Business is a organization or economic system where goods and services are exchanged for one another or for money. Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit. Businesses can be privately owned, not-for-profit or state-owned. An example of a corporate business is PepsiCo, while a mom-and-pop catering business is a private enterprise.
A Business (also known as corporate or company) is an organization engaged in trade in goods, services, or both consumers.Businesses are predominant in capitalist economies, where most of them are privately owned and managed to earn profit to increase the wealth of their owners. Companies can also be non-profit or state-owned. A company owned by several people can be referred as a society, although this term also has a more specific meaning.The etymology of "business" refers to the state of being busy either as an individual or society as a whole, are a commercially viable and profitable work. The term "business" has at least three usages, depending on the scope - the singular usage to mean a particular organization, the widespread use to refer to a particular market sector, "music industry" and composed of forms such as agribusiness and broadest sense, encompassing all activities of the community of suppliers of goods and services. However, the exact definition of the company, like many others in the philosophy of company, is a subject of debate and the complexity of meanings.Contents [hide]One of the basic forms of ownership2 Classifications3 Management3.1 The reform of state enterprises4 Organization and government regulations4.1 The Commercial4.2 Capital4.3 The Intellectual Property5 See also6 Notes and references7 External Links[Edit] Basic forms of ownershipSee also: Types of business entityMany forms of business ownership vary by jurisdiction, there are several forms:Sole proprietorship: A sole proprietorship is a for-profit business owned by one person.The owner may operate on its own or may employ others. The business owner has unlimited liability for debts incurred by the company.Partnership: A partnership is a for-profit company owned by two or more people. In most forms of partnership, each partner has unlimited liability for debts incurred by the company.The three typical classifications of partnerships are partnerships, limited partnerships and limited liability partnerships.Company: A corporation is a limited liability company that has a legal personality distinct from its members. Companies can be either public or private, and companies can be organized for profit or nonprofit. Privately owned, for-profit owned by shareholders who elect a board of directors to lead the company and the hiring of its staff. Private property, profit can be either private or public place.Cooperative: Often referred to as a "co-op", a cooperative is a limited liability company that can arrange for-profit or nonprofit. A cooperative differs from a for-profit corporation in that it has members, as opposed to shareholders, who share decision-making authority.Cooperatives are typically classified as consumer cooperatives or worker cooperatives.Cooperatives are fundamental to the ideology of economic democracy.[Edit] ClassificationsWall Street, Manhattan is the location of the New York Stock Exchange and is often used as a symbol of American capitalism.Agricultural and mining businesses are concerned with the production of raw materials, such as plants or minerals.Financial firms are banks and other companies that generate profit through investment and capital management.Business information to generate profits primarily from the resale of intellectual property including movie studios, publishers and software companies.Manufacturers produce products, from raw materials or components, which they then sell at a profit. Companies that make physical products, such as cars or pipes, are considered manufacturers.Real estate companies generate profits from the sale, leasing and development of properties including land, houses, and other types of buildings.Retailers and Distributors act as intermediaries in obtaining the goods produced by manufacturers to the intended consumer, generating a profit due to sales or providing distribution services. Most consumer-oriented stores and catalog companies are distributors or retailers.Service companies provide goods or services and intangibles typically generate a profit by charging for services or other work provided to the government, other businesses, or consumers. Organizations ranging from house decorators to consulting firms, restaurants and even artists are types of service companies.Transport companies to provide goods and people from place to place, generating a profit on shipping costs.Utilities produce public services like electricity and sewage treatment, usually in a charter of government.There are many other divisions and subdivisions of businesses. The official list of the types of cases in North America is generally considered the Classification System North American industries, or NAICS. The list of the European Union equivalent is the statistical classification of economic activities in the European Community (NACE). Moulin,[Edit] ManagementThe efficient and effective operation of a business, and the study of this subject is called management. The main branches of management are financial management, marketing management, human resource management, strategic management, production management, operations management, service management and information technology.