An organization or economic system where good 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. An example of a corporate business is PepsiCo, while a mom-and-pop catering business is a private enterprise.
TYPES OF BUSINESS
The 6 most common types of businesses:
(1): Sole Proprietorship: A business owned by a single person.
(2): Partnership: A business owned by two or more people who share responsibilities.
(3): Limited Partnership: General partner(s) run the business, while limited partners invest
Corporation: A fully-independent business with shareholders.
(4): Limited Liability Company (LLC): A mixture of a partnership and a corporation, designed to make it easier to start small businesses.
(5): Nonprofit Organization: A business that uses its profits for charitable purposes.
(6): Cooperative (Co-op): A business owned and operated for the benefit of the members of the organization that use its services.
A sole proprietorship is one of the most popular business types, namely because it’s one of the simplest and only requires a single person to create. In a nutshell, a sole proprietorship is a business that’s owned by just one person. An important thing to note is that there isn’t a legal or financial distinction between the business and the business owner, which means that you as the business owner are fully accountable for all of the profits, liabilities and legal issues that your business may encounter.
Two heads are better than one, right? If that’s the philosophy behind your business structure, then a partnership might be the best choice for you. A partnership might be appropriate if your business is owned by two or more people.
A limited partnership, or LP, is an off-shoot version of a general partnership, and while it may not be as common, it’s a great bet for businesses that are looking to raise capital from investors who aren’t interested in working the day to day aspects of your operations. With a limited partnership, there are two sets of partners.