Legal Definitions - scope of business

The scope of business refers to the range of activities that are necessary for a commercial venture to operate successfully. This is determined by the nature of the venture and the activities of others engaged in the same occupation in the same area.

• A restaurant's scope of business may include activities such as food preparation, customer service, marketing, and inventory management.
• A construction company's scope of business may include activities such as project management, site preparation, building construction, and equipment maintenance.
• A clothing store's scope of business may include activities such as purchasing inventory, sales, marketing, and customer service.

These examples illustrate how the scope of business can vary depending on the nature of the venture. For example, a restaurant's scope of business will be different from a construction company's scope of business. However, both will need to engage in activities that are necessary for their respective ventures to operate successfully.