An organization or economic system where goods and services are exchanged for one another or for money. 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. Businesses can be privately owned, not-for-profit or state-owned. A business (also known as an enterprise, a company or a firm) is an organizational entity involved in the provision of goods and services to consumers. Businesses as a form of economic activity are prevalent in capitalist economies, where most of them are privately owned and provide goods and services to customers in exchange for other goods, services, or money. Businesses may also be social non-profit enterprises or state-owned public enterprises charged by governments with specific social and economic objectives. A business owned by multiple individuals may form as an incorporated company or jointly organise as a partnership. Countries have different laws that may ascribe different rights to the various business entities.
The word "business" can refer to a particular organization or to an entire market sector (for example: "the music business") or to the sum of all economic activity ("the business sector"). Compound forms such as "agribusiness" represent subsets of the concept's broader meaning, which encompasses all activity by suppliers of goods and services. Businesses aim for their sales to exceed their expenditures, resulting in a profit or gain or surplus.
The efficient and effective operation of a business, and study of this subject, is called management. The major branches of management are financial management, marketing management, human resource management, strategic management, production management, operations management, service management, and information technology management. Owners may administer their businesses themselves, or employ managers to do this for them. Whether they are owners or employees, managers administer three primary components of the business' value: its financial resources, capital or tangible resources, and human resources. These resources are administered in at least five functional areas: legal contracting, manufacturing or service production, marketing, accounting, financing, and human resources.
Business process management (BPM) is a holistic management approach focused on aligning all aspects of an organization with the wants and needs of clients. It promotes business effectiveness and efficiency while striving for innovation, flexibility, and integration with technology. BPM attempts to improve processes continuously. It can therefore be described as a "process optimization process." It is argued that BPM enables organizations to be more efficient, effective and capable of change than a functionally focused, traditional hierarchical management approach.
Most legal jurisdictions specify the forms of ownership that a business can take, creating a body of commercial law for each type.
The major factors affecting how a business is organized are usually :
The size and scope of the business firm and its structure, management, and ownership, broadly analyzed in the theory of the firm. Generally, a smaller business is more flexible, while larger businesses, or those with wider ownership or more formal structures, will usually tend to be organized as corporations or (less often) partnerships. In addition, a business that wishes to raise money on a stock market or to be owned by a wide range of people will often be required to adopt a specific legal form to do so.
The sector and country. Private profit-making businesses are different from government-owned bodies. In some countries, certain businesses are legally obliged to be organized in certain ways.
Tax advantages. Different structures are treated differently in tax law, and may have advantages for this reason.
Disclosure and compliance requirements. Different business structures may be required to make less or more information public (or report it to relevant authorities), and may be bound to comply with different rules and regulations.
Many businesses are operated through a separate entity such as a corporation or a partnership (either formed with or without limited liability). Most legal jurisdictions allow people to organize such an entity by filing certain charter documents with the relevant Secretary of State or equivalent, and complying with certain other ongoing obligations. The relationships and legal rights of shareholders, limited partners, or members are governed partly by the charter documents and partly by the law of the jurisdiction where the entity is organized. Generally speaking, shareholders in a corporation, limited partners in a limited partnership, and members in a limited liability company are shielded from personal liability for the debts and obligations of the entity, which is legally treated as a separate "person". This means that unless there is misconduct, the owner's own possessions are strongly protected in law if the business does not succeed.
Where two or more individuals own a business together but have failed to organize a more specialized form of vehicle, they will be treated as a general partnership. The terms of a partnership are partly governed by a partnership agreement if one is created, and partly by the law of the jurisdiction where the partnership is located. No paperwork or filing is necessary to create a partnership, and without an agreement, the relationships and legal rights of the partners will be entirely governed by the law of the jurisdiction where the partnership is located. A single person who owns and runs a business is commonly known as a sole proprietor, whether that person owns it directly or through a formally organized entity.
Most organizations have three management levels: first-level, middle-level, and top-level managers. First-line managers are the lowest level of management and manage the work of nonmanagerial individuals who are directly involved with the production or creation of the organization's products. First-line managers are often called supervisors, but may also be called line managers, office managers, or even foremen. Middle managers include all levels of management between the first-line level and the top level of the organization. These managers manage the work of first-line managers and may have titles such as department head, project leader, plant manager, or division manager. Top managers are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. These individuals typically have titles such as executive vice president, president, managing director, chief operating officer, chief executive officer, or chairman of the board. These managers are classified in a hierarchy of authority, and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid. Each level is explained below in specifications of their different responsibilities and likely job titles.
Businesses often have important "intellectual property" that needs protection from competitors for the company to stay profitable. This could require patents, copyrights, trademarks, or preservation of trade secrets. Most businesses have names, logos, and similar branding techniques that could benefit from trademarking. Patents and copyrights in the United States are largely governed by federal law, while trade secrets and trademarking are mostly a matter of state law. Because of the nature of intellectual property, a business needs protection in every jurisdiction in which they are concerned about competitors. Many countries are signatories to international treaties concerning intellectual property, and thus companies registered in these countries are subject to national laws bound by these treaties. In order to protect trade secrets, companies may require employees to sign non-compete clauses which will impose limitations on an employee's interactions with stakeholders, and competitors.
The disadvantage is that most is fear by anyone, especially by the businessman. The scale of the loss itself is quite diverse, can be small scale with losses less impact but there are also disadvantages medium to large scale so it impact your business on the run. Even if such losses can not be controlled will lead to bankruptcy. We are here not to scare you, because that loss is basically the opposite of profits which became one of the most avoidable business risks. Where our goal is to establish a business for profit, and most avoided is a loss. Thus the losses are things that should be avoided as much as possible.
Usually the loss occurred in because of many factors, ranging from decision-making imprecise, poor management, lack of experience and can also be caused due to external factors such as natural disasters, the raw materials that are difficult, according to consumer interest and much more. But you need to know, not all businessman who suffered losses ended with bankruptcy, there are still many out there who experienced great losses to nearly bankrupt, but could rise and may even continue to grow and earn income doubled. Maybe it happens because the businessman was not desperate and seek appropriate solutions so that business back again.
Life in new era onwards is different to life in the year 2000 downwards. If in the business competition is very loose and very easy to look for the consumer, then the current vice versa. Where now is the competition in the business world is very tight and many are scrambling enterpreneur good market in a healthy way or in a way that is not healthy. Thus the competition should not be too in mind, the important thing we have to focus on producing or providing services to our customers. Essentially the better the quality we provide, the more faithful we are also consumers of the products or services that we provide.
There are currently very difficult market conditions stabilized, the country's economy is in because we were too unstable. Not to mention the trigger by the global economy under pressure lately. No wonder indeed if market conditions become unstable, such as for example the price of raw materials, where the raw material prices change at any time that can confuse us as a businessman. When raw material prices go up, we can not just raise the products we sell, because it can cause consumers blurred. However, if the fixed price we certainly suffered losses. Then the solution could be a way to reduce production quotas.
Hard Work and not easy surrender is the main stock an entrepreneur. And this includes business risk, which if we do not want to work hard, it can be sure that we run the business will not run smoothly and the edges like on the first point before the loss. Besides it being a businessman should focus, honest, just, resilient, industrious, diligent, intelligent thought and no less important are sincere in doing business.