[Citation needed]Owners engage in business administration, either directly or indirectly by the use of frames. Owner or manager of managers hired to administer three resources that make up the value component of the company or the value: financial resources, capital or tangible resources and human resources. These resources are administered at least five functional areas:. Legal outsourcing, manufacturing or service production, marketing, accounting, finance, human resources [citation needed][Edit] The reform of state enterprisesIn recent decades, the assets and businesses that were run by various states were modeled after commercial enterprises. In 2003, China reformed its 80% owned enterprises and modeled on a system of management of the business-type. [2] many state institutions and enterprises in China and Russia have been transformed into joint stock companies, with part of their shares being listed on public stock markets.Business Process Management (BPM) is a holistic management approach [1] sought to harmonize all aspects of an organization with the wants and needs of clients. It promotes business effectiveness and efficiency while striving for innovation, flexibility and integration with technology. BPM attempts to continuously improve processes. It can therefore be described as a "process optimization process." It argues that BPM allows companies to be more effective, more efficient and able to change a functionally focused approach, the traditional hierarchical management.[Edit] Organization and government regulationsThis section may require cleanup to meet Wikipedia's quality standards. (Consider using more specific cleaning instructions.) Please help improve this section if you can. The discussion page may contain suggestions. (August 2007)The examples and perspective in this section may not represent a worldwide view on the subject. Please improve this article and discuss the issue on the talk page. (May 2009)Main article: Theory of the firmMost legal jurisdictions specify the forms of property that a company can take, creating a body of commercial law for each type.The main factors affecting how a business is organized are usually:The Bank of England in Threadneedle Street, London, England.The size and scope of the business and its structure, management and ownership, widely discussed in the theory of the firm. In general, a small business is more flexible, while larger companies, or those with wider ownership or more formal structures, will generally tend to be incorporated, or (less often) partnerships. In addition, a company that wants to raise money on a stock exchange or held by a wide range of people will often be necessary to adopt a particular legal form to do so.The sector and country. Private for-profit companies are different from government owned bodies. In some countries, certain businesses are legally obliged to be organized in some way.Limited Liability Companies (LLCs), limited liability companies, and other specific types of business organizations protect their owners or shareholders of a business failure by doing business under a separate legal entity and certain legal protections . In contrast, unincorporated businesses or persons working on their own are generally not protected.The tax benefits. Different structures are treated differently in tax law, and may have advantages for this reason.Disclosure and compliance requirements. Different business structures may be required to make information more or less public (or report to competent authorities), and may be required to comply with different rules and regulations.Many businesses are operated by a separate entity as a corporation or a partnership (to be formed with or without limited liability). Most legal jurisdictions allow people to organize such an entity by filing certain charter documents with the Secretary of State concerned or equivalent and meet certain other ongoing obligations. Relationships and legal rights of shareholders, limited partners or members are governed partly by the constitutional documents and partly by the law of the jurisdiction where the entity is organized. In general, shareholders of a corporation, limited partners in a limited partnership, and members in a limited liability company are protected against personal liability for debts and obligations of the entity that is legally considered a separate "person." This means that if there is a fault, the owner's own possessions are strongly protected by law if the company fails.When two or more individuals own a business together but have failed to organize a more specialized vehicle, they will be treated as a general partnership. The terms of the partnership is partly governed by a partnership agreement if one is created, and partly by the law of the jurisdiction where the partnership is located. No paperwork or filing is necessary to create a partnership, and without an agreement, the relationships and legal rights of the partners will be entirely governed by the law of the jurisdiction where the partnership is located.A single person who owns and runs a business is commonly known as a sole proprietor, if the person held directly or through a formally organized entity.Some relevant factors to consider in deciding how to operate a business include:The general partners in a partnership (other than a limited liability company), and anyone who personally owns and operates a business without creating a separate legal entity, are personally liable for debts and obligations of the company.Generally, companies are required to pay tax as "real" people. In some tax systems, which can give rise to the so-called double taxation, because first the corporation pays tax on profits, and then when the company distributes its profits to its owners, individuals have to include dividends in their income when they complete their personal tax returns, at which point a second layer of income tax is imposed.In most countries there are laws that deal with different small businesses than large ones.They may be exempted from certain requirements of legal deposit or labor laws, have simplified procedures in specialized areas, and have simplified, advantageous, or slightly different tax treatment.To "make public" (sometimes called IPO) - which basically means to allow a portion of the business to be owned by a wider range of investors or the general public, you must organize a separate entity, which is usually necessary to comply with a set of stricter laws and procedures. Most public entities are corporations that have sold shares, but in addition there are also public limited companies who sell units (sometimes called hand), and other more exotic entities as well (for example, FPI USA, Unit Trusts in the UK).However, you can not make a company "public".