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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.
Type of
Business
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 ususally 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.
Source: Wikipedia