Business – The types and classifications

planWhat is business?

Is it a book store selling book? Or a cloth shop which sells different kinds of cloths? Does business mean selling things to people only? Yes, in a sense these are business but in a broad sense our answer would be a “No”. Apparently that is not everything actually what business is. Let’s know what the term “Business” actually means.

An organization or enterprising entity engaged in commercial, industrial or professional activities is known as business. A business can be for-profit entity, for example, a publicly traded corporation, or a non-profit organization engaged in business activities, such as an agricultural cooperative. Any commercial, industrial or professional activity undertaken by an individual or a group. These activities should be done within a specific area. Business includes everything from a small owner-operated company to a multinational conglomerate. This can include a family restaurant to the giant companies like General Electric.

There are some basic forms of business ownership. Business varies from different types of partnership forms. These are:

Sole proprietorship

This type of business is owned by a person all by him/herself. This is type of business can be run by himself or by the help of other people, but it is run for their own benefits.

Partnership

This type of business is owned by two or more people. Every partner in the business is liable for the debts incurred by the business. There are three forms of partnership business. Those are:

General Partnership

Limited Partnership

Limited Liability Partnership

Corporation

Corporations can be either government owned or privately owned. The owners of a corporation have limited liability and the business has a separate legal personality from its owners. These forms can be formed either for profit or as non-profit organizations.

Cooperative

Cooperatives are fundamental to the ideology of economic democracy. Most often referred as a “Co-op”, a cooperative is a limited liability business that can organize for both profit or non-profit. A cooperative differs from the corporations in that it has members, not shareholders. And not only that, they share decision-making authority too.

There are several classifications in a business. Those are given below:

Agriculture business

Mining business

Financial

Manufacturing

Real-estate

Retailers

Distributors

Service business

Transportation business

Utilities

These are all important classification of business. Among these sections, some grow the raw materials, when some serve the money. Some of them produce products form the raw material taken from the others. Some of them take products and distributes to the local business holders. Whereas transporting then and maintaining the service facilities becomes another business.

Business is something interesting that brings money in a legal way if you can succeed once. There are a lot of ideas to deal with. This is true, not every man can make money doing business that means, business is not for everyone. But who once stands once in this sector, do not need to look back one more time. He who knows business, he who understands the customer demand, can easily shine in this sector. So, if you want to have a shining career, business is one of the best options you may choose.