What are the types of business?

Many people tend to acquire their ownbusiness. However, they do not know what it is worth doing, what kinds of business are. It is very important, before starting to engage in entrepreneurial activity, to understand in which sphere you are ready and able to work, because the availability of initial capital does not guarantee success.

Main types of business

By the nature of entrepreneurial activity, business is divided into types. Here are some of the most common types of business:

  • Industrial. This is a type of business aimed at creating the final product or service. For example, the production of food, clothing, cars, and other public goods.
  • Commercial and commercial. This is a business aimed at selling goods and services to both the final consumer and intermediaries. This type of business is easy enough to organize, in comparison with the production it is easier. It includes various retailers' distribution networks, as well as trade exchanges.
  • Financial. This type of activity is aimed at creating and exaggerating financial assets. Banking is a good example of financial institutions.
  • Consulting or consulting. This type of business is aimed at providing consulting services to private clients and entire organizations. Often, many organizations can not afford to have a legal, financial service, and it does not make sense, but there is a need to use their services, and here come the help of consulting organizations. Examples are: audit companies, legal organizations and others.

This is not all business, in addition,it is necessary to understand that in reality all these types of business are closely interrelated and intertwined. For example, a manufacturing enterprise is also a commercial organization, as it sells the goods produced by it.

Forms of business

There are the following organizational and legal forms of business:

  • Individual form, or individualbusinessman. The form of business is simple enough in the organization and registration, however it is more suitable for business with small financial turnovers and low risks.
  • Collective. Along with all the known forms of joint-stock companies (open, closed), societies with limited or additional responsibilities, there are also cooperatives, partnerships, partnerships. Each of the collective forms of entrepreneurship has its advantages and disadvantages, and in connection with them is more suited to one type of business and less to another. The most common form is the Limited Liability Company.
  • The state. With this form of business, the fixed assets of the enterprise are state property.

Before choosing the legal form for your business, you need to carefully study the issue, and weigh all the pros and cons of various forms of business.

Now you know the types and forms of business, and beforethan to start to be engaged in own business, frankly answer to yourself a question: whether are ready to be given to business entirely and completely? Otherwise, it makes no sense to take it.

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