An individual business is a type of business that is had and operated by one person. This is typically the most popular form of organization ownership, this means you will be found in about any industry. A person business offers unlimited responsibility, so virtually any debts received by the enterprise will become personal debts for the owner.

A large number of small business owners struggle with the fundamental question of how their company makes money (i. e. profit). This article takes a closer think about the key factors that effect profitability and how to effectively record and measure financial achievement. Ultimately, a business’s capacity to generate profits is what allows it to survive when confronted with unexpected expenditures and slowing revenue. Earnings can be used to reinvest in the company, pay down debts require professional or technical disciplines or perhaps increase the profit of personnel and shareholders through dividend payments.