Business – What is It?

A business is a legal entity in which a vast number of people engage in some kind of activity. In a typical business, individuals work collectively to either create and sell goods or services. In such an enterprise, the business owner is also the individual who first hires workers for such work. Normally, a business could make a profit off the sale of goods and services that it provides. But it is important to note that in order to realize profits in any business enterprise, it is necessary to realize revenues as well. The profits and revenues are what earn the company money.

Businesses, both large and small, need human resources such as skilled and unskilled labor, as well as a variety of specialists such as accountants, lawyers, and marketing experts. Human resources are extremely important as they ensure that workers are properly compensated and that they are free from all kinds of forms of discrimination. It is necessary for businesses to provide reasonable accommodations and equal opportunities to employees and other individuals regardless of race, religion, sex, age, or disability. In addition to human resources, businesses also need a variety of specialists such as financial analysts, marketing experts, and management gurus to manage various aspects of the business.

Business enterprises are normally established by a legal entity such as a corporation, partnership, limited liability company (LLC), or a limited liability partnership (LLP). Although most businesses are initially and completely operated by one or a handful of individuals, in many cases a business may be established as a legal entity in which several or many individual shareholders own shares of stock in the business. These shareholders then decide how to divide the ownership of the business among themselves. If the number of individual shares of stock owned by the shareholders is more than the value of all the individual stocks they own, then each shareholder receives a dividend.