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Tuesday, August 25, 2015

Defination of Business

Defination of Business

1. A business is also called an enterprise or a firm, is an organization that involved in the trade of goods, services in exchange of money.

2. Businesses can be non profit  or state-owned organization.

3. A Company or enterprising being engaged in commercial, manufacture and/ or professional activities.

4. A business can operate or maintain by multiple personnel which may  refer to as a company.
5. In short, business refer the purchase and sale of goods in an attempt to make a profit.
6. A business means to make profit instead of minimized commercial cost of products and/ or services. 
Type of Business 
 
  • Sole proprietorship
  • Partnership
  • Corporation
  • Cooperative
  • Joint-stock company
  • Private limited company
 Basic forms of ownership
1. Sole proprietorship is also called sole trader and it is owned by a person to make profit, all liabilities and assets are enjoyed solely by owner wheather operating cost and decision against the business.
2.  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. 

3. Corporation define 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. They can organize either for profit or as not-for-profit organizations.
4 Cooperative is a limited liability business that can organize for-profit or not-for-profit. A cooperative differs from a corporation in that it has members, not shareholders, and they share decision-making authority. Cooperatives are typically classified as either consumer cooperatives or worker cooperatives.
5. A joint-stock company is a business entity where different stocks can be bought and owned by shareholders. Each shareholder owns company stock in proportion, evidenced by his or her shares.
6. Private limited company is a hybrid type of business entity used in many jurisdictions, with some differences from country to country

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