The definition of a business is “A commercial activity in which a person or entity deals with the distribution, processing, marketing, or sale of a product or service by means of legal process or transactions”. A business therefore, refers to an entity where people engage in commerce or work together. In a normal business, individuals perform tasks to create and sell goods or services to others. Others engage in buying the goods and services as well. A business may make a profit from the goods and services that it provides.
In order to be part of the business organization, the business must have its own objectives or goals. These objectives or goals guide all the business activities such as planning, organizing, developing, executing, monitoring, and controlling. It also involves a system of control. The system of control of a business organization includes the following: financial objectives, market evaluation, information systems, human resources management, production and quality systems, technical systems, work methods, and consumer protection.
A business enterprise can be categorized as either a partnership or an independent organization. Partnerships are formed between two or more companies where in one or more of the companies contribute to the growth and maintenance of the partner company. Independent organizations exist without any corporate parent or partners. There is a distinction between a partnership and an independent organization. In a partnership, the partners share equal ownership in the business enterprise while an independent organization has no common shares and is not controlled by anyone.