DEFINITION
A business is an outfit where people or institutions exchange goods and services for money. A business needs capital as an investment and also enough market where it goods can be exchanged consistently so that profit can be made. Whether it is privately or state-owned, every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit.
What Are The Characteristics (Features) Of A Business?
A Business:
==> involves exchange of good and services for money
==> deals in monetary transactions
==> core objective is profit
==> needs necessary skills for success
==> involves taking risk and planning for uncertainties
==> connects a buyer and a seller with a product/service
==> involves marketing and distribution
==> growth hinges on satisfaction of human wants.
CLASSIFICATION OF BUSINESS
Agriculture business and mining such as Limestone mining, crude oil exploration, fish farming, poultry business.
Financial business such as banks, discount and investment institutions, insurance and loan facilities etc. Financial businesses include banks and other companies that generate profits through investment and management of the capital.
Information businesses are involves in the sales and distribution of intellectual properties such as movies, music, books and magazines, software etc.
Internet businesses are involved in provision of digital goods and virtual services over the internet. Blogging, affiliate marketing, bulkSMS, social media marketing, web design and development are examples of online businesses.
Manufacturing businesses produce commodities from raw materials and components. They manufacture tangible products such as cars, paints, pipes, soap, clothing, hair creams, cement, phones etc. They are referred to as manufacturers.
Real estate businesses buy, sell, manage or develop properties such as land, shops, estates, residential homes and office buildings.
Retailing businesses make money from the act of buying and selling. they act as middlemen and connects the producers and the end users. Most stalls and supermarkets are distributors and retailers.
Service businesses make money from the provision of intangible services, charging client for effort and labour. Example include entertainers, consulting firm, home cleaning business, laundry services, event planning and interior decoration etc.
Transportation and haulage businesses help convey goods and people from place to place for a stipulated fees. Examples include intra-state and inter-state commercial transport, goods and petroleum haulage business, ferrying services, cargo importation and shipping etc.
Utility businesses produce public services such as sewage disposal, provision of pipe-borne water, electricity generation, road maintenance services etc. They are often run in partnership with the government.
Well, I hope I have been able to answer that popular question "What Is A Business?' Feel free to share this post with others if you find it helpful.
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