Why businesses exist Flashcards
Why do businesses create goods and services?
Businesses create goods and services so that they can fulfil a want or need in the market and make a profit.
How do businesses make a profit?
Businesses make a profit by selling goods and services for more than they cost to make or provide the service.
What can businesses provide to a community to genaerate wealth (without selling them something)
Jobs
What do businesses always aim to do to improve?
Businesses are always looking for ways to improve their goods and services. How to reduce their costs etc.
How do businesses create wealth?
Businesses have the potential to generate wealth for their owners, shareholders, and employees. This wealth can be reinvested in the business or distributed as dividends, contributing to economic growth.
What does competition do for businesses?
Businesses create competition, which can lead to improved product quality, lower prices, and more choices for consumers. Competition encourages businesses to innovate and offer better value to attract customers.
What do businesses do for economic growth?
Businesses, collectively, are a driving force behind a country’s economic growth. They contribute to the Gross Domestic Product (GDP) by producing and selling goods and services, which, in turn, boosts the overall economy.
In a summary, what do businesses do?
In summary, businesses exist to make profits by satisfying the needs and desires of consumers, providing employment opportunities, fostering innovation, creating wealth, promoting competition, and contributing to economic growth. These factors collectively make businesses a vital part of any modern economy.
