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For other uses, see Business (disambiguation).
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Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services).[1][2][3][4] It is also "any activity or enterprise entered into for profit."[5]
A business entity is not necessarily separate from the owner and the creditors can hold the owner liable for debts the business has acquired.[citation needed] The taxation system for businesses is different from that of the corporates. A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business.
The term is also often used colloquially (but not by lawyers or public officials) to refer to a company, such as a corporation or cooperative.
Corporations, in contrast with sole proprietors and partnerships, are separate legal entities and provide limited liability for their owners/members, as well as being subject to corporate tax rates. A corporation is more complicated and expensive to set up, but offers more protection and benefits for the owners/members.
Forms
Main article: List of business entities
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Forms of business ownership vary by jurisdiction, but several common entities exist:
A sole proprietorship, also known as a sole trader, is owned by one person and operates for their benefit. The owner operates the business alone and may hire employees. A sole proprietor has unlimited liability for all obligations incurred by the business, whether from operating costs or judgments against the business. All assets of the business belong to a sole proprietor, including, for example, a computer infrastructure, any inventory, manufacturing equipment, or retail fixtures, as well as any real property owned by the sole proprietor.[6]
A partnership is a business owned by two or more people. In most forms of partnerships, each partner has unlimited liability for the debts incurred by the business. The three most prevalent types of for-profit partnerships are general partnerships, limited partnerships, and limited liability partnerships.[7]
Corporations' owners have limited liability and the business has a separate legal personality from its owners. Corporations can be either government-owned or privately owned, and they can organize either for profit or as nonprofit organizations. A privately owned, for-profit corporation is owned by its shareholders, who elect a board of directors to direct the corporation
2. 1. Personality Factors which include:
a. Initiative - doing things even before being told.
b. Proactive - which means he can classify opportunities and seize it.
c. Problem Solver - which means he can retain good relations with other people.
d. Perseverance - meaning he will pursue things to get done regardless of challenges.
e. Persuasion - means that he can entice people to buy even if they don’t want to.
f. A Planner - he makes plans before doing things and does not fail to monitor it.
g. Risk-taker - which means that he is willing to gamble but he will calculate it first.
3. 2. Environmental Factors which
include political, climate, legal
system, economic and social
conditions and market situations.
4. Common Competencies in
Entrepreneurship
1. Decisive - an entrepreneur must be firm in making decisions.
2. Communicator - an entrepreneur must have a convincing power.
3. Leader - an entrepreneur must have the charisma to be obeyed by his employees.
4. Opportunity seeker - an entrepreneur must have the ability to be the first to see
business chances.
5. Proactive – an entrepreneur can control a situation by making things happen or
by preparing for possible future problems.
6. Risk Taker – an entrepreneur has the courage to pursue business ideas.
7. Innovative - the entrepreneur has big business ideas and he does not stop
improving and thinking of new worthwhile ideas for his business.
5. Core Competencies in Entrepreneurship
1. Economic and Dynamic Activity - Entrepreneurship is an economic
activity because it involves the creation and operation of an enterprise
with a view to creating value or wealth by ensuring optimum utilization
of limited resources.
2. Innovative – The entrepreneur constantly looks for new ideas, thus he
needs to be creative.
3. Profit Potential - The entrepreneur can be compensated by his profit
coming from the operation.
4. Risk bearing – The entrepreneur needs to gamble but wise enough to
offset.
