Business Paper

Paper- Purpose of Business Write a 300-500 word paper in APA format that describes the purpose of business. How do business systems add value to a company? Use references and research to support your comments.

Most people will say the purpose of business should be to make profit. If a business loses money it will soon go bust, this much is clear. Profits are necessary for any ongoing business operation; however the fact that a business makes a profit does not explain the purpose of the business. According to Minnesota Business (2010) Peter Drucker, father of the modern management profession, believed that: Profitability is not the purpose of, but the limiting factor on, business enterprise. Profit is not the explanation, cause or rationale of business decisions, but a test of their validity.

A profitable business is able to sustain itself, but it should not make profit the most important purpose of a business. Just like Enron, any business that cherishes profit above other factor, might be breaking few laws, taking excessive risk that might damage the society and/or the environment, and it will definitely create unnecessary suffering for employees.

As I have learned from the past, a business is better suited if they aim to satisfy customers while acting responsible will lead to higher profits. By satisfying customers the business can occupy itself in a meaningful way. And by acting responsibly, the business can prosper without harming others. If the business can also make a profit then its activity will be self-sustaining.