Difference between revisions of "Business"

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[[File:Business-model-canvas.png|400px|thumb|right|[[Business Model Canvas]]]][[Business]] is some sequence of [[enterprise effort]]s undertaken in order to make profit and/or obtain other gains. ''Business'' can be an individual's regular [[occupation]], profession, or trade. This can also be the practice of making [[money]] by selling [[product]]s, which can be purchased, produced, or both.
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[[File:Business-model-canvas.png|400px|thumb|right|[[Business Model Canvas]]]][[Business]] is some sequence of [[enterprise effort]]s undertaken in order to make profit and/or obtain other gains.
  
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Colloquially, a for-profit [[legal entity]] is often called a ''business''. However, [[legal entity|legal entiti]]es are usually engaged in more than one ''business''; vice versa, some [[organization]]s distinguish several [[strategic business unit]]s within one [[enterprise]].
 
  
 +
==Definitions==
 +
According to the [[BABOK Guide|BABOK Guide (3rd edition)]],
 +
:[[Business]] (business world). An economic system where any commercial, industrial, or professional activity is performed for profit.
 +
 +
===Way of making one's living===
 +
:''Business'' can be an individual's regular [[occupation]], profession, or trade.
 +
 +
===Way of making money===
 +
:''Business'' can also be the practice of making [[money]] by selling [[market exchangeable]]s, which can be purchased, produced, or both.
 +
 +
===For-profit entity===
 +
:Colloquially, a for-profit [[legal entity]] is often called a ''business''. However, [[legal entity|legal entiti]]es are usually engaged in more than one ''business''; vice versa, some [[organization]]s distinguish several [[strategic business unit]]s ([[strategic business unit|SBU]]'s) within one [[enterprise]].
 +
 +
==Startup==
 +
:''Main wikipage: [[Startup business]]''
 +
 +
Startup business (or, simply, startup). (1) A business in its search of its business model, which usually means ways not to depend on external funding; (2) An enterprise in the early stages of operations. Startups are usually seeking to solve a problem of fill a need, but there is no hard-and-fast rule for what makes a startup since situations differ. Often, a company is considered a startup until they stop referring to themselves as a startup.
 +
 +
===Canvas===
 +
:''Main wikipage: [[Business Model Canvas]]''
 +
 +
===Capital===
 +
When businesses need to raise money (called [[Capital (economics)|capital]]), they sometimes offer [[Security (finance)|securities]] for sale.
 +
 +
Capital may be raised through private means, by an [[initial public offering]] or IPO on a [[stock exchange]], or in other ways.
 +
 +
Major stock exchanges include the [[Shanghai Stock Exchange]], [[Singapore Exchange]], [[Hong Kong Stock Exchange]], [[New York Stock Exchange]] and [[NASDAQ]] (the USA), the [[London Stock Exchange]] (UK), the [[Tokyo Stock Exchange]] (Japan), and [[Bombay Stock Exchange]] (India). Most countries with capital markets have at least one.
 +
 +
Businesses that have gone public are subject to regulations concerning their internal governance, such as how executive officers' compensation is determined, and when and how information is disclosed to shareholders and to the public. In the United States, these regulations are primarily implemented and enforced by the United States Securities and Exchange Commission (SEC). Other western nations have comparable regulatory bodies. The regulations are implemented and enforced by the China Securities Regulation Commission (CSRC) in China. In Singapore, the regulatory authority is the Monetary Authority of Singapore (MAS), and in Hong Kong, it is the Securities and Futures Commission (SFC).
 +
 +
The proliferation and increasing complexity of the laws governing business have forced increasing specialization in corporate law. It is not unheard of for certain kinds of corporate transactions to require a team of five to ten attorneys due to sprawling regulation. Commercial law spans general corporate law, employment and labor law, health-care law, securities law, mergers and acquisitions, tax law, employee benefit plans, food and drug regulation, intellectual property law on copyrights, patents, trademarks, telecommunications law, and financing.
 +
 +
Other types of capital sourcing include crowdsourcing on the Internet, venture capital, bank loans, and debentures.
  
 
==Model==
 
==Model==
 
:''Main wikipage: [[Business model]]''
 
:''Main wikipage: [[Business model]]''
  
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[[Startup business]]
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===Products===
 +
:''Main wikipage: [[Market exchangeable]]''
 +
 
 +
:[[File:Product.png|400px|thumb|right|[[Marketable]]]]A [[market exchangeable]] is any item of goods, services, or any intangible that can be sold.
  
