Business

AAA

DEFINITION of 'Business'

1. An organization or enterprising entity engaged in commercial, industrial or professional activities. A business can be a for-profit entity, such as a publicly-traded corporation, or a non-profit organization engaged in business activities, such as an agricultural cooperative.

2. Any commercial, industrial or professional activity undertaken by an individual or a group.

3. A reference to a specific area or type of economic activity.

INVESTOPEDIA EXPLAINS 'Business'

1. Businesses include everything from a small owner-operated company such as a family restaurant, to a multinational conglomerate such as General Electric.

2. To "do business" with another company, a business must engage in some kind of transaction or exchange of value with that company.

3. In this sense, the word "business" can be used to refer to a specific industry or activity, such as the "real estate business" or the "advertising business".

VIDEO

Loading the player...
RELATED TERMS
  1. Business Cycle

    The fluctuations in economic activity that an economy experiences ...
  2. Demographic Dividend

    The freeing up of resources for a country's economic development ...
  3. Business Activities

    Any activity that is engaged in for the primary purpose of making ...
  4. Business Tax Credits

    A number of federal income tax credits available to businesses ...
  5. Corporation

    A legal entity that is separate and distinct from its owners. ...
  6. Conglomerate

    A corporation that is made up of a number of different, seemingly ...
RELATED FAQS
  1. Who are Toyota's (TYO) main suppliers?

    As the world’s biggest car manufacturer with more than 10 million cars sold in 2014, Toyota Motor Corp. has a diverse supply ... Read Full Answer >>
  2. Which professional athletes are on pace to join Michael Jordan as billionaires?

    Michael Jordan is perhaps one of the most well-known and richest athletes in the world. However, two notable athletic giants ... Read Full Answer >>
  3. What role do interpersonal skills play in the hiring process?

    Although it is valuable to demonstrate experience in a particular industry when applying for a job, employers are more interested ... Read Full Answer >>
  4. How can I calculate funds from operation in Excel?

    In general, the terms "work in progress" and "work in process" are used interchangeably to refer to products midway through ... Read Full Answer >>
  5. When does Q4 start and finish?

    Most companies such as Facebook have financial years that end on December 31st. For these companies, the fourth quarter begins ... Read Full Answer >>
  6. When is it useful to look at a company's fixed asset turnover ratio?

    It is useful to look at a company's fixed asset turnover ratio when an outside observer, such as an investor, wants to know ... Read Full Answer >>
Related Articles
  1. Entrepreneurship

    What is a Business?

    As a general term, business means the commercial activities of an individual or group engaging in some type of financial transaction.
  2. Markets

    Great Company Or Growing Industry?

    Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth.
  3. Investing Basics

    Conglomerates: Cash Cows Or Corporate Chaos?

    Huge companies may not be as infallible as previously assumed. Find out why bigger isn't always better.
  4. Entrepreneurship

    In Small Business, Success Is Spelled With 5 "C"s

    Incorporating these steps will help your business thrive in a competitive market.
  5. Entrepreneurship

    Can You Handle A Home-Based Business?

    Find out if you have the traits to be a top entrepreneur.
  6. Entrepreneurship

    Getting To Know Business Models

    Learning how to assess business models helps investors identify companies that are the best investments.
  7. Retirement

    Be Your Own Boss By Freelancing

    Learn the pros and cons before you bid adieu to sales meetings and power suits forever.
  8. Budgeting

    How Budgeting Works For Companies

    Learn how to break down and understand a corporate budget.
  9. Entrepreneurship

    Creating A Home Business Work Space

    Your work environment can make or break your career as an entrepreneur.
  10. Economics

    What Does Business-to-Business Mean?

    The term business-to-business refers to transactions or communication that takes place between two or more businesses.

You May Also Like

Hot Definitions
  1. Topless Meeting

    A meeting in which participants are not allowed to use laptops. A topless meeting organizer can also ban the use of smartphones, ...
  2. Hedging Transaction

    A type of transaction that limits investment risk with the use of derivatives, such as options and futures contracts. Hedging ...
  3. Bogey

    A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the ...
  4. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  5. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  6. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!