Introduction to Business

4072 words 17 pages
Introduction to Business

Business plays a major role within our society. It is a creative and competitive activity that continuously contributes to the shaping of our society.
By satisfying the needs and wants people cannot satisfy themselves, businesses improve the quality of life for people and create a higher standard of living.
It is a way for individuals to provide goods and services to consumers, and at the same time, produce a profit for themselves. Businesses are not only important because they provide goods and services for consumers, but they also improve the economy and increase jobs for people within society which is an additional fact producing a higher standard of living. To measure our societies standard of living,
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Communist and socialist systems seem to be adopting many capitalists views and ideas. It is up to you to decide which system you prefer, but the United
States' system of capitalism seems to be working adequately and positively. It is based on the principles of private enterprise and modified capitalism.

There are many forms of business within our economic system but they are all arranged in three major categories. These three categories are sole proprietorships, partnerships and corporations. Within a sole proprietorship, one entrepreneur assumes all the risks of the business, but at the same time, keeps all of the profits. In just this one simple sentence we become aware of the obvious fact that along with it's advantages come many disadvantages. A sole proprietor, on one hand, makes his own decisions and pays only one tax for himself and the business. In addition, setting up a business for a sole proprietor is much simpler under the law compared to the other two types of businesses. However, the sole proprietor has unlimited liability and complete responsibility to the business. He or she must assume all of the risks and often must contribute from his own savings in order to prosper or just simply exist. A sole proprietor must also bring the natural resources, human resources and capital together by himself in order to run the business and produce goods and services. Because of it's difficulty to raise funds and grow, sole

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