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Business Activity

Pay Close Attention to Business Activity

Pay Close Attention to Business Activity

Business activity, in general, refers to the overall actions which a given business or corporation might take in the course of carrying out its goals. Business activity might cover a number of different elements of business, such as buying some form of asset or property, selling some form of asset or property, investing in another company or property, and renting out property.
Business activity is a very general term and refers to no specific element of these activities. The activities which any given business performs on a day-to-day basis make up that business’ business activity.
Most businesses must keep records of some kind of all of their business activity, as it is important that businesses be able to identify their costs and their revenue sources. This means that accounting for business activity is one of the most important functions of any given business. Furthermore, in many countries, such an accounting of business activity must be submitted to the Government for review and determination of taxes.
For example, a business activity statement must be submitted to the Government in Australia by every business. A business activity statement states the overall income of the business through its business activity. The purpose of this business activity statement is to facilitate the determination of appropriate taxes for the company based on its business activity.
Many nations require some similar form of a business activity statement for their tax departments with a full accounting of the various kinds of business activity undertaken by that business.

The Functions of a Business Operations

The Functions of a Business Operations

Business operations are the basic activities and operations of a business’ function. A business operation is considered something entirely different from a business project, as a business operation concerns basic day-to-day functioning for generating profit and revenue, while a project is an overall task which will eventually be completed and which need not be dealt with any further beyond that point.
A business operates generally in terms of three primary functions: generating income for the business, making business property and assets more valuable, and ensuring that the value and income of the business so far is unlikely to be lost. Any given business operation, then, will likely be focused on one of these three core principles.
For example, a business operates by attempting to generate some source of recurring income as a matter of course in its business operation. This is because a business which functions solely on large bursts of income from individual projects will likely falter and fail. On the other hand, a business which operates by consistently earning income, whether from some constant stream of revenue or from a large number of different projects which are all generating bursts of revenue at such a rate that it is in effect a constant stream, will likely do well.
Thus, these basic elements of business operation are likely to be found across all businesses. Although there will be exceptions within how a business operates, the fundamental core of most business operations will lie on these constant procedures.

Organization In Depth

Organization In Depth

An organization does not have a clear or specific legal or business definition. The term is used in reference to a relatively nebulous notion of a group of people who have organized together in order to accomplish some kind of goal or goals on a consistent, continuous basis, instead of for a one-time purpose. Organizations can thus be anything, from Government agencies to groups of friends working together to official business companies.
An organization is generally defined in terms of its constituent parts in that an organization is defined by those individuals and groups who are not members, as much as it is defined by those who are. Furthermore, an organization is characterized by the ways in which the members of the organization are able to communicate with and contact one another and by the means through which the members of the organization produce change, especially in terms of how that organization is spurred on to produce change by external events.
Organizations are also most often defined as having some form of management structure which guides the organization as a whole and which then provides roles for those individuals within the organization. Organizations are not strictly defined entities, however, and an organization all on its own would likely receive no clear legal status unless it fit into another category of structure.
The concept of organization which is at the core of forming organizations is critical for any company. Determining the exact structure of the company, including the elements discussed above, such as communication and power to create change, is key for the company.

Association At A Glance

Association At A Glance

Association, as a term, can sometimes carry stronger legal connotations than does the term “organization,” though this may vary from case to case. An association in a more strictly defined sense is an assemblage of individuals who have joined together voluntarily in order to accomplish a particular goal for the association in question. Associations do sometimes require some form of legal identification and authorization to function, which means that associations must often conform to the rules of the particular jurisdictions in which they are being formed.
For example, a newly formed association must, in some jurisdictions, register with the Government such that its existence is on record and can be officially searched by the public. In many jurisdictions, such registration and conformance to the rules of the jurisdiction can grant a voluntary association a legal existence separate from that of its members, meaning that the association might be held responsible, even as the members are not, individually.
Otherwise, however, an association might involve every single member of the association being responsible for the actions of the association, meaning that if the association as a whole makes expenditures or purchases, then the association’s members are all responsible for paying the costs of those purchases.
The issue of whether or not an association is treated as an unincorporated, non-legal entity or as an incorporated legal entity is dependent upon the rules of the nation in which it is originally formed. Partnerships are a type of association which can be formed, as are non-profit organizations and corporations.

Is it a Collective or a Cooperative?

Is it a Collective or a Cooperative?

A collective and a cooperative are slightly different legal entities. A collective is an overarching term for any group of legal entities working together because of some shared goal or interest. A cooperative, on the other hand, is a collective specifically formed for mutual benefit, generally of an economic type, such as making money or saving money by working together.
Collectives do not, of necessity, have to be focused on economic benefit and can instead be focused on political power, for example. A cooperative can theoretically include other elements of benefit, such as social or cultural benefit in addition to economic benefit, but most often the economic benefit is the key underlying point of a cooperative and the unifying factor.
A cooperative or a collective will involve members working together to achieve their goal without a clear necessary managerial structure, meaning that each individual or entity within collectives could likely be considered on equal status and footing as all the others. This understanding of a collective also applies to a cooperative in that those individuals who are working within a cooperative are all likely on the same footing, particularly as the individuals working within a cooperative are also likely the individuals who are benefiting from the purpose of the cooperative.
Collectives and cooperatives are fundamentally controlled and owned jointly and democratically, which is part of the factors that distinguish collectives from other business organizations and entities. However, a cooperative is still technically considered a business organization.

