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48-514: Antifragility is a property of systems in which they benefit from shocks. Antifragile or Anti-fragile may refer to: Antifragility Taleb defines it as follows in a letter to Nature responding to an earlier review of his book in that journal: Simply, antifragility is defined as a convex response to a stressor or source of harm (for some range of variation), leading to a positive sensitivity to increase in volatility (or variability, stress, dispersion of outcomes, or uncertainty, what

96-713: A − Δ ) + f ( a + Δ ) 2 − f ( a ) {\displaystyle H={\frac {f(a-\Delta )+f(a+\Delta )}{2}}-f(a)} . In short, the heuristic is to adjust a model input higher and lower. If the average outcome of the model after the adjustments is significantly worse than the model baseline, then the model is fragile with respect to that input. The concept has been applied in business and management , physics , risk analysis , molecular biology , transportation planning , urban planning , engineering , aerospace (NASA), computer science , and water system design. In computer science, there

144-417: A company such as a corporation or cooperative . Colloquially, the terms are used interchangeably. Corporations are distinct from with sole proprietors and partnerships . They are separate legal entities and provide limited liability for their owners and members. They are subject to corporate tax rates. They are also more complicated and expensive to set up, but offer more protection and benefits for

192-783: A stock exchange , or in multiple other ways. Major stock exchanges include the Shanghai Stock Exchange , Singapore Exchange , Hong Kong Stock Exchange , New York Stock Exchange and NASDAQ (the US), the London Stock Exchange (UK), the Tokyo Stock Exchange (Japan), and Bombay Stock Exchange (India). Most countries with capital markets have at least one. Businesses that have gone public are subject to regulations concerning their internal governance, such as how executive officers' compensation

240-399: A "process optimization process". It is argued that BPM enables organizations to be more efficient, effective and capable of change than a functionally focused, traditional hierarchical management approach. Most legal jurisdictions specify the forms of ownership that a business can take, creating a body of commercial law applicable to business. The major factors affecting how a business

288-479: A business. Some businesses are subject to ongoing special regulation, for example, public utilities , investment securities, banking, insurance, broadcasting , aviation , and health care providers. Environmental regulations are also very complex and can affect many businesses. When businesses need to raise money (called capital ), they sometimes offer securities for sale. Capital may be raised through private means, by an initial public offering or IPO on

336-498: A company-type management system. Many state institutions and enterprises in China and Russia have transformed into joint-stock companies, with part of their shares being listed on public stock markets. Business process management (BPM) is a holistic management approach focused on aligning all aspects of an organization with the wants and needs of clients . BPM attempts to improve processes continuously. It can, therefore, be described as

384-524: A process known as an initial public offering (IPO) means that part of the business will be owned by members of the public. This requires the organization as a distinct entity, to disclose information to the public, and adhering to a tighter set of laws and procedures. Most public entities are corporations that have sold shares, but increasingly there are also public LLC's that sell units (sometimes also called shares), and other more exotic entities as well, such as, for example, real estate investment trusts in

432-564: A range of human activity, from handicraft to high tech , but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Marketing is defined by the American Marketing Association as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large." The term developed from

480-448: A share capital), this will be the shareholders . In a company limited by guarantee, this will be the guarantors. Some offshore jurisdictions have created special forms of offshore company in a bid to attract business for their jurisdictions. Examples include " segregated portfolio companies " and restricted purpose companies. There are, however, many, many sub-categories of types of company that can be formed in various jurisdictions in

528-463: A simply calculable measure of antifragility, based on the change of “satisfaction” (i.e., network complexity) before and after adding perturbations, and apply it to random Boolean networks (RBNs). They also show that several well known biological networks such as Arabidopsis thaliana cell-cycle are as expected antifragile. An adaptive system is one that changes its behavior based on information available at time of utilization (as opposed to having

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576-589: Is a field that deals with the study of money and investments . It includes the dynamics of assets and liabilities over time under conditions of different degrees of uncertainty and risk. In the context of business and management , finance deals with the problems of ensuring that the firm can safely and profitably carry out its operational and financial objectives; i.e. that it: (1) has sufficient cash flow for ongoing and upcoming operational expenses, and (2) can service both maturing short-term debt repayments, and scheduled long-term debt payments. Finance also deals with

