A Business is a commercial activity that involves the exchange of goods and services undertaken by a person or a group of people with the intention of making a profit. Every business requires an investment at the start and plenty of clients in order to make a profit. In most businesses, the main goal is profit maximization, and in order to do that, it needs to provide quality services to attract more clients. Growth and long-term survival could be other goals of a business. The growth of a business requires the careful use of its resources, such as funds and personnel. The long-term survival of a business is where the business seeks to monopolize the market and last for generations. The process is gradual, and it requires commitment and discipline by the owner of the business. Another goal of a business could be to become more efficient in the business operation as a way to increase productivity which leads to growth and expansion of the business. To increase productivity, you need to improve unit production.
A Business can be owned by a single individual and it’s called Sole Proprietorship. It is easy to set up since it requires less capital. It is mostly adopted by small-scale businesses. A business can be owned by two or more individuals who form a partnership and contribute resources to the business. The partners divide the profits among themselves according to the percentage share agreed. The partners come up with the business name, business policies, and goals. A Corporation is a business association that has a separate legal nature from its owners. In a stock firm, ownership is represented by shares of stock. A group of people is elected by the stockholders to form the board of directors who govern the daily activities of the firm.
