We mind our business everyday in our lives by being busy, either as individuals or society as a whole, doing commercially viable and profitable work. We do so when we get employed by those who provide jobs or work for us. These jobs can either be artisan or office jobs. Individuals who provide jobs for others, also mind their business. Some people own their own jobs and we call them self employed people. It doesn’t matter whether you own your job or not, but the ultimate goal here is that you earn money or income by the end of the day. We call this type of work today, a business.
A business, which can also be referred to as a company, an enterprise or firm, is a legally recognized organization designed to provide goods or services to consumers. Most businesses are privately owned and formed to earn profits that would increase the wealth of it’s owners and grow the business itself. Some businesses are not for profit organizations, government owned company’s or institutions and non-governmental organizations like churches, orphanages, foundations etc.
A business can be owned by an individual or one person, who has a personal liability of the debts garnered by the business. A business can also be owned by two or more people, and we call this type of business a partnership. Each partner has a personal liability of the debts incurred by the company they own. There are three types of partnerships, which include;
– general partnership,
– limited partnership,
– and limited liability partnership.
Businesses can be owned as a corporate entity which is either a limited or unlimited liability entity that has a separate legal personality from its members. It is owned by multiple shareholders and is overseen by a board of directors, which hire the business’s managerial staff. Lastly, a business can also be owned as a cooperative which is often referred to as a “co-op”. It is a limited liability organization, which is different from a corporation in that it has members as opposed to shareholders, who share decision making authority. There are two types of cooperatives, which are business cooperatives and worker cooperatives.
A business can be classified as offering goods (products) or services or even both. There are some businesses that offer more services than their products while some are more recognized with the products they offer than their services. Businesses can be classified in many ways but the most common are those that focus on the primary aim of generating profit or income. The following are major types of businesses:
(a) AGRICULTURE AND MINING BUSINESS.
This business is concerned with the production of raw materials, such as plants and minerals, for use in other industries or businesses.
(b) FINANCE BUSINESS.
This type of business is made up of institutions, such as banks, insurance companies, stockbroking firms, pension funds, health maintenance organizations etc, which generate profit or income through the investment or management of capital or money.
(c) INFORMATION BUSINESS.
This type of business generates income or profit from the resale of intellectual property or important information and are made up of movie studies, publishers, software (ICT) companies, the media (print, electronic media via newspapers, magazines, radio, television stations and the internet).
(d) MANUFACTURING BUSINESS.
People or companies, who produce items or products from raw materials gotten from agricultural and mining products are known as manufacturers. Most of these products include cars, household goods and furniture, electronic gadgets and equipments etc.
(e) REAL ESTATE BUSINESS.
This is a type of business that generates profit from the sale, renting and development of landed properties, homes and buildings.
(f) RETAIL AND DISTRIBUTION(WHOLESALE) BUSINESS.
This type of business is a business that ensures that goods or products, produced by manufacturers are delivered to the intended customer and they make money as a result of providing sales or distribution services. Most consumer based stores and catalog companies like Shoprite and Park’n’Shop are distributors(wholesalers) or retailers.
(g) SERVICES BUSINESS.
This type of business offers intangible (non-physical) goods or services and generate a profit by charging for labor or other services provided to government, other companies or customers (consumers). These businesses can be house decorators or cleaners, consulting firms, delivery companies, entertainers and sports people etc.
(h) TRANSPORTATION BUSINESS.
These is a type of business that delivers goods and people from one location to another, generating a profit on transportation costs. They include land, sea (water) and air transportation.
(I) UTILITY BUSINESS.
This is type of business that delivers public services, such as heat, electricity, water, sewage treatment, education or healthcare services. They are usually managed by the government and a few businesses or companies are permitted by government to deliver this type of business.
Having a business is the best way to multiply money because your money is used to generate income or money when you provide solutions to peoples needs and they pay you back for doing so. But the greatest problem business owners have is to sell their businesses or products or services to other people, thereby making their business, other people’s business.
Posted from WordPress for BlackBerry.