The Business Environment
July 25, 2012
Mr. Rashaun Gross, MBA
Roles of Business In The Economy
The role of business is to provide a living condition that would produce a sale of products and services to the customers. Our main goal is to determine why companies are established and are operated. It’s not only a business, because it creates a profit and it also benefits the owners of the companies and the employees as well as the community.
There are four different perspectives that are considered and they are the following: capital owner’s perspective- which is a profit-oriented approach to management where capital accumulation is the main important role of business. The second is society’s perspective- a rise in the financial power and influence of companies and owners. The third is owners and society perspective- comprises good business performances as well as social responsibilities that businesses are expected to demonstrate. And finally the stakeholder’s perspective- any group or individual who can affect or is affected by the achievements of the company’s objectives.
Compare and Contrast the Roles of For-Profit and Non-Profit
A for-profit organization is one whose main goal is to obviously to make money or gain income. When you think of a for profit organization they are considered as companies like restaurants, department stores and insurance companies. There are several definitions of a not for-profit organization. According to BusinessDictionary.com it is business or organization who primary goal is making money, as opposed to a non-profit organization which focuses on helping the community.
Now, as far as the non-profit organization it is mainly to help the community. A nonprofit means: to incorporate an organization which exists for educational or charitable reasons. The funds are contributed from an outside source and are used for the operations, expenses and programs. Some of...