The role of business in the economy is very important. In an economy business plays a pivotal role because they act as the main factor in the economy. The different types of businesses include manufacturing, wholesale, retail and health care. Businesses help the economy to strive and survive. The role of each business depends upon business enterprises operating within the framework of a competitive market economy.
Different businesses play different roles in the economy. Some businesses can survive in the economy and some can’t. In order for a business to survive, the internal and external forces have to coincide and this makes up the operating environment. Ethical business practices enhance organizational working condition in areas that are important to the organizations productivity, customers and government regulations. If upper management practices good ethnical behaviors, this presents a positive image to vendors and competitors. Once the positive image is presented it results in high productivity and employee satisfaction.
Profit and non-profit organizations exist in the economy all over the world. Profit can be defined and simplified as earnings. The earnings can be calculated by subtracting the revenue gained and the expenses that are incurred to run the business. A business that works to earn profits usually provides and sells goods and services for a set price. Some companies make a larger profit than other companies. When companies earn large profits the company sells stock and shares out to the public. These companies are profit organizations and everything that they do deals with increases the earnings of the company.
On the other hand, there are non-profit organizations. These organizations don’t work for earnings or profits. A non-profit organization operates by charitable donations or from the funds of the person who started the organization. The main strength of non-profit organizations is that they are able to provide goods and services...