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.
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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.
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.
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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.
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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..
