Business comes from the word "busy" which denotes an activity. It has three usages. First, it is a term coined to refer to an organization. Second, it pertains to a specific sector of the market like show business. Lastly, it encompasses all business activities in a community which involves all suppliers of goods and services.
Business Owners
There are three ways you can own a business. These are:
- Sole proprietorship - a business owned by one person only. This gives the business owner an unlimited personal liability of all debts of the business.
- Partnership - two to five people make up a partnership. Each person is personally liable for the debts of the partnerships.
- Corporation - it is formed by at least five persons. A corporation is a legal entity itself which is separate from its owners or shareholders.
Types of Business
There are many different forms of businesses. These include:
- Manufacturing - involved with the processing of raw materials to work-in-process to finished goods. Companies that make shoes or shirts for instance fall under manufacturing.
- Service business - from the word itself, it offers basically services to customers. Common examples would be car repair service, singers or the hotel industry which is basically a service industry.
- Retailers and distributors - refer to the middlemen who act as the link between manufacturers and consumers. Grocery stores or supermarkets are considered retailers and distributors.
Agriculture and mining are businesses which are concerned with supplying materials. Rice farmers and gold miners fall under this category.
Financial businesses provide services to manage client's financial investments. This includes banks and insurance firms.
Information businesses sell intellectual properties such as book publishers or music producers.
Utilities businesses provide public services such as communication or telephone, electricity and others.
Real estate businesses are engaged with properties and lands such as apartments, buildings and home development.
Transportation businesses refer to providing transportation to the public such as airlines, bus companies and trains.
