Definition of Business and Enterprise
Author: Alice
The concepts of business and company are somewhat subjective, each employer has its own concept of what a business can mean a company, for example, some are different concepts, while others simply mean the same thing.
Let’s look at what is in our opinion the definition of a business and an enterprise, then, what we think is the difference between them.
Business
A business is an activity, system, method or way to get money in exchange for providing some form of benefit to others.
An example would be the creation of a website where we offer free advice on business, and earn money by advertising we place on it. Another example would be applying for funding, travel to a foreign country, buying a used car lot and then sell them in one’s country.
But a business is an entity created or organized in order to obtain money for production activities (for example, a furniture factory), marketing (for example, a car parts store or a distributor) or services (for example, a restaurant or a garage), to benefit others.
Company
Now for the definition of enterprise: an enterprise is an entity created or organized in order to obtain money for production activities, trading or services that benefit others.
As we can see the difference between a business and a company lies in the first definition given of a business, ie a business is similar to a company, with the difference that a business can also include activities, systems or methods to obtain money in exchange for providing some benefit.
An example that could plot the difference between these concepts is that of a business that involves buying a house and then make money by renting or selling at a higher price, and a company engaged in buying homes and then rent or sell at a higher price.
In the first case, the business of buying a home and then rent it or sell it, is a method or way to earn money for providing a benefit to others, while the company dedicated to buy homes and then rent or sell is an entity formed to conduct this type of business (real estate company).
These concepts can be confused, thinking that a business is a small company (which is commonly thought), however, this is not correct, as in the example, the business is a method, while the company is an entity that these methods. Besides, taking into account the second concept that we in a business, real estate company could also be considered as a business, in this case, a real estate business.
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