 
===Processes===
 
===Processes===
 
:''Main wikipage: [[Business process]]''
 
:''Main wikipage: [[Business process]]''
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[[natural business year]]
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[[natural business year]], [[business process management]][[File:Process.png|400px|thumb|right|[[Process]]]]
  
 
===Development===
 
===Development===
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===Transactions===
 
===Transactions===
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:''Main wikipage: [[Business transaction]]''
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:''Main wikipage: [[Market transaction]]''
  
 
===Policies===
 
===Policies===
 
:''Main wikipage: [[Business rule]]''
 
:''Main wikipage: [[Business rule]]''
  
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==Model change==
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==Strategy==
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===Competition===
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:''Main wikipage: [[Competitive strategy]]''
 +
 
 +
===Behavior===
 +
:''Main wikipage: [[Business strategy]]''
 +
 
 +
[[business goal]], [[business objective]], [[business value]]
 +
 
 +
==Analysis for a change==
 
:''Main wikipage: [[Business analysis]]''
 
:''Main wikipage: [[Business analysis]]''
  
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===Requirements===
 
===Requirements===
 
:''Main wikipage: [[Business requirement]]''
 
:''Main wikipage: [[Business requirement]]''
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[[File:Requirement-lifecycle.png|400px|thumb|right|[[Requirement lifecycle]]]]
  
 
===Legal regulations===
 
===Legal regulations===
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[[business law]]
 
[[business law]]
  
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==Administration==
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A very detailed and well-established body of rules that evolved over a very long period of time applies to commercial transactions. The need to regulate trade and commerce and resolve business disputes helped shape the creation of law and courts.
−
''Main wikipage: [[Business administration]]''
 
−
 
 
−
===External research===
 
−
''Main wikipages: [[Business opportunity]] and [[Business threat]]''
 
−
 
 
−
===Internal research===
 
−
''Main wikipage: [[Business intelligence]]''
 
−
 
 
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===Strategy===
 
−
:''Main wikipage: [[Business strategy]]''
 
−
 
 
−
[[business goal]], [[business objective]], [[business value]]
 
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== Organization and regulation ==
 
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{{See also|Theory of the firm}}
 
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Most legal [[jurisdiction]]s specify the forms of ownership that a business can take, creating a body of [[commercial law]] for each type.
 
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The major factors affecting how a business is organized are usually:
 
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* '''The size and scope of the business firm''' and its structure, management, and ownership, broadly analyzed in the [[theory of the firm]]. Generally, a smaller business is more flexible, while larger businesses, or those with wider ownership or more formal structures, will usually tend to be organized as corporations or (less often) partnerships. In addition, a business that wishes to raise money on a [[stock market]] or to be owned by a wide range of people will often be required to adopt a specific legal form to do so.
 
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* '''The sector and country.''' Private profit-making businesses are different from government-owned bodies. In some countries, certain businesses are legally obliged to be organized in certain ways.
 
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* '''[[Tax advantage]]s.''' Different structures are treated differently in tax law and may have advantages for this reason.
 
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* '''Disclosure and compliance requirements'''. Different business structures may be required to make less or more information public (or report it to relevant authorities) and may be bound to comply with different rules and regulations.
 
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Many businesses are operated through a separate entity such as a corporation or a partnership (either formed with or without limited liability). Most legal jurisdictions allow people to organize such an entity by filing certain charter documents with the relevant Secretary of State or equivalent and complying with certain other ongoing obligations. The relationships and legal rights of [[shareholder]]s, limited partners, or members are governed partly by the charter documents and partly by the law of the jurisdiction where the entity is organized. Generally speaking, shareholders in a corporation, limited partners in a limited partnership, and members in a limited liability company are shielded from [[Legal liability|personal liability]] for the debts and obligations of the entity, which is legally treated as a separate "person". This means that unless there is misconduct, the owner's own possessions are strongly protected in law if the business does not succeed.
 
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Where two or more individuals own a business together but have failed to organize a more specialized form of vehicle, they will be treated as a general partnership. The terms of a partnership are partly governed by a partnership agreement if one is created, and partly by the law of the jurisdiction where the partnership is located. No paperwork or filing is necessary to create a partnership, and without an agreement, the relationships and legal rights of the partners will be entirely governed by the law of the jurisdiction where the partnership is located. A single person who owns and runs a business is commonly known as a ''sole proprietor'', whether that person owns it directly or through a formally organized entity. Depending on the business needs, an adviser can decide what kind is proprietorship will be most suitable.
 
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A few relevant factors to consider in deciding how to operate a business include:
 
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# General partners in a partnership (other than a limited liability partnership), plus anyone who personally owns and operates a business without creating a separate legal entity, are personally liable for the debts and obligations of the business.
 
