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Business: Definition, Purpose, Form, Function, Characteristics, Types and Examples

This definition of business is an activity or activity carried out by individuals or organizations that cover production activities, buying, selling,

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Definition of Business

This definition of business is an activity or activity carried out by individuals or organizations that cover production activities, buying, selling, or also exchanging goods / services, with the aim of being able to get profit or profit.

The word for "business" comes from English, namely "business" which means to be busy. In a simple context, what is meant by busyness is doing an activity / activity or also a job that gives someone an advantage.

The use of the word "business" can or can be divided into three, depending on the scope. The word business can or can refer to:

  1. Business Entities, namely juridical, technical, and economic units of profit.
  2. Certain Market Sectors, for example the Capital market.
  3. All activities in the goods and services produced community.

Understanding Business According to Experts

In order to better understand what business means, we can refer to some of the opinions of experts. Below is the definition of business, according to experts, including the following:

Business According to Jeff Madura


The definition of this business is a company that provides products or services (services) that are desired by customers.

Business According to Brown and Pretello


The meaning of this business is an institution that produces goods and services needed by the community and also all things that include all business fields carried out by the government or the private sector, regardless of whether it is for profit or not.

Business According to Hughes and Kapoor


The definition of this business is an activity or individual activity that is organized in producing and selling goods and services so that they can get profits in meeting the needs of society.

Business According to LR Dicksee


The definition of this business is a form of activity whose main purpose is to be able to obtain profits for those who are trying or who have an interest in the occurrence of these activities or activities.

Business Characteristics


In the world of economy, this business has the following characteristics:

  1. Social and economic institutions or institutions and / or organizations.
  2. Dealing with all kinds of goods and services that meet human needs.
  3. Looking for profit, profit (profit).
  4. Determine the appropriate price.
  5. There will be a possibility of experiencing a loss.
There are three important things in business, including them.
Produce goods and services,
Looking for profit, and
Maximizing consumer needs.

Basic Forms of Business Ownership

Below is the basic basis of business ownership, including the following:

Individual Company


An individual company is a business whose ownership is held by one person. This individual business owner has a liability that is not limited to the company's assets.

Guild Company


This alliance is a form of business in which two or more people work together to operate a company for a profit. Just like individual companies, each partner (partnership) has liabilities that are not limited to company assets. This guild can or can be grouped into partnerships, as well as limited companies.

Company


This company is a business whose ownership is held by several people and is also overseen by the board of directors. Each of these owners has limited company assets.

Cooperative


This cooperative is a business that consists of persons or legal entities based on cooperative activities or activities under the cooperative principle as well as being a people's economic movement based on the principle of kinship. The purpose of this cooperative itself is for the welfare of its members. The main characteristic that distinguishes this cooperative from other business entities is that the members of the cooperative have multiple identities. This dual identity means that the members of this cooperative are the owners and users of cooperative services.

Management


The study of business operations efficiently and effectively is called management. The main branches of management are human resource management, business intelligence, financial management, operations management, marketing management, strategic management, production management and information technology management.

Business Purpose

The main goal of all businesses is to be able to make a profit by producing the goods and services needed by customers. Below are some of the business objectives, including the following:

  1. To be able to benefit from business activities.
  2. For the procurement of goods and services (services) needed by the community.
  3. To be able to achieve welfare for the owners of the factors of production and society.
  4. Creating a job market for many communities.
  5. To be able to show the existence of a company in the long run.
  6. To increase progress as well as the general economic growth of the community.
  7. To be able to show prestige and achievement.

Business Functions

All activities or business activities have a function to make something that was previously less valuable into something that has high value and can meet the needs of the community after being processed in such a way.

