By the word “business”, we can define it as an organization made up of a number of people at different levels who are aimed at to achieve a common purpose. The purpose is to sell the goods and services to satisfy the needs of their customers. “Business” can be rightly termed as the backbone of the nation because they conduct the economic system of the country. If there was no business, the trade would not have continued, Government would not have earned taxes.
KINDS OF BUSINESS
“Business” is not always a private organization aimed to earn money. It can be a social non-profit organization as well, a state-owned enterprise working under the Government. It may be also composed of a number of private people who jointly work in the form of share partners in a trade.
The aims of the different businessmen vary from each other based on their aims. The businessmen, who are in the private sector aim to maximize profits, increase the revenue of the sales. The businessmen who work under theGovernment solely work to earn profits or acts as a medium of social welfare.
PARTNERSHIPS IN A BUSINESS
A business organization is usually not run without the involvement of a number of people. However, in very small cases, people work solely. Based on the number of people working and the investments, the types of business partnerships are-
- Sole proprietorship
This follows the idea of running the organization by a single person as a sole authority. The owner controls the whole management of the company by employing someemployees. The profits that will be earnedare solely enjoyed by the person.
This is a system of running a business with the involvement of more than one person. The partnership may be further classified as a general partnership, a partnership that is limited and limited liability partnerships.
In this business type, the organizational heads have only a limited amount of liability. A corporation can be government owned or privately owned. They also have shareholders.
The franchise is the business form, which aims at a single person basically who can be called an entrepreneur purchases a portion of the business from a corporation to run it by himself. These days’ entrepreneurs are working their best to earn maximized profits.
Finance has a wide connection with a business because it wholly deals with the study of the investments. It helps in studying the price assets which is often calculated on the basis of the rate of return. The manufacturing companies produce the goods to satisfy the needs of the customers. The products need large advertising groups and business organizations to launch them. This becomes a method of earning tax by the government. Hence, we can see this that how beautifully a business continues, how it really is the backbone to decide the economic background of the nation. If there is never a foul play, we will succeed in making India one of the developed countries of the world someday.