Business is characterized as an organization proving goods and services to the consumers. The basic aim of business is to earn profit in an effective and efficient manner, irrespective of, the organization is state owned or nonprofit. A successful business is the one that succeed in attaining the goal of a company i.e. to generate the sales revenues to earn profit after covering all costs and expenses.
There are four basic forms of business named as sole proprietorship, partnership, cooperation and cooperative. Sole proprietor is a business owned by a single person with having limited liability of debts. Mostly, small family business follows the practices of this form of business. In case of partnership, the business is possessed by two or more associates and having unlimited liability of debts for all of these partners.
Business comes from taking risks
Corporations are the business having limited liabilities and are owned by shareholders. These corporations can be public or privately held organizations and the shareholders elect their board of directors to manage the corporation. The other form of business is cooperatives, that is basically nonprofit organizations and they have limited business liabilities. They are governed by its member unlike the corporations, where the shareholders take all decisions.
The business is divided in to further categories and sub categories to identify their nature of operations and earning profits. The business can be operated efficiently with the help of good management. Several people engage in the management of businesses but the manager plays an important role in its success.
There are certain legal laws that specify the ownership an organization can take. The major factors affecting the business are size of the firm, its sector, political environment of a country it operates and tax advantage. The business needs to follow the laws and regulations of a specific country in order to raise capital. These parameters need revealing some personal information of the organization to allow them for raising capital.
One of the important considerations of business is to protect its intellectual property (copyrights, patent or trademarks) from its competitors. This helps in gaining a competitive edge or core competencies of a business that is the key to success for them.