624-480: Is a structured proposal for an "Antifragile Software Manifesto", to react to traditional system designs. The major idea is to develop antifragility by design, building a system which improves from environment's input. Business Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services ). It is also "any activity or enterprise entered into for profit." A business entity

672-587: Is an organization of workers who have come together to achieve common goals such as protecting the integrity of its trade, improving safety standards, achieving higher pay and benefits such as health care and retirement, increasing the number of employees an employer assigns to complete the work, and better working conditions . The trade union, through its leadership, bargains with the employer on behalf of union members ( rank and file members) and negotiates labor contracts ( collective bargaining ) with employers. The most common purpose of these associations or unions

720-419: Is crucial for all businesses to succeed as it helps companies adjust to a fast-moving business environment and the increasing demand for jobs. The term "Human Resource" was first coined by John R. Commons in his novel ' The Distribution of Wealth'. HR departments are relatively new as they began developing in the late 20th century. HR departments main goal is to maximize employee productivity and protecting

768-648: Is determined, and when and how information is disclosed to shareholders and to the public. In the United States, these regulations are primarily implemented and enforced by the United States Securities and Exchange Commission (SEC). Other western nations have comparable regulatory bodies. The regulations are implemented and enforced by the China Securities Regulation Commission (CSRC) in China. In Singapore,

816-566: Is for those who prefer an administrative role as it involves oversight of the entirety of the company. HRIS involves the storage and organization of employee data including full names, addresses, means of contact, and anything else required by that certain company. Some careers of those involved in the Human Resource field include enrollment specialists, HR analyst, recruiter, employment relations manager, etc. Many businesses have an Information technology (IT) department, which supports

864-412: Is grouped under the designation "disorder cluster"). Likewise fragility is defined as a concave sensitivity to stressors, leading to a negative sensitivity to increase in volatility. The relation between fragility, convexity, and sensitivity to disorder is mathematical, obtained by theorem, not derived from empirical data mining or some historical narrative. It is a priori . In his book, Taleb stresses

912-412: Is not necessarily separate from the owner and the creditors can hold the owner liable for debts the business has acquired. The taxation system for businesses is different from that of the corporates. A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business. A distinction is made in law and public offices between the term business and

960-484: Is organized are usually: Many businesses are operated through a separate entity such as a corporation or a partnership (either formed with or without limited liability). Most legal jurisdictions allow people to organize such an entity by filing certain charter documents with the relevant Secretary of State or equivalent and complying with certain other ongoing obligations. The relationships and legal rights of shareholders , limited partners, or members are governed partly by

1008-551: Is robust in a previously unknown environment. Taleb proposed a simple heuristic for detecting fragility. If f ( a ) {\displaystyle f(a)} is some model of a {\displaystyle a} , then fragility exists when H < 0 {\displaystyle H<0} , robustness exists when H = 0 {\displaystyle H=0} , and antifragility exists when H > 0 {\displaystyle H>0} , where H = f (

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1056-428: Is the process of exchanging goods and services. It is not just a single activity, but a set of activities that includes trade (buying and selling goods and services) and auxiliary services or aids to trade, that includes communication and marketing, logistics, finance, banking, insurance, and legal services related to trade. Business is also defined as engaging in commerce, as these are done in all businesses. Finance

1104-515: The long term objective of maximizing the value of the business, while also balancing risk and profitability; this includes the interrelated questions of (1) capital investment , which businesses and projects to invest in; (2) capital structure , deciding on the mix of funding to be used; and (3) dividend policy , what to do with "excess" capital. Human resources can be defined as division of business that involves finding, screening, recruiting , and training job applicants. Human resources, or HR,

1152-825: The " canary in the coal mine " and reduce the cost to businesses of protecting their employees. Sales are activity related to selling or the number of goods or services sold in a given time period. Sales are often integrated with all lines of business and are key to a companies' success. The efficient and effective operation of a business , and study of this subject, is called management . The major branches of management are financial management , marketing management, human resource management , strategic management , production management , operations management , service management , and information technology management . Owners may manage their businesses themselves, or employ managers to do so for them. Whether they are owners or employees, managers administer three primary components of

