According to the law, business is defined as an activity carried out systematically and independently with its own name and responsibility for profit purposes and under the conditions prescribed by Law. Business covers many fields such as finance, information, news, entertainment, industrial production, retail, distribution, transportation, etc.

1. Types of Business

There are many different types of businesses, but there are three main types:

Business services

Manufacturing enterprises

Retail business

2. Characteristics of Business

Exchange of goods and services

All business activities that involve directly or indirectly the exchange of goods or services for money or the value of money.

Trade in multiple transactions

In business, the exchange of goods and services is a regular activity. A product/service before reaching the consumer can go through many different transactions.

Watching: What is Business?

Profit is the main goal

Business is done with the aim of making a profit. Profit is the reward for the services of an entrepreneur.

Business skills for success

Anyone who wants to be a good entrepreneur needs to have good business qualities and skills to be able to run a business.

Risks and Uncertainties

Business is subject to risk and uncertainty. Some risks, such as loss from fire and theft, can be covered by insurance. There are also uncertainties, such as a loss due to a change in demand or a market devaluation…

In business there must be transactions of goods and services. Goods can be divided into two categories:

Consumables: Goods that are used by the end consumer for consumption are called consumables e.g. TV, Soap, etc.

READ MORE  Find Out What Gross Profit Means

Manufactured Goods: Goods used by the manufacturer to produce other goods such as machinery, equipment, etc.

Satisfying human desires

An entrepreneur is a person who fulfills a desire to satisfy human wants through the conduct of a business. By producing and supplying different items, entrepreneurs strive to promote consumer satisfaction.

Social obligations

Modern entrepreneurs are conscious of their social responsibility. Business today is more service oriented than profit oriented.

See also: Fix The Disk Is Write Protected Error On Usb, Fix Usb Write Error

3. Business Category

Agriculture & Mining

Involves production of agricultural raw materials & minerals such as aquaculture, animals, logging, oil, gas, ores, plants

Financial services

Including banks, financial companies, insurance companies, etc. profit through investment and capital management.

Information

Profits obtained through the resale of intellectual property rights

Transport business

Earn profit through freight charges from one place to another

Public services

For example, the electricity industry, waste treatment, and domestic water are often placed under the management of the government

Manufacturing

Producing goods from raw materials or components, then selling them for a profit.

Retail and distribution

Acting as an intermediary between manufacturers and customers, profiting through retail and distribution of goods/services.

Real estate business

Profit from the sale, lease, and development of properties including land, houses attached to land, and other types of structures.

See also: What is Official Dispatch in English, Meaning of Official Dispatch in English

Business services

Provision of intangible goods and services, profiting by costing labor or services provided to the government, other business sectors or customers such as interior decoration, beautification, construction hairstyling, makeup, cosmetology, laundry, disease control, insects..

READ MORE  Affiliate Marketing