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What is Business ?

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The term business comes from the Latin negotium, a word formed by NEC and otium ( “what is not leisure” ). It is about occupation, work, or work that is done for profit.

The business is an operation of a certain complexity, related to the processes of production, distribution, and sale of services and goods, to satisfy the different needs of the buyers and benefit, in turn, the sellers.
Business
In modernity, the management of these productive functions is in charge of entrepreneurs and individual owners, who in turn are responsible for organizing and directing industries, seeking to obtain an economic benefit.

Since the era of economic flourishing with the Industrial Revolution began, the old ways of doing business underwent certain modifications, giving rise to the birth of the methods of business organization that is known today. Thanks to this, various branches of the industry evolved and began to work more efficiently.

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 try to close several important businesses.”

In some Latin American countries, business is also the place in which it is traded, although the correct way to refer to this concept is through the term store.

The trade, moreover, is established negotiation when buying or selling goods. It should be noted that trade can be used as a synonym for business when it refers to a physical location, to a commercial store.

The business world implies, in its broadest sense, several related notions. When business activity develops formally and with a certain volume, companies are usually created. A company is a socio-economic unit, composed of human, technical, and material elements, whose objective is to obtain profits through participation in the market of goods and services.

Below are three different types of business or companies:

  • Individual property:

    this organizational modality establishes that the owner is the only person who takes responsibility for the business, as well as the results obtained, whether successes or failures. The property individually has the opportunity to exercise any activity unless the legislature expresses the opposite effect.

    Although it has several advantages, this model is not convenient for those who want to set up a large company; the main reason is that a bad business can result in a millionaire loss, and in this case, it should be faced by a single individual. On the other hand, this form of ownership is the most adopted by farmers.

  • Partnership:

    it is a business association formed by a minimum of two people who accept the combination of their financial assets, assets, capabilities and their labor. To start up a company, it is necessary to sign a partnership contract, in which it is possible to specify the company’s policy, the percentage of the benefits that correspond to each member, and the duration of the link, among other clauses.

  • Corporation:

    was created as a more powerful alternative to individual property and society. In each country, there are a series of mandatory requirements that must be met by anyone wishing to create a corporation; once these demands of the State have been crossed, it is possible to dictate the statutes.

It is said that a business that operates in a free market economy will obtain benefits whenever it is useful for the community in which it carries out its activities.           This is due to the responsibility that exists on the part of the company towards the consumer, which represents a fundamental principle.