Business: An introduction

Why do people start a small business? Some want to spend more time with family, and starting a business allows them to do that. Some find it exhausting to be outside the house all day, co-workers, meetings. Some people hate answering to a boss all the time. Some people are unmotivated by the security of a regular paycheck and prefer the challenge of the direct rewards or losses that entrepreneurs see from their efforts. Before starting we should know what exactly the business is so, Business is an occupation, profession , trade or an organization in which basic resources, called inputs, are assembled and processed to provide goods or services, called outputs, to customers. People who are engaged in business activity are called Entrepreneurs or Businessman.

 Business ownership can be of four types:

  

   

 

 

 

Types of Business Operations:

1. Service Business: A service company is a business that generates income by providing services instead of selling physical products. A good example of a service company is a public accounting firm. They earn revenues by preparing income tax returns, performing audit and asset services, and even doing bookkeeping work. It include, but not limited to:

·         Transportation

·         Hotel, Banking

·         Consultation etc.

2. Merchandising Business: A merchandising business, sometimes called merchandisers, is one of the most common types of businesses we interact with daily. It is a business that purchases finished products and resells them to consumers. Think of the last time you went shopping for food, household items, or personal supplies. Example of merchandising Business:

·         General merchandise such as grocery store and retail business

·         Apparel stores

·         Online stores such as Amazon.com, iTunes.com, Audible.com, eBay, etc.

3. Manufacturing Business: A manufacturing business is any business that uses components, parts or raw materials to make a finished good. These finished goods can be sold directly to consumers or to other manufacturing businesses that use them for making a different product.

·         Computer and electronic manufacturer

·         Car, trucks and vans manufacturer

·         Shoe and clothes manufacturer
 

 
REFERENCES:
http://www.investopedia.com/university/small-business/
http://www.accountingverse.com/accounting-basics/types-of-businesses.html