Explain about business and its types

Explain about business and its types

A business is a commercial activity in which a person sales, purchase, deal with people to earn money. If a person is indulged in trade, buying and selling comedy links, trafficking, marketing, merchandising, bargaining or any other activities that are related to Commercial one then he or she is doing business. The main motive of doing business is earning money. Business is quite different from jobs. In jobs, a person completes a work or a task for another person whereas in business the person deals for his own profit. The Concept of business is very simple. If a person wants to earn money without obeying any other person order then he or she can start his or her own business. Here in this article, we are going to describe your details about the Types of Business, Characteristics of Business, Features of Business and other things also. You are suggested to take a look over the details properly.

Types of Business

There are several Types of Business.  Here in the below section, we are going to provide you with details about the types of business one can do. In a major, there are three business types that one can perform.

  • Sole proprietorship
  • Partnership
  • Private Corporation

Features of a Business

There are top 5 Features of a Business that are:

Dealings in goods and services

The topmost feature of a business is that it deals with goods and services. We can divide goods into consumer goods and producer goods. Consumer goods include bread butter should short and others. While on the other hand producer goods are Machinery, Tools, and others.  Along with the good, in business people also deals in services like banking, transport, insurance, and others.

Exchange and production

Business is only carried when the produced goods and services get transformed into money. In a business activity, there are two parties that play an important role that our buyer and seller. Buyer is the person who purchases the goods and services whereas the seller is the person who sells the goods and services produced. If goods and services are produced for self-consumption then they are not considered in business.

Continuity and regularity in dealings

If there are continuity and regularity in the dealings then the activity will be known as business. In order to make you understand this term, we are giving an example. Suppose if a person sells his house then it will not be considered as a business because there is no continuity in the dealings. But in case if a person repeatedly purchases and sales houses to others then this activity will be treated known as real estate business.

The motive of earning a profit

The most important motive of a business is to earn maximum profit. In order to survive, grow and expand it is important for every business to earn more and more profit. Furthermore, profit also helps business in getting recognition.

Risk elements

Risk means the possibility of a loss to be incurred. There are two types of risk first one is insured and the other one is whose probability can be calculated. Insured risk includes fire, theft, and others. While on the other hand, The Other risks include fall in demand, change in fashion and others. This type of risk cannot be insured they can only be calculated.

Characteristics of a Business

There are 10 main characteristics of the business, these are:

  • Economic activity
  • Buying and Selling
  • Continuous process
  • Profit Motive
  • Risk and Uncertainties
  • Creative and Dynamic
  • Customer satisfaction
  • Social Activity
  • Government control
  • Optimum utilization of resources

In the above section, we have stated all the details about the concept of Business including its types, characteristics, and features.