Business refers to any form of enterprise in which a person engages in business or where things are done in order to earn income. It is an essential term in any society and refers to any institution that employs some number of people. The society consists of all bodies of people who share in the economic activity. It includes both corporations and individuals.
A business therefore is broadly defined as any firm, association or unit that engages in certain productive or economic activities for earning profit. A business can be run by anyone or any body of people and at times even cooperative or mutual bodies are formed for the purpose of undertaking such businesses. There is a main article in this article that business means “the dealings of persons in relation to the economic fields”. This article often uses the word profit, but profit in this context is considered a term of art and is not tied to any singular activity. Profit in this article refers to a sum of money arising out of the conduct of businesses or the supply to the consumers of some service or commodity.
In addition, the main article also discusses the term profit in the context of strategic management. Strategic management is an important branch of commercial law and includes the planning, organizing, and carrying out of particular businesses. Therefore, any good strategy must include the concepts of finance, human resources, marketing, and production.
The main article continues with some important examples that can illustrate the concepts of business and commercial law. These include the example of corporations where everyone involved owns a part of the company. Another common example is the partnership, which is a company made up of a number of individuals or organizations. Finally, there is the main article itself, which refers to the main reason why businesses exist in the first place- to make profit. Therefore, if a business does not make any profit, then the owners of the business can be sued for malpractice.
The main article goes on to distinguish between two types of profit: the wages of workers and profits derived by owners. Workers are the people who actually perform the work and owners are those who acquire intellectual property or resources in order to use them in a way that earns profits. Intellectual property refers to anything that a person owns that can be used in a business transaction. Examples of such assets are trademarks, patents, and copyrights.
The article goes on to distinguish between what can be considered a valid reason for creating a corporation and a reason for selling corporation. A valid reason for creating a corporation involves two elements- the corporation must have been legally created in a form that meets the requirements of the United States corporation laws, and it must have the characteristics that are required for it to operate as a legally binding entity in legal transactions. On the other hand, selling a corporation is the process in which one sells a portion of the company to another entity that is not a legally existing corporation. In order to determine if an entity is an “asset,” a court of law will consider whether the sale will direct its owners to continue to receive profits from the sale of their assets. Therefore, in order for an entity to become a valid reason for selling corporation, there must be a direct connection between the sale and the owners’ ability to receive profits in the future.