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# Generally, corporations are required to pay tax just like "real" people. In some tax systems, this can give rise to so-called [[double taxation]], because first the corporation pays tax on the profit, and then when the corporation distributes its profits to its owners, individuals have to include dividends in their income when they complete their personal tax returns, at which point a second layer of income tax is imposed.
 
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# In most countries, there are laws which treat small corporations differently from large ones. They may be exempt from certain legal filing requirements or labor laws, have simplified procedures in specialized areas, and have simplified, advantageous, or slightly different tax treatment.
 
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# "Going public" through a process known as an [[initial public offering]] (IPO) means that part of the business will be owned by members of the public. This requires the organization as a distinct entity, to disclose information to the public, and adhering to a tighter set of laws and procedures. Most public entities are corporations that have sold shares, but increasingly there are also public [[Limited liability company|LLC's]] that sell units (sometimes also called shares), and other more exotic entities as well, such as, for example, [[real estate investment trust]]s in the US, and [[unit trust]]s in the UK. A general partnership cannot "go public".
 
−
 
 
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=== Commercial law ===
 
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{{Main|Corporate law}}
 
−
A very detailed and well-established body of rules that evolved over a very long period of time applies to commercial transactions. The need to regulate trade and commerce and resolve business disputes helped shape the creation of law and courts. The [[Code of Hammurabi]] dates back to about 1772 BC for example, and contains provisions that relate, among other matters, to [[Freight transport|shipping]] costs and dealings between merchants and [[broker]]s.<ref>{{cite web|url=http://mcadams.posc.mu.edu/txt/ah/assyria/hammurabi.html|title=Law Code of Hammurabi}}</ref> The word "corporation" derives from the Latin ''corpus'', meaning body, and the [[Maurya Empire]] in Iron-Age India accorded legal rights to business entities.<ref>{{cite web|url=http://www.law.yale.edu/documents/pdf/cbl/Khanna_Ancient_India_informal.pdf |title=The Economic History of the Corporate Form in Ancient India |author=Vikramaditya S. Khanna |deadurl=yes |archiveurl=https://web.archive.org/web/20131019095432/http://www.law.yale.edu/documents/pdf/cbl/Khanna_Ancient_India_informal.pdf |archivedate=2013-10-19 |df= }}</ref>
 
  
 
In many countries, it is difficult to compile all the laws that can affect a business into a single reference source. Laws can govern treatment of labour and employee relations, [[Health and Safety Executive|worker protection and safety]], discrimination on the basis of age, gender, disability, race, and in some jurisdictions, sexual orientation, and the minimum wage,  as well as [[Trade union|unions]], worker compensation, and working hours and leave.
 
In many countries, it is difficult to compile all the laws that can affect a business into a single reference source. Laws can govern treatment of labour and employee relations, [[Health and Safety Executive|worker protection and safety]], discrimination on the basis of age, gender, disability, race, and in some jurisdictions, sexual orientation, and the minimum wage,  as well as [[Trade union|unions]], worker compensation, and working hours and leave.
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Some businesses are subject to ongoing special regulation, for example, [[Public utility|public utilities]], investment securities, banking, insurance, [[broadcasting]], [[aviation]], and health care providers. Environmental regulations are also very complex and can affect many businesses.
 
Some businesses are subject to ongoing special regulation, for example, [[Public utility|public utilities]], investment securities, banking, insurance, [[broadcasting]], [[aviation]], and health care providers. Environmental regulations are also very complex and can affect many businesses.
  
−
=== Capital ===
+
==Administration==
−
When businesses need to raise money (called [[Capital (economics)|capital]]), they sometimes offer [[Security (finance)|securities]] for sale.
+
''Main wikipage: [[Business administration]]''
  
−
Capital may be raised through private means, by an [[initial public offering]] or IPO on a [[stock exchange]], or in other ways.
+
===External research===
 +
''Main wikipages: [[Business opportunity]] and [[Business threat]]''
  
−
Major stock exchanges include the [[Shanghai Stock Exchange]], [[Singapore Exchange]], [[Hong Kong Stock Exchange]], [[New York Stock Exchange]] and [[NASDAQ]] (the USA), the [[London Stock Exchange]] (UK), the [[Tokyo Stock Exchange]] (Japan), and [[Bombay Stock Exchange]] (India). Most countries with capital markets have at least one.
+
===Internal research===
−
 
+
''Main wikipage: [[Business intelligence]]''
−
Businesses that have gone public are subject to regulations concerning their internal governance, such as how executive officers' compensation is determined, and when and how information is disclosed to shareholders and to the public. In the United States, these regulations are primarily implemented and enforced by the United States Securities and Exchange Commission (SEC). Other western nations have comparable regulatory bodies. The regulations are implemented and enforced by the China Securities Regulation Commission (CSRC) in China. In Singapore, the regulatory authority is the Monetary Authority of Singapore (MAS), and in Hong Kong, it is the Securities and Futures Commission (SFC).
 
