The term business is very commonly known to all of us but let us know it little deeper.
A Business is an individual or group of individuals joining as an entity and engaging in commercial, industrial or professional activities in order to earn profit. Goods or services are exchanged for money.
Every business requires some money to start which is called an investment or in other words capital for the business.
A business needs to have enough customers to whom your products or services can be sold on consistent basis. The area where the customers are placed is called as Market.
People who buys your products or services on a regular basis are called your Customers.
Profit is nothing but the money earned in excess to what you have expended. If you are spending more than what you are earning then it is called Loss.
People who are engaged in similar business of yours and exists in your market area are called your Competitors.
People to whom you sell your products or services and from whom you have to receive entire or some portion of money are called your Debtors.
People from whom you purchase products or services and to whom you have to pay the entire or some portion of money are called your Creditors.
Whether we do a part time work or home based job or a business all the above terms shall be applicable as it is.
Moms should know these basic business terms to show others that she is engaged in business.
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