business
Business: Overview & Characteristics
Table of Contents
- What is Business?
- Characteristics of Business
- Example of Business
- What are the classifications of business?
- Examples of Business Regulations
- Lesson Summary
What is the definition of business, and what is an example?
Businesses are made up of individuals working together to meet society's needs, as well as common goals. Some examples of businesses include Coca Cola and Walmart, as well as smaller private businesses such as an accounting firm or a local grocery store.
What is business all about?
Businesses are all about producing items or services to sell, meeting a particular need for society, and are mainly concerned with profit. Though their main focus is being profitable, businesses also focus on meeting societal needs and reaching common goals.
Well-known professors of business Jack Kapoor, William Pride, and Robert Hughes have written countless texts to teach the ins-and-outs of the business world and define what a business is. What's the meaning of business? What does business mean? Businesses are opened with the goal of becoming profitable by selling goods or services to consumers. Businesses can differ in classification, type, and ownership, but for the most part conduct the same internal activities and exhibit the same characteristics.
Business Definition
The simple definition of business, or business meaning, is explained as an organization that provides goods and services to the community in exchange for money, with the goal of becoming profitable. Businesses are focused on producing items or services to sell, making a profit, and meeting a particular need for society. All individuals in a business work together toward common goals, which are dependent on the type of business.
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Definition
According to well-known professors William Pride, Robert Hughes, and Jack Kapoor, business is 'the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs.' A business, then, is an organization which seeks to make a profit through individuals working toward common goals. The goals of the business will vary based on the type of business and the business strategy being used. Regardless of the preferred strategy, businesses must provide a service, product, or good that meets a need of society in some way.
In order to be classified as a business, an organization must exhibit certain characteristics of business and perform certain tasks. What is the definition of characteristics? Some of these characteristics include economic activity, buying and selling, continuous process, profit motive, risk and uncertainties, creative and dynamic, customer satisfaction, social activity, and government control.
Economic Activity
Businesses perform the economic activities of producing goods and services and making them available to consumers. These activities also support the economy through job creation, as well as industrial and economic development.
Buying and Selling
Businesses participate in the buying and selling of products in order to make a profit. Examples of things they may buy include raw materials to repurpose, machinery for production, and property to conduct their business. Businesses sell the finished products made from raw materials and machinery to retailers, or directly to consumers. If the business provides services to consumers, they may sell them directly or through another company.
Continuous Process
To be considered a business, an entity must engage in regular transactions to achieve an ongoing profit flow. The process of producing and distributing goods and services is continuous and involves frequent strategizing to increase the business's profitability.
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There many examples of business among various industries, some more well-known than others. Walmart and Coca Cola are two popular businesses with stores and distribution centers all over the world. Coca Cola functions mainly as a manufacturing business by producing products for other companies to sell. Walmart manufactures products, sells products, and provides services to consumers, essentially functioning as all three types of business simultaneously. Small and privately-owned organizations are examples of business as well, such as accounting firms (service) and local grocery stores (manufacturing and/ or retail).
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Businesses care classified based on their type of ownership and what industry they operate in. Different levels of ownership are associated with a varying levels of liability. Businesses are classified within certain industries to identify their goals and competitors.
Forms of Business
Businesses are classified under one of these forms: sole-proprietorship, partnership, corporation, cooperative, limited liability company, franchise, company limited by guarantee, company limited by shares, unlimited corporation, charter corporation, or statutory corporation.
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Businesses are required to adhere to certain regulations set by the government to ensure legal, fair, and safe business practices. Owners are required to follow current commercial laws, accurately keep track of capital, protect intellectual property, and navigate responses to trade unions as needed.
Commercial Law
Commercial law regulates the conduct of businesses that provide goods and services to the public. These laws oversee things like consumer complaints, contract violations, advertising and marketing disputes, and issues with unfair competition.
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Businesses are made up of individuals working together to meet society's needs, as well as common goals. They are focused on producing items or services to sell, meeting a particular need for society, and are mainly centered with profit. They are classified based on their unique characteristics, their type of ownership, and what type of industry they operate in. Some well-known professors of business include Jack Kapoor, William Pride, and Robert Hughes.
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Characteristics
There are three key characteristics that must be met to have a business. First, businesses must be the result of individuals working together in an organized way. Second, businesses must satisfy a societal need. Third, businesses must seek to make a profit.
As Pride, Hughes and Kapoor note, businesses are comprised of individuals working together in an organized way in order to be successful. Businesses are organized around the resources needed to be successful, as well as the type of business that is being operated. Some businesses may be organized in a way that requires constant cooperation and communication with other employees. Other businesses may not require as much contact with other employees but may instead rely on automated workflows. They must decide the best way to be organized based on their individual goals.
Businesses must also satisfy a need for society. For example, a grocery store satisfies the need to be able to purchase food for ourselves and our families.
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Another example of satisfying a societal need is a gas station that provides needed fuel for most cars to operate.
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Businesses must carefully consider what need they are meeting for society in order to strategically plan for success. For example, society may have a limited interest in purchasing a personal hovercraft for travel. Travel needs are currently met in other ways, so a business focused solely on personal hovercraft may struggle more than the gas station at meeting a definite need.
Definition
According to well-known professors William Pride, Robert Hughes, and Jack Kapoor, business is 'the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs.' A business, then, is an organization which seeks to make a profit through individuals working toward common goals. The goals of the business will vary based on the type of business and the business strategy being used. Regardless of the preferred strategy, businesses must provide a service, product, or good that meets a need of society in some way.
Characteristics
There are three key characteristics that must be met to have a business. First, businesses must be the result of individuals working together in an organized way. Second, businesses must satisfy a societal need. Third, businesses must seek to make a profit.
As Pride, Hughes and Kapoor note, businesses are comprised of individuals working together in an organized way in order to be successful. Businesses are organized around the resources needed to be successful, as well as the type of business that is being operated. Some businesses may be organized in a way that requires constant cooperation and communication with other employees. Other businesses may not require as much contact with other employees but may instead rely on automated workflows. They must decide the best way to be organized based on their individual goals.
Businesses must also satisfy a need for society. For example, a grocery store satisfies the need to be able to purchase food for ourselves and our families.
|
Another example of satisfying a societal need is a gas station that provides needed fuel for most cars to operate.
|
Businesses must carefully consider what need they are meeting for society in order to strategically plan for success. For example, society may have a limited interest in purchasing a personal hovercraft for travel. Travel needs are currently met in other ways, so a business focused solely on personal hovercraft may struggle more than the gas station at meeting a definite need.
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Business | Definition, Characteristics & Classifications
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