Legal Definitions - business

Business

A business refers to any organized activity or enterprise undertaken by an individual or a formal entity, such as a company or organization. While its primary purpose is often to generate revenue and profit through the provision of goods or services, the term also applies to structured activities carried out by non-profit organizations to achieve their specific charitable, social, or public service missions, even without the intent of financial gain for owners or shareholders. In essence, it's a systematic effort to engage in trade, a profession, or any commercial endeavor.

• Example 1: A Software Development Startup

  A small team of engineers forms a company to create and sell mobile applications. They invest their time and resources into developing innovative software, marketing it to consumers, and charging a fee for downloads or subscriptions, with the explicit goal of generating revenue and making a profit.

  This illustrates the definition because it's an organized activity undertaken by an entity (the startup company) that provides a service (software) with the clear intent of financial gain through sales.

• Example 2: A Local Artisan Coffee Shop

  An individual opens a coffee shop, purchasing beans, hiring baristas, and selling specialty coffee drinks and pastries to the community. They manage inventory, set prices, and aim to attract customers to ensure the shop is financially sustainable and profitable.

  This illustrates the definition because it's an organized commercial endeavor by an individual that provides goods (coffee, pastries) and services (customer experience) with the intention of earning a livelihood and making a profit.

• Example 3: A University Bookstore Operated by a Non-Profit University

  A large university, which is a non-profit educational institution, operates a bookstore on campus. The bookstore sells textbooks, school supplies, and merchandise to students and faculty. While the bookstore aims to cover its costs and may generate a surplus, its primary purpose is to serve the academic community and support the university's educational mission, rather than to create profit for private owners.

  This illustrates the definition because it's a structured activity undertaken by a non-profit entity (the university) that provides goods and services in a commercial manner. Even though its ultimate goal isn't private profit, its operation as a systematic enterprise to fulfill a specific organizational mission falls within the broader understanding of a "business."