Sunday, March 3, 2019

Understanding Business

Understanding Business

Understanding Business - In economics, business is an organization that sells goods or services to consumers or other businesses, to make a profit. Historically the business of the English word business, from basic word busy, which means “busy” in the context of individual, community, or society. In a sense, been busy doing activities and jobs that bring in profits.
In a capitalist economy, where most businesses are owned by private parties, business formed to make a profit and increase the prosperity of their owners. Owner and operator of a business get rewarded in accordance with the time, effort, or the capital they provide. But not all businesses pursuing this advantage, such as business co-operative that aims to improve the welfare of all members or a government institution that aims to improve people’s welfare. This business model contrasts with the socialistic system, where big business is owned mostly by the government, the public, or trade unions.
Etymologically, a business means the circumstances in which a person or group of people busy doing jobs that generate profits. The word “business” itself has three uses. use of the singular word to refer to business entities, namely the unity of the juridical (legal), technical, economical and aiming for profit or gain. Wider use to refer to a particular market sector, such as “the business of television.” The use of the most widely refers to all activities undertaken by community providers of goods and services. However, the definition of “business” the right is still a matter of debate until now.
The basic form of business ownership
Although forms of business ownership vary in each country, there are several forms that are considered common:
* Company Individual: Individual Company is a business whose ownership is held by one person. Individual owners have unlimited liability to the assets of the company. That is, if the business incurs a loss, the owner will have to bear all the losses.
* Fellowship: Fellowship is a form of business where two or more people working together to operate the company for a profit. Just as an individual company, each partner (a member of a partnership) have unlimited liability to the assets of the company. Fellowship can be grouped into partnership alliances and partnerships.
* Company: The Company is a business whose ownership is held by some people and supervised by a board of directors. Each owner has a responsibility limited to the assets of the company.
* Cooperative: is a business which consists of persons or legal entities with the bases cooperative activities based on the principle of cooperative economics as well as people’s movement based on the principle of kinship. Cooperative aims to provide welfare for its members. The main characteristic that distinguishes cooperative with other business entities are members of the cooperative has a dual identity. Double-meaning members of the cooperative identity is the owner and user of cooperative services.
Classification
Business consists of various types, and, as a result, businesses can be grouped in different ways. One of the many ways that you can use is to classify businesses according to the activities done in generating profits.
* Manufacturing is a business that manufactures products from raw materials or components, then sold for profit. Examples are manufacturing companies that produce physical goods such as cars or pipes.
* Business Services is a business that produces intangible goods, and earn profits by charging for services they provided. Examples of service businesses is a consultant and psychologist.
* Retailers and distributors are those who act as intermediaries between producers and consumer goods. Most shops and consumer-oriented companies are distributors or retailers. See also: Franchising
* Business agriculture and mining is a business that produces or looking for raw goods, such as rice, soybeans and other crops or mineral mining
* Trade Financial is a business benefit from investment and capital management.
* Business information is a business making a profit mainly from turnover-back intellectual property.
* Utilities are businesses that operate services to the public, such as electricity and water, and are usually funded by government.
* Business real estate is a business that generates profits by selling, renting, and develop property, houses and buildings.
* Transportation Business is business benefit by way of delivering goods or individual from a location to another.


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