Different sets of business are known to exist. Their origin is positively judged by the fact that they attend to many economic and social needs of mankind. The out come of these different forms of business is that authors have attempted to classify business differently.
Some of the classes of business selected are as follow:-
1. Sector-based classification:- in sector – based classification, the economic activities of a nation are sub-divided and each group of operation is considered as a class of business. There are 3 major sectors to describe this which include the Agricultural sectors, manufacturing sectors, Transport sector, etc.
2. Classification of business on the basis of sector can also amount in the commercial sector, and the private sector. The commercial or public sector is used to refer to all business owned by the state considered as a group. The private sector, on the other hand, comprises all business concerns owned by private individuals. The basis for classification in this aspect is the ownership of such enterprises.
3. Structure – based classification: in structure based classification, the emphasis is on the business as incorporated or unincorporated. A business can be considered as incorporated when it is legitimate entity usually with limited liability. An unincorporated business is not different from the owners and the kind does confer on its owners high scale unlimited liability.
4. classification based on the kind of activity that the business in occupied in peradventure, some business are industrial involved, other are engaged in commercial activities while others render services; and
5. A fifth way to classify business is by level of activity giving rise to business according to their various category. Primary business are involved in the production and distribution of goods in their respective forms. These classes of business do not usually add value but sell these goods as provided by nature.
Hunters, farmers, and some extractive industries belong to this group. Secondary businesses advance on what is provided by the elementary business by adding value to the goods. The baker that sues wheat flour for baking bread belongs to this category. Businesses that may come under this category comprise furniture making, cassava processing, etc.