Different Types of Business

The term business literally refers to any entity or individual engaged in business, commercial, or industrial activities. Businesses may be private, public, or civic entities that operate either to meet a social need or further a particular social cause or purpose. Private entities normally engage in trade or commerce with others, but sometimes they also engage in philanthropic activities. Most large businesses are highly organized and operate through a system of command and discipline, while some of the privately owned businesses are more diffuse and diffusely organized with a number of owners operating in a parallel fashion. The major types of business are: retail sales and service, merchandising, manufacturing, transportation and utility services, finance and banking, information technology, real estate, and professional services.

Business enterprises often exhibit trading or marketing styles based on their particular types. A Busy Professional is a busy entrepreneur who is capable of managing multiple projects at one time; whereas an Entrepreneur is a person who is capable of innovating new ideas and products in the marketplace. Both of these businessmen are capable of doing market research and development, hiring employees, purchasing and managing property, and conducting business operations. Market research and development involves analyzing current conditions and trends to determine what type of product or services are in demand and in need of a current outlet.

There are three basic types of businesses: private firms, publicly traded corporations, and cooperatives. A private firm refers to a business that exists for the benefit of a single shareholder; a publicly traded corporation is a business that trades publicly within an established brokerage firm; and a cooperative business is a company where all the members or workers are located in the same geographical area and share profits and losses with the rest of the workers and shareholders. Many different types of business exist, with many different variations between them. All businesses are unique, and each business has a specific set of tasks, processes, and goals.