−
 
 
−
The proliferation and increasing complexity of the laws governing business have forced increasing specialization in corporate law. It is not unheard of for certain kinds of corporate transactions to require a team of five to ten attorneys due to sprawling regulation. Commercial law spans general corporate law, employment and labor law, health-care law, securities law, mergers and acquisitions, tax law, employee benefit plans, food and drug regulation, intellectual property law on copyrights, patents, trademarks, telecommunications law, and financing.
 
−
 
 
−
Other types of capital sourcing include crowdsourcing on the Internet, venture capital, bank loans, and debentures.
 
  
 
=== Intellectual property ===
 
=== Intellectual property ===
−
{{Main|Intellectual property}}
 
 
Businesses often have important "[[intellectual property]]" that needs protection from competitors for the company to stay profitable. This could require [[patent]]s, [[copyright]]s, [[trademark]]s, or preservation of [[trade secret]]s. Most businesses have names, logos, and similar branding techniques that could benefit from trademarking. Patents and copyrights in the United States are largely governed by federal law, while trade secrets and trademarking are mostly a matter of state law. Because of the nature of intellectual property, a business needs protection in every jurisdiction in which they are concerned about competitors. Many countries are signatories to international [[treaty|treaties]] concerning intellectual property, and thus companies registered in these countries are subject to national laws bound by these treaties. In order to protect trade secrets, companies may require employees to sign noncompete clauses which will impose limitations on an employee's interactions with stakeholders, and competitors.
 
Businesses often have important "[[intellectual property]]" that needs protection from competitors for the company to stay profitable. This could require [[patent]]s, [[copyright]]s, [[trademark]]s, or preservation of [[trade secret]]s. Most businesses have names, logos, and similar branding techniques that could benefit from trademarking. Patents and copyrights in the United States are largely governed by federal law, while trade secrets and trademarking are mostly a matter of state law. Because of the nature of intellectual property, a business needs protection in every jurisdiction in which they are concerned about competitors. Many countries are signatories to international [[treaty|treaties]] concerning intellectual property, and thus companies registered in these countries are subject to national laws bound by these treaties. In order to protect trade secrets, companies may require employees to sign noncompete clauses which will impose limitations on an employee's interactions with stakeholders, and competitors.
  
−
=== Trade union ===
+
==See also==
−
{{Main|Trade union}}
 
−
A trade union (or labor union) is an [[Political organisation#Labour unions|organization of workers]] who have come together to achieve common goals such as protecting the integrity of its trade, improving safety standards, achieving higher pay and benefits such as health care and retirement, increasing the number of employees an employer assigns to complete the work, and better [[working conditions]]. The trade union, through its leadership, bargains with the employer on behalf of union members ([[wikt: rank and file|rank and file]] members) and negotiates [[Labour and employment law|labor contracts]] ([[collective bargaining]]) with employers. The most common purpose of these associations or unions is "maintaining or improving the conditions of their [[employment]]".<ref name="Webb">{{cite book |last=Webb |first=Sidney |last2=Webb|first2= Beatrice |title=History of Trade Unionism |publisher=Longmans and Co. London |year=1920}} ch. I</ref> This may include the negotiation of [[wage]]s, work rules, complaint procedures, rules governing hiring, firing, and promotion of workers, benefits, [[Occupational safety and health|workplace safety]] and policies.
 
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==Related coursework==
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===Related lectures===
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*[[Enterprise Architecture Quarter]].  
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:*[[What Career Is]].
 +
:*[[Enterprise Architecture Quarter]].  
  
−
[[Category: Septem Artes Administrativi]][[Category: Articles]]
+
[[Category: CNM Cyber Orientation]][[Category: Septem Artes Administrativi]][[Category: Articles]][[Category: Business Analysis]]

Latest revision as of 17:32, 6 May 2023

Business Model Canvas

Business is some sequence of enterprise efforts undertaken in order to make profit and/or obtain other gains.


Definitions

According to the BABOK Guide (3rd edition),

Business (business world). An economic system where any commercial, industrial, or professional activity is performed for profit.

Way of making one's living

Business can be an individual's regular occupation, profession, or trade.

Way of making money

Business can also be the practice of making money by selling market exchangeables, which can be purchased, produced, or both.

For-profit entity

Colloquially, a for-profit legal entity is often called a business. However, legal entities are usually engaged in more than one business; vice versa, some organizations distinguish several strategic business units (SBU's) within one enterprise.

