Business, Trade and Commerce

M.Muzammil Shahzad

Roll# 215

BBA-7th (M)

Topic: Business, Trade and Commerce

Subject: International Business

Business:

The economic activity of producing or distributing and sale of goods undertaken with the purpose of earning profit and maximizing wealth through satisfying the human needs and wants is referred to as business. It is also known as the continuous production and distribution of goods and services with an objective of earning profit under certain economic and market circumstances. All of us have food, clothing, shelter and many other household needs and wants to be satisfied. We met our requirements from a shopkeeper and shopkeeper gets from wholesalers. The wholesalers get from producers or manufacturers. All manufacturers, wholesalers and shopkeepers are doing business and are know as businessmen. There are following different forms of business:

Sole Proprietorship:

This type of business structure is owned by only one person and is fully responsible for day-to-day running of the business. This is easiest to set up, easiest to dissolve and least expensive. Sole proprietor owns all the assets and profits of the business. Because of unlimited liability, he assumes complete responsibility for all the liabilities or debts of the business. Sometimes he has to face difficulties in raising high funds for the business and often limited to using funds from personal savings or consumer loans.

Partnership:

In a partnership business, two or more people share ownership of a single business. The partners have a legal agreement that sets forth how decisions will be made, profits will be shared, disputes will be resolved and how new policies will be made. It is relatively easy to set up. Because of more partners, its ability to raise high funds is increased. Profits are shared among all partners. In case of limited partnership, they have limited liability according to their investment proportion to meat all the debts of the partnership business....