Business

BusinessFor other uses, seeBusiness (disambiguation)."Firm" redirectshere. For other uses, seeFirm (disambiguation)."For-profit" redirects here. For businesses which are not-for-profit, seenon-profit business.Abusiness, also known as anenterpriseor afirm, is anorganizationinvolved in thetradeofgoods,services, or both toconsumers.[1]Businesses are prevalent incapitalisteconomies, wheremost of them areprivately ownedand provide goods and services tocustomersin exchange for othergoods, services, or money. Businessesmay also benot-for-profitorstate-owned. A business owned by multiple individuals may be referred to as acompany.Business can refer to a particular organization or to an entiremarket sector, e.g. "the music business". Compound forms such asagribusinessrepresent subsets of the word's broader meaning, which encompasses all activity by suppliers of goods and services. The goal is for sales to be more than expenditures resulting in a profit.Basic forms of ownershipForms of business ownership vary byjurisdiction, but several common forms exist:*.Sole proprietorship:Asole proprietorship, also known as a sole trader, is owned by one person and operates for their benefit. The owner may operate the business alone orwith other people. A sole proprietor has unlimitedliabilityfor all obligations incurred by the business, whether fromoperating costsorjudgementsagainst the business. Allassetsof the business belong to a sole proprietor, including, for example, computer infrastructure, anyinventory,manufacturingequipment and/orretailfixtures, as well as anyreal propertyowned by the business.*.Partnership:Apartnershipis 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 aregeneral partnerships,limited partnerships, andlimited liability partnerships.*.Corporation:The owners of acorporationhavelimited liabilityand the business has a separatelegal personalityfrom its owners. Corporations can be eithergovernment-ownedor privately owned. They can organize either for profit or asnot-for-profitorganizations. A privately owned, for-profit corporation is owned by itsshareholders, who elect aboard of directorsto direct the corporation and hire its managerial staff. A privately owned, for-profitcorporation can be eitherprivately heldby a small group of individuals, orpublicly held, with publicly tradedshareslisted on astock exchange.*.Cooperative:Often referred to as a "co-op", acooperativeis a limited liability business that canorganize 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 aretypically classified as eitherconsumer cooperativesorworker cooperatives. Cooperatives arefundamental to the ideology ofeconomic democracy.Classifications*.Agricultureandminingbusinesses produce raw material, such as plants or minerals.*.Financialbusinesses includebanksandother companies that generate profits through investment and management of thecapital.*.Information businesses generate profits primarily from the sale ofintellectual propertyand includemovie studios, publishers and internet andsoftware companies.*.Manufacturersproduceproducts, fromraw materialsor from componentparts, then sell their products at aprofit. Companies that maketangiblegoodssuch ascars,clothingor pipes are considered manufacturers.*.Real estatebusinesses sell, rent, and develop properties including land, residentialhomes, and other buildings.*.Retailersanddistributorsact as middlemen and get goods produced by manufacturers tothe intended consumers, and make their profits by marking up their price. Most stores and catalog companies are distributors or retailers.*.Service businessesoffer intangible goods or services and typically charge for labor or other services provided togovernment,consumers, or other businesses.Interior decorators, consulting firms and even entertainers are service businesses.*.Transportationbusinesses deliver goods and individuals to their destinations for afee.*.Utilitiesproduce public services such as electricity or sewage treatment, usually under a governmentcharter.ManagementMain article:ManagementThe efficient and effectiveoperationof a business, and study of this subject, is calledmanagement. The major branches of management arefinancial management,marketing management,human resource management,strategic management,production management,operations management,service managementandinformation technology management.[citation needed]MD TarekOwners may administer their businesses themselves, or employ managers to do this for them. Whether they are owners oremployees, managers administer three primary components of thebusiness' value: its financial resources,capital or tangible resources, and human resources. These resources are administered in at least five functional areas: legal contracting, manufacturing or service production,marketing, accounting, financing, and human resources.