1200-475: The Internet, venture capital, bank loans, and debentures. Businesses often have important " intellectual property " that needs protection from competitors for the company to stay profitable. This could require patents , copyrights , trademarks , or preservation of trade secrets . Most businesses have names, logos, and similar branding techniques that could benefit from trademarking. Patents and copyrights in

1248-628: The Latin corpus , meaning body, and the Maurya Empire in Iron-Age India accorded legal rights to business entities. In many countries, it is difficult to compile all the laws that can affect a business into a single reference source. Laws can govern the treatment of labour and employee relations, worker protection and safety , discrimination on the basis of age, gender, disability, race, and in some jurisdictions, sexual orientation, and

1296-650: The US, and unit trusts in the UK. A general partnership cannot "go public". A very detailed and well-established body of rules that evolved over a very long period of time applies to commercial transactions. The need to regulate trade and commerce and resolve business disputes helped shape the creation of law and courts. The Code of Hammurabi dates back to about 1772 BC for example and contains provisions that relate, among other matters, to shipping costs and dealings between merchants and brokers . The word "corporation" derives from

1344-689: The United States are largely governed by federal law, while trade secrets and trademarking are mostly a matter of state law. Because of the nature of intellectual property, a business needs protection in every jurisdiction in which they are concerned about competitors. Many countries are signatories to international treaties concerning intellectual property, and thus companies registered in these countries are subject to national laws bound by these treaties. In order to protect trade secrets, companies may require employees to sign noncompete clauses which will impose limitations on an employee's interactions with stakeholders, and competitors. A trade union (or labor union)

1392-418: The behavior defined during system design). This characteristic is sometimes referred to as cognitive. While adaptive systems allow for robustness under a variety of scenarios (often unknown during system design), they are not necessarily antifragile. In other words, the difference between adaptive and antifragile is the difference between a system that is robust under volatile environments/conditions, and one that

1440-502: The business needs, an adviser can decide what kind is proprietorship will be most suitable. General partners in a partnership (other than a limited liability partnership), plus anyone who personally owns and operates a business without creating a separate legal entity, are personally liable for the debts and obligations of the business. Generally, corporations are required to pay tax just like "real" people. In some tax systems, this can give rise to so-called double taxation , because first

1488-455: The business's value: financial resources, capital (tangible resources), and human resources . These resources are administered in at least six functional areas: legal contracting, manufacturing or service production, marketing, accounting, financing, and human resources. In recent decades, states modeled some of their assets and enterprises after business enterprises. In 2003, for example, China modeled 80% of its state-owned enterprises on

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1536-408: The charter documents and partly by the law of the jurisdiction where the entity is organized. Generally speaking, shareholders in a corporation, limited partners in a limited partnership, and members in a limited liability company are shielded from personal liability for the debts and obligations of the entity, which is legally treated as a separate "person". This means that unless there is misconduct,

1584-487: The company from any issues that may arise in the future. Some of the most common activities conducted by those working in HR include increasing innovation and creativity within a company, applying new approaches to work projects, and efficient training and communication with employees . Two of the most popular subdivisions of HR are Human Resource Management , HRM, and Human Resource Information Systems , or HRIS. The HRM route

1632-439: The concept of resilience in a way that is mathematically conveyed and can be heuristically evaluated in real-world applications: for example, ecosystem antifragility. The authors also propose that for socio-ecosystem governance, planning or in general, any decision making perspective, antifragility might be a valuable and more desirable goal to achieve than a resilience aspiration. In the same way, Pineda and co-workers have proposed

1680-579: The corporation pays tax on the profit, and then when the corporation distributes its profits to its owners, individuals have to include dividends in their income when they complete their personal tax returns, at which point a second layer of income tax is imposed. In most countries, there are laws that treat small corporations differently from large ones. They may be exempt from certain legal filing requirements or labor laws, have simplified procedures in specialized areas, and have simplified, advantageous, or slightly different tax treatment. "Going public" through

1728-440: The differences between antifragile and robust/resilient. "Antifragility is beyond resilience or robustness. The resilient resists shocks and stays the same; the antifragile gets better." The concept has now been applied to ecosystems in a rigorous way. In their work, the authors review the concept of ecosystem resilience in its relation to ecosystem integrity from an information theory approach. This work reformulates and builds upon

