Comprehensive Report: The Fundamental Purpose of Business

This report explores the fundamental purpose of a business, emphasizing the creation of customers and the generation of profits through the exchange of goods and services. It delves into the significance of customer satisfaction, market share, and the role of stakeholders such as management, government, suppliers, employees, and creditors. The report also highlights the relationship between risk and return in business investments, underscoring the importance of strategic decision-making to achieve sustainable growth. References to academic sources further support the analysis, providing a comprehensive overview of business objectives and operations.

WHAT IS PURPOSE OF
BUSINESS

Table of Contents
MAIN BODY...................................................................................................................................1
What is the purpose of business?................................................................................................1
REFERENCES................................................................................................................................2

MAIN BODY
What is the purpose of business?
The main purpose of business is to create customers. The term shows that business is
undertaken to provide goods and services to customers by exchanging with particular price and
paying money (Polonsky and Waller, 2018). In simple words, organisation provides commodities
and in exchange of it generates money which is required for day-to-day functioning of business.
It can be said that if business sells goods at a bit more than its costs, it results in profit which is
the ultimate goal of firm to attain profits and growth in the future. On the other hand, it can be
analysed that for achieving growth by organisation, it has options like mergers, acquisitions and
expanding its base which leads to accomplishment of stated objectives.
In the business, risk and returns are on the same track. It means that business invests
money in order to attain adequate returns (Rimanoczy. 2017). However, risk also indulges in,
thus, higher the risk, higher the return on investment will be made by business. It is essentially
required that business should build its share in the market in order to attain higher growth and by
increasing customer base. It can be accomplished by providing quality products and services to
potential customers (Piscicelli, Ludden and Cooper, 2018). While, in large organisation, various
stakeholders such as management, government, suppliers, employees, customers, creditors are
benefited as firm accomplishes desired objectives by achieving good quantum of profits. Thus, it
can be concluded that main purpose of business is to serve customers and satisfy them.
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REFERENCES
Books and Journals
Piscicelli, L., Ludden, G. D. and Cooper, T., 2018. What makes a sustainable business model
successful? An empirical comparison of two peer-to-peer goods-sharing platforms. Journal
of cleaner production. 172. pp.4580-4591.
Polonsky, M. J. and Waller, D. S., 2018. Designing and managing a research project: A
business student's guide. Sage publications.
ONLINE
Rimanoczy. 2017 What is the purpose of business [Online] Available Through:
<https://www.huffingtonpost.com/isabel-rimanoczy-edd-/what-is-the-purpose-of-
bu_b_7100126.html>
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