Busi
ness
Thewor
dbusi
nessof
tenr
efer
stoanoccupat
ion(
li
ke"
sheownsherownbusi
ness"
)or
apar
ti
cul
art
rade,
li
keshowbusi
ness.Busi
nesscanal
sodescr
ibeanent
erpr
ise'
s
f
inanci
algoal
,asi
n,ast
oret
hatusesadv
ert
isi
ngt
oat
tr
actbusi
ness,
ori
tsact
ivi
ty—
l
i
keast
oret
hatdoesmostofi
tsbusi
nessonweekends.I
tisn'
tal
way
seasyt
oruna
busi
ness.I
nfact
,itcomesf
rom t
heOl
dEngl
i
shwor
dbi
signi
s,whi
chmeant“
anxi
ety
."
1.Thet
erm busi
nessr
efer
stoanor
gani
zat
ionorent
erpr
isi
ngent
it
yengagedi
n
commer
cial
,i
ndust
ri
al,
orpr
ofessi
onalact
ivi
ti
es.
2.Busi
nessi
sabr
oadt
erm,
butt
hesepr
ofi
t-
seeki
ngact
ivi
ti
esgener
all
yincl
ude
pr
ovi
dingsomeki
ndofgoodorser
vicet
hatpeopl
ewantorneed.
3.Busi
nessi
sal
sot
heef
for
tsandact
ivi
ti
esofaper
sonwhoi
spr
oduci
nggoodsor
of
fer
ingser
viceswi
tht
hei
ntentt
osel
lthem f
orpr
ofi
t.
TypesofBusi
ness
Busi
nesseswi
l
lgener
all
yfal
li
ntooneoft
hreecat
egor
ies:ser
vice,
manuf
act
uri
ng,
or
busi
nesssect
ors.Thenat
urebusi
nessdef
ini
ti
oni
sthet
ypeofbusi
nesscl
assi
fi
cat
ion
anor
gani
zat
ioni
sgi
venbasedonwhatt
heydoandpr
ovi
de.Eacht
ypeofbusi
ness
f
ocusesonmeet
ingconsumerneedsi
ndi
ff
erentway
stobecomepr
ofi
tabl
e.
a.Ser
viceBusi
ness:pr
ovi
desi
ntangi
blepr
oduct
s(ser
vices)t
ocust
omer
s,suchas
l
abororexper
ti
se
b.Busi
ness:usesr
awmat
eri
alst
ocr
eat
epr
oduct
stosel
ltoot
herbusi
nesses
c.Ret
ailBusi
ness:sel
l
smanuf
act
uredpr
oduct
sdi
rect
lyt
ocust
omer
s
, Pur
poseofaBusi
ness
•t
oor
gani
zesomesor
tofeconomi
cpr
oduct
ion(
ofgoodsorser
vices)
.
•i
tcanbef
or-
prof
itent
it
iesornon-
prof
itor
gani
zat
ionsf
ulf
il
li
ngachar
it
abl
emi
ssi
onor
f
urt
her
ingasoci
alcause.
For
msofBusi
ness
1.Sol
ePr
opr
iet
orshi
p:I
nthi
ski
ndofbusi
ness,
asi
ngl
eper
sonownsandoper
atest
he
busi
ness.Ther
eisn’
tanyki
ndofl
egal
separ
ati
onbet
weent
heownerandbusi
ness.
Thus,
theonusofl
egalpl
ust
axl
i
abi
l
ityi
sont
heowner
.
2.Par
tner
shi
p:Ast
henamesuggest
s,i
tisabusi
nesswher
etwoormor
epeopl
eruni
t
t
oget
her
.Thepar
tner
sbr
ingi
nresour
cesandmoney
,andt
hent
heshar
esi
nthepr
ofi
t
orl
ossar
edi
vi
dedamongstt
hem.
3.Cor
por
ati
on:I
nthi
sbusi
ness,
agr
oupofi
ndi
vi
dual
sactt
oget
herasasi
ngl
eent
it
y.
Theowner
sint
hisbusi
nessar
ecal
l
edshar
ehol
der
s.Theydi
scusst
hei
rvi
ewsont
he
commonst
ockoft
hecor
por
ati
on.Ther
ear
eunf
avour
abl
etaxat
ionr
ulesi
na
cor
por
ati
onf
ort
hebusi
nessowner
s.
4.Li
mit
edLi
abi
l
ityCompany(
LLC)
:Iti
snotasol
dast
heot
herbusi
nessst
ruct
ures.I
t
mer
gesapar
tner
shi
p’spass-
thr
ought
axat
ionbenef
it
sandacor
por
ati
on’
sli
mit
ed
l
i
abi
l
itybenef
it
s.
