Business

Business

Business is the activity of making a living or making money by producing or buying or selling products such as goods and services It is simply “any activity or enterprise for profit.

Having a business name does not separate the business from the owner; this means that the business owner is responsible and liable for the debts incurred by the business. If the company borrows, creditors can pursue the owner’s personal property. The business structure does not allow corporate tax rates. The owner is personally taxed on all income from the business.

The term is also used in colloquial language (not by lawyers or government officials) to refer to a company. The corporation, on the other hand, is a separate legal entity and, in addition to limited liability, also provides corporate tax rates. Building a corporate structure is more complicated and expensive, but provides more protection and benefits for the owner.

Ingredients
1 Forms
2 Classification
3 Activities
3.1 Accounting
3.2 Finance
3.3 Production
3.4 Marketing
3.5 Research and development
3.6 Security
3.7 Sales
4 Management
4.1 Restructuring of state enterprises
5 Organization and regulation
5.1 Commercial law
5.2 Capital
5.3 Intellectual property
5.4 Syndicate
6 See also
7 References
8 External links


Forms

Forms of business ownership vary by jurisdiction, but there are several common institutions:

Individual entrepreneurship: Individual entrepreneurship, also known as individual entrepreneurship, is owned and managed by one person. The owner runs the business alone and can hire employees. The sole proprietor is unlimitedly liable for all the obligations incurred by the business, both in terms of operating costs and decisions against the business. All assets in the business belong to the sole proprietor, including, for example, computer infrastructure, any inventory, production equipment or retail equipment, as well as any real estate owned by the sole proprietor.

Partnership: A partnership is a business owned by two or more persons. In most forms of partnership, each partner has unlimited liability for the debts incurred by the business. The three most common types of nonprofit partnerships are general partnerships, limited partnerships, and limited liability partnerships.

Company: Company owners have limited liability and are separate legal entities from business owners. Corporations can be public or private and can be organized as for-profit or non-profit organizations. A private, non-profit company is owned by its shareholders, who elect a board of directors to lead and hire the board. A privately owned, non-profit company can be either privately owned by a small group of individuals or it can be publicly traded.

Cooperative: A cooperative, often referred to as a “cooperative,” is a limited liability business that can be organized as a for-profit or non-profit. It differs from a cooperative corporation in that it has members, not shareholders, and they share the power to make decisions. Cooperatives are usually classified as consumer cooperatives or workers’ cooperatives. Cooperatives are the basis of the ideology of economic democracy.

Cooperative: A cooperative, often referred to as a “cooperative,” is a limited liability organization that can be organized for commercial purposes or as a non-profit. It differs from a cooperative company in that it has members, not shareholders, and they share decision-making power. Cooperatives are often classified as consumer cooperatives or workers’ cooperatives. Cooperatives are the basis of the ideology of economic democracy. [7][8]

Franchising: Franchising is a system in which entrepreneurs receive the right to start and run a business from a larger company. [9] Franchising is widespread in the United States and is a major economic powerhouse. One in twelve retail businesses in the United States is franchised, and 8 million people work in the franchise business. [10]
Limited Warranty Company: Commonly used in places where companies are established for non-commercial purposes, such as clubs or charities. If a company goes bankrupt, but has no economic rights with the company, members are guaranteed a certain (usually nominal) amount. This type of company is widespread in the UK. A company limited by a guarantee may be without capital or without capital.

Stock Limited Company: The most common form of company used for businesses. Specifically, a limited liability company is “a company in which the liability of each shareholder is limited by the amount invested individually” and corporations are “the most common example of a limited liability company.” [11] These types of companies are widespread in and around the country. Great Britain. Many English-speaking countries. A limited liability company,

public company or a
a private company

A company with limited equity and collateral: A mixed asset that is typically used where the company is created for non-commercial purposes but is financed by investors whose operations are partially profitable. Such a company may no longer be established in the United Kingdom, but there are still provisions in the law for their existence. [12]

Limited Liability Company: “A corporation legally authorized in certain states, characterized by limited liability, management restrictions, and the transfer of property by members or directors,” L.L.C. [11] The structure of an LLC is called a “hybrid” because it “combines the characteristics of a corporation and a partnership or individual entrepreneurship.” Like a corporation, a company has limited liability to its members and, like a partnership, has a “membership tax” and must be liquidated “in the event of the death or bankruptcy of a member.” [13]

Unlimited company with or without capital: A joint venture is a company in which the liability of members or shareholders (if any) is not limited. In this case, the corporate platform doctrine does not apply.

