Business Concepts Teacher: Jenny Marcela Flórez Montoya Business Definition According to Cambridge dictionary: • “Business is the activity of buying and selling goods and services” However, the terms business and company are used invariably in many places, there is some difference between them. • If you are engaged in an activity that earns you money on a continuous basis, you are said to be doing a business. Whether you are running a retail shop or a wholesaler, whether you are a lawyer or a sportsperson. • As long as you are making money out of your activity, and it is your career or profession, you are doing a business by selling goods or services. It does not matter whether you have registered yourself as a company or any other legal entity to have a legal sanctity for your business. Comparative chart Definition Production Registration Ownership Tax Business Transaction or activity with profit-making intention. Company -business with regularity - commercial operations get bigger - Formalized -personal /people -Depends on you -it can grow up until a definite point -registered as a sole trader or a partnership Proprietor or partner Individual Tax returns -legal entity - independent entity -delegate duties Registered as limited company Shareholders and directors Corporation tax returns
