about Production: Businesses produce goods and services Businesses sell goods and services to consumers

 It can be a profit-making organization or a non-profit organization.

How businesses work

Production: Businesses produce goods and services.
  • Sale: Businesses sell goods and services to consumers.
  • Profit: Businesses aim to earn profits from the sale of their goods and services.
  • Employment: Businesses create jobs and support the economy.
Types of businesses
  • Sole proprietorship: A business owned by one person
  • Partnership: A business owned by two or more people.
  • Corporation: A business that creates a separate legal entity from its owners.
  • Limited liability company (LLC): A business that combines the features of a corporation and a partnership. 

  • What Is a Business?

    The term business refers to an organization or enterprising entity engaged in commercial, industrial, or professional activities. The purpose of a business is to organize some sort of economic production of goods or services. Businesses can be for-profit entities or organizations fulfilling a charitable mission or furthering a social cause. Businesses range in scale and scope from sole proprietorships to large, international corporations.

    The term business also refers to the efforts and activities undertaken by individuals to produce and sell goods and services for profit.



  • Key Takeaways

    • A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities.
    • Businesses can be for-profit entities or non-profit organizations.
    • Business types range from limited liability companies to sole proprietorships, corporations, and partnerships.
    • Some businesses run as small operations in a single industry while others are large operations that spread across many industries around the world.
    • Apple and Walmart are two examples of well-known, successful businesses.

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