A business is defined by Wikipedia as an unincorporated private entity or organized enterprise that engages in commercial, professional, or organizational activities involving commerce and/or industry. Businesses may be for-profit enterprises or non-profitable cooperatives that engage in social, charitable, or political action to meet a social objective or further an eco-friendly purpose. Many industries are categorized into several general categories: manufacturing, commercial, and service industries. In the United States, the business sectors include manufacturing, wholesale, and retail categories. The types of businesses may also be categorized on the basis of location, age, industry, and type (which include the specific types discussed below).
A business can either be an individual unit owned by an entrepreneur or a partnership, which is a form of company with one or more shareholders. Limited liability companies and corporations are the most common forms of business entities in the United States. A limited liability company is generally recognized under state law as an entity separate from its owners that limits its liability to the activity of its owners. Corporations are generally recognized as separate entities from the owners and are considered able to exercise the same power of ownership as their owners; however, a corporation may also incorporate other businesses owned by its owners.
Each business has the right to manage its accounts and use its property and assets. Most corporations have a share capital; however, some firms and partnerships may use common equity as their source of funds. Some businesses conduct their business through banks, savings and loans, and other financial institutions. In a corporation, all shareholders are obliged to ratify certain resolutions passed by the board of directors. Business entities may also borrow money from outside investors in the form of preferred stock or common stock. Business finance is a critical and essential aspect of the day-to-day operation of any business.