[Edit] Commercial lawMain article: CommercialOffices in the Los Angeles Downtown Financial DistrictMost commercial transactions are governed by a body very detailed and well-established rules that have evolved over a long period of time, it is true that trade and commerce was a powerful governing force behind the creation of law and courts in Western civilization.As with other laws that regulate or impact businesses, in many countries, it is almost impossible to chronicle them all in a single reference source. There are laws governing treatment of labor and generally relations with employees, safety and protection (health and safety), anti-discrimination laws (age, sex, handicap, race, and in some jurisdictions, the sexual orientation), minimum wage laws, union laws, workers compensation laws, and annual vacation or working long hours.In some specialized companies, it can also be licenses required, either because of special laws governing the entry of certain trades, professions or trades, which may require special education, or local governments. Professions that require special licenses range from law and medicine to flying airplanes to selling liquor to radio to the sale of investment securities to selling used cars to roofing. Local jurisdictions may also require special licenses and taxes just to operate a business regardless of the type of business involved.Some companies are subject to special regulations in progress. These industries include, for example, utilities, investment securities, banking, insurance, broadcasting, aviation, and providers of health care. Environmental regulations are also very complex and can affect many types of businesses in unexpected ways.[Edit] CapitalMexican Stock Exchange in Paseo de la Reforma in Mexico CityWhen companies need to raise money (called "capital"), more laws come into play a very complex set of laws and regulations govern the offer and sale of securities (the means of raising funds) in most Western countries. These regulations can require disclosure of a large number of financial and other information specific to the business and give buyers certain remedies. Because "securities" is a very broad term, most investment transactions will be potentially subject to these laws, unless a special exemption is available.The capital may be raised through private means, by public offer (IPO) on a scholarship, or many other ways. Major stock exchanges include the Shanghai Stock Exchange, Singapore Exchange, Stock Exchange of Hong Kong, New York Stock Exchange and Nasdaq (USA), the London Stock Exchange (UK), the Tokyo Stock Exchange (Japan), Bombay Stock Exchange (India ) and so on. Most countries with capital markets have at least one.Companies that have gone "public" are subject to detailed regulations and complex in their internal governance (such as how executive compensation is determined) and when and how information is disclosed to the public and their shareholders. In the United States, these regulations are primarily implemented and enforced by the U.S. Commission Securities and Exchange (SEC). Other Western countries have comparable regulatory bodies. The regulations are implemented and enforced by the China Securities Regulatory (CSRC), China. In Singapore, the regulatory authority is the Monetary Authority of Singapore (MAS), and Hong Kong, it's Securities and Futures Commission (SFC).As mentioned at the beginning, it is impossible to list all the types of laws and regulations affecting business today. In fact, these laws have become so numerous and complex that no business lawyer can learn them all, forcing increasing specialization of corporate lawyers. It is not uncommon for teams of 5 to 10 attorneys to be required to treat certain types of corporate transactions, due to the sprawling nature of modern regulation.Commercial law covers general corporate law, employment law, health care, in securities law, mergers and acquisitions law (who specialize in acquisitions), tax law, ERISA law (ERISA in the plans of United States governs employee benefit plans), food and drug regulatory law, intellectual property law (specializing in copyrights, patents, trademarks, etc.), telecommunications law, and more.[Edit] Intellectual propertyBusinesses often have important "intellectual property" that needs protection against competitors of the company to remain profitable. This could require patents, copyrights, trademarks or preservation of trade secrets. Most businesses have names, logos and trademarks that similar techniques could benefit from trademarking. Patents and copyrights in the United States are largely governed by federal law, while trade secrets and trademarking are mostly a question of law of the state. Due to the nature of intellectual property, a business needs protection in every jurisdiction in which they are concerned about their competitors. Many countries are signatories to international treaties concerning intellectual property, and thus companies registered in these countries are subject to national laws bound by these treaties. To protect trade secrets, companies can require employees to sign non-compete clauses that will impose limits on employee interaction with stakeholders, and competitors ....
