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Discuss The Extent To Which All Businesses And All Business Activity Is The Same

1119 words - 5 pages

A business is an activity performed for profit. It is an organization that brings together resources to produce goods or services that satisfy people's wants and needs. All businesses are the same in that sense. Businesses differ in their objectives, types, size and doings.All businesses have common factors, they all provide products in the form of goods or services, for example, books, food, fitness training, utilities etc. All businesses are made by people. People are company's greatest quality. It does not matter what product the company produces. A company is only as good as the people it keeps. All businesses success depends on how well they can sell the product together with satisfying ...view middle of the document...

The social, ethical and environmental considerations differ from company to company. Some companies promote organic and vegetarian foods, some make their products from recycled materials, some do not use products which have been animal-tested and some do not care about these issues. The nature of a business, its size, location and management model will all together determine the route to which the company wishes to follow, thus the objectives it will set. Objectivity of a firm cannot be made in black and white, there is simply too much about the organisation.From a legal point of view, there are four types of businesses- sole traders, partnerships, private limited companies, public limited companies, co-operatives, franchises, joint ventures and holding companies. A sole trader is fully responsible for all debts and obligations related to his or her business. A creditor with a claim against a sole trader has a right against all of his or her assets, whether business or personal. This is known as unlimited liability. A partnership is an agreement in which two or more persons combine their resources in a business. Partners share in the profits according to the terms of their agreement. A private limited company can be formed by one or more people. A private corporation cannot sell shares or securities to the general public. A public limited company is one that issues securities for public distribution. The shares of company are available for anyone at the Stock Exchange. The director of the company is elected at the Annual General Meeting. A co-operative is a corporation organized and controlled by its members, who pool resources to provide themselves and their clients with goods, services, or other benefits. A co-operative business structure provides: one member one vote, open and voluntary membership and support dividends. A franchise is not strictly a form of legal structure for a business but it is a legal contract between two firms. This contract allows one of them (franchisee) to use the name, logo and marketing methods of the other (franchiser). Joint ventures are when two companies work together on a particular project. Examples of such companies are Sony Ericsson and Concorde. Joint venture idea may...

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