1. One of the most popular categories of service enterprises is consulting. By detecting issues and making recommendations for fixes, the consultants provide businesses and individuals with their knowledge and experience in order to help them perform better. The consulting services might be in a variety of industries, including technology, marketing, finance, and management. 2. Beauty Salon
Beauty salons are successful businesses because they provide clients cosmetic procedures and services. The salon provides a variety of services, including hair cuts, hair styling, cosmetics applications, facials, and nail care. People are constantly looking for ways to improve their appearance and wellbeing, making it a lucrative industry. 3. Cleaning Services
Another example of a service business is cleaning services. The cleaning businesses offer cleaning services for both residential and commercial locations. Cleaning of houses, businesses, carpets, windows, and other spaces may be included in the services. Services in the fields of education and training are further examples of service firms. These companies provide individuals who desire to acquire new skills or hone their current ones via courses, seminars, and workshops. The courses may cover a range of topics, including business management, computer technology, language study, and personal growth. Business Classifications based on Activities
1. Industry: Manufacturing
Manufacturing companies are those that create tangible products. These companies create products using components or raw materials. The automotive, food, and apparel industries are a few examples of manufacturing enterprises.
2. Trading Businesses
Trading businesses are ones that merely purchase and resell products. These companies buy products from suppliers and then sell them to clients. Distributors, retailers, and wholesalers are a few types of trade companies. Businesses that offer clients intangible goods or services are referred to as service businesses. These companies provide knowledge, skill, and experience to meet clients’ needs. Consultancy firms, beauty parlors, cleaning services, and services for education and training are a few examples of service businesses. Accounting Business Classifications
Based on their legal form, firms can be divided into three categories in accounting: 1. Sole Proprietorship
A sole proprietorship is a company that is run by only one person. The owner has total control over the company and is responsible for all of its liabilities. The owner’s personal tax return includes a disclosure of the business income. 2. Partnership
A partnership is a company that is owned and run by two or more people. The partners split the company’s gains, losses, and risks. Each partner is personally responsible for the debts and liabilities of the partnership. The partners’ personal tax returns include a statement of the corporate income. 3. Corporation
A corporation is a company whose shareholders choose a board of directors to run it. The shareholders are not held personally accountable for the corporation’s debts and obligations since the corporation has a different legal identity from its owners. The corporation’s tax return details the business income.
The term “nature of business” describes the kinds of operations that a business performs to generate revenue. There are two categories for business nature:
1. Important Business The term “primary business” describes the primary pursuits that a company does in order to generate revenue. These actions have a direct bearing on the creation or marketing of goods or services. For instance, producing things is the main business of a manufacturing company.
2. Supplementary Business The operations a company conducts to assist its main business are referred to as secondary business. These actions have nothing to do with the manufacture or marketing of products or services. For instance, marketing and distribution may be a manufacturing company’s secondary business.