Turn of the company – What is, definition and concept | 2022

The line of business is the way in which a business is classified based on the activities it carries out. A company carries out a series of activities aimed at making a profit and this term is intended to specify the type of tasks that they are.

The line of business aims to determine and classify a business by the type of economic activities it carries out. There are many types of businesses and thanks to the line of business, a classification of these can be carried out, based on the actions they generate to obtain economic profitability.

A company aims to make a profit in order to survive. In this way, it reaches the market with the mission of selling products or services. Depending on what you do, your structure and your management process, you will get a certain classification.

What types of business transfers exist?

Taking into account the lines of business, there is a classification that we can highlight as follows:

  • Turn of services: When we speak of services, we mean that this point includes companies that offer certain services to individuals or companies. For example, a training company, a physiotherapy clinic or a podiatry office.
  • Commercial business: In this case, specifically, the businesses that belong to this classification are normally dedicated to acting as intermediaries. They usually relate and put sellers and buyers in contact. For example, wholesale companies that sell a large number of products and whose final customer is usually an intermediary who buys those large batches of merchandise. Another case that can be included in this point is that of retailers, which are in direct contact, in most cases, with the final customer. Finally, it is also worth noting the commission agents who take a certain commission if they get a sale, this being their main task.
  • Commercial business: Companies that produce products for sale correspond to this classification. The way to do it is by selling these items to the end customer or to businesses that participate in the production process. For example, agricultural companies focused on livestock.
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Business turnover example

A physiotherapy clinic is responsible for providing services to people who have ailments related to this field. In this case we speak of a turn of services.

Another example within this term would be a company dedicated to establishing training programs for entities so that their own workers can be trained. In this case, we would also talk about services.

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