A business could be an organization or firm by which they generate profit or revenue from customers by rendering them services or offering them products.
There are three types of business. First one is the business which is service oriented. These business centers in JLT are typically service based there is no such product they offer to their customers. They provide intangible products. These products have no physical shape or existence. Just like hair saloons or banks. The owner of these businesses must have skills and experience in the services he/she offer to customers.
Second type is merchandising DMCC business centre in Dubai. In this business they buy products at cut price and sell them to the retail market with their margin aside. These businesses are known as buy and sell businesses. Their business style is to sell products at higher prices than their cost. These business purchase goods and sell them right away. They don’t change a bit they just sell it to retail market just like distributers and grocery stored.
Then there is manufacturing businesses. They buy raw material and convert them in to finished goods. They transform the shape and quantity in to finished product. These businesses require overhead costs, labor and raw material. That how a manufacturing business works. There is also another type which include fine dine restaurants etc.
Now we will discuss about the forms of businesses. The first form is sole proprietorship in this business the whole business is owned by one person only. All the responsibilities and liabilities are on one person who owns it. This business is easy to start but have liabilities concern some time the business didn’t run according to expectation so the owner has to compromise his own assets just to take care of some costs and expenses. Mostly small businesses are on sole proprietorship.
The other form is partnership in which the person who are involved must be two or more than two. This business is safe if you look on responsibilities r liabilities. Because it divides everything in the partners either its profit, loss or liability everything is equally divided.
Then there is corporation in which we have stake holders who have limited involvement in the business. For example, shares of stock. Then there is cooperative business which is controlled by number of individuals and is operated for their mutual benefit. The term that is used for owners is ‘members. For examples credit unions, cooperative banking etc.