Professional Documents
Culture Documents
Forms
Main article: List of business entities
Corporate law
show
By jurisdiction
show
show
Corporate forms
by jurisdiction
show
Doctrines
show
Related areas
Company portal
Law portal
v
t
e
Forms of business ownership vary by jurisdiction, but several common entities exist:
Classifications
Main article: Industry classification
Activities
Accounting
Main article: Accounting
Accounting is the measurement, processing, and communication of financial information
about economic entities[14][15] such as businesses and corporations. The modern field was
established by the Italian mathematician Luca Pacioli in 1494.[16] Accounting, which has
been called the "language of business",[17] measures the results of an organization's
economic activities and conveys this information to a variety of users,
including investors, creditors, management, and regulators.[18] Practitioners of
accounting are known as accountants. The terms "accounting" and "financial reporting"
are often used as synonyms.
Commerce
Main article: Commerce
The process of exchanging goods and services.[19]
Finance
Further information: Financial management and Managerial finance
See also: Corporate finance and Strategic financial management
Finance is a field that deals with the study of money and investments. It includes the
dynamics of assets and liabilities over time under conditions of different degrees of
uncertainty and risk.[20] In the context of business and management, finance deals with
the problems of ensuring that the firm can safely and profitably carry out its operational
and financial objectives; i.e. that it: (1) has sufficient cash flow for ongoing and
upcoming operational expenses, and (2) can service both maturing short-term debt
repayments, and scheduled long-term debt payments. Finance also deals with the long
term objective of maximizing the value of the business, while also balancing risk and
profitability; this includes the interrelated questions of (1) capital investment, which
businesses and projects to invest in; (2) capital structure, deciding on the mix of funding
to be used; and (3) dividend policy, what to do with "excess" capital.
Human Resources
Main article: Human resources
The size and scope of the business firm and its structure, management, and
ownership, broadly analyzed in the theory of the firm. Generally, a smaller
business is more flexible, while larger businesses, or those with wider
ownership or more formal structures, will usually tend to be organized as
corporations or (less often) partnerships. In addition, a business that wishes
to raise money on a stock market or to be owned by a wide range of people
will often be required to adopt a specific legal form to do so.
The sector and country. Private profit-making businesses are different from
government-owned bodies. In some countries, certain businesses are legally
obliged to be organized in certain ways.
Tax advantages. Different structures are treated differently in tax law and
may have advantages for this reason.
Disclosure and compliance requirements. Different business structures may
be required to make less or more information public (or report it to relevant
authorities) and may be bound to comply with different rules and regulations.
Control and coordination requirements. In function of the risk and complexity
of the tasks to organize, a business is organized through a set of formal and
informal mechanisms.[34][35] In particular, contractual and relational governance
can help mitigate opportunism as well as support communication and
information sharing.[35]
Many businesses are operated through a separate entity such as a corporation or a
partnership (either formed with or without limited liability). Most legal jurisdictions allow
people to organize such an entity by filing certain charter documents with the relevant
Secretary of State or equivalent and complying with certain other ongoing obligations.
The relationships and legal rights of shareholders, limited partners, or members are
governed partly by the charter documents and partly by the law of the jurisdiction where
the entity is organized. Generally speaking, shareholders in a corporation, limited
partners in a limited partnership, and members in a limited liability company are
shielded from personal liability for the debts and obligations of the entity, which is legally
treated as a separate "person". This means that unless there is misconduct, the owner's
own possessions are strongly protected in law if the business does not succeed.
Where two or more individuals own a business together but have failed to organize a
more specialized form of vehicle, they will be treated as a general partnership. The
terms of a partnership are partly governed by a partnership agreement if one is created,
and partly by the law of the jurisdiction where the partnership is located. No paperwork
or filing is necessary to create a partnership, and without an agreement, the
relationships and legal rights of the partners will be entirely governed by the law of the
jurisdiction where the partnership is located. A single person who owns and runs a
business is commonly known as a sole proprietor, whether that person owns it directly
or through a formally organized entity. Depending on the business needs, an adviser
can decide what kind is proprietorship will be most suitable.
A few relevant factors to consider in deciding how to operate a business include:
A very detailed and well-established body of rules that evolved over a very long period
of time applies to commercial transactions. The need to regulate trade and commerce
and resolve business disputes helped shape the creation of law and courts. The Code
of Hammurabi dates back to about 1772 BC for example and contains provisions that
relate, among other matters, to shipping costs and dealings between merchants
and brokers.[36] The word "corporation" derives from the Latin corpus, meaning body, and
the Maurya Empire in Iron-Age India accorded legal rights to business entities.[37]
In many countries, it is difficult to compile all the laws that can affect a business into a
single reference source. Laws can govern the treatment of labour and employee
relations, worker protection and safety, discrimination on the basis of age, gender,
disability, race, and in some jurisdictions, sexual orientation, and the minimum wage, as
well as unions, worker compensation, and working hours and leave.
