Businesses

By Investing.University

What Is a Business?

A business is an organization or enterprise that is engaged in the trade of goods, services, or both to customers. Businesses can take many forms, such as a sole proprietorship, partnership, corporation, or limited liability company, and may operate in various industries, such as manufacturing, retail, or technology. The ultimate goal of a business is typically to generate profits for its owners or shareholders.

A business is an organization or enterprise that is engaged in the trade of goods, services, or both to customers.

Types of Businesses

There are several types of businesses, including:

Sole Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business.

Partnership

A business owned and operated by two or more individuals who share profits and losses.

Corporation

A legal entity separate from its owners, with the ability to issue stocks and raises capital through the sale of those stocks.

Limited Liability Company (LLC)

A hybrid type of business structure that combines the benefits of a corporation and a partnership. It offers the personal asset protection of a corporation and the tax benefits of a partnership.

Cooperative

A business owned and controlled by its members, who share in the profits and losses.

Nonprofit

a business that aims to serve a specific social cause and does not distribute profits to its owners.

Government-owned

a business that is owned and operated by a government or government agency.

Franchise

a business in which an individual or corporation (the "franchisor") grants the right to use its trademark, trade name, and business model to another individual or corporation (the "franchisee").

Stocks, What They Allow You to Invest In

Stocks, also known as equities, are a type of investment that allows you to buy shares of ownership in a publicly traded company. When you buy a stock, you are buying a small portion of the company and become a shareholder. As a shareholder, you have the potential to earn money through dividends, which are payments made to shareholders, and capital appreciation, which occurs when the value of the stock increases.

When you buy a stock, you are essentially investing in the underlying company. This means you are investing in the company's assets, such as its factories, equipment, and real estate, as well as its future prospects, such as its products, services, and management team. By investing in a stock, you are also investing in the company's ability to generate profits and grow in the future.

a type of investment that allows you to buy shares of ownership in a publicly traded company

The Largest Businesses in the U.S. (by Market Cap)

The largest businesses in the U.S. by market capitalization (market cap) are constantly changing depending on the stock market performance and other factors. However, as of September 2021, the following companies were among the top largest businesses in the U.S. by market cap:

Apple Inc.

Apple Inc. is a multinational technology company headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software, and online services. The company was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne and is known for its revolutionary products such as the Macintosh, the iPod, the iPhone, and the iPad.

Microsoft Corporation

Microsoft Corporation is an American multinational technology company headquartered in Redmond, Washington. The company was founded in 1975 by Bill Gates and Paul Allen and is known for its Windows operating system, the Microsoft Office Suite, and the Internet Explorer web browser.

Amazon.com Inc.

Amazon.com Inc. is an American multinational technology company headquartered in Seattle, Washington. The company was founded in 1994 by Jeff Bezos and is one of the world's largest online retailers, offering a wide range of products and services to customers around the globe.

Alphabet Inc (Google)

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. The company was created in 2015 as a holding company for Google and several other businesses. The company is primarily known for its search engine Google.

Facebook Inc.

Facebook Inc. is an American online social media and social networking service based in Menlo Park, California. The company was founded in 2004 by Mark Zuckerberg, Eduardo Saverin, Andrew McCollum, Chris Hughes and Dustin Moskovitz. The service allows users to create a personal profile, share pictures and videos, and connect with friends and family online.

Berkshire Hathaway Inc.

Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska. The company was founded in 1839 and is currently led by CEO Warren Buffett. The company operates through a number of subsidiaries and has investments in a wide range of industries, including insurance, energy, retail, and finance.

Tesla Inc.

Tesla, Inc. is an American multinational corporation that specializes in electric vehicles, energy storage and solar panel manufacturing based on Silicon Valley. The company was founded in 2003 by a group of engineers who wanted to prove that electric cars could be better than gasoline-powered cars. It operates multiple production and assembly plants, primarily in the United States and China.

Johnson & Johnson

Johnson & Johnson is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer goods. The company is headquartered in New Brunswick, New Jersey, and its products are sold in over 175 countries. Johnson & Johnson operates over 250 subsidiaries in which it holds controlling interest in around 60 of them.

JPMorgan Chase & Co.

JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City. The company was formed in 2000 through the merger of Chase Manhattan Corporation and J.P. Morgan & Co. It is the largest bank in the United States by assets and is one of the largest and most diversified financial services companies in the world.

Procter & Gamble Co.

Procter & Gamble Co. (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. P&G is one of the largest consumer goods companies in the world and operates in over 180 countries. The company is organized into three main divisions: Fabric and Home Care, Baby Care and Family Care, and Beauty and Grooming.

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