2006-10-10 06:56:22 · 8 answers · asked by Anonymous in Social Science ➔ Economics
No. The business of business is a return on investment. That's a measure of how much a company makes (not necessarily all profit) vs. how much is invested in it. The hope is that the business returns more than you could make if you put that same money into a "safe" investment like a Money Market fund.
Obviously the more profit a business makes the higher the likely ROI. But sometimes businesses want other measurements like cash flow (in the case of a subsidiary of a company that has slower cash turnover).
In other countries, like Japan and some European countries, businesses are much more attuned to long term profitability and return AND are as considerate of their employees as they are of their investors. In the USA, this is definitely not true.
2006-10-10 07:08:56 · answer #1 · answered by kramerdnewf 6 · 1⤊ 0⤋
Any business has to operate on a P&L. A business is in business to make money. However , if a company wants to stay in business for the long haul, the corporation needs to also focus on hiring , training and maintaining quality employees. Be constanly aware of market trends, implement innovative ideas. Strive for excellence in quality and service. Maintain a trusted solid reputation . These are just a few things of the business of business.
2006-10-10 14:21:56 · answer #2 · answered by laughsall 4 · 0⤊ 0⤋
Well if they didn't make a profit,they wouldn't be in business long. you don't work at a shop 40 hrs. a week for nothing!! Most business owners put in a lot more hrs. than regular workers. Been there done that.
2006-10-10 14:06:43 · answer #3 · answered by Tired Old Man 7 · 0⤊ 0⤋
Unless it is a non-profit orginization, then no. Normall business, yes, that is their only reason.
2006-10-10 14:03:50 · answer #4 · answered by Sean P 3 · 0⤊ 0⤋
you have to consider short term protifability and long term profitability, if you are only focused on instant results for shareholders you are going to sacrifice long term profitability, look at ford and gm's troubles for ex
2006-10-10 14:08:04 · answer #5 · answered by Nick F 6 · 0⤊ 0⤋
in economics, the "business of business" is to minimixe their costs subject to their budget. simple as that
2006-10-10 18:54:03 · answer #6 · answered by biggityb04 2 · 0⤊ 0⤋
yes everything a business does is designed for you to spend money on their products/services.
2006-10-10 13:59:42 · answer #7 · answered by . 2 · 0⤊ 0⤋
yes. The primary goal of any business is to increase shareholder value. everything else is secondary.
2006-10-10 14:04:53 · answer #8 · answered by Kutekymmee 6 · 1⤊ 1⤋