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In economics, the business is an organization that sells goods or services to consumers or other businesses, to earn a profit. Historically the word business from the United Kingdom business, from basic word busy which means  "busy " within the context of the individual, the community, or the community. In a sense, been busy working on the activity and jobs that bring in profits.

Hughes and Kapoor stated that business is an activity organized individuals to produce and sell goods and services in order to gain an advantage in meeting the needs of the community.

Business Definition [Basic Functions and Classification]

Can thus be taken deal that business is understanding all the total effort that consists of various aspects of human activity include agriculture, manufacturing, construction, distribution, transport, communications, services and Government sectors others. Business activity is making and selling physical products or services to the public as consumers.

The basic functions of the business is:
  • Raws Acquiring Materials
  • Manufacturing The Raw Materials Into Products
  • Distributing Products to Consumers

The basic functions of the business such as mentioned above only concerns the 3 things only, but in its development business is always evolving to follow the progress of technology is also a type of community needs as a consumer.

Business classification

Next you must know that a business is classified based on its kind.

Farms of agro business Sector > = include agriculture, forestry, animal husbandry, fishery, vegetables, fruits and others.

Raw Material Production effort = > e.g. moving in bidag forestry, mining, marine and freshwater fisheries, rubber and others. In contrast to agricultural businesses whose products are consumed directly, these raw materials production intended to be processed again.
Factory/manufacturing business = Business Continuance > raw materials, this business of processing raw materials into materials so.

The construction effort = > move in the areas of development, such as construction of buildings, highways, etc.

Trading business large and Small Trade = > engaged in trade, as intermediaries between producers and consumers.

Business transportation and communication transportation Business helped > = mobility society also channeling goods from manufacturers to wholesalers to the consumer. So with the communication such as the telephone, radio, television and other communication makes business and society to be effective and efficient.

Endeavour financial, insurance and Real Estate Business financial > = generally gives ease in terms of capital, credit insurance helps reduce the risk of business and real estate communities, while providing a healthy occupancy planning with repayments for the community.

Service = > service company is a business unit that its activities producing products that are intangible (services), with the aim to gain profit or advantage. Or service companies can be defined also as a company selling services that it manufactures, aims to meet the needs of the consumer and benefit.

Government = > Government as the largest buyer of goods and services take the biggest role in the economy. Business Government absorbs labor and produce products for the benefit of society and the State itself.
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