What Is Business? This Is The Definition, Form and Type

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IPHEDIA.com - According to his understanding there are many descriptions of what business is. However, in general, business is an activity in the economic field.

Business in a broad sense describes an activity and institution that produces goods and services in everyday life.

Business or commerce is the activity of buying and selling goods or services with the aim of making a profit.

In economics, the business of an organization that sells goods or services to consumers or other businesses for a profit.

Business Words

The word business comes from English; business, the root word busy, which means "busy" in the context of an individual, community, or society.

Etymologically, business means a situation in which a person or group of people are busy doing work that makes a profit.

The word "business" itself has three uses that can refer to a business entity, namely a juridical (legal), technical, and economic unit that aims to seek profit or profit.

Business Forms

Generally, the forms of business, among which can be in the form of sole proprietorships, partnerships, corporations and cooperatives.

A sole proprietorship is a business model whose ownership is held by one person. The owner of a sole proprietorship has unlimited liability for the assets of the company.

This company is managed individually and has full responsibility for the continuity of the company and its capital comes from its own.

A partnership is a form of business in which two or more people work together to operate a company for profit.

Guild can be grouped into a limited partnership and the firm. Each partner (partner of the partnership) has unlimited liability for the assets of the company.

A company is a business whose ownership is held by several people and supervised by a board of directors. Each owner has limited liability for company assets.

Cooperatives are businesses whose members are cooperative individuals or legal entities based on their activities based on cooperative principles and the principle of kinship.

The main characteristic of cooperatives that distinguishes them from other business entities is that cooperative members have multiple identities.

Dual identity means that cooperative members are both owners and users of cooperative services.

Types of Business

Based on their activities and uses, there are four types of business, namely agricultural business, extractive business, service business and industrial business.

Agrarian business, namely business activities carried out in the fields of agriculture, plantations, animal husbandry, fisheries, and others.

Extractive business, namely business activities carried out in the mining sector by digging for mining materials, such as oil, natural gas, coal, iron, copper and so on.

Service business, namely business activities carried out in the service sector that produce products such as health, education, tourism, insurance, consultants and so on.

Industrial business, namely business activities carried out in the manufacturing sector, such as the metal industry, aircraft industry, paper processing industry and so on. (*)