Types of BusinessPeople engaged in business for earning a livelihood are involved in various types of business activities. Some buy and sell goods, some manufacture products for sale, while others provide repair services for customers’ items.Businesses can be categorized into three types :
1. **Trading Business**
2. **Service Business**
3. **Manufacturing Business**
#### 1. Trading Business :
A trading business involves purchasing ready-made goods from manufacturers, wholesalers, or other intermediaries and selling them to customers. In this type of business, no changes are made to the quality or form of the products. Examples include grocery stores, pharmacies, clothing stores, and general stores. Trading businesses can operate on a retail or wholesale basis.
#### 2. Service Business :
A service business involves earning income by providing services or changing the quality of products. For example, a television or radio repair technician uses technical knowledge and tools to fix broken devices and earns a fee for the service. Other examples include hotels, restaurants, transportation services, travel agencies, and photocopying services.
#### 3. Manufacturing Business :
A manufacturing business involves using machinery and technology to transform raw materials into new products. Raw materials are altered through the production process and sold as finished products. Examples include furniture made from wood, flour from wheat, cabinets from metal sheets, and pens from plastic pellets. Manufacturing businesses are also known as industries. In essence, the type of business depends on the specific activities involved.### Organizational Structure of Businesses:Businesses can vary in size from small to large. The legal organizational structures considered suitable for businesses are:
1. **Sole Proprietorship**
2. **Partnership**
3. **Joint Stock Company**
4. **Co-operative Society**
5. **State Business**
#### 2. Partnership Business :
In general terms, a partnership business involves two or more individuals voluntarily entering into a contract to form and manage a business for profit, in accordance with the country’s laws.In a broader sense, a partnership business is formed when at least two and up to twenty individuals (or up to ten in banking businesses) agree to invest capital and share profits. In Bangladesh, according to Section 4 of the Partnership Act of 1932, a partnership is defined as the relationship among persons who have agreed to share profits of a business carried on by all or any one of them acting for all. Each participant is known as a partner, and collectively, they run a partnership business.
#### 3. Joint Stock Business :
In general terms, a joint stock business involves forming and managing a business by jointly investing capital according to company law.In a broader sense, a joint stock business is established when individuals voluntarily invest capital to form and operate a business under specific laws, aiming for profit.According to Section 2(1)(g) of the Companies Act of 1994, a company is defined as one formed and registered under the Companies Act or an existing company.The total capital of a company is divided into small parts called shares. Shareholders are the owners of the company. There are two types of joint stock companies:-
**Private Limited Company**
**Public Limited Company**
#### 4. Co-operative Society :
In general terms, a co-operative society is an organization formed by individuals to achieve economic benefits through collective efforts.In a broader sense, a co-operative society is an organization formed by low-income individuals to improve their economic conditions through voluntary collective action.According to Mr. Henry Calvert, “A co-operative is an organization where individuals voluntarily come together on an equal basis to safeguard their economic interests.”Poor or similarly skilled individuals in society form co-operative societies based on mutual understanding, cooperation, and equal rights. A co-operative society must have at least ten members. A member may purchase multiple shares but can cast only one vote. In Bangladesh, co-operative societies are formed and operated under the Co-operative Societies Act of 2001 and the Co-operative Societies Rules of 2004.
#### 5. State Business :
A state business refers to an enterprise whose management and ownership are under the government, either because it was established by the state or later nationalized. The primary goal of a state business is to promote public welfare, with the state being the owner. Such businesses are managed and controlled by government officials and employees. They are established through the passage of bills in the National Parliament. In essence, state businesses are created with consideration for public welfare and interests. Examples include DESCO, WAPDA, BTCL, Roads and Highways, and fertilizer factories.
