Business Is?

Business – When you hear the word business, surely the word “money” comes to mind. Business is indeed an activity that can be carried out by individuals or groups in order to get profit or profit. Business activities involve the production, sale, purchase of goods and services.

Business Purpose

The main purpose of running a business is to generate profits for those who run the business in accordance with the economic principles of buying and selling. There are goods or services offered, there are profits to be made from selling these goods or services.

Business Function 

In accordance with its purpose, business functions to make something that initially has no value, becomes a value. Furthermore, business functions are divided into 4, namely:

• Forms Utility:Business function in terms of production. The form utility function makes the business aim to create goods or services needed by the community. For example, textile companies produce fabrics for making clothes.
• Place Utilities: This business function is to distribute goods or services produced to the location of consumers who need these goods or services. For example, the furniture business distributes its homemade benches to schools in rural areas.
• Time Utilities: Before being sold, businesses in business are not directly marketed. There is a first consideration in terms of time. For example, when these goods or services will be more useful and profitable. If, for example, the marketing time is deemed inappropriate, it is better to store the goods first. For example, selling raincoats will be more profitable in the rainy season.
• Possessive Utility: Or it can be called a sales function by changing ownership.

Kinds of Business 

There are many kinds of business, judging from the economic sector there are various types of businesses that can be grouped as below.

1. Agriculture Business
2. Raw Material Production Business
3. Manufacturing Business
4. Construction Business
5. Transportation Business
6. Communication Business
7. Big/Small Trading Business
8. Financial Business
9. Service Business

Business Ethics 

In running a business, there are ethics of its own. Every business person must follow the following ethics in running a business

• Principled Autonomy. A business person must have the principle of autonomy. That is, he is free to determine what type of business will be run according to his vision and abilities.
• Principled Honesty. Another principle that must be owned by a business person is honesty. A business that is run honestly will certainly be smooth. Don’t cheat competitors or consumers to get an advantage
• Holding Justice. The main goal in running a business is to make a profit. However, in running a business, justice is needed both to consumers and to employees themselves.

Forms of Business Ownership 

The following are common forms of business ownership:

• Sole Proprietorship:

It is a business whose ownership is held by one person. This company is managed by one person, namely the owner of the company who has full control over the continuity of the company. The company’s capital usually comes from the property of the company owner himself and the owner is responsible for the entire company’s assets

• Partnership:

Is a form of business in which the ownership of a company is held by two or more people in accordance with an agreement that has been made for mutual benefit.

• Company:

It is a business whose company ownership is held by several people and is supervised by a board of directors

• Cooperative:

Is a business consisting of individuals or cooperative legal entities with the main objective of improving the welfare of its members and whose activities are based on the cooperative principle as well as a people’s economic movement based on the principle of kinship.

Types of Business Based on Their Activities

1. Extractive Business: Business related to mining, namely businesses that carry out mining activities that are in the bowels of the earth. Examples such as coal, petroleum, gold, copper, and others.
2. Agrarian Business: Business activities that occur in the agricultural, plantation, forestry, animal husbandry, and fishery sectors
3. Industrial Business: This type of business is engaged in manufacturing, for example, the shipbuilding industry, aircraft, paper, furniture, textiles, etc.
4. Service Business: a business activity whose products are not finished goods, but a business. For example, such as education, banking, health, tourism, etc

Business Characteristics 

The following are the characteristics or characteristics of a business in the world of economy:

• Can be done by individuals, groups, organizations, institutions, or institutions.
• Relating to various goods or services needed by humans
• Aims to seek profit, profit, or profit.
• Business activities that determine an appropriate price
• There is a possibility of experiencing losses in its implementation.