Role of Business
A business, also known as an enterprise or a firm, is an organization involved in the trade of goods, services, or both to consumers. Businesses are prevalent in capitalist economies, where most of them are privately owned and provide goods and services to customers for profit. A business owned by multiple individuals may be referred to as a company. Business plays a number of important roles in an economy and society. It not only improves standards of living/quality of life. But also provides us with innovation and new inventions.
Profit is the money a business makes after accounting for all the expenses. Profit is made when sales exceed production costs, therefore generating income to the business owner/company. In most businesses, this is used as motivation.
Businesses also provide employment for people. This is important for opportunities for achievement, skill development (through training and experiences), developing friendships, and providing an income for employees.
Business income is any income that is realized as a result of business activity. Business income is a type of earned income, and is classified as ordinary income for tax purposes. Income is used to satisfy the needs and wants of employees. Businesses sell products to other businesses so income is generated across the economy.
Business also provides choice for both consumers and employees. Supplying a range of different brands/products for consumers and giving choice to employees of different types of jobs and businesses that you can work for. Goods and services can be found to suit the wants and needs of the population to suit their own personal interests.
Improvements to existing products/development of new products (innovation) are a crucial role in business. This improves ways of selling, producing and providing goods and services and can often reduce costs leading to lower prices. Innovation can transform the way people live, work, communicate and