Meaning and purpose of business.
Meaning and purpose of business.Meaning:-This refers to any activity carried out by an individual or by an organization with the aim of making a profit.Purpose of business (Reasons for the existence of businesses)-To provide goods and services-Businesses exist to satisfy the needs and wantsof buyers by providing them with goods and services. Buyers include individual consumers, other businesses and the government.-To create employment-Businesses provide job opportunities through which members of society can earn money, which can be used to buy goods and services for the satisfaction of their needs.-To earn profit-Profit is the primary goal of carrying out business operations. It is earned by the people who put their resources and effort in business-As an outlet of new innovation-Some businesses provide unique goods and services which may not be existing in society e.g. plastic fencingpoles that are now replacing wooden poles.-To be as own boss-Some people run businesses so as to be in full control of the operations and make all the decisions regarding the business without need of reference to people.