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State and explain the main reasons why businesses exists.

State and explain the main reasons why businesses exists.

Answers

sharon
i) 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.
ii) 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.
iii) 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
iv) 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.
v) 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.
vi) To utilize extra resources-Some people go into business to make use of money or property which is not being put to profitably use at a given time.
vii) To offer special services-Some businesses provide services that raise the living standard of people e.g. government enterprises that provide public utilities such as health care and water.
viii) To utilize spare time-Some people run businesses in order to make use of extra time at their disposal and in the process make some extra money. A large number of formally employed people have small business which they run during their free time in order to earn more
money.
sharon kalunda answered the question on March 29, 2019 at 07:10

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