Businesses are professional organizations that provide goods and services to consumers, as efficiently and effectively as possible. Due to the Competitive nature of businesses in capitalist nations, business enterprises must continuously seek to improve the quality and quantity of their services in order to maintain a strong customer base. The main purpose of privately owned businesses is to increase the wealth of the owner, while nonprofit and state owned businesses have a different set of goals and criteria.
The successful operation of any business requires creativity, dedication, knowledge, and perseverance. Business enterprises will also require a substantial amount of start up capital, as well as operational capital, in order to facilitate the day-to-day operations of the business until a substantial profit is made.
There are different types of businesses, with each having it’s ownl unique characteristics. A sole proprietorship is a business that is usually owned by one person, and is a for profit enterprise. The owner of this business has sole liability for any debts accumulated by the business, and for its success or failure. Partnerships are similar to sole proprietorships, but are owned by more than one individual. The individuals involved in a partnership share equal liability for any debts that are accumulated by the business. Corporations are businesses that are owned by shareholders, and are usually managed by a board of directors. Cooperatives are businesses that are composed of members, who have the power to contribute to the decision-making process, and assist in increasing the businesses profitability.