In capitalist economies, where most businesses are owned by private parties, formed for the sake of a profit and improve the prosperity of their owners. The owner or operator of a company get rewarded according to the time, effort, or capital they provide. But not all pursue this advantage, for example, where the co-operative business aims to improve the welfare of all its members or government institutions aimed at improving the welfare of the people. This model contrasts with the socialistic system, in which major companies are mostly owned by the government, the public, or unions.
In terms of etymology, business means a situation in which a person or group of people busy doing the work make a profit. The word "business" itself has three uses, depending on the use and scope, usage can refer to business entities, namely the unity of the juridical (legal), technical, and economic aims for profit or gain. Wider use can refer to a particular market sector, such as "corporate media." Using the most widely linked to all activities conducted by community providers of goods and services. Nevertheless, the definition of "business" right is still a matter of debate to this day.
There are several forms of business in accordance with the type of capital employed and their management, namely:
Proprietorship,
Ownership of individual companies is held by one person. The owner of a proprietorship has unlimited liability for property or corporate wealth. That is, if a loss, pemiliklah that must bear the entire loss.
Guild,
Guild is a system of ownership in which two or more people work together operate the company to make a profit. Just like proprietorship, each partner (member of a partnership) has unlimited liability on company property. Guild can be grouped into a limited partnership and partnership firms.
Company,
Ownership of the Company which are held by some people and supervised by a board of directors. Each owner has a limited responsibility over the assets of the company.
cooperative,
consisting of the persons or legal entities with the bases activities based on the principle of cooperation as well as economic movement based on the principle of kinship. His efforts aimed at the welfare of its members. The main characteristic that differentiates it from other business entities are members of the cooperative have a dual identity. Dual identity means a cooperative member is the owner and user of the service cooperatives.
Business consists of various types, which are grouped in a different way. One of the many ways it can be used is to group them based on activity in generating profits.
Classification in question, namely:
1.Manufacturing is producing products derived from raw materials or several components, then sold for profit. Examples are manufacturing companies that produce physical goods such as cars or pipes.
2.Services are produces intangible goods, and earn a profit by charging for services they provide. Examples of service businesses is a consultant and psychologist.
3.Retailers and distributors are those which act as intermediaries between producers and consumers of goods. Most stores and consumer-oriented companies are distributors or retailers. As a number of franchise stores, Indomaret or Alfamaret which both have in common is the goal of profit-oriented.
4.Agricultural and mining goods which produce raw goods, such as plants or minerals.
5.Financial services benefit from the investment and management of corporate and individual capital.
For example, the issuer company as a futures broker or a financial services provider in capital markets.
6.Information services generate profits primarily from the resale of intellectual property in the form of books or literature.
7.Utilities which operate services to the public, such as electricity and water, are usually funded by the government.
8.Real estate generate profits by selling, leasing, and property development, houses, and buildings.
9.Transportation services, gain advantage by delivering goods or individual from a location to another location.
