Practicing Success
Why does a business enterprise engage in activities to gather resources from its environment? |
To provide free services to the community To establish dominance over competitors To convert resources into outputs desired by the environment To avoid any interaction with the environment |
To convert resources into outputs desired by the environment |
Environment is a source of various resources for running a business. To engage in any type of activity, a business enterprise assembles various resources called inputs like finance, machines, raw materials, power and water, labour, etc., from its environment including financiers, government and suppliers. They decide to provide these resources with their own expectations to get something in return from the enterprise. The business enterprise supplies the environment with its outputs such as goods and services for customers, payment of taxes to government, return on financial investment to investors and so on. |