In business, the word “enterprise” means the bringing together of different people to attain a common purpose. A business is characterized as an enterprise or organized entity, typically engaged in commercial, agricultural, or other productive activities. Business enterprises may be sole proprietorships, partnership enterprises, limited liability partnerships, or corporations. Business enterprises can be for-profit enterprises or not-for-profit organizations that operate for a specific social cause or further a socially meaningful purpose.
All types of businesses may have different names, but they all operate under similar guidelines. The main purpose of most businesses is profit generation. Profits are realized from sales of products and services or the provision of some service provided by the business. Businesses also accumulate other forms of capital such as loans from banks or other lenders.
Profit-oriented businesses are those that seek to increase their profits through increased production of a product or service, or by increasing the amount of revenue gained per sale. Businesses that operate on a profit-first approach earn the largest profits. The main article that presents the characteristics of profit-oriented businesses states, “A business focused primarily on earning a profit must use its profits effectively to reinvest in growing its operation and sales.” This is because profits are the source of any income that a business receives. The main article further states, “For a business to receive the maximum amount of profit from its investment [into goods and services]… it must spend the profits on increasing production.”
Strategic management is one of the techniques used to increase profits in a business. Strategic management refers to the development of a plan or program to ensure the long-term sustainability and growth of a business. Strategic management is often used in nonprofitable businesses such as franchises. The main article that presents the characteristics of strategic management states, “A franchise, by nature, is a business with limited opportunity for expansion.” By implementing a comprehensive strategic management plan within a franchise framework, owners can ensure the long-term success of their franchise.
One of the main articles that present the characteristics of a trade union is “Although a trade union is a powerful lobby, it has an interest in promoting economic conditions that will benefit workers at the bargaining table rather than benefiting business owners.” A primary objective of a trade union is to protect its members’ economic interests. The main article that presents the characteristics of a trade union also states, “A successful trade union ensures the fair treatment of all employees through a strong workplace culture and strong wages and benefits.” In addition to these primary objectives, a trade union also works towards affordable healthcare benefits and the achievement of better working conditions.
Intellectual property laws affect businesses throughout the world. One of the primary characteristics of businesses is that they produce, own, and/or manage intellectual property such as trademarks, designs, and patents. This article provides an in-depth analysis of the importance of intellectual property to all businesses.
Human resources play a critical role in businesses. Human resources refer to individuals and/or teams within a business that facilitates the recruitment and motivation of people for optimal performance. Human resource professionals help businesses achieve maximum productivity by ensuring that talent is developed and that businesses achieve maximum output with the smallest amount of effort and resources. The main article that presents the characteristics of a human resource professional discusses the development of personal values, leadership styles, and interaction strategies that are essential to motivating and developing the best workers. Furthermore, human resources assist businesses that deal with recruitment and hire individuals that are the best for the position.
Taxation is an often overlooked component of business operations. Many business owners and managers are not aware of the differences between a partnership and a corporation. A partnership is considered an entity separate from its owners, but one that is still held by them in a general capacity. On the other hand, a corporation is considered a legal entity separate from its owners that can issue shares of stock and issue dividends on such stock. There are differences between partnerships and corporations that are significant to business owners. When an owner or manager of a company realizes that one of their business partners has abused their trust or fiduciary responsibilities, then it is possible to be subjected to tax fraud and personal injury lawsuits.