A business is an organization which renders services or provides goods to the consumer for a profit. Examples of goods are physical products like clothing sold at Old Navy or McDonald’s french fries. Housecleaning and banking are two services.
Suppliers provide products to the businesses who then sell them. When revenue surpasses costs and taxes needed to sustain the activity a profit is made.
Some businesses are state-owned enterprises or privately owned while others are not-for-profit. Amtrak is government-owned while some of the largest private companies include Dell, Mars and Albertsons. Numbered among not-for profit companies are Boys and Girls Clubs of America and American Red Cross.
Types of Ownerships
A few types of business ownerships: sole proprietorship, corporation and partnership. A sole proprietorship is owned by one person and is the most popular type of business in the U.S. A corporation is led by a board of directors as a separate, legal entity which is distinct from it’s owners. The rarest form is a partnership which two or more people may operate or own.
There exists plenty of business competition which inspires companies to create better products. This rivalry is considered a positive factor in the business world as it also encourages team spirit and endurance.