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Definitions of Business

I collected the 5- Best definitions of Business in order to clearly teach business as well as non-business students and other readers for conceptually understand the basic meaning of business.

Anorganizationoreconomic systemwheregoods and servicesare exchanged for one another or formoneyAbusiness, also known as anenterpriseor afirm, is anorganizationinvolved in thetradeofgoods,services, or both toconsumersBusiness is aneconomic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants.Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted.A commercial activity engaged in as a means of livelihood or profit, or an entity which engages in such activities.

                                                     Regards;                                                      Shahid Imran Shan

Recent posts

What is Auditing --- Definition.

In very simple words auditing is the evaluation of any 'Person'. In legal terms person means; An individual , Association of Persons (AOP) and a Company. But the students of Professional accountancy like CPA, C.A and Management Accountants mostly concentrates on auditing and involved in Auditing activities like; Financial auditing, cost auditing and Internal control.
What is Auditing ? Every beginner ask from his teacher or his friend. Basically all authors define auditing in the same manner, but different professional bodies have their different modified definitions, for example one for understanding:

 International Auditing Guidelines used to define Audit as:
 " An audit is the independent examination of financial statement or related 'information of an entity', whether profit oriented or not and irrespective of its size, or legal form when such an examination is conducted with a view to express an opinion thereon".

This definition comprises on:

Internal Control in Business --- (Definition)

Every Business have objectives and goals, to achieve these goals organisation must be so designed to have proper internal control on it functions and activities. The question is what is Internal Control ?

Auditing Guideline "Internal Control" issued by Institute of Chartered Accountants of England and Wales defines internal control as:
"The whole system of controls, financial or otherwise, established by the management in order to carry on the business of the enterprise in an orderly and efficient manner, ensure adherence to management policies, safeguard the assets and secure the completeness and accuracy of the records. The individual components of  an internal control system are known as "Internal Controls" or "Controls" ".
 It is the control of whole system, whether it is related to financial record or other areas like technical or legal etc.
The rules and procedures of control are set by higher management.Internal control ensure …

Reconstructing Corporate Capital Structure

Globalization of business, revolution of Information and Communication Technology (ICT), changing in Govt. regulations, impact of prices and fluctuation in foreign currencies rates, requirement of funding for business expansion, all these factors compelling the corporate world to change and reconstruct their capital structure. Companies often change capital structure by issuing new shares through Initial Public Offer (IPO) usually with Bank's joint venture. Shares sometime issue on discount, means below face value, or by purchasing of its own shares from stock market.Amalgamation is one of the common technique for alteration of capital structure. It is a process in which two companies combines together and form new company with new funding, new resources for expansion of business. Both companies (Amalgamating and Amalgamated) assets and liabilities are revalued and restated in order to represent true financial position. The reason for amalgamation may be to expand business horizo…