Forms of Business

In accounting business refers to an organization which carries out activities such as purchasing goods and services from other businesses or manufacturing goods and services by its own and then selling them to consumers with an intention that the business earns profit thus increasing the wealth of the owner(s) of that business.


Business can be owned by one person, or by a small group of people who have agreed to share profits, or by tons of people who own small portion of the business. Thus, according to number of owners, businesses can be classified as follows:

Written by Obaidullah Jan, ACA, CFA <--- Hire me on Upwork