Companies established by letter patent: Most companies with a letter patent are corporations, not corporations, as is generally understood today.
Charter companies: Before the adoption of modern company legislation, these were just types of companies. With the exception of very old companies that still operate (there are still many, especially many British banks) or modern societies that perform a semi-regulatory function (for example, the Bank of England is a established company), they are now relatively rare. according to modern law).
Legal Companies: Today, some relatively rare companies are established by a special law passed in the relevant jurisdiction.

“After the name of the company, Ltd stands for Limited Liability Company and indicates that the shares of PLC (public limited company) are widely held.” [14]

In legal parlance, company owners are commonly referred to as “members.” In a limited or unlimited company (established or established on a capital basis), they will be shareholders. In a company limited by warranty, they will be the guarantor. Some offshore jurisdictions have created special offshore company forms to attract businesses to their jurisdictions. Examples include ‘allocated portfolio companies’ and limited-purpose companies.

However, there are many subcategories of companies that can be formed in different jurisdictions around the world.

Companies are sometimes divided into public companies and private companies for legal and regulatory purposes. Publicly traded companies are companies that can (but not always) be publicly traded on an exchange that applies listing requirements / coding rules for issued shares, trading shares, and future shares. stock exchange or private stock market. Private companies do not have publicly traded shares, and there are often restrictions on the transfer of shares. Some jurisdictions have a maximum number of shareholders in private companies.

A parent is a company that has sufficient voting power in another firm to control and control its operations by influencing or electing its board of directors; acceptance of the second company as a subsidiary of the parent company. The definition of a parent company varies by jurisdiction, and the definition is usually determined by the laws of the companies in that jurisdiction.

Classifications

Main article: Industrial classification

Agriculture, for example, mining operations that produce natural resources and raw materials such as timber, oil and timber, oil, natural gas, ores, plants or minerals, as well as the domestication of fish, livestock and livestock.

Service businesses provide intangible goods or services and often charge the government, consumers, or other businesses for labor or other services provided. Interior designers, cosmetologists, hairdressers, make-up artists, tanners, laundresses, dry cleaners and pest control companies are all service providers.

Financial services businesses include assets and investment companies such as banks, brokerage firms, credit unions, credit cards, insurance companies, private equity firms, private equity funds, real estate investment trusts, state wealth funds, pension funds, mutual funds and indices. funds, hedge funds, stock exchanges and other companies that make a profit by investing and managing capital.
Transport companies, such as railways, airlines, and shipping companies, deliver goods and individuals to their destinations for a fee.

Utilities produce utilities such as water, electricity, waste management or sewerage. These industries are often managed by the state government.
Entertainment companies and media outlets primarily benefit from the sale of intellectual property. These include media companies such as film studios and production houses, cable television networks, online digital media agencies, talent agencies, mobile media outlets, newspapers, book and magazine publishers.
Sports organizations are engaged in the creation, facilitation, promotion or regulation of any sports-oriented activity, practice or business initiative. They make money by selling sports goods and services.
Industrial producers produce products from either raw materials or components, and then export the finished product at a profit. This includes material goods such as cars, buses, medical devices, glass or airplanes.
Real estate businesses sell, invest, build and develop property, including land, residential and other buildings.
Retailers, wholesalers and distributors act as intermediaries and deliver goods produced by producers to target consumers; They make a profit by raising prices. Most stores and catalog companies are distributors or retailers.

activities

accounting

Main article: Accounting

Accounting is the measurement, processing and transmission of financial information about economic entities such as businesses and companies [15] [16]. The modern field was founded in 1494 by the Italian mathematician Luca Pacioli. [17] Called Business Language [18], accounting measures the results of an organization’s economic activities and communicates this information to various users, including investors, creditors, management and regulators. [19] Accountants are known as accountants. The terms “accounting” and “financial reporting” are often used interchangeably.

