What is

Business - Explanation and definition of business

What is business

A business is defined as the set of tangible and intangible elements that collectively develop a series of activities in order to achieve the same target.

Various organizations, schools and many renowned scholars have developed different definitions of business over time, in order to understand this broad concept we explain word for word the definition given above.

The tangible elements are all the resources available that has a business which can visualize and touch, ie are the physical and material resources, tangible as the people who compose and work in the business, the machines used to manufacture a product, the reserved space for the storage of materials, the set of computers used for administration and management of the business, etc...

On the other hand the intangibles are those resources available that has a business which can not see or touch, ie are immaterial, intangible resources such as knowledge or know-how that has and takes the company over the years, motivation and passion for the work done by the staff, relations with employees, suppliers and customers, brand, reputation and recognition of the business...

As all material or tangible resources available in a businessjoin with intangible resources in order to work global and coordinated way in order to achieve the same target.

The objectives or targets of the business are the reason that have been created, most of them have a profit motive through which satisfy a range of needs and desires of their customers in exchange for certain monetary resources or money. There are other business whose targets are to improve or provide services that enhance the social welfare of a group or collective of persons, companies and NGOs, social services by public organism, public research centers... are examples among others. Finally there are others whose target is to present the brand or company products, such political foundations, cultural associations of a city or region, etc ...

As we have said most business have a profit-making where the owners or shareholders invest part of their monetary resources for the purpose of obtain returns over a period of time as a result of the activity of the company.

The process of starting a business requires a number of documents and guarantees established by the mercantile laws of each country, usually in most countries and as a result of the business activity itself of the benefits are intended to pay taxes, being therefore necessary to take a global accounting where all currency movements is recorded.

Classification of business.

There are many ways to classify the wide range of existing businesses today, among them can be classified by:

Technology Degree:

  • Leader - Are those that base their activity on the development of new products and services based on revolutionary technological innovations developed in centers of internal or external to the company research. Apple, Google and Nasa are clear examples of leading technologies business.

  • Follower - Are those that launch similar products to leading companies in a short space of time, based on the technologies or ideas developed by them.

  • Obsolete - Are those whose products are based on obsolete technologies known and engaged in the manufacture of standard products and low technological value.

Origin of money or capital:

  • Public - Public business are called those whose money capital comes from public coffers through taxes collected by citizens, usually taking delivery targets and improving the social welfare of citizens.

  • Private - Private business are called those whose money capital comes from a person or group of people as a rule aim is to recover the investment and get some returns through service delivery or manufacture of products to the satisfaction of desires and needs of its customers.

  • Mixed - Are those whose capital comes from both public funds and private funds.

Type activity developed:

  • Industrial - Encompasses all business whose activity is focused on the extraction of raw materials and natural resources as well as those engaged in the manufacture of semi-finished or final products.

  • Commercial - Are all those engaged in the distribution of products and services manufactured or created by other business such as wholesalers, department stores, distributors ...

  • Services - Are those whose products are also known as intangibles or services, maintenance, cleaning, transport, health and education business are examples among others.

Size and billing:

  • Microenterprise - Are those employing fewer than 10 workers and whose turnover is less than or equal to 2 million of €.

  • Small Business - Are those employing fewer than 50 workers and their turnover is less than 10 million of €.

  • Medium enterprise - Are those employing fewer than or equal to 250 employees and its turnover is less than 50 million of €.

  • Big company - Are those that employ a higher number to 250 employees with a turnover exceeding 50 million of €.

Now that you know the business concept, did you know that the oldest business in the world still in operation today is the Japanese Hoshi Roykan?, founded in 718 is undoubtedly the hotel business and the longest history which it has survived hundreds of economic crisis.

What is business