Analyzing the Fundamental Purpose of Business Activities

This essay explores the fundamental purpose of a business, which is to provide products or services to customers in exchange for money. The revenue generated is used to cover operating costs and meet the needs of the owners. Profits are reinvested in the business for future growth through acquisitions, expansions, and mergers, with the goal of maximizing profits and minimizing costs. The essay also highlights the relationship between risk and return, emphasizing the importance of risk mitigation strategies. Furthermore, it underscores the significance of providing quality products and services to enhance customer satisfaction, ultimately leading to increased sales, growth, and a strong market share.

PURPOSE OF BUSINESS

Table of Contents
MAIN BODY...................................................................................................................................1
Purpose of business.....................................................................................................................1
REFERENCES................................................................................................................................2

MAIN BODY
Purpose of business
The main purpose of business is to provide or offer products or services to customers
with exchange of cash and cash equivalents. The money such received is used for meeting
operating cost of the firm and meet the needs of owners as well. Money attained in excess of
funding and salary payable to employees regards to as profits which are then reinvested in day-
to-day operations with ease (Allen, 2017). Furthermore, for meeting future needs, money is
utilised by business in the best productive manner. Moreover, it can be analysed that for up
scaling business in a better way, acquisitions, expansions and mergers are made which leads to
attainment of firm's objectives of maximising profits and minimising costs.
Risk and returns are on the same path which means that businessmen invests money for
attaining desired return on investment so as to maximise wealth. Thus, higher risk taken, higher
will be the amount of rewards in the form of returns and vice-versa. It can be said that business
should develop strategies in order to mitigate the risks and accomplish stated objectives with
ease (Dyllick and Muff, 2016). It can be analysed that firm should also provide quality
commodities and services to consumers by which satisfaction level may be enhanced in a better
way (Weiss. 2013). Furthermore, firm will be able to achieve profits and maximise sales and
growth. Thus, it can be said that purpose of business is to offer quality products or services to
customers for attaining profits and good customer base forming good share in market.
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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.
Dyllick, T. and Muff, K., 2016. Clarifying the meaning of sustainable business: Introducing a
typology from business-as-usual to true business sustainability. Organization &
Environment. 29(2). pp.156-174.
Online
Weiss. 2013 Purpose of a business- Alan's Blog [Online] Available Through:
<https://www.contrarianconsulting.com/the-purpose-of-a-business/>
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