Value of Business Organization in Society

Topics: Economics, Business, Pollution Pages: 7 (1565 words) Published: June 9, 2014



ASSIGNMENT TITLE: The value of business organization creates society. Identify, summarize and discuss arguments against business.



1.0. Introduction
1.1. What is business?
1.2. Forms of business

2.0. Negative effect/impact of business.

3.0. Conclusion

4.0. References

1.0. Introduction

The role and impact of business organizations in any society can be aggrandized to be a major factor leading to the growth and development of economy in various countries across the globe. Business as a human activity has been able to assemble people, capital and innovation under controlled risk-taking, in order to create jobs and produce goods and services profitably which translated to an amount of wealth for business owners, employees, customers and society at large.

In Africa, business activities have tremendously contributed to the economic growth experience and these has been boosted by internal and external factors. Internally, the emphases on business organization to create domestic business friendly environments, greater business discipline, have formally written values and principles, and open prospect to transact business globally has led to the growth of the African economy.

However, the role and impact of business activities also have negative effects on the society which will be discussed and properly elaborated.

1.1. What is business?

The term business does not have a specific definition as it has been defined in different ways by various scholars and business practitioners around the world who have related the meaning to how they perceive and see business activities done in their areas of work, lives and daily activities.

Generally, the term business refers to an economic activity which is primary organized and directed to manufacture or produce good and services at a profit. Whereas the profit made is the difference between the income received after selling the goods and services and the cost incurred in producing and selling those goods and services. In order to ensure a long-term business survival and job creation, every business organization must sustain or increase their profit by satisfying its different stakeholders including the customers, employee, owners, government and the society.

1.2. Forms of business

The different forms of business are categorized in order of members participating in the effective operation of such business, which includes the in number of people involved in the formation and also principles used to form and conduct that particular business. These forms of business includes sole proprietorship, partnership, private companies, public companies and corporative.

The sole proprietorship refers to a form of business that is operated by one individual who is the owner of the business. This type of business is considered as the foundation of development of any economy in the world because most of the big businesses existing today started with sole proprietorship and then developed from there on. Examples are kiosk, corner shops, and mini supermarkets, restaurants, etc.

Partnership form of business is done and operated by a minimum of two people and a maximum of twenty people. By law, if the owners exceed twenty then it will no longer be considered a partnership but another form of business. Example of partnership business is Nakumatt supermarket in Nairobi Kenya, the Spar Supermarket in Lagos Nigeria, etc.

Private companies are businesses that are owned by a minimum of twenty people and a maximum of fifty people. By law, the business owners or shareholders must be in the range of twenty to fifty only to form a private company. Example includes Shoprite Nigeria.

Public companies refer to a form of business that is owned by more than fifty individuals and...

References: - Appleby, Robert C. (1994) ‘’Business and Its Environment’’ In Modern Business Administration, 6th edition, Pitman Publishing.
- Kibera, F. N (1996) Introduction to Business; A Kenyan Perspective, Nairobi: Kenya Literature Bureau.
- Tankeu, Elizabeth. (2004) Economic Development in Africa – Opportunities and Challenges. Addis Abeba. Retrieved September 15, 2012. Url:
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