “any activity or enterprise entered into for profit. Business is not only a profit for businessman but society and country’s development is also depends on it. Thus saying ‘The Business of Business only Business’ is not perfect but business is a relation among customers, society and country to make them better.

All of the business have six basic Activities,

  • Human Resources.
  • Customer Service.
  • Accounting.
  • Production / Purchase
  • Sales.
  • Marketing.

There are 3 main types of Business organisation,

  • Sole proprietorship: A sole proprietorship, also known as a sole trader, is owned by one person and operates for their benefit. The owner operates the business alone and may hire employees. A sole proprietor has unlimited liability for all obligations incurred by the business, whether from operating costs or judgments against the business. All assets of the business belong to a sole proprietor, including, for example, a computer infrastructure, any inventory, manufacturing equipment, or retail fixtures, as well as any real property owned by the sole proprietor.
  • Partnership: A partnership is a business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business. The three most prevalent types of for-profit partnerships are general partnershipslimited partnerships, and limited liability partnerships.
  • Corporation: The owners of a corporation have limited liability and the business has a separate legal personality from its owners. Corporations can be either government-owned or privately owned, and they can organize either for profit or as nonprofit organizations. A privately owned, for-profit corporation is owned by its shareholders, who elect a board of directors to direct the corporation and hire its managerial staff. A privately owned, for-profit corporation can be either privately held by a small group of individuals, or publicly held, with publicly traded shares listed on a stock exchange.

Steps for How to Start a Business:

  1. Refine your idea.
  2. Write a business plan.
  3. Assess your finances.
  4. Determine your legal business structure.
  5. Register with the government and IRS.
  6. Purchase an insurance policy.
  7. Build your team.
  8. Choose your vendors.

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