If you want to ensure your survival, this is only possible by having some money. Money can be only generated when you have got some marketing or trading practice, or in other words, you must have a business. A businessis a medium of earning money that is in the form of some company or an organization that is involved in the job of exchanging goods and services to the customers and even other companies as well. Business is a form of a capitalistic economy where there is a single owner running the business and supplying, purchasing and rendering goods and services. Abusiness owned by multiple people can be called a corporation.

The origin of business

The origin of business grows from the concept of being socially valuable and getting payments in return. Business can be associated with a single part of some market or even the whole market. Take theexample of “steel business” where different small shops are present and each and everyone is offering related products and services. This kind of business has got wider meanings and it includes the entire sector that works on a single manufacturing process in slightly different ways and rates.

Classification of Business

There are different kinds of businesses that have various implications and characteristics. There are basically four in number and are discussed below:

  • Sole proprietorship. This form of the business has got a single owner running the business. He.she operates each and every function of the business.This type of business has got unlimited liabilityof all kinds of responsibilities the business experiences. The owner invests all his assets and is thesole possessor of them.
  • Partnership. A partnership is a business that has got more than one owner. The profit is distributed equally. The owners can easily raise capital. Each partner has anunlimited liability for the debts that are taken on in the business by the owners. The partnership is further classified as ageneral partnership, a limited liability partnershipand limited partnerships. If one of the owners dies, his debts are directly transferred to his family. The business may collapse if the debts are not paid in time.
  • Corporation. There are several owners of one single name. They have got limited liability. These forms of businesses are owned privately or they are under the control of governments. The corporations can be further classified as not-for-profit or profit organizations. They have got an unlimited life. Even if the owner dies, the corporation won’t stop running and performing its daily tasks. The profit corporation is owned by the shareholders who elect the board of directors and then the BOD further hires the staff it needs.
  • Cooperative. This is a limited liability form of business. Unlike acorporation, it has got members instead of shareholders and they collectively decide what is best for the cooperative. They are usually known as the consumer cooperatives or worker cooperatives. They are laid on the foundation of the economic democracy.
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