strategic management?

Question

refute the following statement "the sole purpose of a business is to make a profit"

i'm struck please help me

Answer 1

Focus on the word "sole".

The PRIMARY purpose of a business is to make a profit, but there may be other reasons as well. Someone may start a business to provide security for themselves and their family. They may start a business to do something that they enjoy, such as someone who loves gardening opening a nursery.

You can do the rest of your assignment yourself!! This should give you a starting point!

Answer 2

Are you "struck" or "stuck" ? I have a friend who owns a business that didn't make a profit, and while the sole purpose was for him to enjoy what he enjoys most, he used his unprofitable business period to his advantage. He lost money on this business and had to move it into his personal house for it to survive. Of course, the house had to be renovated in order to house the business. And, the house had to be re-renovated (with multiple upgrades) when the business moved out. My poor friend ended up with quite a tax advantage because the unprofitable business paid for all the work performed on his own personal house in order to keep his business afloat. So, in essence, he profited from his business because it was not profitable. See same premise for "The Producers." Most businesses are started for the shear joy of its nature to the owner. Businesses can be sustained by profit, however some are sustained through grants or other means because its sole purpose is to provide a much needed (yet, unprofitable) service. The TV show, "Americas Most Wanted" loses money for the network, and yet gets renewed every season because of the service it provides to the community. Some businesses are tax code 501(c)3 which means "non-profit." They provide a much needed service to their particular industry (which is the sole purpose of these businesses), yet turn no profit.