Business
Business consists of all profit-seeking activities and enterprises that provide goods and services necessary to an economic system. Business drives the economic pulse of a nation. It provides the means through which its citizens’ standard of living improves. At the heart of every business endeavor is an exchange between a buyer and a seller. A buyer recognizes a need for a good or a service and trades money with a seller to obtain that product. The seller participates in the process in hopes of gaining profits. To make a profit, every business requires not only enough customers to whom its products and services can be sold on a consistent basis, but also some form of investment. Businesses can be privately owned, not-for-profit, or state-owned. Profits represent rewards earned by businesspeople who take the risks involved in blending people, technology, and information to create market want-satisfying goods and services. The quest for profits is a central focus of business because without profits, a company could not survive. But businesspeople also recognize their social and ethical responsibilities.
Business often refers to an entity that operates for commercial, industrial, or professional reasons. The concept begins with an idea and a name, and extensive market research may be required to determine how feasible it is to turn the idea into a business. Businesses often require business plans before operations begin. A business plan is a formal document that outlines the company's goals and objectives and lists the strategies and plans to achieve these goals and objectives. Business plans are essential when you want to borrow capital to begin operations. Determining the business's legal structure is important since business owners may need to secure permits and licenses and follow registration requirements to begin legal operations. In many countries, corporations are considered juridical persons, meaning the business can own property, take on debt, and be sued in court. Most businesses operate to generate a profit, commonly called for-profit. However, some businesses that have a goal to advance a specific cause without profit are referred to as not-for-profit or non-profit. These entities may operate as charities, arts, culture, educational, and recreational enterprises, political and advocacy groups, or social services organizations [Investopedia].
What Is a Business? Understanding Different Types and Company Sizes. Investopedia. Retrieved from: https://www.investopedia.com/terms/b/business.asp
Boone, L. E., Kurtz, D. L., Berston, S. (2019). Contemporary Business (18th ed.). Wiley. (P. 2-3).