Types of Business

A business is defined simply as a company or organized entity undertaking commercial, or financial activities for the purpose of making a profit. The word “business”, on its widest interpretation, also refers to the collective efforts and actions of many people to make and sale goods and services to earn a profit. Business activity may be domestic or international in nature. In United States, business activity covers all those activities of a business conducted for the financial advantage of the business. For example, a manufacturer operating a factory abroad sells products to customers in the local language and sells the same products under his own name in order to earn a profit.

The term “strategic management” can be used in place of the term “business”, since it provides an overall view of a company’s operations in relation to its various goals and objectives. It involves an evaluation of the financial aspects of a business, concentrating on the factors that govern prices, the supply of supplies, the demand for supplies, working capital and so on. Strategic management aims at promoting economic growth by providing businesses with the means to compete with other businesses on the market and by giving employers, owners and managers control over the working practices of their employees.

There are several categories under which the main categories of businesses fall: manufacturing, trading, services, sales and distribution, technology, information technology, engineering and knowledge resource. Manufacturing involves the processes of creating and producing finished goods and products; trading involves buying and selling goods and products, while sales and distribution involve the methods of distributing the products that have been manufactured. Technology, information technology and engineering categories represent the broadest conception of what businesses do. Knowledge resources refer to the information on the various components of the production process. All the three main article categories of business to provide the vital components for any thriving enterprise.