Business Purpose: Exploring Economic Activities and Objectives

This report analyzes the purpose of business, emphasizing its role in economic activities and profit generation. It explores the significance of satisfying consumer needs to maximize profit and shareholder value. The report examines how businesses capitalize on market opportunities, increasing competition to achieve their goals. The report delves into the economic, social, and human aspects of a business, highlighting the importance of fair dealings and high-quality products. The analysis references key sources like Allen (2017), Basu (2017), and Bell, Bryman, and Harley (2018), along with online resources to provide a comprehensive understanding of business purpose and its impact.

WHAT IS THE PURPOSE
OF BUSINESS

TABLE OF CONTENTS
THE PURPOSE OF BUSINESS.....................................................................................................1
REFERENCES................................................................................................................................3

THE PURPOSE OF BUSINESS
Business refers to the type of process in which activities like buying and selling of goods
and services takes place. It is the type of economic activity which mainly focus on the purchase
of raw material and on sale of finished goods. In order to analyse what business is, firstly it is
important to measure the purpose of business. Thus, it can be said that its purpose is to create a
customer (Basu, 2017).
It is because the consumer is known as the foundation which keeps existence of the
enterprise. It is also true that market did not create by god or economics but it is only created by
the businessmen. Another theory which satisfies its intention is to maximise profit for
shareholders. Business establishes to provide the goods and services which helps in satisfying
consumer needs in order to maximise profit and shareholders. Its motive is to desire and make
money by capturing the opportunities which already exist in the market. Example of such
opportunities is to increase competition in market (Allen, 2017). Thus, business is an economic
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Illustration 1: business purpose
(source: Writing your business purpose, And why it matters,2016)

activity which whereby involve production of goods and service in order to earn profit by
satisfying human needs.
In order to exist business in the society business established by individual. Generally
there are three activities involves which include economic, social and human. Economic
indicates earning of profit, social indicates better quality of products and human activity
indicates fair dealing of goods and service (Bell, Bryman and Harley, 2018).
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REFERENCES
Books and Journals
Allen, W.T., 2017. Our schizophrenic conception of the business corporation. In Corporate
Governance (pp. 79-99). Gower.
Basu, S., 2017. Corporate purpose: Why it matters more than strategy. Routledge.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Online
Forester, D., 2016. Writing Your Business Purpose, And Why it matters. [Online]. Available
through <https://www.score.org/blog/writing-your-business-purpose-and-why-it-matters>
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