In the present time business activities are conducted in all fields. From manufacturing and transportation products to production of energy and information technology, businesses exist everywhere and have become a major force in our lives. A business is defined generally as an unincorporated partnership or corporation organized for the performance of commercial, financial, or industrial activities. Businesses may be either for-profit or non-profitable organizations that conduct primarily to meet a social objective or further an educational purpose. While it is impossible to deny the vital importance of business in our day to day lives, most people are unaware of the intricate legal aspects of conducting a business.
A business firm refers to any person, company, partnership, or entity that engages in commerce and produces or provides goods for sale in order to earn profit. The term is broadly applied to any person, institution, association or political party that engage in economic activity or are engaged in economic development. A company or business firm may be sole proprietorships, corporations, partnerships, joint ventures, among others.
The term profit is used as the most general term to define profit or gain. Profits and losses are terms that pertain more to the nature of the production process. Production may be permanent or temporary and may involve physical, chemical, electrical, or natural elements. Permanent profits refer to profit made on a regular basis while a temporary profit is made as a result of fluctuations in prices. Other types of losses are also included in the category of business concerns including errors in handling of assets, theft, destruction of material goods, bankruptcy, cessation of operations, interruption of business due to power, gas, rail, water, and other lines of communication, interruption of business due to civil unrest, natural disasters, riot, war, terrorism, riots, quarantine, earthquake, and other similar events.