ENGLISH TASK

“WHAT IS BUSINESS”

COLLEGE TEACHER
Olivia Yolanda, S.E., M.M.

ARRANGED BY
Nadya Putri Camelie (193402415416)

UNIVERSITAS NASIONAL
JULI 2020
 CHAPTER 1
OPENING
1.1 Background
What is business? Business is an activity that is carried out continuously from raw
material procurement, production, marketing and distribution to consumers in the form of goods
and services with the aim of obtaining advantages and benefits. The existence of a business
cannot be separated from the existence of two elements namely, subject and object. The business
subject is the business person himself includes the government, company owners, shareholders,
managers, employees, producers, suppliers, distributors, communities, and consumers. While the
object business are goods and services that are the object of business people. other than that in
business, several important things are needed for the operation of the business itself, namely
financial, managerial, and ethical.
In the world of business ethics has an important role for the organization's journey
business. Business is an activity that requires deep moral responsibility its implementation, so
that ethics in business practices have a relationship tightly. Business without ethics will make
business practices uncontrollable it is detrimental to the main purpose of the business itself.
Ethics are carried out accordingly with the demands of the business world. Ethics demands that
someone do a certain moral teaching because he is aware that it is useful and good for himself
and others.
Currently the service industry is a very large and economic sector growing rapidly. One
of them is transportation services. Transportation is a service industry that carries out public
service functions, which are the general public provides services that can help people to move
from one place to another. However, it is felt that the transportation service is not only just a
service that can help people to get to a destination. Instead, in the initial process they ordered
tickets, until the destination community also needs services that can be help them feel
comfortable and safe while traveling. There are many choices of transportation that can be
chosen by the community. However It seems that now people are starting to think quickly and
practically, to choose use transportation services that are convenient, and do not take time the old
one, but at a price that is still affordable, especially for the class economical. This causes, people
choose to use aviation services.

1.2 The Problem

1. What is business?
2. What structure of bisnis?
3. What kinds of business?

1.3 The Purpose Of Paper

 The purpose of making this paper is to fulfill English semester assignments and to find
out what business means.

CHAPTER II
DISCUSSION
1.1 What Is a Business?
A business is defined as an organization or enterprising entity engaged in commercial,
industrial, or professional activities. Businesses can be for-profit entities or they can be non-
profit organizations that operate to fulfill a charitable mission or further a social cause. The term
"business" also refers to the organized efforts and activities of individuals to produce and sell
goods and services for profit. Businesses range in scale from a sole propiertorship to an
international corporation. Several lines of theory are engaged with understanding business
administration including organizational behavior, organization theory, and strategic
management.
Generally, a business begins with a business concept (the idea) and a name. Depending
on the nature of the business, extensive market research may be necessary to determine whether
turning the idea into a business is feasible and if the business can deliver value to
consumers. The business name can be one of the most valuable assets of a firm; careful
consideration should thus be given when choosing it. Businesses operating under fictitious
names must be registered with the state.
Businesses most often form after the development of a business plan, which is a formal
document detailing a business's goals and objectives, and its strategies of how it will achieve the
goals and objectives. Business plans are almost essential when borrowing capital to begin
operations. It is also important to determine the legal structure of the business. Depending on the
type of business, it may need to secure permits, adhere to registration requirements, and obtain
licenses to legally operate. In many countries, corporations are considered to be juridical persons,
meaning that the business can own property, take on debt, and be sued in court.
1.2 Features of Business
The characteristics or features of business are discussed in the following points:
1. Exchange of goods and services
All business activities are directly or indirectly concerned with the exchange of goods or services
for money or money's worth.
2. Dealing in numerous transactions
In business, the exchange of goods and services is a regular feature. A businessman regularly
deals in a number of transactions and not just one or two transactions.
3. Profit is the main Objective
The business is carried on with the intention of earning a profit. The profit is a reward earned for
the services of a businessman.

4. Business skills for economic success

Not everyone can run a business. To be a good businessman, one needs to have good business
qualities and skills. A businessman needs experience and ability to run a business.
5. Risks and Uncertainties
Business is subject to risks and uncertainties. Some risks, such as risks of loss due to fire and
theft, can be covered with insurance. There are also uncertainties, such as loss due to changes in
demand or fall in price which cannot be insured. These must be borne by the businessman.
6. Buyer and Seller
Every business transaction has a minimum of two parties: a buyer and a seller. Business is
nothing but a contract or an agreement between the buyer and the seller.
7. Connected with production
Business activity may be connected with the production of goods or services. In this case, it is
called an industrial activity. The industry may be primary or secondary. An example of a
primary industry is farming. An example of a secondary industry is car manufacturing.
8. Marketing and Distribution of goods
Business activity may be concerned with marketing or distribution of goods, in which case it is
called a commercial activity.
9. Dealing in goods and services
Business deals in goods and services. Goods may be divided into two categories:
1. Consumer goods: Goods which are used by a final consumer are called consumer goods,
e.g., furniture, soap, paper, etc.
2. Producer goods: Goods used by producers for further production are called producer
goods, e.g., machinery, equipment, wood, etc.
Services are intangible but can be exchanged for value, like providing transport, warehousing
and insurance services, etc.

