Business Definition Series – business

When people talk about business, companies, types of taxes or legal questions, I realize that sometimes they don’t know the exact meaning of each definitions. Or they mix up notions making difficult the life of their CPA or getting false information from the lawyer. In order to help seeing clear Business Management Hungary starts a series about the most commonly used definitions in short posts. Please welcome: Business Definition Series! … And in the end: surprise!

Today’s word is business. Looks to be easy, and really: it’s not too complicated. But very sophisticated. The word „business” became a frequently used one in our every day life. Business, business man, business management, start-up business, doing business … let’s talk about business a little bit.


First things first, what we should think on when it comes to business? What is it? By the definition from Wikipedia:

This word, also known as an entreprise or a firm, is an organization involved in the trade of goods, service both to consumers. Businesses are prevalent in capitalist economies, where most of them are privately owned and provide goods and services to customers in exchange for other goods, services or money.

They may also be not-for-profit or state-owned. One owned by multiple individuals may be referred to as a company.

All kinds require some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit.

She can refer to a particular organization or to an entire market sector, e.g. “the music business”.

Forms of “firm” ownership vary by jurisdiction, but several common forms exist:

-sole partnership
– partnership
– corporation
– cooperative

In Hungary:

-sole entrepreneurship
-limited partnership
-limited company, limited liability company
-incorporated company (joint stock company)

And we could go on with the notions but it’s not our job as for now.
Well we see that it is mainly an alternative or synonim of company or firm. But does she have other meaning? Of course!

During the everyday conversation we use business for any kind of activity (work?) from what we expect money, profit. I have seen a picture somewhere what I do not find so I drew it:




This is how I could explain for visuals what this notion really means.

In the begenning I have mentioned that there would be a surprise in the end. Well, like I told already I like quotes. So in the Business Definition Series in the end I will share a quote referring to the specific word I explain.

Here is the „quote of the day”:

Let’s be honest. There’s not a business anywhere that is without problems. Business is complicated and imperfect. Every business everywhere is staffed with imperfect human beings and exists by providing a product or service to other imperfect human beings.

(Bob Parsons)


Business Management Hungary


published on LinkedIn 16/09/2015 by Business Management Hungary