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Types of businesses – Виды коммерческой деятельности

What is business?  For different people the meaning of it is different.  We can give several definitions of what business is.

  • The occupation, work, or trade in which a person is engaged
  • A specific occupation or pursuit: the best designer in the business.
  • Commercial, industrial, or professional dealings
  • A commercial enterprise or establishment

SYNONYMS   business, industry, commerce, trade, traffic. These nouns apply to forms of activity that have the objective of supplying commodities. Business pertains broadly to commercial, financial, and industrial activity. Industry entails the production and manufacture of goods or commodities, especially on a large scale.  Commerce and trade refer to the exchange and distribution of goods or commodities. Traffic pertains in particular to businesses engaged in the transportation of goods or passengers.

Below we give the explanation of some legal organizational forms of business activity.

Objectives of Business Organization

Business organizations are established to meet wants in society. Private businesses are formed mainly to provide for material demands (i.e. goods and services) and commercial demands (i.e. banking, insurance) in society. Government Organizations, on the other hand, tend to satisfy society’s desire for defense, law and order, education and social welfare.

Organizations are thus established to meet demands in society. In meeting these, organizations will set very definite and clear aims, e.g. a manufacturing firm will want to stay in business and make a profit. The aims of an organization are normally decided by the board of directors, or in the case of public organizations by government ministers.

The most common forms of private business organizations are sole proprietorships, partnerships and corporations.

Sole Proprietorships

A business owned and controlled by one person is a sole proprietorship. Sole proprietorships are the oldest, simplest, and the most common of all types of business.

Because the financial resources available to one person often are limited, sole proprietors tend to be enterprises that require small amounts of capital to start and operate. Many doctors, dentists, lawyers, bakers, and beauticians organize as sole proprietors to provide professional services. Other services offered by sole proprietors include plumbing, carpentry, dry cleaning and lawn care. Many construction companies, small grocery stores, florists, other small retail stores, farms, real estate firms and insurance firms are also organized as sole proprietors.

Partnerships

A partnership is a business that is owned and controlled by two or more people. As in the case of sole proprietorships they are concentrated in businesses that require relatively small amounts of money to start and operate. Small retail stores, farms and construction companies are often organized as partnerships. People in service occupations, such as doctors, lawyers, accountants, and photographers, also form partnerships. Many of these partnerships may have started as sole proprietorships. A partnership begins when two or more people agree to operate a business together. Partnership can be general or limited. In order to avoid later conflicts, the partners usually formulate a written agreement called a partnership contract. A partnership contract outlines the contributions of partners, the distribution of profits and losses. It details the specific responsibilities of each partner and includes provision for adding or dropping partners and dissolving the partnership.

Corporations

A corporation is a business organization that is treated by law as if it were an individual person. A corporation can do everything that a sole proprietorship or a partnership can do. It can, for example, buy property and resources, hire workers, make contracts, pay taxes, sue others and be sued and produce and sell products. A corporation, however, is owned by stockholders. Stockholders are individuals who invest in a corporation by buying shares of stock. Stocks are the certificates of ownership in the corporation. Stockholders invest in a corporation in order to make a profit.

Types of Corporations.

A corporation may be either publicly owned or closed. A publicly owned corporation allows its shares to be purchased by anyone who chooses to invest in the business. Most corporations today are publicly owned. A closed corporation is owned by a limited number of shareholders. People outside of this limited group may not buy shares in the corporation.

Aims of Private Organizations

Profitability is the main aim of private organizations but it is important to realize that any business will have other aims. These include:

  1. Survival: most of the time firms will not be worried about this. However, particularly in times of economic difficulty – such as recession – surviving will become an important short-term aim of the firm. In order to survive, the firm may have to make workers redundant and close some of its factories.
  2. Growth: not all firms want to grow continually but growth is closely associated with survival. Very often, particularly for firms in highly competitive situations, e.g. computing and electronics, growth and development are the only way to ensure survival. Furthermore, shareholders and employees may benefit from the growth of the company.
  3. Image: how the public at large views a company can be particularly important, and to this end a number of companies have public relations departments that have specific responsibilities to improve the image of the company. A tarnished image can very often lose the company business.

WORDS AND EXPRESSIONS

to set an aim – ставить цель

business organisation – коммерческая организация

commercial wants – коммерческие потребности

competitive – конкурентоспособный

corporation – акционерное общество, корпорация

distribution – распределение

establish – основывать, учреждать

general partnership – компания с неограниченной ответственностью

invest – инвестировать, вкладывать деньги

limited partnership – компания с ограниченной ответственностью

make a profit – получать прибыль

material wants – материальные потребности

meet wants – удовлетворять потребности

partnership contract – договор о сотрудничестве

partnership – товарищество, партнерство

private business – частное предприятие

private organisation – частная организация

profitability – рентабельность, прибыльность

provision of a contract – условие договора

shareholder – акционер

shares – акции

social welfare – социальное обеспечение

stock – акционерный капитал; основной капитал

stockholder – акционер, владелец государственных ценных бумаг

stocks – государственные ценные бумаги

to this end – с этой целью

acquisition – приобретение

conglomerate combination – конгломератное объединение

corporate merger – корпорационное слияние

corporate performance – совместное функционирование

efficiency – продуктивность, производительность

merger – слияние

demand – спрос

international market – международный рынок

local market – местный рынок

market structure – структура рынка

supply – предложение

total market demand – общий объем спроса на рынке
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Дмитрий, Total English Pre-Intermediate
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