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Business refers
to at least three closely related commercial topics. The first is a
commercial, professional or industrial organization or enterprise, generally
referred to as "a business."
The second is
commercial, professional, and industrial activity generally, as in "business
continues to evolve as markets change."
Finally,
business can be used to refer to a particular area of economic activity,
such as the "record business" or the "computer business" (see Industry). This article is
concerned primarily with the first definition of individual businesses, but
also contains links to general business and management topics, in the sense
of the second definition. Individual
businesses are established in order to perform economic activities. With some
exceptions (such as cooperatives, non-profit organizations and generally,
institutions of government), businesses exist to produce profit. In other words,
the owners and operators of a business have as one of their main objectives
the receipt or generation of a financial return in exchange for expending
time, effort and capital. Types of
Businesses There are many
types of businesses, and, as a result, businesses can be classified in many
ways. One of the most
common focuses on the primary profit-generating activities of a business,
for example: • Manufacturers
produce products, from raw materials or component parts, which they then
sell at a profit. Companies that
make physical goods, such as cars or pipes, are considered manufacturers. • Service
businesses offer intangible goods or services and typically generate a
profit by charging for labor or other services provided to other businesses
or consumers. Organizations
ranging from house painters to consulting firms to restaurants are types of
service businesses. • Retailers and
Distributors act as middle-men in getting goods produced by manufacturers to
the intended consumer, generating a profit as a result of providing sales or
distribution services. Most
consumer-oriented stores and catalogue companies are distributors or
retailers. • Agriculture
and mining businesses are concerned with the production of raw material,
such as plants or minerals. • Financial
businesses include banks and other companies that generate profit through
investment and management of capital. • Information
businesses generate profits primarily from the resale of intellectual
property and include movie studios, publishers and
packaged software
companies. • Utilities
produce public services, such as heat, electricity, or sewage treatment, and
are usually government chartered. • Real estate
businesses generate profit from the selling, renting, and development of
properties, homes, and buildings. •
Transportation businesses deliver goods and individuals from location to
location, generating a profit on the transportation costs. There are many
other divisions and subdivisions of businesses. The
authoritative list of business types for North America (although it is
widely used around the world) is generally considered to be the NAICS, or
North American Industry Classification System. The equivalent
European Union list is the NACE. Business
departments Within
businesses one can often find similar departments, named (and not limited
to): Administration
Finance &
controlling
Human
ressources
Management
Marketing &
sales
Production/service
Purchasing
Business and
Government
Most legal jurisdictions
specify the forms that a business can take, and a
body of commercial law has developed for each type. Some common
types include partnerships, corporations (also called limited liability
companies), and sole proprietorships. Business and
Management The study of
the efficient and effective operation of a business is called management. The main branches of management
are financial management, marketing management, human resource management,
strategic management, production management, service management, information
technology management, and business intelligence. |
