A commercial operation can be called a business.
The term business comes from the Latin negotium , a word formed by nec and otium ( "what is not leisure" ). This is the occupation , work or task that is carried out for profit .
The business is an operation of certain complexity, related to the processes of production, distribution and sale of services and goods , with the objective of satisfying the different needs of buyers and benefiting, in turn, sellers. In modernity, the administration of these productive functions is in charge of entrepreneurs and individual owners, who in turn are responsible for organizing and directing the industries, seeking to obtain an economic benefit.
Since the era of economic flourishing began with the Industrial Revolution, the ancient ways of doing business underwent certain modifications, giving rise to the birth of the methods of business organization that are known today. Thanks to this, various branches of the industry evolved and began to work more efficiently.
What is a business
That which is the subject of a lucrative occupation, the action and effect of negotiating and the interest that is achieved in what is traded are other uses of the concept: "I have to talk about business with you," "My husband will travel to the United States to discuss business." to close several important businesses .
In some Latin American countries, business is also the place where business is negotiated or traded, although the most correct way to refer to this concept is through the term store .
Commerce , on the other hand, is the negotiation that is established when buying or selling merchandise. It should be noted that commerce can be used as a synonym for business when it refers to a physical place, a commercial store.
In some countries, business is synonymous with a store or premises.
The companies
The business world involves, in its broadest sense, several related notions. When business activity is carried out formally and with a certain volume, companies are usually created. A company is an economic-social unit, composed of human, technical and material elements, whose objective is to obtain profits through participation in the market of goods and services.
Three different types of companies are defined below:
* individual ownership : this organizational modality establishes that the owner is the only person who assumes responsibility for the business, as well as the results it obtains, whether successes or failures. Individual property has the possibility of carrying out any type of activity, unless the current legislature expresses otherwise. Although it has a number of advantages, this model is not suitable for those who want to set up a large company; The main reason is that a bad deal can result in a million-dollar loss, and in this case a single individual should face it. On the other hand, this form of ownership is the most adopted by farmers ;
* company : this is a business association formed by a minimum of two people who accept the combination of their financial assets, goods, capabilities and their workforce. To start a partnership, it is necessary to sign a partnership contract , in which it is possible to specify the company policy, the percentage of the profits that corresponds to each member, and the duration of the relationship, among other clauses;
* corporation : it was created as a more powerful alternative to individual property and partnership. In each country, there are a series of mandatory requirements that must be met by anyone wishing to create a corporation; Once these State requirements have been met, it is possible to dictate the statutes.
Business in a free market economy
It is said that a business that operates in a free market economy will make profits as long as it is useful to the community in which it operates.
This is due to the responsibility that exists on the part of the company towards the consumer, which represents a fundamental principle.