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A b usiness, also kno wn as an ent erprise or a firm , is an o rgan iz ation involved in th e provision of good s, services, or both t o con su mer s.[ 1] Bu sin esses ar e p rev alent in capit alist econo mies, where mo st of them ar e pr ivately o wn ed and p rovid e good s and ser vices to cu stom er s in exchang e for other good s, serv ices, or money. Businesses may also b e so cial not-for-profit ent erpr ises or stat e-o wn ed pu blic enterprises t arg eted for specific so cial and econom ic object ives. A business o wned b y mult iple ind ividuals m ay be form ed as an in corpo rat ed comp an y or jointly org anised as a p artn ership. Countries h ave d iffer ent laws th at m ay ascrib e d iffer ent rights to the v ariou s b usiness entities.

Busin ess can r efer to a p articular o rgan iz ation o r to an entir e m ar ket sector, e.g . "the mu sic bu sin ess" . Com pound for ms su ch as agribu siness r epr esent subset s of th e wo rd's bro ader m eaning , which enco mpasses all activit y b y supplier s of good s and services. The goal is for sales to b e mor e than exp enditur es r esulting in a p rofitMost leg al jurisd iction s sp ecif y th e for ms of o wner ship that a business can take, creating a bod y of comm er cial law for each t ype.

The major f actor s affecting ho w a bu sin ess is org anized ar e usu ally:

The siz e and scope of the bu sin ess firm and its stru ctur e, man ag em ent, and o wn er ship, bro adly analyzed in th e th eor y of th e f ir m. Gen er ally a smaller bu sin ess is mor e f lexib le, wh ile larg er businesses, or tho se with wid er o wn er ship or mor e for mal str uctur es, will u su ally t end to be org aniz ed as corpor ation s or (less often) partn er ship s. In addit ion, a bu siness that wishes to raise mon ey on a stock mar ket or to be o wn ed b y a wid e r ang e of p eop le will oft en b e r equired to adopt a specific leg al fo rm to do so.

The sector and cou ntr y. Privat e profit-m aking businesses ar e diff erent from govern ment-o wned bodies. In som e countries, certain bu sin esses ar e leg ally oblig ed to be org aniz ed in certain ways.

Limit ed Liabilit y Comp anies (LLC), lim ited liabilit y partner ship s, and other specific t ypes of business org anizatio n prot ect th eir o wn er s o r shareho lders frombu sin ess failur e b y doing bu sin ess u nder a sep ar ate leg al ent it y with certain leg al p rotection s. In cont rast, unincor por ated b usinesses or person s wor king on th eir o wn ar e u su ally not so prot ect ed.

Tax adv antag es. Diff er ent stru ctur es are treated differently in tax law, and m ay hav e advantages for this r eason.

Disclo sur e and comp liance r equ irem ents. Differ ent bu sin ess stru ctur es m ay be r equir ed to m ake less or mor e inform ation pu blic (or report it to relev ant authorities) , and m ay b e bound to comp ly with differ ent ru les and reg ulat ions.

Man y businesses ar e op er ated through a separat e entit y su ch as a corpor ation or a p artn ership ( either for med with or without limit ed liabilit y). Mo st leg al jurisd iction s allo w peop le to org anize su ch an entit y b y filing certain ch art er do cu ment s with th e r elevan t Secr etar y of St ate o r equivalent and co mplying with certain oth er o ngoing oblig ation s. The r elationship s and leg al right s of shareho lders, limit ed p artn er s, or m emb er s ar e governed p artly b y the ch art er do cu ment s and p artly b y th e law of the jurisd iction wh er e the entit y is org aniz ed. Generally sp eaking, sh ar ehold er s in a corpor ation, limit ed p artners in a lim ited partn er ship , and m ember s in a limit ed liabilit y com pan y ar e shield ed fro m p er sonal liab ilit y for th e d ebt s and oblig ations of the ent it y, which is legally tr eat ed as a sep arat e "p er son". This m eans that un less th ere is m iscondu ct, th e o wner's o wn possessio ns ar e strong ly

protect ed in law if th e bu sin ess does not su cceed.