10. Satisfying human wants

The businessman desires to satisfy human wants through the conduct of business. By producing
and supplying various commodities, businessmen try to promote consumer satisfaction.
11. Social obligations
Modern business is service oriented. Modern businessmen are conscious of their social
responsibility. Today's business is service-oriented rather than profit-oriented.
1.3 Business Structures
Many businesses organize themselves around some sort of hierarchy or bureaucracy,
where positions in a company have established roles and responsibilities. The most common
structures include sole proprietorships, partnerships, corporations, and limited liability
companies (LLC), with sole proprietorships being the most prevalent. A sole proprietorship, as
its name suggests, is a business owned and operated by a single natural person. There is no legal
separation between the business and the owner; the tax and legal liabilities of the business are
thus that of the owner.
A partnership is a business relationship between two or more people who join to conduct
business. Each partner contributes resources and money to the business and shares in the profits
and losses of the business. The shared profits and losses are recorded on each partner's tax return.
A corporation is a business in which a group of people acts together as a single entity; most
commonly, owners of a corporation are shareholders who exchange consideration for the
corporation's common stock. Incorporating a business releases owners of the financial liability of
business obligations; however, a corporation has unfavorable taxation rules for the owners of the
business.
For this reason, a relatively new (first available in Wyoming in 1977 and other states in
the 1990s) business structure, a limited liability company (LLC), is available; this structure
combines the pass-through taxation benefits of a partnership with the limited-liability benefits of
a corporation. A company may describe its business by communicating the industry in which it
operates. For example, the real estate business, advertising business, or mattress production
business are industries in which a business can exist. Because the term “business” can be
interchanged with day-to-day operations as well as the overall formation of a company, the term
is often used to indicate transactions regarding an underlying product or service. For example,
ExxonMobil transacts business by providing oil.
1.4 Forms of Business Organization
 Sole Proprietorship
Sole proprietorships are the most common type of online business due to their simplicity
and how easy they are to create. A sole proprietorship is a business owned and operated by a
single person, and requires no registration. If you're operating a one-person business, you're
automatically considered a sole proprietor by the government. However, depending on your
products and location, you may need to register for local business permits with your city or state.
An important thing to note is that there isn't a legal or financial distinction between the
business and the business owner. This means that you as the business owner are accountable for
all of the profits, liabilities, and legal issues that your business may encounter—not typically an
issue as long as you pay your bills and keep your business practices honest. If you're starting an
ecommerce business by yourself, a sole proprietorship is probably the best type of business for
you. If you're starting a business with one or more partners, keep reading!
 Partnerships
Two heads are better than one, right? If you're starting your business with someone else,
a partnership may be the right choice. A partnership offers many benefits—you can pool
resources and knowledge with another, secure private funding, and more. Just keep in mind that
within a partnership responsibilities and liability are split equally among each member. However,
there are several types of partnerships (such as limited partnerships, discussed in the paragraph
below) that will allow you to define the roles, responsibilities, and liability of each member.
A partnership does require that you register your business with your state and establish
an official business name. After that, you'll be required to obtain a business license, along with
any other documentation that your state office can help you with. Beyond that, you'll also need to
register your business with the IRS for tax purposes. Although this may seem like a complicated
process, there are lots of benefits to a partnership, so if you're looking to have a co-owner, don't
be afraid to go for it—many online companies are formed using partnerships. Having someone to
help share the work of starting a new business is definitely worth the extra paperwork.
 Limited Partnership
A limited partnership, or LP, is an off-shoot version of a general partnership. While it
may not be as common, it's a great bet for businesses who are looking to raise capital from
investors who aren't interested in working the day-to-day aspects of your operations. With a
limited partnership, there are two sets of partners: The General Partner and the Limited Partner.
The general partner is usually involved in the everyday business decisions and has personal
liability for the business. On the other hand, there's also a limited partner (typically an investor)
who is not liable for debts and doesn't partake in regular business management of the company.
Just like a general partnership, if you enter an limited partnership agreement, you'll need to
register your business with the state, establish a business name, and inform the IRS of your new
business. Again, this option is the most common for those looking for investment dollars, so
keep that in mind when exploring your partnership options.
 Corporation
A corporation is a fully independent business that's made up of multiple shareholders
who are provided with stock in a the business. Most common is what's known as a "C
Corporation," which allows your business to deduct taxes much like an individual—the only
problem with this is that your profits will be taxed twice, both at the corporate level and at the
personal level. Don't let this fact deter you, however—this is extremely common, and if you
currently work for a company with multiple employees, that's likely the business structure they're
using. If you're starting off as a smaller business—particularly one that only operates online—
declaring yourself as a corporation wouldn't be appropriate. However, if you're already an
established business with several employees, listing your company as a corporation might be the
correct move. You'll need to file very specific documents with the state, followed by obtaining
the appropriate business licenses and permits.
 Limited Liability Company (LLC)
Next on our list of business types is a Limited Liability Company, better known as an
LLC. An LLC is a newer type of business that is a blend between a partnership and a
corporation. Instead of shareholders, LLC owners are referred to as members. No matter how
many members a particular LLC has, there must be a managing member who takes care of the
daily business operations. The main difference between an LLC and a corporation is that LLCs
aren't taxed as a separate business entity. Instead, all profits and losses are moved from the
business to the LLC members, who report profits and losses on a personal federal tax return. The
nice thing about pursuing an LLC is that members aren't personally liable for business decisions
or actions of the company in question, and there's far less paperwork involved in creating an
LLC as compared to a corporation. LLCs are another of the most common types of online
businesses, since they allow small groups of people to easily form a company together.
 Nonprofit Organization
A nonprofit organization is pretty self-explanatory, in that it's a business organization
that's intended to promote educational or charitable purposes. The "non-profit" aspect comes into
play in that any money earned by the company must be kept by the organization to pay for its
expense, programs, etc. Keep in mind that there are several types of nonprofits available, many
of which can receive "tax exempt" status. This process requires filing paperwork, including an
application, with the government for them to recognize you as a nonprofit organization.
Depending on the parameters of your new business, they'll be able to tell you which category you
best fall under.
  Cooperative
The last on our list is what's known a cooperative, or a business that's fully owned and
operated for the benefit of the members of the organization that use its services. In other words,
whatever is earned by the cooperative is then shared among the members themselves, and isn't
required to be paid out to any external stakeholders, etc. Unlike other types of businesses that
have shareholders, cooperatives sell shares to cooperative "members," who then have a say in the
operations and direction of the cooperative itself. The main difference in the process of
becoming a cooperative as opposed to the other types of businesses listed is that your
organization must create bylaws, have a membership application, and have a board of directors
with a charter member meeting. This is one of the least common types of online businesses,
although online cooperatives do exist, such as the outdoor goods store REI.
1.5 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: salons, repair shops, schools, banks, accounting firms, and
law firms.
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 costs.
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 overhead costs in its
production process. The manufactured goods will then be sold to customers.