Some specialized businesses may also require licenses, either due to laws governing
entry into certain trades, occupations or professions, that require special education or to
raise revenue for local governments. Professions that require special licenses include
law, medicine, piloting aircraft, selling liquor, radio broadcasting, selling investment
securities, selling used cars, and roofing. Local jurisdictions may also require special
licenses and taxes just to operate a business.
Some businesses are subject to ongoing special regulation, for example, public utilities,
investment securities, banking, insurance, broadcasting, aviation, and health care
providers. Environmental regulations are also very complex and can affect many
businesses.
Capital
See also
Business portal
Main article: Outline of business
Accounting
o List of accounting topics
Advertising
Bank
Big business
Business acumen
Business broker
Business ethics
o Social responsibility
Business hours
Business law topics
Business mathematics
Business mediator
Business school
Business tourism
Business valuation
Businessperson
Capitalism
Change management analyst
Commerce
Company
Corporate personhood
Cost overrun
E-commerce
o Electronic business
Economics
o Economic democracy
o Financial economics
o List of economics topics
Entrepreneurship
Finance
o List of finance topics
Franchising
Government ownership
Human resources
Industry categories
Innovation
Insurance
Intellectual property
Interim management
International trade
o List of international trade topics
Investment
Job creation program
Labour economics
Limited liability
List of company registers
List of largest employers
List of oldest companies
Lists of companies
Management information system
Manufacturing
o List of production topics
Marketing
o List of marketing topics
Money
Organizational studies
Profit
Real estate
o List of real estate topics
Revenue shortfall
Shareholder value
Small business
Strategic management
Strategic planning
Tax
Trade
Types of business entity
References
1. ^ American Heritage Dictionary. Archived from the original on March 31, 2019. business [:] 1.
The activity of buying and selling commodities, products, or services.
2. ^ Longman Business English Dictionary (2nd ed.). Pearson Longman.
2007. ISBN 9781405852593. OCLC 954137383.
3. ^ Longman Dictionary of Contemporary English. Archived from the original on July 9,
2019. business [:] 1 [...] the activity of making money by producing or buying and selling
goods, or providing services.
4. ^ Oxford Living Dictionaries. Archived from the original on May 1, 2019. business [:] 2 The
practice of making one's living by engaging in commerce.
5. ^ Burton, William (2007). Burton's Legal Thesaurus (4th ed.). McGraw-Hill Education.
p. 68. ISBN 9780071472623. OCLC 70864526.
6. ^ "Definition of POSSESSION". www.merriam-webster.com. Retrieved 2022-11-20.
7. ^ Holloway, S. S.; Parmigiani, A. (2014). "Friends and Profits Don't Mix: The Performance
Implications of Repeated Partnerships". Academy of Management Journal. 59 (2):
460. doi:10.5465/amj.2013.0581. S2CID 168091169.
8. ^ "Choose a business structure". Small Business Administration. Archived from the original
on 2020-10-30. Retrieved 2021-05-13.
9. ^ Gleeson, Patrick. "Definition of a Franchise Business". Small Business -
Chron.com. Archived from the original on 2016-11-26. Retrieved 2016-11-25.
10. ^ Welsh, Dianne H. B.; Desplaces, David E.; Davis, fAmy E. (2011). "A Comparison of Retail
Franchises, Independent Businesses, and Purchased Existing Independent Business
Startups: Lessons from the Kauffman Firm Survey". Journal of Marketing Channels. 18:
3. doi:10.1080/1046669X.2011.533109. S2CID 154304180.
11. ^ Black's Law and lee Dictionary. Second Pocket Edition. Bryan A. Garner, editor. West.
2001.
12. ^ Companies Act 2006
13. ^ Hargrave, Marshall. "What Public Limited Company (PLC) Means in the
U.K." Investopedia. Archived from the original on 2018-07-06. Retrieved 2018-07-06.
14. ^ Needles, Belverd E.; Powers, Marian (2013). Principles of Financial Accounting. Financial
Accounting Series (12 ed.). Cengage Learning.
15. ^ Accounting Research Bulletins No. 7 Reports of Committee on Terminology (Report).
Committee on Accounting Procedure, American Institute of Accountants. November 1940.
Archived from the original on 7 January 2014. Retrieved 31 December 2013.
16. ^ DIWAN, Jaswith. ACCOUNTING CONCEPTS & THEORIES. LONDON: MORRE. pp. 001–
002. id# 94452.
