Business Type – Common Types of Business

A business is defined by Wikipedia as an organized set of associations or company, including its management and employees, conducted for profit. A business can be for profit organizations or non-profitable ones that function to meet a social need or further a social cause. There are a wide variety of businesses available in the market today. The market has become so large that the scope of business activities has been widened.

There are many types of businesses, with some common characteristics such as: intellectual property, transactional businesses, services, production, sales and distribution. Intellectual property is a term that describes the exclusive right to produce, own, sell, lease, hire, and transfer a product, idea, or know how to create a product. Intellectual property can include patents, trademarks, trade names, logos, slogans, and designs. Transactional businesses involve the buying and selling of goods and services. These businesses often involve: retailing and shopping, transportation, finance, telecommunications, and related industries.

Transactional businesses are usually run on a small scale. Most companies are not multilevel marketing businesses, as this type of business plan requires a much larger investment. On the other hand, a multilevel marketing plan requires large investments as well as long-term recruiting efforts. There are also other common types of businesses. In most instances, these common types of businesses are not closely related to any one area of business, but rather they are a way for a company to make money.