W here t wo or more ind ividuals o wn a business tog ether but h ave f ailed to org aniz e a m ore sp ecializ ed form of vehicle, th ey will be treated as a g en er al p artn er ship. Th e term s of a p artnersh ip ar e p artly governed b y a p artnersh ip agr eement if on e is cr eat ed, and part ly b y the law of th e jurisdiction wh ere the partner ship is lo cated. No p ap er wo rk or filing is n ecessar y to cr eat e a p artnersh ip, and without an agr eem ent, th e r elation ship s and leg al right s of th e p artn er s will be entirely govern ed b y th e law of th e jurisdiction wh er e th e p artn ersh ip is locat ed. A single p er son wh o o wns an d run s a bu sin ess is commo nly kno wn as a sole pr oprietor, wh ether that p er son o wn s it dir ect ly or throu gh a form ally org aniz ed entit y.

A f ew relev ant factor s to con sid er in d eciding ho w to operat e a bu sin ess includ e:perfu mes caseiro s

Faz er m eu s p rprio s p erfu mes

Gen er al p artn er s in a partner ship (other than a limited liabilit y p artnersh ip), plus an yon e who p er sonally o wns and op erat es a bu sin ess without cr eatin g a sep ar ate leg al ent it y, ar e per son ally liable for th e d ebt s and obligat ions of the bu sin ess.

Gen er ally, co rpor ation s are r equir ed to pay t ax just like "r eal" p eople. In som e t ax syst em s, this can give rise to so- called dou ble taxat ion, b ecau se fir st th e corpor ation pays tax on the profit, and then wh en th e corpor ation distribut es its profits to it s o wners, individuals hav e to in clu de d ivid ends in th eir in com e wh en they co mplete th eir person al tax r eturn s, at which po int a second layer of inco me tax is impo se d.

In mo st countries, th ere are laws which tr eat sm all corpor ation s d iffer ently from larg e on es. Th ey m ay be exempt fro m certain legal filing r equ irem ents o r labor laws, h ave simplified pro cedur es in sp ecializ ed ar eas, and hav e simp lified, adv antag eou s, o r slight ly d iffer ent tax tr eatment .

"Going p ublic" throu gh a pro cess kno wn as an initial public offering (IPO) m eans that p art of the b usiness will be o wn ed b y memb ers of the public. This requ ir es org aniz ation as a distin ct entit y, an d complian ce with a tight er set of laws and p rocedur es. Mo st public entities ar e corpo ration s th at h ave sold shar es, but in creasing ly ther e ar e also pub li c LLC s th at sell unit s (som etim es also called sh ar es) , and oth er mor e exotic entities as well, su ch as, fo r examp le, r eal est ate investment trust s in the USA, and un it tru sts in th e UK. A g eneral p artnersh ip cann ot "go pub lic."

Comm ercial law[ edit]

Main article: Com m ercial law

Offices in th e Lo s Ang elesDo wnto wn F inan cial District

A v er y d etailed and well- establish ed bod y of rules th at evolv ed over a ver y long p er iod of time app lies to comm er cial tran saction s. Th e n eed to r egulate trad e and com m erce and re solv e bu sin ess disputes h elp ed sh ape the cr eation of law and court s. Th e C od e of H am mur abi d ates b ack to about 1772 BC for example, and cont ain s p rovisions that relate, among other m atter s, to shippin g cost s and d ealing s b et ween m er ch ants and bro ker s.[ 3] Th e word " corpo ration" derives fro m th e L atincorpu s, meaning bod y, and the Mau r ya Emp ir e in Iron- Ag e India accord ed leg al right s to bu sin ess ent ities.[ 4]

In m an y countries it is d ifficu lt to compile all th e laws th at can aff ect a bu sin ess into a sing le r efer en ce sou rce. Laws can gov ern tr eatment of labour and emplo yee relations, wo rker protection and safet y, discr imin ation on th e b asis of age, g ender, d isabilit y, r ace, and in so me jurisdiction s, sexual or ient ation, and the min imu m wag e, as well as union s, wor ker comp en sat ion, and wor king hour s and leave.