A Business (also known as corporate or company) is an organization engaged in trade in goods, services, or both consumers.Businesses are predominant in capitalist economies, where most of them are privately owned and managed to earn profit to increase the wealth of their owners. Companies can also be non-profit or state-owned. A company owned by several people can be referred as a society, although this term also has a more specific meaning.The etymology of "business" refers to the state of being busy either as an individual or society as a whole, are a commercially viable and profitable work. The term "business" has at least three usages, depending on the scope - the singular usage to mean a particular organization, the widespread use to refer to a particular market sector, "music industry" and composed of forms such as agribusiness and broadest sense, encompassing all activities of the community of suppliers of goods and services. However, the exact definition of the company, like many others in the philosophy of company, is a subject of debate and the complexity of meanings.Contents [hide]One of the basic forms of ownership2 Classifications3 Management3.1 The reform of state enterprises4 Organization and government regulations4.1 The Commercial4.2 Capital4.3 The Intellectual Property5 See also6 Notes and references7 External Links[Edit] Basic forms of ownershipSee also: Types of business entityMany forms of business ownership vary by jurisdiction, there are several forms:Sole proprietorship: A sole proprietorship is a for-profit business owned by one person.The owner may operate on its own or may employ others. The business owner has unlimited liability for debts incurred by the company.Partnership: A partnership is a for-profit company owned by two or more people. In most forms of partnership, each partner has unlimited liability for debts incurred by the company.The three typical classifications of partnerships are partnerships, limited partnerships and limited liability partnerships.Company: A corporation is a limited liability company that has a legal personality distinct from its members. Companies can be either public or private, and companies can be organized for profit or nonprofit. Privately owned, for-profit owned by shareholders who elect a board of directors to lead the company and the hiring of its staff. Private property, profit can be either private or public place.Cooperative: Often referred to as a "co-op", a cooperative is a limited liability company that can arrange for-profit or nonprofit. A cooperative differs from a for-profit corporation in that it has members, as opposed to shareholders, who share decision-making authority.Cooperatives are typically classified as consumer cooperatives or worker cooperatives.Cooperatives are fundamental to the ideology of economic democracy.[Edit] ClassificationsWall Street, Manhattan is the location of the New York Stock Exchange and is often used as a symbol of American capitalism.Agricultural and mining businesses are concerned with the production of raw materials, such as plants or minerals.Financial firms are banks and other companies that generate profit through investment and capital management.Business information to generate profits primarily from the resale of intellectual property including movie studios, publishers and software companies.Manufacturers produce products, from raw materials or components, which they then sell at a profit. Companies that make physical products, such as cars or pipes, are considered manufacturers.Real estate companies generate profits from the sale, leasing and development of properties including land, houses, and other types of buildings.Retailers and Distributors act as intermediaries in obtaining the goods produced by manufacturers to the intended consumer, generating a profit due to sales or providing distribution services. Most consumer-oriented stores and catalog companies are distributors or retailers.Service companies provide goods or services and intangibles typically generate a profit by charging for services or other work provided to the government, other businesses, or consumers. Organizations ranging from house decorators to consulting firms, restaurants and even artists are types of service companies.Transport companies to provide goods and people from place to place, generating a profit on shipping costs.Utilities produce public services like electricity and sewage treatment, usually in a charter of government.There are many other divisions and subdivisions of businesses. The official list of the types of cases in North America is generally considered the Classification System North American industries, or NAICS. The list of the European Union equivalent is the statistical classification of economic activities in the European Community (NACE). Moulin,[Edit] ManagementThe efficient and effective operation of a business, and the study of this subject is called management. The main branches of management are financial management, marketing management, human resource management, strategic management, production management, operations management, service management and information technology.