What is Business?

A Business is an economic activities that includes production, manufacturing and distribution of goods and services to satisfy the need of society.

Business is a trade-related activity that involves the purchase and sale of goods or services.

Business is done to earn profits and therefore it is referred to as a source of income.

Types of Business

There are different types of business engaged in different sectors of the economy as discussed below:

1. Service: These are the businesses which deal in providing of services only. They do not produce or manufacture any physical product.
   Example: Information Technology, Banking, Transportation, Media, Education, Healthcare, Insurance etc.
2. Manufacturing: These are the businesses which deal in the production of goods (physical products). Production of goods requires the conversion of raw material, labour, capital and other resources into the finished goods. These finished goods are then offered to the end-consumers.
   Example: Apparels and accessories, automobiles, spare parts etc.
3. Merchandising: These are the businesses that do not produce the goods themselves but purchase the goods for selling it to end-consumers. They act as the link between the producers and consumers.
   Example: Retail stores, departmental stores and distributors.
4. Hybrid: Hybrid businesses are the mix of two or more types of businesses. They are engaged in service as well as manufacturing business.
   Example: In the case of restaurants, they offer services in the form of a dining experience and food served is the product.