Startup

Main wikipage: Startup business

Startup business (or, simply, startup). (1) A business in its search of its business model, which usually means ways not to depend on external funding; (2) An enterprise in the early stages of operations. Startups are usually seeking to solve a problem of fill a need, but there is no hard-and-fast rule for what makes a startup since situations differ. Often, a company is considered a startup until they stop referring to themselves as a startup.

Canvas

Main wikipage: Business Model Canvas

Capital

When businesses need to raise money (called capital), they sometimes offer securities for sale.

Capital may be raised through private means, by an initial public offering or IPO on a stock exchange, or in other ways.

Major stock exchanges include the Shanghai Stock Exchange, Singapore Exchange, Hong Kong Stock Exchange, New York Stock Exchange and NASDAQ (the USA), the London Stock Exchange (UK), the Tokyo Stock Exchange (Japan), and Bombay Stock Exchange (India). Most countries with capital markets have at least one.

Businesses that have gone public are subject to regulations concerning their internal governance, such as how executive officers' compensation is determined, and when and how information is disclosed to shareholders and to the public. In the United States, these regulations are primarily implemented and enforced by the United States Securities and Exchange Commission (SEC). Other western nations have comparable regulatory bodies. The regulations are implemented and enforced by the China Securities Regulation Commission (CSRC) in China. In Singapore, the regulatory authority is the Monetary Authority of Singapore (MAS), and in Hong Kong, it is the Securities and Futures Commission (SFC).

The proliferation and increasing complexity of the laws governing business have forced increasing specialization in corporate law. It is not unheard of for certain kinds of corporate transactions to require a team of five to ten attorneys due to sprawling regulation. Commercial law spans general corporate law, employment and labor law, health-care law, securities law, mergers and acquisitions, tax law, employee benefit plans, food and drug regulation, intellectual property law on copyrights, patents, trademarks, telecommunications law, and financing.

Other types of capital sourcing include crowdsourcing on the Internet, venture capital, bank loans, and debentures.

Model

Main wikipage: Business model

Products

Main wikipage: Market exchangeable
Marketable
A market exchangeable is any item of goods, services, or any intangible that can be sold.

Processes

Main wikipage: Business process

natural business year, business process management

Process

Development

Main wikipage: Business development

Transactions

Main wikipage: Market transaction

Policies

Main wikipage: Business rule

Strategy

Competition

Main wikipage: Competitive strategy

Behavior

Main wikipage: Business strategy

business goal, business objective, business value

Analysis for a change

Main wikipage: Business analysis

Needs

Main wikipage: Business need

Requirements

Main wikipage: Business requirement
Requirement lifecycle

Legal regulations

Main wikipage: Commercial law

business law

A very detailed and well-established body of rules that evolved over a very long period of time applies to commercial transactions. The need to regulate trade and commerce and resolve business disputes helped shape the creation of law and courts.

In many countries, it is difficult to compile all the laws that can affect a business into a single reference source. Laws can govern treatment of labour and employee relations, worker protection and safety, discrimination on the basis of age, gender, disability, race, and in some jurisdictions, sexual orientation, and the minimum wage, as well as unions, worker compensation, and working hours and leave.

Some specialized businesses may also require licenses, either due to laws governing entry into certain trades, occupations or professions, that require special education or to raise revenue for local governments. Professions that require special licenses include law, medicine, piloting aircraft, selling liquor, radio broadcasting, selling investment securities, selling used cars, and roofing. Local jurisdictions may also require special licenses and taxes just to operate a business.

Some businesses are subject to ongoing special regulation, for example, public utilities, investment securities, banking, insurance, broadcasting, aviation, and health care providers. Environmental regulations are also very complex and can affect many businesses.

Administration

Main wikipage: Business administration

External research

Main wikipages: Business opportunity and Business threat

Internal research

Main wikipage: Business intelligence

Intellectual property

Businesses often have important "intellectual property" that needs protection from competitors for the company to stay profitable. This could require patents, copyrights, trademarks, or preservation of trade secrets. Most businesses have names, logos, and similar branding techniques that could benefit from trademarking. Patents and copyrights in the United States are largely governed by federal law, while trade secrets and trademarking are mostly a matter of state law. Because of the nature of intellectual property, a business needs protection in every jurisdiction in which they are concerned about competitors. Many countries are signatories to international treaties concerning intellectual property, and thus companies registered in these countries are subject to national laws bound by these treaties. In order to protect trade secrets, companies may require employees to sign noncompete clauses which will impose limitations on an employee's interactions with stakeholders, and competitors.

See also

Related lectures

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