The word business refers to any entity or individual engaged in professional, commercial, or agricultural activities for profit. Businesses may be sole proprietors, partnership or corporation. Business types also range in size from single proprietors, individuals, and small firms to large multinational companies and international enterprises. A business is generally defined as a company which engages in buying and selling goods and services and other related financial transactions for earning a profit.
There are various types of businesses. Some of them are: Real Estate agents; Dentists; Plumbers; Lawyers; Dental Hygienists; Car Dealers; Football & Tennis clubs; Milk Producers; Engravers; Builders and Manufacturers; Furniture Shops; Fruit Packers and Fruit Pickers; Auto Makers and Wholesale Dairies; Home-based Businesses and Professional Services such as accountants, realtors, etc. Based on the above description, it is evident that there are many business activities involved in daily life of individuals and small businesses. To make things easier for an entrepreneur, it is important to categorize the various types of business so that he/she does not have to look for new businesses every now and then for completing their daily tasks.
In order to understand the nature of each business, it is important to study the nature of the goods or services involved in the business. An entrepreneur has to clearly define his/her objectives before proceeding to the identification of the means to realize those objectives. The objectives can be based on personal preferences such as earning more money, being more popular, having a prestigious brand name, etc. Other objectives can relate to achieving economic objectives such as making a certain percentage of profit, purchasing equipment, using particular tools, etc. Economic objectives are usually linked with production and sales of the type of goods or services sold, although some business activities may include using the assets and supplies of the company as well.