Finance

Additional information: Financial Management and Management Finance
See also: Corporate Finance and Strategic Financial Management
Finance is a field that deals with the study of money and investment. It covers the dynamics of assets and liabilities over time under varying degrees of uncertainty and risk. [20] In the context of business and management, it deals with ensuring that a financial firm achieves its operational and financial objectives in a safe and profitable manner; that is: (1) has sufficient cash flows for ongoing and future operating expenses, and (2) can serve both short-term debt payments and planned long-term debt payments. Finance also pursues long-term goals, such as maximizing the value of a business by balancing risk and profitability; it is (1) a capital investment to be made by businesses and projects; (2) to decide on the capital structure and the mix of funds to be used; and (3) dividend policy, what to do with “excess” capital

Produces

Main article: Production

Production is the production of goods for use or sale using labor and machinery, tools, chemical and biological processing or formulation. The term can be applied to a range of human activities, from handicrafts to high technology, but is more commonly used in industrial production, where raw materials are widely converted into finished products.

Marketing

Main article: Marketing

Marketing is defined by the American Marketing Association as “a set of activities, institutions, and processes to create, communicate, deliver, and exchange valuable offers for customers, clients, partners, and society as a whole.” It literally means going to the market to buy or sell a good or service. In addition to advertising, marketing tactics include product pricing.

With the development of technology, marketing is divided into a class called digital marketing. Marketing products and services using digital technologies.

Research and development

Main article: Research and development

Research and development refers to activities related to corporate or government innovation. [22] Research and development is the first stage in the development of a potential new service or product. [23] It is very difficult to manage research and development, because the defining feature of research is that researchers do not know in advance exactly how to achieve the desired result. [24]

Security

Main article: Security

Injuries cost businesses billions of dollars a year. [25] Studies have shown how a company’s adoption and implementation of comprehensive safety and health management systems reduces incidents, insurance costs, and employee compensation claims. [26] New technologies, such as wearable safety devices [27] and existing online safety training, continue to be developed to encourage employers to invest in protection outside the “coal mine canary” and reduce the cost of enterprises protecting their employees.

Sales

Main article: Sales

Sales are activities related to the sale or quantity of goods or services sold over a period of time. Sales are often integrated with all business lines and are the key to a company’s success. [28]

Management

Main article: Management
See also: Business Management Rules

The efficient and effective operation of the enterprise and the study of this issue is called management. The main areas of management are financial management, marketing management, human resource management, strategic management, production management, operations management, service management and information technology management.

Owners can run their own businesses or hire managers to do it for them. Whether managers, owners or employees, they manage three main components of business value: financial resources, capital (material resources) and human resources. These resources are managed in at least six functional areas: legal contract, production or service production, marketing, accounting, finance and human resources.

Reconstruction of state enterprises

In recent years, states have modeled some of their assets and enterprises after business initiatives. For example, in 2003, the People’s Republic of China modeled 80% of state-owned enterprises in accordance with the company-type management system. [29] In China and Russia, many government agencies and enterprises have become joint-stock companies, some of which are publicly traded.

Business Process Management (BPM) is an integrated management approach aimed at tailoring all aspects of the organization to the wishes and needs of customers. BPM is constantly striving to improve processes. Therefore, it can be defined as a “process optimization process”. It is claimed that BPM allows organizations to be more efficient, effective and flexible than a functionally oriented, traditional hierarchical management approach.

Organization and regulation

See also: Firm theory
Most jurisdictions create a commercial law body for each type of property that the business can take.

