Type of Business (Report Writing 09)

In general, the definition of business, can not be separated from the activities of production, purchase, sale, or exchange of goods and services involving people or companies. In a narrower context, business sense is often associated with companies or organizations that produce goods and services to generate profits.

Judging from the motive, the business is classified into two businesses they are profit oriented business and non-profit oriented business. Of course this is so contrast with the definition of business narrowly in the previous paragraph that only has activities to produce goods and services and aims to generate profits.

First, elements that create non profit oriented business are a mission that focuses on activities that benefit society and whose goal is not primarily for profit, public ownership where no person owns shares of the corporation or interests in its property, and income that must never be distributed to any owners but is recycled back into the nonprofit corporation's public benefit mission and activities. The examples for this kind of business are foundations, social organizations, non-governmental organizations.

Second that very contrast with the first one is profit oriented business, this business seeks to generate income for its founders and employees. Profits, generated by sales of products or services, measure the success of for-profit companies and those profits can be shared with owners, employees, and shareholders. For-profit businesses can be either privately held or publicly traded. The latter sell stock and must abide by special rules to protect shareholders. The examples for this kind of business are individual companies, CV, Firma, Limited Company.

However, the differences between the two businesses will also have an impact in the business development strategy, especially in terms of marketing. For the profit marketing customer has a need of his own that he fulfills by the purchase of the goods or services; the nonprofit "customer" recognizes the need of others and his ability to help fulfill it through donation of his time, money or service.

References:

http://www.learniseasy.com/pengertian-bisnis-tujuan-dan-jenis-jenis-bisnis.html

https://www.thebalance.com/how-is-a-nonprofit-different-from-for-profit-business-2502472

http://smallbusiness.chron.com/difference-between-profit-not-profit-marketing-20804.html