In economics, business is an organization that sells goods or services to consumers or other businesses, for profit. Historically, business from the word that means "busy" in the context of individual, community, or society. In a sense, been busy doing activities and jobs that bring in profits.
In capitalist economies, where most businesses are privately owned, the business formed to make a profit and increase the prosperity of their owners. Owner and operator of a business get rewarded in accordance with the time, effort, or the capital they provide. But not all businesses are pursuing this advantage, such as co-operative that aims to improve the welfare of all members or a government institution that aims to improve people's welfare. This model contrasts with the socialistic system, where most large businesses are owned by the government, the public, or the union.
Although forms of business ownership vary from country to country, there are some forms that are considered common:
- Individual Company: private company is a business whose ownership is held by one person. Owner of a proprietorship has unlimited liability on company property. That is, if the company incurs a loss, the owner who must bear the entire loss.
- Guild: The Guild is a form of business where two or more people working together to operate the company to earn profit. Just as a proprietorship, each partner (a member of a partnership) have unlimited liability on company property. Fellowship can be grouped into partnership alliances and partnerships.
- Company: The Company is a business whose ownership is held by some people and supervised by a board of directors. Each owner has a limited responsibility for company property.
- Cooperative: is a business which consists of persons or legal entities with the bases of cooperative activities based on the principle of cooperation as well as a popular economic movement based on the principle of the family. Cooperative aims to improve the life of its members. The main characteristics that distinguish cooperative with other business entities are members of the cooperative has a dual identity. Dual identity means a member of the cooperative is the owner and user of services of the cooperative.
- Manufacturing is a business that manufactures products derived from raw materials or components, then sold for profit. Examples are manufacturing companies that produce physical goods such as cars or pipes.
- Services is a works that produces intangible goods, and profit by charging for services they provide. Examples of service businesses is a consultant and psychologist.
- Distributor is a party to act as intermediaries between producers and consumers. Most shops and consumer-oriented companies are distributors or retailers. See also: Franchising.
- Agriculture and mining is a business that produces raw goods, such as plants or minerals.
- Financial is making benefit from investment and capital management.
- Information is doing work of making profits mainly from turnover-back intellectual property (intelellectual property).
- Utilities are making money operate services to the public, such as electricity and water, and are usually funded by the government.
- Real estate is a business that generates profits by selling, renting, and property development, houses, and buildings.
- Transportation is a business advantage by delivering goods or people from one location to another location.