[Citation needed]Owners engage in business administration, either directly or indirectly by the use of frames. Owner or manager of managers hired to administer three resources that make up the value component of the company or the value: financial resources, capital or tangible resources and human resources. These resources are administered at least five functional areas:. Legal outsourcing, manufacturing or service production, marketing, accounting, finance, human resources [citation needed][Edit] The reform of state enterprisesIn recent decades, the assets and businesses that were run by various states were modeled after commercial enterprises. In 2003, China reformed its 80% owned enterprises and modeled on a system of management of the business-type. [2] many state institutions and enterprises in China and Russia have been transformed into joint stock companies, with part of their shares being listed on public stock markets.Business Process Management (BPM) is a holistic management approach [1] sought to harmonize all aspects of an organization with the wants and needs of clients. It promotes business effectiveness and efficiency while striving for innovation, flexibility and integration with technology. BPM attempts to continuously improve processes. It can therefore be described as a "process optimization process." It argues that BPM allows companies to be more effective, more efficient and able to change a functionally focused approach, the traditional hierarchical management.[Edit] Organization and government regulationsThis section may require cleanup to meet Wikipedia's quality standards. (Consider using more specific cleaning instructions.) Please help improve this section if you can. The discussion page may contain suggestions. (August 2007)The examples and perspective in this section may not represent a worldwide view on the subject. Please improve this article and discuss the issue on the talk page. (May 2009)Main article: Theory of the firmMost legal jurisdictions specify the forms of property that a company can take, creating a body of commercial law for each type.The main factors affecting how a business is organized are usually:The Bank of England in Threadneedle Street, London, England.The size and scope of the business and its structure, management and ownership, widely discussed in the theory of the firm. In general, a small business is more flexible, while larger companies, or those with wider ownership or more formal structures, will generally tend to be incorporated, or (less often) partnerships. In addition, a company that wants to raise money on a stock exchange or held by a wide range of people will often be necessary to adopt a particular legal form to do so.The sector and country. Private for-profit companies are different from government owned bodies. In some countries, certain businesses are legally obliged to be organized in some way.Limited Liability Companies (LLCs), limited liability companies, and other specific types of business organizations protect their owners or shareholders of a business failure by doing business under a separate legal entity and certain legal protections . In contrast, unincorporated businesses or persons working on their own are generally not protected.The tax benefits. Different structures are treated differently in tax law, and may have advantages for this reason.Disclosure and compliance requirements. Different business structures may be required to make information more or less public (or report to competent authorities), and may be required to comply with different rules and regulations.Many businesses are operated by a separate entity as a corporation or a partnership (to be formed with or without limited liability). Most legal jurisdictions allow people to organize such an entity by filing certain charter documents with the Secretary of State concerned or equivalent and meet certain other ongoing obligations. Relationships and legal rights of shareholders, limited partners or members are governed partly by the constitutional documents and partly by the law of the jurisdiction where the entity is organized. In general, shareholders of a corporation, limited partners in a limited partnership, and members in a limited liability company are protected against personal liability for debts and obligations of the entity that is legally considered a separate "person." This means that if there is a fault, the owner's own possessions are strongly protected by law if the company fails.When two or more individuals own a business together but have failed to organize a more specialized vehicle, they will be treated as a general partnership. The terms of the partnership is partly governed by a partnership agreement if one is created, and partly by the law of the jurisdiction where the partnership is located. No paperwork or filing is necessary to create a partnership, and without an agreement, the relationships and legal rights of the partners will be entirely governed by the law of the jurisdiction where the partnership is located.A single person who owns and runs a business is commonly known as a sole proprietor, if the person held directly or through a formally organized entity.Some relevant factors to consider in deciding how to operate a business include:The general partners in a partnership (other than a limited liability company), and anyone who personally owns and operates a business without creating a separate legal entity, are personally liable for debts and obligations of the company.Generally, companies are required to pay tax as "real" people. In some tax systems, which can give rise to the so-called double taxation, because first the corporation pays tax on profits, and then when the company distributes its profits to its owners, individuals have to include dividends in their income when they complete their personal tax returns, at which point a second layer of income tax is imposed.In most countries there are laws that deal with different small businesses than large ones.They may be exempted from certain requirements of legal deposit or labor laws, have simplified procedures in specialized areas, and have simplified, advantageous, or slightly different tax treatment.To "make public" (sometimes called IPO) - which basically means to allow a portion of the business to be owned by a wider range of investors or the general public, you must organize a separate entity, which is usually necessary to comply with a set of stricter laws and procedures. Most public entities are corporations that have sold shares, but in addition there are also public limited companies who sell units (sometimes called hand), and other more exotic entities as well (for example, FPI USA, Unit Trusts in the UK).However, you can not make a company "public".