BUSINESS

                     BUSINESS

THE TERM BUSINESS REFERS TO AN ORGANISATION OR ENTERPRISING ENTITY ENGAGED IN COMMERCIAL, INDUSTRIAL OR PROFESSIONAL ACTIVITIES. THE PURPOSE OF A BUSINESS IS TO ORGANISE SOME SORT OF ECONOMIC PRODUCTION OF GOODS AND SERVICES. BUSINESSES CAN BE FORPROFIT ENTITIES.

TYPES OF A BUSINESS:

• SOLE PROPRIETORSHIP: THIS BUSINESS OWNED AND OPERATED BY A SINGLE PERSON. THERE IS NO LEGAL SEPARATION BETWEEN THE BUSINESS AND OWNER, WHICH MEANS THE TAX AND LEGAL LIABILITIES OF THE BUSINESSARE THE RESPONSIBILITY OF THE OWNER.
• PARTNERSHIP: A PARTNERSHIP IS A BUSINESS RELATIONSHIP BETWEEN TWO OR MORE PEOPLE WHO TOGETHER CONDUCT BUSINESS. EACH PARTNER CONTRIBUTES RESOURCES AND MONEY TO THE BUSINESSAND SHARES THE PROFIT AND LOSSES IN THE BUSINESS.
• CORPORATION: A CORPORATION IS A BUSINESS IN WHICH A GROUP OF PEOPLE ACTS AS A SINGLE ENTITY. OWNERS ARE COMMONLY REFERED TO AS SHAREHOLDERS WHO EXCHANGE CONSIDERATION FOR THE CORPORATIONS COMMON STOCK.