Business, Legal & Accounting Glossary

Definition: Business


Quick Summary of Business

A business is an organisation or economic system where goods and services are exchanged for one another or for money.

What is the dictionary definition of Business?

Dictionary Definition

  1. countable A specific commercial enterprise or establishment.
  2. countable A person’s occupation, work, or trade.
  3. uncountable Commercial, industrial, or professional activity.

n. any activity or enterprise entered into for profit. It does not mean it is a company, a corporation, a partnership, or has any such formal organization, but it can range from a street peddler to General Motors. It is sometimes significant to determine if an accident, visit, travel, meal or other activity was part of “business” or for pleasure or no particular purpose.

Full Definition of Business

Business is recognized as a significant factor of production in an economy. It is referred to as a legalized entity that comprises of organizational supremacy. Business is also known as firm or an enterprise. A Business is set up in an economy with a view to providing goods and services to consumers.

Business is mainly found in capitalist economies, which are largely owned by private hands. The major goal of business is to make a profit and increase wealth. Generation of wealth in lieu of risk is the major characteristic of any business. Businesses are run either by a single entrepreneur or several individuals. There are several types of ownerships that are used to run any business. Businesses can be privately owned, not-for-profit or state-owned. An example of a corporate business is PepsiCo, while a mom-and-pop catering business is a private enterprise. Sole proprietorship, partnership, corporation and cooperative are the major forms of partnership of any business. Sole proprietorship represents ownership by any single individual. A partnership is the ownership shared between two or more people. A corporation is owned by multiple shareholders and is supervised by a board of directors.

  • the activity of buying and selling goods and services
  • a particular company that buys and sells goods and services
  • work that you do to earn money
  • the amount of work done or the number of goods or services sold by a company or organisation
  • a situation or activity, often one that you are giving your opinion about
  • the things that you do or the matters that relate only to you

Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit.

Business Cycle

The business cycle is referred to as the fluctuations taking place in the business activity of any economy. It is known that economic growth is not static; it’s rather an unsteady phenomenon. Economic growth has a tendency to follow a specific pattern of fluctuation. Sometimes it is observed that there is an above-average growth and it increases to reach the peak, then again sometimes it contracts below the average growth and finally reaches the lowest point. These there is a regular expansion and contraction in, which is known as the business cycle in economics.

Real Business Cycle Theory

Several theories were built to explain the concept of the business cycle. Real Business Cycle Theory or RBC theory is one such theory developed by using real economic situations. RBC is a class of microeconomic models that represents the accountability of business cycle by means of real shock. It is known that there are four major economic fluctuations like secular (trend), business cycle, seasonal, and random. RBC takes in to account the business cycle and considers that recession and boom periods of any economic growth are efficient in measuring exogenous amendments in the real economic environment.

Examples of Business in a sentence

Business is booming.
I’m in London on business.
I have a business appointment on Tuesday.
The business was growing so quickly it could barely keep up with all the orders coming in.
My partner is in the frozen food business.
Paulina left her job in finance in order to start her own daycare business because she believed it would allow her to spend more time with her own children.

Synonyms For Business

work, trade, working, employment, enterprise

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Business. Payroll & Accounting Heaven Ltd.
March 01, 2024
Chicago Manual of Style (CMS):
Business. Payroll & Accounting Heaven Ltd. (accessed: March 01, 2024).
American Psychological Association (APA):
Business. Retrieved March 01, 2024
, from website:

Definition Sources

Definitions for Business are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 0 Views.