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
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