A business is defined as any enterprising entity or organisation that engages in commercial, industrial, or technical activities for profit. Business enterprises may be either for-profit or non-profitable entities that operate to fulfil a social cause or further an educational purpose. There are many ways in which people use businesses to further their social causes. Non-profits are commonly utilised to fund community projects and lobbies to influence government policies and create awareness about issues. For-profit businesses provide a source of revenue to support specific causes.
Most businesses employ staff to carry out the day-to-day operations. The most common staff members in most businesses are managers, office staff, receptionists, secretaries, bookkeepers and salesman. In a for-profit business, the managers are employed by the company but the staff positions are usually held by independent contractors. Non-profits employ staff such as volunteers who are recruited to perform various duties on a regular basis and are based in the field offices. Most firms employ a board of directors or senior executives to run the day-to-day operations.
Most businesses are built on a successful market strategy. Market strategies can be implemented for advertising, market promotion, sales, public relations, product positioning and market positioning. Market strategies are designed to attract clients and retain them through the development of a firm’s products or services and to expand markets through expansion in other markets. For-profit firms tend to focus on a niche market through market research and development strategies. They also tend to be less concerned with financial resources than other types of businesses and have a low fixed overhead cost.
A business debt refers to a loan or other debt secured against a corporation’s assets. Most businesses have only one class of business debts – a liability. A limited liability company is formed to provide protection for the owners of the corporation and to protect their equity owners from losses in the event that the corporation does not pay its debts.
A business organization is organized either as a partnership, a sole proprietorship, a C-corporation, a partnership, a sole stock company, a limited liability company, an estate, a partnership, a corporation, or an unincorporated organization. A sole proprietorship is a direct, personal ownership relationship. A partnership is an indirect, collective ownership relationship. A C-corporation is a hybrid of a partnership and a corporation. A sole stock company is a privately owned, publicly traded company organized under the laws of the Cayman Islands and its residents. An estate is a legal entity managed by a trustee.
Business administration requires thorough knowledge of a corporation or business. The process is mind one – it needs an in-depth study of the ins and outs of both an enterprise and a state structure, including taxation. No business entity can function without legal protection and representation.