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Scope of the Business

Business can refer to a particular organization or to an entire market sector, e.g. “the music business”. Compound forms such as agribusiness represent subsets of the word’s broader meaning, which encompasses all activity by suppliers of goods and services. The goal is for sales to be more than expenditures resulting in a profit or gain or surplus.

Private profit-making businesses are different from government-owned bodies. In some countries, certain businesses are legally obliged to be organized in certain ways.

Generally, a smaller business is more flexible, while larger businesses, or those with wider ownership or more formal structures, will usually tend to be organized as corporations or (less often) partnerships.

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