Som e specialized bu sin esses m ay also req uir e licen ses, either due to laws gov ernin g entr y into certain trades, occup ation s or profession s, th at r equire sp ecial edu cation , or to r aise r evenu e for local gover nm ents. Pr ofessions that requ ir e special licen ses in clude law, m edicin e, p iloting aircraft, selling liquor , r adio bro ad casting, selling investm ent securities, selling u sed car s, and roofing . Lo cal jurisdiction s m ay also r equire sp ecial licen ses and t axes just to o per ate a bu sin ess.

Som e bu sin esses are subject to ong oing sp ecial r egulation , for example, pu blic utilities, inv estm ent secu rities, b anking, insuran ce, b roadcast ing, aviation, and health car e provid er s. Enviro nm ental r egulation s are also ver y comp lex and can affect m an y bu sin esses.

Capital[ed it]

Mexican Stock Exch ang e in Paseo de la Refo rm a, M exico Cit y

W hen busin esses need to r aise mon ey (called capital), th ey so metimes offer secu rities for sale.

Capital may b e r aised through priv ate mean s, b y an initial public offerin g or IPO on a sto ck exchang e, or in oth er ways.

Major sto ck exchang es in clu de the Sh angh ai Stock Exch ang e, Sing apor e Exch ang e, Hon g Kong Sto ck Exch ang e, N ew York Sto ck Exchang e and Nasd aq (USA), the London Sto ck Exch ang e (UK), th e To kyo Stock Exch ange (Jap an), and Bo mbay Stock Exch an ge (Ind ia). Most countr ies with capital m ar kets h ave at least one.

Busin esses that h ave gone public ar e subject to r egulation s con cerning their int ern al g overn an ce, such as ho w executive officer s' comp ensation is d eter min ed, and wh en and h o w inform ation is disclosed to sh ar ehold er s and to the public. In th e Un ited Stat es, th ese reg u lations ar e prim ar ily implem ented and enforced b y th e Un ited Stat es Securities and Exch ange Com mission (SEC). Other W estern n ation s h ave com par able regu lato r y bodies. Th e r egulation s ar e implem ented and enfor ced b y the C hin a Securities Regulation Co mm ission (CSRC) in Chin a. In Sing apo re, the regulation authorit y is th e Mon etar y Authorit y of Sing apor e (M AS), and in Hong Ko ng, it is t he Securities and Futur es Com mission ( SFC).

The pr olif erat ion and incr easing comp lexit y of th e laws govern ing bu sin ess have for ced in creasing sp ecializ ation in corpo rat e law. It is not unh eard of fo r cert ain kinds of co rpor ate t ran saction s to requir e a tea m of five to ten attorn eys due to sprawling r egulation. Com mercial law sp an s g en eral corpor ate law, emplo ym ent and lab or law, h ealth-car e law, secur ities law, mergers and acquisitions, tax law, emp lo yee b en efit plans, food and drug regu lat ion, intellectu al p ropert y law on cop yr ights, p atents, tr ademarks an d su ch, t elecommu nication s law, f inan cing .

Other t yp es of capit al sou rcing in clu des cro wd sour cing on th e int ern et, ventur e capit al, ban k loan s and deb entur es.

Intellectual prop ert y[ edit]

Busin esses often h ave imp ortant " intellectu al p ropert y" th at n eed s p rotection fro m comp etitor s for the co mpan y to st ay profit ab le. Th is cou ld r equire pat ents, cop yrights, tr adem arks o r pr eservation of trad e secr ets. Mo st bu sin esses hav e n am es, logo s and similar br anding techniqu es that cou ld b enefit from tr ad em ar king . Patents and cop yrights in th e Unit ed States ar e lar gely govern ed b y f ederal law, while tr ad e secr ets and trad em ar king are mo stly a m atter of st ate law. B ecau se of th e n ature of int ellect ual prop ert y, a bu sin ess n eeds prot ection in ever y jurisd ictio n in which th ey are co ncern ed about comp etitor s. Man y countries are s ign atories to int ern ational tr eaties con cern ing intellectu al pr opert y, and thus co mpanies reg ist er ed in these countries are subject to n ation al laws bound b y th ese tr eaties. In ord er to p rotect trade secret s, com pan ies may r equ ire emplo yees to sign non-

comp ete clau ses which will impo se limitat ions on an emp lo yee's interaction s with stakeh old er s, and comp etitor s.