The main factors that affect the organization of a business are usually:

The size and scope of a business firm, its structure, management and ownership are extensively analyzed in firm theory. In general, small businesses are more flexible, whereas larger enterprises or those with wider ownership or more formal structures are generally more likely to be organized as corporations or (less) partnerships. Also, a business that wants to make money on the stock market or to belong to a large audience often has to take a certain legal form for it.
Industry and country. Profitable private enterprises are different from state-owned enterprises. In some countries, certain businesses are required by law to be regulated in certain ways.
Tax benefits. Different structures in tax law are governed differently and may therefore have advantages.
Disclosure and compliance requirements. Different business structures may be required to disclose more or less information (or report to the appropriate authorities) and follow different rules and regulations.
Control and coordination requirements. In the function of risk and complexity of the tasks to be regulated, work is organized through a number of formal and informal mechanisms. [31] [32] In particular, contract and contact management can help reduce opportunities, as well as support communication and information exchange. [32]

Many enterprises are managed through a separate entity, such as a corporation or partnership (created with limited liability or limited liability). Most legal jurisdictions allow individuals to regulate such an institution by submitting certain statutory documents to the relevant Secretary of State or equivalent and in compliance with other specific current obligations. The relations and legal rights of shareholders, limited partners or members are regulated in part by the charter and in part by the laws of the jurisdiction in which the organization is located. In general, the company’s shareholders, limited liability partners and members of a limited liability company are protected from personal liability for the debts and obligations of the organization, which is considered a separate “person” by law. This means that in the absence of abuse, the entrepreneur’s own property is strongly protected by law if the business does not succeed.

When two or more persons own a joint business but are unable to arrange a more specialized form of vehicle, they will be considered a full partnership. The terms of a partnership are governed in part by the partnership agreement and in part by the law of the jurisdiction in which the partnership is located. No documentation or documentation is required to establish a partnership, and without agreement, the partners’ relationship and legal rights will be governed entirely by the laws of the jurisdiction in which the partnership is located. A sole proprietor who directly or formally owns or manages a business is generally recognized as a sole proprietor. Depending on your business needs, the consultant can decide which type of property is most appropriate.

Here are some factors to consider when deciding how to proceed:

Full partners of the partnership (except for limited liability partnerships), as well as anyone engaged in entrepreneurial activity without establishing a separate legal entity, shall be personally liable for the debts and obligations of the enterprise.
In general, companies are required to pay taxes just like “real” people. In some tax systems, this can lead to double taxation, as individuals must include their dividends in their income when the corporation first pays corporate income tax and then distributes it to corporate corporation owners. individual tax returns, in which case the second layer of income tax is applied.
Most countries have laws that treat small companies differently than large companies. They may be exempt from certain legal documentation requirements or employment laws, have simplified procedures for their specialties, and have simplified, advantageous, or slightly different tax regimes.
Going public through a process known as an initial public offering (IPO) means that part of the business will belong to members of the public. This requires the organization, as a separate entity, to disclose information to the public and to comply with more stringent laws and procedures. Most government agencies are stock-selling companies, but there are more and more units (sometimes called stocks) and publicly traded LLCs in the United States that sell more exotic entities, such as real estate investment trusts. The section is based in the United Kingdom. Full partnership “cannot be public.”

Commercial law

Main article: Corporate law

A very detailed set of rules developed over a long period of time applies to business operations. The need to regulate trade and commerce and resolve commercial disputes helped establish laws and courts. For example, the Hammurabi Code dates back to about 1772 BC and contains, among other things, provisions on transportation costs and transactions between merchants and brokers. [33] The word “company” comes from the Latin body, meaning body, and during the Iron Age of the Mauryan Empire, it gave legal rights to commercial enterprises in India. [34]

In many countries, it is difficult to gather all the laws that can affect business in one source. The law regulates the management of labor and employee relations, the protection and safety of workers, discrimination in some jurisdictions on the basis of age, sex, disability, race and sexual orientation, the minimum wage, as well as trade unions, workers’ compensation, and working hours and leave.

Some specialized establishments may require a license to operate for certain occupations, trades, or occupations that require special training, or to generate income for local governments. Occupations that require a special license include law, medicine, aviation, beverage sales, radio broadcasting, investment securities sales, used car sales, and roofing. Local jurisdictions may also require special licenses and taxes to run a business.

