Get premium membership and access revision papers with marking schemes, video lessons and live classes.

Processing. Please wait.

Meaning and purpose of business.

Answer Text:
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 wants
of 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 fencing
poles 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.