Business Management: The Nature of Business Activity
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Q1. Business organisations are of great importance for both society and the individual. A good way of showing their importance is the Business Cycle below.
Organisations exist to provideGoods and services.
Business organisations are there to satisfy consumers and in satisfying these consumers they are providing resources i.e. wages/salary. In order to carry on successfully they have to create new demand by developing new products and marketing. All the while these organisations are providing goods and services for the consumer market, they are also providing employment for the general public.
As far as society is concerned, successful businesses contribute to the economic wealth of the country allowing steady growth. They can also increase the power of the country within the European and World Trade Market. Employment is reduced and living standards are increased. All in all there is a general increase in spending within the economy. Beneficial To the public sector, taxes are also ploughed back into society, which in turn improves standards of living.
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