A business is defined by Wikipedia as a commercial entity or organisation operating for the benefit of its owners, workers, members or shareholders. Companies may be either for profit organisations or non-profit ones that perform a social interest or other civic duties in order to fulfil a social need. Like other corporate bodies, businesses may have a board of directors, managers, or other employees. Businesses also commonly operate through a written or unwritten code of conduct with fixed rules and procedures for the conduct of business affairs at meetings and through newsletters and publications.
In the corporate world, businesses are governed by a body of commercial law called the corporation. This body has the power, authority, and the right to regulate the running of the business affairs and the utilisation of its assets, property, and profits. The main purpose of corporations is to safeguard the interests of its shareholders. For this purpose, the corporation may engage in business activities through a wide range of means, including borrowing money, investing in fields of activity that contribute to its growth, making purchases and selling its stocks, and engaging in some manufacturing processes.
The main article of business law, known as the corporations act, states that corporations are autonomous legal entities that enjoy the rights, privileges, immunities, powers and immunities enjoyed by individuals. These rights and privileges are often used by businesses to enhance their profits. However, corporations must follow the law of taxation and must not make excessive use of their assets.
Many businesses today rely on the financial resources provided by stock markets to expand and increase their market share. Some corporations that have listed on the New York Stock Exchange or the NASDAQ have used these financial resources to become multinational, multi-national businesses. There are many businesses in the United States and around the world that are considered low-income or low-equity, such as restaurants, hotels, motels and other services and goods that are sold for less than $1 per unit. Such businesses do not meet the requirements for a level of equity because their revenues are not high enough to justify ownership by a majority of the shareholders. However, if the owner sells all or at least a large portion of the company to raise funds for expansion or new development, then that individual will be treated as a public shareholder with the same rights and obligations as other shareholders. This is how corporations are created in the US.
Business law has also been designed to accommodate the economic needs of both small and large business entities. Small business entities must often follow a very strict level of licensing in order to get a product or service to be produced and marketed for sale. In this manner, they avoid spending large amounts of money on advertising and instead find ways to earn profits from customers through word of mouth. In more developed countries, government regulation of businesses is widespread and there is less competition among small businesses to ensure good quality of products and services. Profits and loss are often carefully monitored to prevent small businesses from being run into a red brick wall and going out of business.
Intellectual property rights help protect the profits of the parent company. Contracts between the parent company and the affiliates are set up to protect both sides from loss due to breach of contract or infringement of patents or trademarks. A well-established intellectual property rights system ensures that the parent company does not lose any substantial amount of money due to infringement or negligence of their intellectual property rights. Additionally, patents help protect the inventions of the parent companies and prevent competitors from selling or copying patented inventions. Patents are one of the main articles of law that govern businesses in most countries.