Some businesses are subject to ongoing special regulations, such as utilities, investment securities, banking, insurance, publishing, aviation, and health care providers. Environmental regulations are also very complex and can affect many businesses.

capital

When businesses need to raise money (called capital), they sometimes offer securities for sale. [35]

Capital can be increased by private means, initial public offering or IPO on the stock exchange [36] or other means [37].

Major exchanges include the Shanghai Stock Exchange, the Singapore Stock Exchange, the Hong Kong Stock Exchange, the New York Stock Exchange and the NASDAQ (USA), the London Stock Exchange (UK), the Tokyo Stock Exchange (Japan) and the Bombay Stock Exchange (India). ). Most countries with capital markets have at least one.

Publicly traded businesses are subject to internal management rules, such as how to determine the remuneration of senior executives, when and how to disclose information to shareholders and the public. In the United States, these rules are primarily implemented and enforced by the United States Securities and Exchange Commission (SEC). Other western countries also have comparable regulators. The rules are implemented and enforced in China by the China Securities Regulatory Commission (CSRC). The regulatory body in Singapore is the Singapore Monetary Authority (MAS) and the Hong Kong Securities and Futures Commission (SFC).

The proliferation and complexity of trade laws has necessitated increased specialization in corporate law. Due to the expansion of the legislation, it is not uncommon to require a group of five to ten lawyers for certain types of corporate activities. Commercial law, general corporate law, labor law, health law, securities law, mergers and acquisitions, tax law, employee benefit plans, food and drug regulations, copyright, patents, trademarks, telecommunications law and financial intellectual property rights .

Other types of capital resources include online crowdsourcing, venture capital, bank loans and securities.

Intellectual property

Main article: Intellectual property
Businesses often have significant “intellectual property” that a company needs to protect from competitors in order to stay profitable. This may require the protection of patents, copyrights, trademarks or trade secrets. [38] Most companies have names, logos and similar branding techniques that can benefit from the trademark. In the United States, patents and copyrights are governed primarily by federal law, while trade secrets and trademarks are governed primarily by state law. By the nature of intellectual property, a business needs protection in every jurisdiction in which it belongs to competitors. Many countries sign international intellectual property agreements, and therefore companies registered in these countries are subject to national laws governing these agreements. To protect trade secrets, companies may require employees to sign non-competitive provisions that restrict interactions with stakeholders and competitors.

Trade Union

Main article: Syndicate
A trade union (or union) is an organization of workers who come together to achieve common goals, such as maintaining the integrity of their professions, improving safety standards, receiving higher wages and benefits such as health and pensions, and increasing the number of employees. . employees assigned by the employer to complete the work and better working conditions. [39] The trade union, through its management, negotiates with employers on behalf of trade union members (ordinary members) and negotiates employment contracts (collective bargaining) with employers. [40] The most common goal of these unions or associations is to “maintain or improve the conditions in which they work.” [41] These may include salary negotiations, work rules, grievance procedures, rules governing the recruitment, dismissal and promotion of employees, benefits, workplace safety and policies.

see also

Main article: Business description
accounting
List of accounting topics
advertising
Bank
Great job
Business mind
business broker
Work ethic
Social Responsibility
working hours
business law issues
business mathematics
business mediator
business school
business tourism
business value
Businessman
capitalism
change management analyst
trade
Company
corporate identity
The payment is excessive
e-commerce
E-commerce
economy
economic democracy
financial economy
list of economic topics
ownership
finance
List of financial topics
franchise
is state property
Human resources
industry categories
innovation
Insurance
Intellectual property
temporary management
international Business
List of international trade topics
Investment
job creation program
working economy
limited liability
List of company records
List of largest employers
List of oldest companies
company lists
management information system
produces
List of production topics
Marketing
List of marketing topics
Money
organizational research
snow
Real Estate
List of real estate topics
income gap
Share value
small business
Strategic management
Strategic planning
tax
trade
Types of business assets

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