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An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs or other economic benefits directly to investors or other owners, members or participants. In this context “business” also includes an integrated set of activities that is capable of being conducted or managed for the primary objective of providing goods or services for community or social benefit, rather than a financial return to equity holders.

A business consists of inputs, processes, and outputs. A company applies processes to its inputs to generate outputs desired by the market. When determining if a group of assets and activities is a business, one must determine whether or not the group of assets is capable of being conducted and managed as a business. A business need not include all of the inputs or processes that the seller used in operating the business if market participants are capable of acquiring the business and continuing to produce outputs (for example, by integrating the business with their own inputs and processes).


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