"A business is a legally recognized organization that is created to provide goods or services to consumers for a profit."
- Michael Porter, Harvard Business
School Professor-
According to Michael Porter, a
business is a legally recognized organization that is established with the
purpose of providing goods or services to consumers in exchange for a profit.
This definition highlights several key aspects of a business, including its
legal status, its focus on providing goods or services, and its aim to generate
profits.
First and foremost, a business
must be legally recognized in order to operate. This means that it must be
registered with the appropriate authorities and must follow all relevant laws
and regulations. This legal recognition allows the business to enter into
contracts, hire employees, and engage in other activities that are necessary
for its operation.
A business is also defined by its
focus on providing goods or services to consumers. This is the central activity
of a business, as it is what generates revenue and ultimately drives the
business's profitability. The specific goods or services that a business
provides will depend on the industry in which it operates and the needs and
wants of its target market.
Finally, a key aspect of a
business is its aim to generate profits. Profit is the excess of revenue over
expenses, and it is what allows a business to survive and grow over time.
Without profits, a business will not be able to sustain itself and will
eventually fail. While profit is not the only goal of a business, it is an
important consideration for any organization that hopes to remain viable in the
long term.
In summary, a business is a
legally recognized organization that is established to provide goods or
services to consumers in exchange for a profit. This definition captures the
essential elements of a business, including its legal status, its focus on
providing goods or services, and its aim to generate profits.
Comments
Post a Comment