Below are some of the business functions including the following:

  1. Form Utility, this is a production function in which a business produces goods or services needed by society. For example, for example, furniture companies and financial services companies.
  2. Place Utility, this is a distribution function in which a business distributes an item or service to the nearest location that can be reached by consumers.
  3. Possessive Utility, this is a sales function in a business.
  4. Time Utility, this is a function of storage as well as marketing in the business, where goods at that time are less useful to be issued later when the goods are more useful.
According to Steinhoff in his book The World Of Business (1979), there are three main functions of a business, including:

  1. Acquiring Raw Materially, this is to be able to find raw materials.
  2. Manufacturing Raw Materials Into Product, to be able to convert raw materials into finished goods.
  3. Distributing Product to Consumers, this is to be able to distribute the resulting products to consumers.

Types of Business

As has been explained above, the definition of this business will ultimately refer to the scope or certain sectors covered. Below are the types of businesses including the following:

Agricurtular Business

This agricultural business is a business in the field of agriculture or agro-business which covers agriculture, plantations, livestock, fisheries, and others.

Examples of Agriculture

  1. Organic Plant Seller.
  2. Medicinal Plant Seller.
  3. Cultivation of spices.
  4. Plant Seed Seller.
  5. Fertilizer Making.
  6. Decorative Plants Business.
  7. Rice Collectors.
  8. Selling Agricultural Equipment.
  9. Hydroponic Plant Business.

Raw Material Production Business

Raw Material Production Business is one of the business sectors engaged in the mining, forestry, and other sectors, in which the products produced are in the form of raw materials for processing.

Examples of Raw Materials Production Business

  1. Furniture Business
  2. Chips Business
  3. Rubber Business
  4. Palm Oil Business
  5. Plastics Business
  6. Metal Business
  7. Gold Venture

Manufacturing Business

This Manufacturing Business is a business in the field of processing raw materials or raw materials into finished materials.

Examples of a Manufacturing Business

  1. Textiles and Garments
  2. Automotive
  3. Electronic
  4. Food and Drink
  5. Craft

Construction Business

This construction business is a business in the field of construction or infrastructure development. This construction service is a consultancy service from construction work planning services, construction work implementation services as well as construction work supervision consulting services. Meanwhile, this construction work is all work that covers the entire implementation of building construction, such as architectural, civil, mechanical, electrical and environmental arrangements in realizing a building.

Examples of a Contruction Business

  1. Highway
  2. Multi-storey building
  3. Airports, and other.

Transportation Business


This transportation business is a business in the transportation sector that helps in community mobility to distribute goods.

Examples of a Transportation Business

  1. Travel
  2. car rental
  3. Shuttle School or Employees

Communication Business


This Communication Business is an effort in the field of communication that helps the community in terms of communication and information. For example, television, radio, telephone, and others.

Examples of Comunication Business

  1. Author
  2. Radio announcer
  3. Television, etc.

Trade Business

This Large / Small Trade Business is a business in the trade sector that has a role as an intermediary between producers and consumers.

Examples of Trade Business

  1. Business selling food.
  2. Commercial business in the fashion sector.
  3. Trade gadgets and electronics.
  4. Selling credit and internet quota.
  5. Beverage franchise franchise type.
  6. Service business or selling services.

Financial, Insurance and Real Estate Business

This Financial, Insurance and Real Estate business are a business in the financial sector that helps the community. This finance is a business that benefits from investment as well as capital management. Insurance is a form of insurance coverage that is available to both individuals and businesses by receiving an insurance premium, to be able to provide reimbursement to the insured due to job loss, death of the insured, or an accident that disables the policy holder. Real estate is a business that generates that profit by selling, renting, and developing properties, houses and buildings.

Examples of Financial, Insurance, and Real Estate Business

  1. Capital Credit
  2. Insurance
  3. Planning and Property ownership credit

Service Business

This service business is a business whose activity or activity creates and sells intangible products, namely services, in order to generate profits.

Examples of a Service Business

Private Tutoring Services Business.
Translation Services Business.
Typing Service Business.
Article Writing Services Business.
Online Businessman or Blogger.
Services Delivering School Children.
Service business entrusted or jastip.

Thus an explanation of the meaning of business, objectives, functions, characteristics, types and examples, hopefully what is described can be useful for you. Thank you
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