What is the definition of a business?
Definition of a Business
A business is an organization or entity engaged in commercial, industrial, or professional activities with the aim of generating profits or achieving specific objectives. Businesses can take various forms, such as sole proprietorships, partnerships, corporations, or cooperatives, and may operate in a wide range of industries, including services, manufacturing, retail, and more.
Key Characteristics of a Business
- Economic Activity: Involves producing, buying, or selling goods and services.
- Profit Motive: Most businesses seek to earn profits, though some (like non-profits) may have other objectives.
- Organization: Structured as an independent entity with ownership and management roles.
- Continuity: Typically operates on a continuous basis rather than as a one-time activity.
- Risk: Engages in activities that involve financial and operational risks.