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What is Business?

Business write for us – In other words, a business is an economic activity that seeks to profit primarily through selling or exchanging products or services that satisfy customers’ needs. It can involve one or more stages of the production chain, such as extraction of natural resources, manufacture, distribution, storage, sale, or resale.

Sometimes the term shop refers to the businesses premises where goods or services are sold, such as a restaurant, clothing store, pharmacy, etc.

Business Objective

The company’s main objective is profit, that is, to make a profit. If an organization does not seek gain, its activities cannot be said to a business, even if they share similar characteristics. For example, government services related to red tape (such as obtaining a driver’s license, applying for residency, applying for title validation, etc.) are not businesses, even if a service is provided and involves a fee.

A company’s means of generating profits is to create added or surplus value. For example, in commerce, company is the resale of goods. The added value of the retailer lies in its mediation, that is, as a communication channel between buyers and manufacturers. The retailer calculates this added value by adding a margin between its products’ cost and selling price.

How Business Arise

A company arises from identifying a need that can satisfied with a specific good or service. Then the means are to offer these goods or services profitably.

For a company to work, it is essential to have the opportunity. And the resources to start the activities and the work and creativity of the founders.

Types of Business

Businesses can be of different types:

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