Guide to Retail Business

Guide to Retail Business

Retail specifically refers to the sales practice of selling ready-for-consumption goods directly to the consumer or the user. The key aspects of a retailer are that the goods are immediately available for sale from the retailer and that the retailer directly sells to the consumer.
If a sale were to take place between party A and party B, for example, where party B bought a good from party A, then party A would not be a retailer, and this first sale would not be a retail sale, assuming that party B was not a consumer. If party B were then to sell the good obtained from party A to a consumer, however, then party B would be a retailer and the sale would be a retail sale.
A retailer might be a grocery store or any of the relatively large department stores which exist all throughout the modern world, such as Target or K-Mart. A retailer is often simply referred to as a shop for the purpose it serves, which is very basic in the every day lives of consumers. A retailer might also, however, be a large scale utility company, such as an electric power company, which fits the general definition as they sell directly to the consumer. Nevertheless, most retail stores are simply large department stores which might sell clothes, groceries, or other goods.
To function properly, a retailer requires a distributor. In the above example, party A, which sold to retailer party B, would be a distributor. The distributor sells goods to the retailer at a certain price so that the retail store may then sell those goods to the consumers. The price at which the distributor sells to the retailer, however, is generally lower than the price at which the retailer sells to the customer so that the retailer may make a profit.

Vendor Explained

Vendor Explained

“Vendor” is a very general term, referring only to the party within a given transaction that sells goods to another party. This is significant as a vendor is only referenced in terms of a buyer. A retailer might be a vendor in some cases, even though it’s selling directly to the consumer, just as a company which sells to another company might be a vendor.
Often vendors are considered to be the intermediaries within the supply chain of business, meaning that vendors are considered to be the groups that sell items to a retailer, for example, so that the retailer might then sell those items to the consumer. However, vendor is an open enough term that it can be used for those situations and more.
A vendor might be both manufacturer and vendor, which means that the vendor might manufacture the goods which it then sells. According to many definitions of a vendor, a vendor will manufacture inventoried items and sell those items directly to consumers.
Vendors can often be found on an organized list of vendor information and vendor ID numbers. Vendor ID numbers are usually assigned to vendors simply to keep track of the many different vendors that might be available in a given field. In most cases, vendor ID numbers will remain consistent for that vendor, even though that vendor might sell to multiple buyers. A vendor ID number is primarily a tool for the proper conduct of business, although sometimes it might be used to assist with such things as a quality audit of the vendor.

Definition of Manufacturer

Definition of Manufacturer

A manufacturer is one of the most critical parts of the entire supply process that keeps business functioning properly. A manufacturer processes raw materials via some form of mechanism or device and creates products for sale. Manufacturers might, in some cases, then directly sell those products on to a buyer, but in many other cases, manufacturers sell those products to another vendor or distributor.
The products created by the manufacturers might go through a number of distributors before they ultimately meet the hands of the consumers. Part of the reason for why manufacturers are often not the companies which sell directly to the consumers is the added costs of distribution and marketing, which a manufacturer would not have to take upon itself if it used a retailer.
Manufacturer, as a term,  generally refers to manufacturing plants which can mass produce some form of product, even though the basic term can be used to apply to a craftsman who manufactures hand-crafted products as much as it can be applied to a company which churns out advanced electronics on some kind of assembly line. Manufacturers in capitalistic societies, such as America, usually function in this latter fashion, producing mass quantities of goods for consumption by the public.
A manufacturer will still usually be under some level of Government regulation, even though this Government regulation may not be particularly intense. This is likely in part because the Government will have safety standards to which manufacturers will have to conform, and it will also be likely because the Government will have environmental standards to which manufacturers will have to conform.

Service Business Explained

Service Business Explained

A service business does not sell products, but instead sells some kind of service to its customers. Service businesses might be aimed at selling services to consumers or they might be aimed at selling services to other businesses.
A service business might also exist within a larger business structure, as it is possible for a business structure to be primarily focused on selling products, while then having a service business branch within the overall structure to help provide some kind of service associated with the products being sold. For example, a computer business might have a service business branch which acts as a technical support service for customers.
Service businesses, of necessity, have a relatively different set of principles and requirements than do product-based businesses. A service business, for example, would not have a clear marketable product to display to potential buyers. Instead, a service business would likely have to display good reviews from prior clients, as well as a satisfactory customer service element of the business to ensure that customers are happy with the entirety of the service business.
Service businesses still form a very significant part of the overall economy, when one considers the sheer variety of businesses which fall under the overall purview of service businesses. Lawyers, for example, qualify as one kind of service business in that they provide a service to their clients without producing an actual clear cut physical product.
Similarly, those who might market any special skills they have to students, such as music teachers, are inherently members of a service business.