Understanding what Business and Business characteristic

The backbone of every business characteristic is an investment and having enough customers. We all know that business is an organization or economic system, where goods and services get exchanged for money.

Understanding what Business and Business characteristic

What are Business characteristics?

Business consists of three main characteristics.

  • Business must be borne out of individuals. Working together in an organized fashion
  • A business must satisfy a societal need
  • A business must seek to make a profit

Business must be comprised of individuals who are working together. Businesses need to be around resources for them to be successful. Some businesses require constant cooperation and communication with employees.

While other businesses may not need as much contact with other employees each business is unique in its own way, thus must decide the best way to be organized, depending on their individual goals.

A business must be able to satisfy a societal need. However, they must carefully consider what needs they are meeting for society.

Types of business

Businesses can be classified into four different types, but are not limited to the categories below:

Manufacturing

Most manufacturing business is primarily focused on producing goods and sell it directly to customers or middleman. Businesses in this category include plastic factories, steel factories, and many others.

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Service

These are business that specializes in trading services. These services can not be stored or separated from the provider, this kind of business offers professional services, expertise, commission-based, etc.

Merchandising

Merchandising is a middleman business strategy that involves the business buying products from a manufacturer, wholesalers, or partners and selling at a retail price this is mainly known as a buy and sell method, as they make a profit by selling product at a slightly higher price.

Hybrid

Hybrid businesses have characteristics of business-like manufacturing, service, and merchandising. They can manufacture some of their products, buy some from other companies to complement their own products.

Types of Business ownership

Various forms of business ownership:

Sole proprietorship

A sole proprietorship is a one-man business, it is owned and operated by an individual, and it is quite easy to set up, operates, and register all profits generated from these businesses belong to the owner. However, the owner bears the risk of the business.

Partnership

A partnership type of business involves two or more persons, however, a partnership is more like a sole proprietorship but with more than one owner.

Corporation

The corporation type of business has a different legal identity from the people who manage it, its ownership usually represented in the form of shares, corporation owners or investors enjoy unlimited liability, even though they are not involved in running the day-to-day activities.

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