A business is defined in the Merriam Webster’s Collegiate Dictionary Tenth Addition as a commercial institution or entity, generally of a general nature having commerce, production, and/or service. A business may also be defined as a partnership or commercial association involving more than one person. Most businesses are large, global, and international, though there are some locally based small businesses as well. All businesses, even nonprofit ones, require a building, inventory, supplies, machinery, and labor.
Intellectual Property The main article in the United States Constitutions, and the basis of customary international law as well, is the “intellectual property.” This includes all forms of inventions, innovations, patterns, systems, methods, and trade names. All property, including trademarks, commercial logos, and domain names, are the exclusive property of the individual or entity making the claim. Owners may grant their rights in various forms such as to bind the other parties not to use the property without advance written notice.
Business Plan The purpose of a business plan is to provide information needed to assess a company’s worth and the risks involved in conducting business. To prepare this document, a business must have one or more of the following basic elements: board of directors, employees, and market or customer description. Each of these elements addresses different aspects of the company’s operations. A board of directors provides direction by majority vote. Employees manage day to day activities, conduct business, and determine policies and procedures.
Profits The main article of the United States Constitutions, which also applies to most other nations, is “the regulation of commerce.” In the United States, laws regulate businesses by providing methods for providing a source of revenue. These laws usually include tariffs and import duties, the establishment of licensing boards, and sales, use, and taxation of goods, services, and incomes. These activities help to encourage businesses to succeed. Imports and exports are often used to increase the level of profits for businesses.
Business Structure There are various types of business structures. One example is the sole proprietor, partnership, general partnership, limited liability corporation, and the corporation. These are just a few of the various types of structures available to a business. All of these types of structures have advantages and disadvantages. It is important to carefully consider all aspects of a business before settling on any one type of structure.
Liability Many states, including Texas, allow corporations to have limited liability. However, the limitation usually applies only to personal liability. This means that the owners of the business are personally liable for the actions of the corporation unless the owners can prove that they had the necessary corporate authority to control the corporation. As a result, lawsuits against the business entity are nearly non-existent.