Definition and Types of Business Structures
– Business is the practice of producing or buying and selling products for profit.
– It is any activity or enterprise entered into for financial gain.
– A business name does not separate the business entity from the owner, making the owner responsible for debts incurred.
– The taxation system for businesses is different from that of corporations, with the proprietor personally taxed on all income.
– The term ‘business’ is colloquially used to refer to a company, such as a corporation or cooperative.
– Types of business structures include sole proprietorship, partnership, corporations, cooperatives, and limited liability companies (LLC).
Different Forms of Companies
– Different forms of companies include limited company (Ltd.), company limited by guarantee, company limited by shares, publicly traded company, and privately held company.
Franchising and Other Business Models
– Franchising is when entrepreneurs purchase rights to open and run a business from a larger corporation.
– Franchising is widespread in the United States, with one out of twelve retail businesses being franchised and 8 million people employed.
– Other business models include company limited by guarantee with a share capital, unlimited company with or without a share capital, charter corporations, and statutory companies.
Terminology and Classification of Companies
– Terminology includes abbreviations such as Ltd. and PLC for limited company and public limited company, respectively.
– Offshore companies are special forms of companies created in offshore jurisdictions to attract business.
– Public companies have shares that can be publicly traded, while private companies do not.
– Classification of companies includes agriculture, mining, service businesses, financial services, and transportation.
Activities and Management
– Activities related to business include accounting, commerce, finance, human resources, information technology, manufacturing, marketing, and research and development.
– Management branches include financial management, marketing management, human resource management, strategic management, and production management.
– Restructuring state enterprises has been done in China and Russia, transforming them into joint-stock companies.
– Business process management (BPM) is a holistic approach focused on aligning all aspects of an organization with client needs.
– Organization and regulation of businesses depend on factors such as size, ownership, legal requirements, and control and coordination.
– Commercial law applies to commercial transactions and helps resolve business disputes.
– Capital can be raised through securities offerings and IPOs on stock exchanges.
– Intellectual property protection includes patents, copyrights, trademarks, and trade secrets.
– Trade unions protect workers’ interests and negotiate labor contracts with employers.
– Different business structures include sole proprietorship, partnership, corporation, and franchise. Source: https://en.wikipedia.org/wiki/Business
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Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). It is also "any activity or enterprise entered into for profit."
Having a business name does not separate the business entity from the owner, which means that the owner of the business is responsible and liable for debts incurred by the business. If the business acquires debts, the creditors can go after the owner's personal possessions. The taxation system for businesses is different from that of the corporates. A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business.
The term is also often used colloquially (but not by lawyers or public officials) to refer to a company, such as a corporation or cooperative.
Corporations, in contrast with sole proprietors and partnerships, are separate legal entities and provide limited liability for their owners/members, as well as being subject to corporate tax rates. A corporation is more complicated and expensive to set up, but offers more protection and benefits for the owners/members.
