A business is defined as a legal entity or organization formally established for the purpose of conducting commercial, corporate, or industrial activities for profit. The word “business” refers to the collective efforts of people to make and sell products and services to others for profit. There are many types of business enterprises, each with its own unique characteristics and goals. Understanding what these goals are, can help you determine which type of business would best serve your needs.
Capitalists create jobs by investing in plant, equipment, labor, technology, and resources. Business managers improve a company’s performance by using their knowledge and experience to increase sales, minimize costs, expand market share, and reduce financial risk. Human resources deal with the personnel of a corporation or business by hiring, firing, training, managing, and managing those employees. Human resource workers build a company’s reputation by assisting customers, clients, and employees with problem solutions. In short, human resources essentially deal with people.
Stock markets provide an outlet for the capital and credit decisions of businesses. Stock markets are governed by governmental and corporate law that provides protection to both shareholders and creditors of business organizations. Corporations have stock exchanges where corporations may list their publicly traded stock in order to raise money for capital expenditures, dividends, and capital gains. This allows businesses to raise capital by issuing securities that represent future earnings.
Limited liability companies are corporations that protect the assets and ownership rights of the owners rather than the users or operators of the business entities. Limited liability companies are not for-profit enterprises. They operate solely for the benefit of the owners through the protection of their assets. In other words, a limited liability company provides a third party with protection from the acts of the owners. It is also commonly known as a “pass-through entity.”
Private investment funds are made possible through taxation and licensing programs sponsored by international trade commissions. International trade commissions work closely with representatives of member governments to facilitate economic growth and job creation throughout the world. These representatives meet frequently with business managers and executives to discuss investment opportunities that match national needs and preferences. The purpose of this forum is to promote the harmonious relationship among exporting nations and exporting companies. Because international trade is a multi-million dollar business, it serves as a significant economic engine for many nations. The forum’s work promotes greater access to capital, improved access to technology, improved access to skilled labor, and increased competition.
A corporation is a separate legal entity from its shareholders or owners. A business plan is an integrated document describing the business objectives of a corporation. A business plan guides management in making strategic and tactical decisions related to the successful operation of the company. The general principles of capitalism are considered in all business plans. Examples of capitalism include freedom of choice, freedom of association, competitive markets, and minimal intrusion into the affairs of other people.
In contemporary U.S. corporate law, there are two basic types of corporations: limited liability and unlimited liability companies. A limited liability corporation is a type of corporation that may be joined but never joined together with another corporation without the consent of the other corporations. Limited liability companies are also commonly known as ‘pass-through’ corporations because the profits, losses, and dividends of the corporation are kept strictly confidential. This protects the shareholder(s) from the vicissitudes of the corporation. An unlimited liability company is a corporation that has assumed the risks of its own activities. This arrangement provides the corporation with protection against lawsuits.
The differences between a corporation and a partnership are crucial in determining which system of government regulation to follow. The U.S. system allows for both limited liability and unlimited liability corporations. The lack of distinction between these two systems provides a level playing field for small businesses. The existence of a corporation shields corporations from the vagaries of unpredictable investors and government officials, providing them a safe haven to seek potential investment opportunities and a forum for conducting business.
