Final answer:
The primary purpose of business is to generate wealth by making a profit through selling goods or services at a price higher than the cost to produce them.
Step-by-step explanation:
Most business people think that the primary purpose of business is to generate wealth. This means that the main goal of a business is to make a profit by selling goods or services at a price that is higher than the cost to produce them. By doing so, businesses can create financial success and provide value to their shareholders.
For example, when a business sells a product or service, it earns revenue. This revenue is then used to cover the costs of producing the goods or services, such as labor, materials, and overhead expenses. If the revenue exceeds the costs, the business makes a profit.
It is important to note that while generating wealth is the primary purpose of business, successful businesses also contribute to society in other ways, such as creating jobs and supporting the economy.