UNDERSTANDING BUSINESS Research

Different definitions and descriptions of business exist. All of them, however, imply the idea through which people engage in an activity whose primary goal is to make a profit. The concept of profit here clarifies the issue and concept of business. Any activity therefore tailored at generating profit to the individual is a business. Profits are the returns from the action. This cost of production includes the initial amount that the subject engage in the business used in acquiring the products they sold to earn the revenue. Once this is removed, the remaining amount is known as profit. Profit comes in when the cost of production is lower than the revenue received. This is not always the case. In some business operations, losses are incurred when the cost of production and business operations are higher than the returns received.

Another important consideration for the business which can fall within the business stakeholders and the general business environment is the community it is set in. A business ought to cater for the community it is set in to avoid the case of pollution of any nature and support the growth of the community (Thorne, Ferrell and Ferrell). The community business is set in provides the market for its products and the labor it needs. In this sense, the business has to ensure that the sustainability of that environment is enhanced and that it does not result in the suffering of the people. By doing so, the business can engage in environmental protection activities, philanthropic work and employment opportunities aimed at the community (Lawrence and Weber).

All these factors have an impact on the success or failure of the business (Worthington and Britton). Looking at the government regulations, for instance, policies that limit the usage of a product such as plastic, can impact negatively on the success of the business that produces or sells plastics. In such cases, the company would have to adapt to the market and offer alternatives or suffer loses in case it has a large stock of plastics. Basic forms of business ownership The type of business ownership determines the type of business and the potential of that business in the market. Common business ownership types include Sole Proprietorship, Partnership, Corporation, Limited Liability Company, and Cooperative (Nickels, McHugh and McHugh). Business and society: Stakeholders, ethics, public policy.