Business types, activities and ownership.

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What is Business?

Business can be defined as the involvement in the exchange of goods and services for money or personal assets. There are different types of businesses as seen below;

Types of Businesses

There are seven different types of businesses namely;

  1. Local Business: This is a small business usually owned by someone within the community. It can also be said to be a company that give goods and services to the local population. The term “Local Business” can also be used to describe a franchise or corporate branch that operates in a local area. Businesses like this can be found around our areas. Examples of such businesses are; Mace, Halal Meat, a music shop, the barbers shop etc.
  2. National Business: This is a process in which a business company with formation services and advice with both speed and accuracy. Examples of such business are car companies, McDonalds etc.
  3. International Business: This is the exchange of both goods and services between individuals and businesses in more than one country. “International Business” is a term which is used collectively to describe all types of commercial transactions. Examples of such businesses are AGIP Oil Company, Shell etc.
  4. Global Business: This is a company that operates in different countries and uses information technology to assist in the control of operations in each country. They have transactions that are devised and carried out across national borders to satisfy the objectives organisations. Example of this business is Disney.
  5. Public Business: This is a company that has issued securities through the Initial Public Offering (IPO) and is traded on one stock exchange. The owners of a public company are its shareholders. Examples of these businesses are Tesco and Asda.
  6. Private Business: A private business is a company whose ownership is private. It can also be owned by a small number of shareholders or company members. Example of this business is Sainsbury’s.
  7. Voluntary Business: This is an organisation that relies on regular volunteers for their operations. They do not have paid staffs. Examples of such a business are Spar, Company Voluntary Arrangement (CVA).
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Sectors of Business Activity

This consists of three sectors stated below;

Primary Sector: This is the changing of natural materials into primary products. It involves the extracting of raw materials from their sources (the ground) and the packaging and selling of the finished goods. Examples of a business that operates in this sector is McDonalds. They extract raw materials like potatoes from the ground and then they refine it and sell it.

Secondary Sector: This sector turns the primary goods into manufactured goods. They manufacture finished goods. Examples are; construction, processing and textile production etc.

Tertiary Sector: ...

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