Char
act
eri
sti
csofBusi
ness
I
nor
dert
obecl
assi
fi
edasabusi
ness,
anor
gani
zat
ionmustexhi
bitcer
tai
n
char
act
eri
sti
csofbusi
nessandper
for
m cer
tai
ntasks.Whati
sthedef
ini
ti
onof
char
act
eri
sti
cs?Someoft
hesechar
act
eri
sti
csi
ncl
udeeconomi
cact
ivi
ty,
buy
ingand
sel
l
ing,
cont
inuouspr
ocess,
prof
itmot
ive,
riskanduncer
tai
nti
es,
creat
iveanddy
nami
c,
cust
omersat
isf
act
ion,
soci
alact
ivi
ty,
andgov
ernmentcont
rol
.
ness
Thewor
dbusi
nessof
tenr
efer
stoanoccupat
ion(
li
ke"
sheownsherownbusi
ness"
)or
apar
ti
cul
art
rade,
li
keshowbusi
ness.Busi
nesscanal
sodescr
ibeanent
erpr
ise'
s
f
inanci
algoal
,asi
n,ast
oret
hatusesadv
ert
isi
ngt
oat
tr
actbusi
ness,
ori
tsact
ivi
ty—
l
i
keast
oret
hatdoesmostofi
tsbusi
nessonweekends.I
tisn'
tal
way
seasyt
oruna
busi
ness.I
nfact
,itcomesf
rom t
heOl
dEngl
i
shwor
dbi
signi
s,whi
chmeant“
anxi
ety
."
1.Thet
erm busi
nessr
efer
stoanor
gani
zat
ionorent
erpr
isi
ngent
it
yengagedi
n
commer
cial
,i
ndust
ri
al,
orpr
ofessi
onalact
ivi
ti
es.
2.Busi
nessi
sabr
oadt
erm,
butt
hesepr
ofi
t-
seeki
ngact
ivi
ti
esgener
all
yincl
ude
pr
ovi
dingsomeki
ndofgoodorser
vicet
hatpeopl
ewantorneed.
3.Busi
nessi
sal
sot
heef
for
tsandact
ivi
ti
esofaper
sonwhoi
spr
oduci
nggoodsor
of
fer
ingser
viceswi
tht
hei
ntentt
osel
lthem f
orpr
ofi
t.
TypesofBusi
ness
Busi
nesseswi
l
lgener
all
yfal
li
ntooneoft
hreecat
egor
ies:ser
vice,
manuf
act
uri
ng,
or
busi
nesssect
ors.Thenat
urebusi
nessdef
ini
ti
oni
sthet
ypeofbusi
nesscl
assi
fi
cat
ion
anor
gani
zat
ioni
sgi
venbasedonwhatt
heydoandpr
ovi
de.Eacht
ypeofbusi
ness
f
ocusesonmeet
ingconsumerneedsi
ndi
ff
erentway
stobecomepr
ofi
tabl
e.
a.Ser
viceBusi
ness:pr
ovi
desi
ntangi
blepr
oduct
s(ser
vices)t
ocust
omer
s,suchas
l
abororexper
ti
se
b.Busi
ness:usesr
awmat
eri
alst
ocr
eat
epr
oduct
stosel
ltoot
herbusi
nesses
c.Ret
ailBusi
ness:sel
l
smanuf
act
uredpr
oduct
sdi
rect
lyt
ocust
omer
s
, Pur
poseofaBusi
ness
•t
oor
gani
zesomesor
tofeconomi
cpr
oduct
ion(
ofgoodsorser
vices)
.
•i
tcanbef
or-
prof
itent
it
iesornon-
prof
itor
gani
zat
ionsf
ulf
il
li
ngachar
it
abl
emi
ssi
onor
f
urt
her
ingasoci
alcause.
For
msofBusi
ness
1.Sol
ePr
opr
iet
orshi
p:I
nthi
ski
ndofbusi
ness,
asi
ngl
eper
sonownsandoper
atest
he
busi
ness.Ther
eisn’
tanyki
ndofl
egal
separ
ati
onbet
weent
heownerandbusi
ness.
Thus,
theonusofl
egalpl
ust
axl
i
abi
l
ityi
sont
heowner
.
2.Par
tner
shi
p:Ast
henamesuggest
s,i
tisabusi
nesswher
etwoormor
epeopl
eruni
t
t
oget
her
.Thepar
tner
sbr
ingi
nresour
cesandmoney
,andt
hent
heshar
esi
nthepr
ofi
t
orl
ossar
edi
vi
dedamongstt
hem.
3.Cor
por
ati
on:I
nthi
sbusi
ness,
agr
oupofi
ndi
vi
dual
sactt
oget
herasasi
ngl
eent
it
y.
Theowner
sint
hisbusi
nessar
ecal
l
edshar
ehol
der
s.Theydi
scusst
hei
rvi
ewsont
he
commonst
ockoft
hecor
por
ati
on.Ther
ear
eunf
avour
abl
etaxat
ionr
ulesi
na
cor
por
ati
onf
ort
hebusi
nessowner
s.
4.Li
mit
edLi
abi
l
ityCompany(
LLC)
:Iti
snotasol
dast
heot
herbusi
nessst
ruct
ures.I
t
mer
gesapar
tner
shi
p’spass-
thr
ought
axat
ionbenef
it
sandacor
por
ati
on’
sli
mit
ed
l
i
abi
l
itybenef
it
s.
Char
act
eri
sti
csofBusi
ness
I
nor
dert
obecl
assi
fi
edasabusi
ness,
anor
gani
zat
ionmustexhi
bitcer
tai
n
char
act
eri
sti
csofbusi
nessandper
for
m cer
tai
ntasks.Whati
sthedef
ini
ti
onof
char
act
eri
sti
cs?Someoft
hesechar
act
eri
sti
csi
ncl
udeeconomi
cact
ivi
ty,
buy
ingand
sel
l
ing,
cont
inuouspr
ocess,
prof
itmot
ive,
riskanduncer
tai
nti
es,
creat
iveanddy
nami
c,
cust
omersat
isf
act
ion,
soci
alact
ivi
ty,
andgov
ernmentcont
rol
.
