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Understanding the Term Business Plans

The word business literally means “of or relating to business.” It’s a general description of any entity that brings together people to do work related to business. Business involves the buying and selling of products, services, information, and physical assets. People involved in business include managers, owners, entrepreneurs, creditors, stockholders, and employees. Many people use the term business to describe things they do day in and day out.

BUSINESS

The word business itself comes from Latin -bus (meaning “of a bushel”) and ganula (meaning “to grind over”). The first person is usually referred to as the man, while the second person is called the thing or the group. For instance, the United States is one of the largest countries in the world, and all of its 50 states are considered states. All of the United States are formally recognized as states, although many technically refer to themselves as cities. A state in the United States is not a separate country but rather a subdivision of the country known as the United States, which is made up of fifty states and two additional territories.

The term business also refers to an entity or corporation organized for the conduct of particular activities related to business. In addition, the word business also refers to a partnership, association, trust, or corporation. A partnership is a set of individuals or organizations functioning as one entity for the purpose, pursuing some common purpose, for the operation of their business. Similarly, a non-for profit business enterprise is one managed for the benefit of the public.

A partnership is generally a two-way relationship where one party is considered a partner and the other party is considered a member. Partnerships may be limited or unlimited in scope. Examples of partnerships include partnerships that result from investment, ownership, land, partnership interests, trusts, and corporations. An investment partnership is one that allows a company to invest in another company for the purpose of creating a new business entity.

A corporation is formed by a majority of the shareholders of the corporation forming a new business entity. A corporation is different from a partnership in that there is no public offering of shares for sale or purchase. A partnership would have to have such an offering to be considered a corporation. There are different types of corporations and all have different rights and responsibilities. A partnership is considered an independent entity and assumes joint liability for the actions of each member of the partnership. This responsibility includes negligence on the part of the partner.

Business plans are the documents that provide the information needed to determine the future success of a particular business venture. Business plans cover all aspects of a business operations including marketing strategy, advertising campaigns, financial resources, human resources, distribution, sales, and technical support. The term business plan comes from the idea that such documents serve as a map or trail of how the enterprise was initially formed. Business plans also show the original thoughts and intent of the businessman involved. The essence of a business plan is to give the details of the enterprise such as the products or services it provides, the market it will compete against, the market it intends to enter, the funding source, the management system to be used, and the legal structure it requires.