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Business is an effort to sell goods or services carried out by individuals, groups of people or organizations to consumers (the public) with the primary goal of gaining profit. Basically, we do business is to make a profit.
Actually not only that, there are still some functions of the business, namely:
- Change its form (form utility) which is nothing but a production function
- Move the product’s place (place utility), or distribution function
- Change ownership (possessive utility), i.e. sales function
- Delaying usability time, or marketing functions
While Steinhoff believes that there are three main functions of the business, namely:
- Looking for raw materials (acquiring raw material)
- Turn raw materials into finished goods (manufacturing raw materials into products)
- Distributing the finished goods to the consumers (distributing products to consumers)
As in the notion of Business, Business is carried out by individuals, groups of people or organizations.
Here I will give a little explanation about who is doing business or commonly called the Basic Business Ownership.
Commonly Basic Ownership includes:
- An individual company is a company owned by a person who directly leads the company.
- Fellowship is getting a part and taking part and giving a part together in something or with someone.
- The company is a business owned by several people and supervised by a director.
- Cooperative is a business field consisting of people or cooperative legal entities by basing its activities based on cooperative principles as well as a people’s economic movement based on the principle of kinship.
There are many kinds of types that are generally known to us, these types of businesses can be grouped based on their activities, namely:
- Manufacturing is a process of processing non-service goods that are physical in nature, the word manufacturing itself comes from the Latin word “manus factus” which means it is made or processed by hand. Examples of manufacturing businesses are brick factories.
- Service is any action or performance offered by one party to another party that in principle is intangible and does not cause a transfer of ownership, the production of services may be bound or not bound to a physical product. Examples of service businesses is a consultant and psychologist.
- Retailers and distributors are those who act as intermediaries between producers and consumers of goods. Most consumer-oriented shops and companies are distributors and consumers. Example of a franchise shop.
- The Agriculture and Mining Business is a business that produces raw goods, such as plants and mining goods such as petroleum and coal.
Utilities are businesses that operate services for the public, such as electricity and water, and are usually funded by the government. - Transportation Business is a business that benefits by delivering individual goods from one location to another. Example Travel
After that, let us get to know some of the types of businesses that we know of:
- Monopsony is a condition where one business actor controls the receipt of supply or becomes the sole buyer of goods or services in a commodity market.
- Monopoly is a form of market where only one seller controls the market (1 seller but many buyers). The price determinant in this market is a seller or often referred to as “monopolist”.
- Oligopoly is a market where the supply of one type of goods is controlled by several companies (some sellers but many buyers). Generally, there are more than two companies but less than ten.
- Oligopsoni is a condition where two or more business actors control the receipt of supply or become the sole buyer of goods or services in a commodity market (some buyers but many sellers).
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