Business Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Business, written in plain English, along with examples of how it is used.
What is Business?
(n) Business is an activity undertaken for the purpose of making profit or adding wealth to a person or entity by resorting to financial transaction in order to get a margin of profit on such transactions. Activity not intended to get profit or margin and done to enjoy the pleasure is not a business
History and Definition of Business
Business activities can be traced back to ancient civilizations, where trades and transactions were conducted through bartering. As time passed, the concept of currency was introduced, and money became the standard medium of exchange. Today, business is a vital aspect of the global economy, and it is defined as an activity undertaken for the purpose of making a profit or adding wealth to a person or entity by resorting to financial transactions in order to get a margin of profit on such transactions.
In simpler terms, a business can be described as an organization that sells goods or services to customers in exchange for money. This organization can take on several legal forms such as a corporation, partnership, sole proprietorship, or a limited liability company.
Examples of Business
- A small business owner selling handmade candles at a local farmer's market
- A multinational corporation such as Apple Inc. selling electronic devices worldwide
- A sole proprietor offering pet grooming services out of their home
- A partnership between two lawyers offering legal services to clients
- An online retailer selling clothing and accessories through their website
Legal Terms Similar to Business
- Enterprise: A business organization engaged in industrial or commercial activities, especially for profit.
- Commerce: The activity of buying and selling goods and services, especially on a large scale.
- Industry: A particular form of commercial or economic activity that involves the manufacturing of goods and services.