17. ^ Peggy Bishop Lane on Why Accounting Is the Language of Business, Knowledge @
Wharton High School, September 23, 2013, archived from the original on 13 June 2018,
retrieved 25 December 2013
18. ^ "Department of Accounting". Foster School of Business. Foster School of Business.
2013. Archived from the original on 19 March 2015. Retrieved 31 December 2013.
19. ^ "Commerce". Oxford English Dictionary (Online ed.). Oxford University Press. (Subscription
or participating institution membership required.)
20. ^ CFI. "What is Finance?". Archived from the original on 7 April 2020. Retrieved 7 April 2020.
21. ^ Jump up to:a b "Human Resources (HR) Meaning and Responsibilities". Investopedia.
Retrieved 2022-11-29.
22. ^ "What is HR (Human Resource Management)?". TheBalance. Retrieved 2022-11-29.
23. ^ "What is an HRIS (Human Resource Information System)?". SearchHRSoftware.
Retrieved 2022-11-29.
24. ^ Marketing definition approved in October 2007 by the American Marketing
Association: [1] Archived 2010-12-27 at the Wayback Machine.
25. ^ Kenton, Will. "Why Research and Development (R&D)
Matters". Investopedia. Archived from the original on 2018-07-10. Retrieved 2020-06-12.
26. ^ Jump up to:a b "Research and development". Encyclopedia Britannica. Archived from the
original on 2020-10-03. Retrieved 2020-06-12.
27. ^ Leigh, J. (2011). Economic Burden of Occupational Injury and Illness in the United States.
Milbank Quarterly, 89(4), 728-772. doi:10.1111/j.1468-0009.2011.00648.x
28. ^ Rowe, Kelly P. (2007). OSHA and small businesses: A winning combination: When small
businesses tap into OSHA's many resources, everyone benefits. Occupational Hazards,
69(3), 33.
29. ^ Goldberg, S. (2016). Business Technical: Wearable Devices at Work. Business Insurance,
50(2), 1.
30. ^ "How To Organize Your Marketing Department In The Digital Age". Archived from the
original on April 26, 2018. Retrieved October 15, 2018.
31. ^ "What Are the Branches of Business Management?". business.com. Retrieved 2022-11-26.
32. ^ Major Industries Archived 2008-06-11 at the Wayback Machine. People.com
33. ^ "Time required to start a business". Our World in Data. Archived from the original on 23
November 2020. Retrieved 7 March 2020.
34. ^ Poppo, Laura; Zenger, Todd (2002). "Do formal contracts and relational governance
function as substitutes or complements?". Strategic Management Journal. 23 (8): 707–
725. doi:10.1002/smj.249. ISSN 1097-0266. Archived from the original on 2021-03-08.
Retrieved 2020-09-05.
35. ^ Jump up to:a b Long, Chris P.; Sitkin, Sim B. (2018). "Control–Trust Dynamics in
Organizations: Identifying Shared Perspectives and Charting Conceptual Fault
Lines". Academy of Management Annals. 12 (2): 725–
751. doi:10.5465/annals.2016.0055. ISSN 1941-6520. S2CID 150017645. Archived from
the original on 2022-03-03. Retrieved 2020-09-05.
36. ^ "Law Code of Hammurabi". Archived from the original on 2013-10-19. Retrieved 2013-10-
18.
37. ^ Vikramaditya S. Khanna. "The Economic History of the Corporate Form in Ancient
India" (PDF). Archived from the original (PDF) on 2013-10-19.
38. ^ Jump up to:a b Hargrave, Marshall. "What Is Capital?". Investopedia. Archived from the
original on 11 August 2021. Retrieved 21 January 2021.
39. ^ "What is Ipo? Definition of Ipo, Ipo Meaning". The Economic Times. Archived from the
original on 10 August 2021. Retrieved 21 January 2021.
40. ^ "What is Intellectual Property (IP)?". www.wipo.int. Archived from the original on 22
January 2021. Retrieved 21 January 2021.
41. ^ Jump up to:a b "What is Trade Union? Definition of Trade Union, Trade Union Meaning". The
Economic Times. Archived from the original on 1 February 2021. Retrieved 21
January 2021.
42. ^ Webb, Sidney; Webb, Beatrice (1920). History of Trade Unionism. Longmans and Co.
London. ch. I
External links
Businessat Wikipedia's sister projects
Definitions from Wiktionary
Media from Commons
News from Wikinews
Quotations from Wikiquote
Texts from Wikisource
Textbooks from Wikibooks
Resources from Wikiversity
Library resources about
Business
show
Authority control
Categories:
Business
Entrepreneurship
Main topic articles
Business organizations
This page was last edited on 30 March 2023, at 18:05 (UTC).
Text is available under the Creative Commons Attribution-ShareAlike License 3.0; additional terms may
apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered
trademark of the Wikimedia Foundation, Inc., a non-profit organization.