BUSINESS TIME WITH @bekky SERIES 1 : BUSINESS BASICS; WHAT DO YOU KNOW ABOUT BUSINESS? THE FORMS? AND THE CLASSIFICATION?

KEYWORDS

• entity : a person, partneship, organization or buainess that has a separate and legal existence that can be identified.
• liability : a financial debt or obligations which arised in the course of operations in a business
• partnership : a relationship or association between two or more people to work together as one and share ownership of something
• share : a unit of a company's ownership representing equal proportion of a company Capital
• shareholders : an individual that have one or more shares in a company

Most times when people hear the word BUSINESS , most people think it is when two people come together to sell to and buy from one another; permit me to corect that notion.

A business can be defined as an entity (be it organizational or legal) which is made up of people who associate, be it naturally, legal or even both means, with a mutual understanding in order to bring their resources or skills to
produce goods or provides services for human consumption
either with the aim of making profit or not.

A business could be profit oriented or non-profit oriented but the most common one is the profit oriented.

Take note of the statement of the sentence:

produce goods or provides services

Before you can say you are into or venturing into any form of business,

The first thing to think about should be on how to produce or provide goods or service respectively or if possible both

The next question should be for who?

The who could be the general public or some selected set or group of people who can consume your goods.

Business minded people believe, whatever your are willing to produce will be what will be beneficial to human when used; so you are producing or providing that good or service respectively to satisfy certain aspect of human unlimited wants.

FORMS OF BUSINESS
From the given definition, busines is an association of people; but know that a business could be owned by an individual or more. On this note, I will be listing the four (4) major forms of business that we have:

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Companies

There are others (note: they all still can be placed under any of the above named forms) namely:

• Corperative (Co-op)

• Statutory

• Franchise

CHARACTERISTICS OF THE FOUR MAJOR FORMS OF BUSINESS

• Sole Proprietorship
  • Owned and controlled by a single person
  • capital can be sourced through personal savings, bank loans, family contribution and others other than selling of shares
  • all assets(tangible and intangible) belongs to the owner
  • owner has unlimited liability for all obligations
  • sole decision making

• Patnership
  • it could be of 3 types; general partnershi, limited partnership, and limited liability partnership
  • owned and controlled by partners which comprises of two or more people
  • joint decision making
  • each partner has unlimited liabilty

Source

• Corporation
  • ownership is by Shareholders
  • shareholders have limited liability
  • business legal personality is separated from that of the owners
  • it has Shareholders not members
  • decisions making are done by Shareholders

• Limited Liability Company
  • set up by 5 or more people
  • it can be limited by shares or guaranty
  • could be public or private
  • have the right to sell their shares to public

BUSINESS CLASSIFICATION
Now that you know the four (4) major forms of business that we have, know that they can be classified into just two(2) broad classes; they are

• COMMERCE and

• INDUSTRY

Source

• Commerce : This class of business helps to facilitate the industrial class of business. All business under this class of business helpa to make the activities in the other class easy.

In this category, we have transportation, insurance, warehousing, banking and advertising. They team up to form the service providing aspect of business and they are called the facilitators .

• Industry : Any company into the mining, extraction of raw materials, companies that use the raw materials for the manufacturing and construction of new products and those that assemble the finished good to become one are classed under the industry business.

It means they are into or deals mainly with the provision/ creation of goods for human consumption.
They include agriculture, mining, manufacturing, construction and assembling companies.

Source

Now you know the basics of business , but know that there are differences between employment and business .

NOTE:

Employment is a situation whwre a person works for or serves another, Employer, with an agreed terms and amount of payment

while on the other hand,

Business is working for oneself (self employment) with aim of making profit or not making profit, but making life comfortable for other individual

This will take us to the series 2 of
BUSINESS TIME WITH @bekky on
ENTREPRENEURSHIP.

THANKS FOR READING THROUGH...I hope you learnt something from it...I remain that humble Naija Lady @bekky

---

I AM SURE YOU ARE SET TO GO FOR THAT GREAT EVENT THAT IS JUST 1, 2, 3DAYS TO GO

STEEMIT IN NIGERIA (S.I.N)

---