1.6 Organization and Regulation

The major factors affecting how a business is organized are usually:
 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. In particular, contractual and relational governance can help
mitigate opportunism as well as support communication and information sharing.
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 libility 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:
1. General partners in a partnership (other than a limited liability partnership), plus anyone
who personally owns and operates a business without creating a separate legal entity, are
personally liable for the debts and obligations of the business.
2. Generally, corporations are required to pay tax just like "real" people. In some tax
systems, this can give rise to so-called double taxation because first the corporation pays
tax on the profit, and then when the corporation distributes its profits to its owners,
individuals have to include dividends in their income when they complete their personal
tax returns, at which point a second layer of income tax is imposed.
3. In most countries, there are laws which treat small corporations differently from large
ones. They may be exempt from certain legal filing requirements or labor laws, have
simplified procedures in specialized areas, and have simplified, advantageous, or slightly
different tax treatment.
 4. "Going public" through a process known as an initial public offering (IPO) means that
part of the business will be owned by members of the public. This requires the
organization as a distinct entity, to disclose information to the public, and adhering to a
tighter set of laws and procedures. Most public entities are corporations that have sold
shares, but increasingly there are also public LLC’s that sell units (sometimes also called
shares), and other more exotic entities as well, such as, for example, real estate
investment truts in the US, and unit truts in the UK. A general partnership cannot "go
public".

CHAPTER III
CLOSING
1.1 Conclusion
Business is an organization that sells goods or services to consumers or other businesses,
for a profit. From the above analysis, the authors conclude that running a business is not easy.
We must first understand what the components are in the business. So that we don't experience
losses or go out of business from the business we are running.
1.2 Suggestions and Criticisms
The suggestions that the author gives to readers include:
 Readers can better understand and interpret the importance of studying business
 For the younger generation, especially students, start doing business from the heart and
diligently
 In doing or running a business for beginners, we can ask business people or entrepreneurs
who are already successful in the business world.
Thus the paper about business that the author can convey, the author hopes that the
reader can provide the author with positive criticism and input for the improvement of this paper.
Hopefully this paper will be of benefit to all of us