Business can be defined as a legitimately approved institutional entity, which is present in a nation with economic freedom and is planned to offer commodities and services to the customers. A business is also termed as an enterprise or firm and it is a feature of capitalist countries.
Business can be delineated as a legitimately accredited institutional entity, which is existent in a nation with economic independence and created for offering commodities and services to the customers.

The capitalist countries frequently feature businesses of different types and majority of them are privately owned businesses, usually established for gaining profit or growing the wealth of their proprietors.Businesses are also sometimes called as enterprises or firms.

One of the principal objectives of the proprietors and regulators of businesses is to receive or earn a financial return or profit in return of their services and their risk tolerance.

Nevertheless, there are exceptions to this idea and these include government organizations and co-operative societies.

Businesses are governed by commercial law.

Business Studies is now being taught as a faculty in a large number of business schools.

Fundamental Forms of Ownership

The forms of ownerships of business can be categorized into the following types:

Sole proprietorship: A sole proprietorship business is a business, which has only one person as its proprietor.

Partnership: A partnership business is that type of a business, which is owned by two or more individuals as its partners. Partnership businesses can be further categorized into limited partnership business, general partnership business, and limited liability partnership business.

Corporation: A business corporation is a profit seeking and limited liability institution. The proprietors of a corporation are its numerous shareholders and it is supervised by a board of directors.

Co-operative: A co-operative business is frequently termed as a Co-Op Business or simply Co-Op. It is a profit seeking and limited liability institution, which is governed by its members, who are authorities in decision making. Co-operatives can be further categorized into worker co-operatives and consumer co-operatives. They follow the theories of economic democracy.

Types of Businesses

Businesses can be categorized into the following types:

Manufacturers: Organizations that manufacture tangible products or commodities like pipes or cars from raw materials and sell them for profit are regarded as manufacturers
Distributors and Retailers: They function as middlemen between manufacturers and customers.
Service Businesses: They provide intangible commodities or services for earning profit
Utilities: They provide public utility services like electricity, heat and sewage treatment and are normally licensed by the government
Transportation Businesses: They are involved in transportation or delivery of commodities or passengers from one place to another
Information Businesses: They include publishers, film studios, and packaged software firms
Mining and Agricultural Businesses: They are involved in raw material production, for example minerals and plants
Real Estate Businesses: They earn profit from property or real estate development and selling and leasing of real estate.
Financial Businesses: They are banks and other financial institutions, which receive profit from capital and investment management

Departments Under a Business

Usually, the following departments are present within a business:
Accounting Department
Marketing and Sales Department
Human Resources Department
Procurement Department
Operations Department
Information Technology Department
Research and Development Department
Administrative Department
Public Relations/Communications Department
Internal Audit Department


Management is the study of how a business can be operated efficiently and expeditiously. The principal divisions of management are the following:
Marketing Management
Financial Management
Strategic Management
Human Resource Management
Service Management
Production Management
Business Intelligence
Information Technology Management


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Last Updated on : 29th July 2013

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