1776-671: The first stage of development of a potential new service or product. Research and development are very difficult to manage since the defining feature of the research is that the researchers do not know in advance exactly how to accomplish the desired result. Injuries cost businesses billions of dollars annually. Studies have shown how company acceptance and implementation of comprehensive safety and health management systems reduce incidents, insurance costs, and workers' compensation claims. New technologies, like wearable safety devices and available online safety training, continue to be developed to encourage employers to invest in protection beyond

1824-566: The minimum wage, as well as unions , worker compensation, and working hours and leave. Some specialized businesses may also require licenses, either due to laws governing entry into certain trades, occupations or professions, that require special education or to raise revenue for local governments. Professions that require special licenses include law, medicine, piloting aircraft, selling liquor, radio broadcasting, selling investment securities, selling used cars, and roofing. Local jurisdictions may also require special licenses and taxes just to operate

1872-488: The original meaning which referred literally to going to a market to buy or sell goods or services. Marketing tactics include advertising as well as determining product pricing . With the rise in technology, marketing is further divided into a class called digital marketing . It is marketing products and services using digital technologies. Research and development refer to activities in connection with corporate or government innovation. Research and development constitute

1920-399: The owner's own possessions are strongly protected in law if the business does not succeed. Where two or more individuals own a business together but have failed to organize a more specialized form of vehicle, they will be treated as a general partnership. The terms of a partnership are partly governed by a partnership agreement if one is created, and partly by the law of the jurisdiction where

1968-451: The owners and members. Forms of business ownership vary by jurisdiction , but several common entities exist: Less common types of companies are: "Ltd after the company's name signifies limited company, and PLC ( public limited company ) indicates that its shares are widely held." In legal parlance, the owners of a company are normally referred to as the "members". In a company limited or unlimited by shares (formed or incorporated with

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2016-433: The partnership is located. No paperwork or filing is necessary to create a partnership, and without an agreement, the relationships and legal rights of the partners will be entirely governed by the law of the jurisdiction where the partnership is located. A single person who owns and runs a business is commonly known as a sole proprietor , whether that person owns it directly or through a formally organized entity. Depending on

2064-944: The regulatory authority is the Monetary Authority of Singapore (MAS), and in Hong Kong, it is the Securities and Futures Commission (SFC). The proliferation and increasing complexity of the laws governing business have forced increasing specialization in corporate law. It is not unheard of for certain kinds of corporate transactions to require a team of five to ten attorneys due to sprawling regulation. Commercial law spans general corporate law, employment and labor law , health-care law, securities law, mergers and acquisitions, tax law, employee benefit plans, food and drug regulation, intellectual property law on copyrights, patents, trademarks, telecommunications law, and financing. Other types of capital sourcing include crowdsourcing on

2112-420: The reputation of the exchange or particular market of exchange. Private companies do not have publicly traded shares, and often contain restrictions on transfers of shares. In some jurisdictions, private companies have maximum numbers of shareholders. A parent company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors;

2160-485: The second company being deemed as a subsidiary of the parent company. The subsidiary company can be allowed to maintain its own board of directors. The definition of a parent company differs by jurisdiction, with the definition normally being defined by way of laws dealing with companies in that jurisdiction. Accounting is the measurement, processing, and communication of financial information about economic entities such as businesses and corporations . The modern field

2208-494: The use of information technology and computer systems in support of enterprise goals. The role of a chief information officer is to lead this department. For example, Ford Motor Company in the United States employs "more than 3,000 team members with advanced computing, analytical and technical skills". Manufacturing is the production of merchandise for use or sale using labour and machines , tools , chemical and biological processing, or formulation. The term may refer to

2256-401: The world. Companies are also sometimes distinguished into public companies and private companies for legal and regulatory purposes. Public companies are companies whose shares can be publicly traded, often (although not always) on a stock exchange which imposes listing requirements / Listing Rules as to the issued shares, the trading of shares and a future issue of shares to help bolster

2304-515: Was established by the Italian mathematician Luca Pacioli in 1494. Accounting, which has been called the "language of business", measures the results of an organization's economic activities and conveys this information to a variety of users, including investors , creditors , management , and regulators . Practitioners of accounting are known as accountants . The terms "accounting" and "financial reporting" are often used as synonyms. Commerce

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