A business is a corporation, association, firm, or any other form of organization that provides goods or services to the public in exchange for payment. The term also includes individuals and organizations that engage in non-profit activities.
Some examples of businesses are nonprofits, agricultural organizations, joint stock companies, and manufacturing firms. Businesses can be single-line or multi-line organizations. They may range from small enterprises to large corporations with hundreds of employees.
Business activities include production, distribution, sales, and finance. It is an activity that aims to provide wealth, profit, or other utility. Profit is the reward for hard work.
The profit motive is the most important motivator for business people. It is the main objective of every business. However, not all businesses pursue this purpose. For example, many businesses engage in exploitation of workers and ignore social responsibility.
Another downside of businesses is the element of risk. Investments are subject to changing government policies and laws. This uncertainty makes them vulnerable to unanticipated returns and losses.
Businesses are also subject to the Keynes trade cycle, which consists of periods of falling prices, high unemployment rates, and periods of good trade. In addition, businesses are exposed to risks of natural calamities, such as floods.
A successful business enterprise must be able to achieve clear objectives in different functional areas. These objectives should be defined at both the corporate and functional levels.
Successful business enterprises must earn profits and provide quality goods and services to their customers. Quality goods and services will also lead to higher profits.