[Edit] Commercial lawMain article: CommercialOffices in the Los Angeles Downtown Financial DistrictMost commercial transactions are governed by a body very detailed and well-established rules that have evolved over a long period of time, it is true that trade and commerce was a powerful governing force behind the creation of law and courts in Western civilization.As with other laws that regulate or impact businesses, in many countries, it is almost impossible to chronicle them all in a single reference source. There are laws governing treatment of labor and generally relations with employees, safety and protection (health and safety), anti-discrimination laws (age, sex, handicap, race, and in some jurisdictions, the sexual orientation), minimum wage laws, union laws, workers compensation laws, and annual vacation or working long hours.In some specialized companies, it can also be licenses required, either because of special laws governing the entry of certain trades, professions or trades, which may require special education, or local governments. Professions that require special licenses range from law and medicine to flying airplanes to selling liquor to radio to the sale of investment securities to selling used cars to roofing. Local jurisdictions may also require special licenses and taxes just to operate a business regardless of the type of business involved.Some companies are subject to special regulations in progress. These industries include, for example, utilities, investment securities, banking, insurance, broadcasting, aviation, and providers of health care. Environmental regulations are also very complex and can affect many types of businesses in unexpected ways.[Edit] CapitalMexican Stock Exchange in Paseo de la Reforma in Mexico CityWhen companies need to raise money (called "capital"), more laws come into play a very complex set of laws and regulations govern the offer and sale of securities (the means of raising funds) in most Western countries. These regulations can require disclosure of a large number of financial and other information specific to the business and give buyers certain remedies. Because "securities" is a very broad term, most investment transactions will be potentially subject to these laws, unless a special exemption is available.The capital may be raised through private means, by public offer (IPO) on a scholarship, or many other ways. Major stock exchanges include the Shanghai Stock Exchange, Singapore Exchange, Stock Exchange of Hong Kong, New York Stock Exchange and Nasdaq (USA), the London Stock Exchange (UK), the Tokyo Stock Exchange (Japan), Bombay Stock Exchange (India ) and so on. Most countries with capital markets have at least one.Companies that have gone "public" are subject to detailed regulations and complex in their internal governance (such as how executive compensation is determined) and when and how information is disclosed to the public and their shareholders. In the United States, these regulations are primarily implemented and enforced by the U.S. Commission Securities and Exchange (SEC). Other Western countries have comparable regulatory bodies. The regulations are implemented and enforced by the China Securities Regulatory (CSRC), China. In Singapore, the regulatory authority is the Monetary Authority of Singapore (MAS), and Hong Kong, it's Securities and Futures Commission (SFC).As mentioned at the beginning, it is impossible to list all the types of laws and regulations affecting business today. In fact, these laws have become so numerous and complex that no business lawyer can learn them all, forcing increasing specialization of corporate lawyers. It is not uncommon for teams of 5 to 10 attorneys to be required to treat certain types of corporate transactions, due to the sprawling nature of modern regulation.Commercial law covers general corporate law, employment law, health care, in securities law, mergers and acquisitions law (who specialize in acquisitions), tax law, ERISA law (ERISA in the plans of United States governs employee benefit plans), food and drug regulatory law, intellectual property law (specializing in copyrights, patents, trademarks, etc.), telecommunications law, and more.[Edit] Intellectual propertyBusinesses often have important "intellectual property" that needs protection against competitors of the company to remain profitable. This could require patents, copyrights, trademarks or preservation of trade secrets. Most businesses have names, logos and trademarks that similar techniques could benefit from trademarking. Patents and copyrights in the United States are largely governed by federal law, while trade secrets and trademarking are mostly a question of law of the state. Due to the nature of intellectual property, a business needs protection in every jurisdiction in which they are concerned about their competitors. Many countries are signatories to international treaties concerning intellectual property, and thus companies registered in these countries are subject to national laws bound by these treaties. To protect trade secrets, companies can require employees to sign non-compete clauses that will impose limits on employee interaction with stakeholders, and competitors ....
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