The Business Environment

The Business Environment

The Role of The Business In The Economy

The foundation and success of any community relies on business. Through business, companies make resources that enable social development and well being. This aspect will explain the aspect of business in the community. Businesses offer products or alternatives that our everyday life rely on and also make employment. It is through business that the government is paid taxation from, to make it function. This means that business is a very important aspect of the economic system. Business allows creating, generating and offering products or alternatives to individuals (customers) who need it. This is done with a view of creating profit. Business allows individuals to look after themselves by concentrating on generating one product or by skills. Business also allows the community to make tasks for clients, providers and providers. Business allows creating new products or alternatives and offer products or alternatives that clients may not generate. Other tasks that business performs in the economic system will be to address the urbanization. Urbanization has been growing rather fast, but only being badly handled. As such, the aspect of a business is to offer suitable alternatives for growing issues. All these issues will, thus, be taken by businesses in our community (Archibugi & Lundvall, 2002).

Roles of for-profit and nonprofit organizations in the economy

For-profit companies are those companies recognized mainly for profit reasons. These companies are important in the financial system for they include in research and growth. This results in better and powerful performance. Such companies like oil discovery are for-profit and without them the financial system can stuck. They also give rise to tax earnings from the government while outcome in profits getting stored to offer for during surprising downturns. They also outcome into the reward of investors resulting in individual's buying stocks (entrepreneurs and economic profit). Nonprofit companies are those companies that in the course of their business can make money but are limited on the amount of earnings that is allocated in evaluation to produce. Non-profits companies are those companies that offer important products or solutions, but not for profit reasons. Thus, they are companies for common benefits or for nonprofit organizations. Organizations like health facilities reinforced by the government are not for-profit as they offer important solutions to all individuals regardless of their position. Nonprofit companies have a part to play in performance to fulfill ...