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: the activity of making, buying, or selling goods or providing ser vices

in exchange for money

What is a 'Business'
A business is an organization or enterprising entity engaged in commercial, industrial or professional
activities. A business can be a for-profit entity, such as a publicly-traded corporation, or a non-profit
organization engaged in business activities, such as an agricultural cooperative.
2. Any commercial, industrial or professional activity undertaken by an individual or a group.
3. A reference to a specific area or type of economic activity.

Read more: Business Definition |

Investopedia http://www.investopedia.com/terms/b/business.asp#ixzz4BXzyJ4uT

What Are the Four Most Common Types of Business

by Leslie McClintock, Demand Media

Before you establish a business, you must decide what format you want that business to take. There are
four basic forms of for-profit businesses in the United States, and each of them has advantages and
disadvantages. Your decision can have important effects on your ability to separate your own personal
assets from business assets, your ability to raise capital, your taxes and the disposition or transfer of the
company when it is bought or sold.

Sole Proprietorships
The sole proprietor is the default option for one-owner businesses. If you make no other election and you
have only one owner, you are automatically a sole proprietor. The advantage to being a sole proprietor is
its simplicity -- it requires no additional filing or record keeping, though the IRS will require you to keep
accounting records for tax purposes. The major disadvantage of the sole proprietorship format is personal
liability. You have unlimited liability for all lawsuits against your business. You can lose everything you own,
personally, if there is a business or legal dispute and you have a judgment entered against you in a

Partnerships are joint ventures between two or more owners. Partnerships can be limited or general. In a
general partnership, both partners are wholly responsible for all claims against the business. In a limited
partnership, you will have one or more general partners and the rest are limited partners. The general
partner has potentially unlimited personal liability; the limited partners' liability is limited to the amount
they contributed to the company. Limited partners cannot take part in the day-to-day management of the
firm, however. If they do, they risk having the protections of being a limited partner revoked.
Related Reading: What Are the Different Structures for Building a Business?

Corporations are separate legal persons under the law. They have a legal identity that is separate and
distinct from that of their owners, and owners are not generally held financially responsible for claims
against the corporation. Subchapter S corporations are not taxed at the company level; instead, their
profits pass through to shareholder returns and are taxed at the shareholder level. S-corporations also
have strict limitations on who may be shareholders. You can have no more than 100 shareholders, and
they must be residents or citizens of the U.S. C-corporations do not have these restrictions, but they do
pay income taxes at the company level, before passing dividends to the investor. This is called "double
taxation" and is a disadvantage of C-corporations. C-corporations may be the best choice, however, for
those who plan to expand and who want to have the freedom to raise large amounts of capital by issuing

Limited Liability Companies

Limited liability companies are a cross between partnerships and corporations. They do not have any legal
status under federal law, but state law allows them to provide their owners with substantial limited liability.
They can also choose how to be treated for the purposes of filing their income tax returns. Specifically, LLC
members can choose to have their businesses treated as an S-corporation or as a partnership. Single
member LLCs can choose to be treated as a sole proprietor for income tax purposes.

Different classifications of business

1. Service business this provides intangible goods or services to customers. It usually
generates profit by charging for labor or other services rendered to consumers, government or
other companies. Below are examples of service businesses:
Firms which offer professional services, such as accounting, legal, engineering, business
consulting, customer service and architecture

Transportation companies, such as airlines, shipping, land tours and forwarders

Entertainment, such as artists and movie houses
Hotels and restaurants
Banks, lending companies and other financial institutions
Telecommunication companies
Event planners
Medical and dental services
Security and janitorial services
Media, blogging and advertising
Website developers
Graphic designers
Business process outsourcing (BPO) companies
and others
2. Merchandising business this purchase products from other businesses or manufacturers
and sell them to customers. Merchandising companies usually have merchandising inventories in
their current assets account. They usually generate profit by providing markup price on their
goods available for sale. These businesses include retailers and trading companies such as the
Grocery stores
Department stores
Real estate dealers
Car dealers
3. Manufacturing business this converts raw materials, labors and overhead into finished
products that are available for sale to customers. Manufacturing firms includes the following
Car manufacturers
Wine and soft drinks producers
Electronic parts manufacturers
Producers of drugs and other medical products

4. Other businesses. This includes businesses that cant be classified as service,

merchandising or manufacturers. Examples are agriculture and mining companies. These
companies are engaged in producing or exploration of raw or natural materials, such as plants
and minerals.

3 Types of Business
There are three major types of businesses:

1. Service Business
A service type of business provides intangible products (products with no physical form). Service type firms
offer professional skills, expertise, advice, and other similar products.
Examples of service businesses are: schools, repair shops, hair salons, banks, accounting firms, and law

2. Merchandising Business
This type of business buys products at wholesale price and sells the same at retail price. They are known
as "buy and sell" businesses. They make profit by selling the products at prices higher than their purchase
A merchandising business sells a product without changing its form. Examples are: grocery stores,
convenience stores, distributors, and other resellers.

3. Manufacturing Business
Unlike a merchandising business, a manufacturing business buys products with the intention of using them
as materials in making a new product. Thus, there is a transformation of the products purchased.
A manufacturing business combines raw materials, labor, and factory overhead in its production process. The
manufactured goods will then be sold to customers.

Hybrid Business
Hybrid businesses are companies that may be classified in more than one type of business. A restaurant,
for example, combines ingredients in making a fine meal (manufacturing), sells a cold bottle of wine
(merchandising), and fills customer orders (service).
Nonetheless, these companies may be classified according to their major business interest. In that case,
restaurants are more of the service type they provide dining services.

Forms of Business Organization

These are the basic forms of business ownership:

1. Sole Proprietorship
A sole proprietorship is a business owned by only one person. It is easy to set-up and is the least costly
among all forms of ownership.
The owner faces unlimited liability; meaning, the creditors of the business may go after the personal assets of
the owner if the business cannot pay them.
The sole proprietorship form is usually adopted by small business entities.

2. Partnership
A partnership is a business owned by two or more persons who contribute resources into the entity. The
partners divide the profits of the business among themselves.
In general partnerships, all partners have unlimited liability. In limited partnerships,creditors cannot go after the
personal assets of the limited partners.

3. Corporation
A corporation is a business organization that has a separate legal personality from its owners. Ownership
in a stock corporation is represented by shares of stock.
The owners (stockholders) enjoy limited liability but have limited involvement in the company's operations.
The board of directors, an elected group from the stockholders, controls the activities of the corporation.
In addition to those basic forms of business ownership, these are some other types of organizations that
are common today:

Limited Liability Company

Limited liability companies (LLCs) in the USA, are hybrid forms of business that have characteristics of both
a corporation and a partnership. An LLC is not incorporated; hence, it is not considered a corporation.
Nonetheless, the owners enjoy limited liability like in a corporation. An LLC may elect to be taxed as a sole
proprietorship, a partnership, or a corporation.

A cooperative is a business organization owned by a group of individuals and is operated for their mutual
benefit. The persons making up the group are called members. Cooperatives may be incorporated or
Some examples of cooperatives are: water and electricity (utility) cooperatives, cooperative banking,
credit unions, and housing cooperatives

Each BATCH of interns should pass a company profile. The ff. info must be included in the profile:
>Name of the Laboratory
>Contact Information
- Person to contact (HR)
- Preceptor
- Contact number
>Company Organizational Set-up
>Enumerate the different department
>Summary of your weekly assignment
>Picture of the laboratory
*short bond place in short folder. Please don't forget to place your name/s.It must be pass on or
before your Major Exam on June 2nd week.
Please be guided accordingly. Thanks!