Basic business operation

The use of property is essential to the conduct of business. A place for the business must be provided in a building that is owned or rented; equipment adapted to the activities of the business must be owned or leased; if commodities are sold, they must be purchased or manufactured and stored prior to sale; of services are rendered, the equipment and the supplies needed to render the services must be available for use. Wherever there is business, property is found.

Through the sale of commodities or services at a profit, a business enterprise increases its property. Such increases, a part of which is ordinarily in the form of cash, may be retained in the business and use for business expansion or deduction of indebtedness, or the property increases may be withdrawn from the business by the owners. Those who organize a new business venture or invest in established business firms do so with the expectations that operations will yield a profit. There is always the risk, of course, that the business will unsuccessful, and the owners may lose all or part of their investment.