Question

What is a business, and how are profits made?

a) A business is an organization that only focuses on charity.
b) A business is an entity engaged in the exchange of goods or services for profit.
c) Profits are made through government subsidies.
d) Profits are made by providing free goods and services.

Answer 1

A business is an organization that engages in selling goods and services with the intent to make a profit. Governments regulate businesses through laws and regulations. Businesses often create a code of ethics to guide their actions and meet social and environmental goals.

Step-by-step explanation:

A business is defined as an organization that engages in selling goods and services with the intent to make a profit. Governments generally restrict the activities of businesses through laws and regulations. To ensure that their members act in accordance with these laws and regulations and to meet additional goals that reflect the values of the societies in which they operate, businesses often create a code of ethics. These codes outline what actions are and are not permissible for an organization and for its individual employees. They address concrete matters, such as bribery, discrimination, and whistleblowing, while also laying out guidelines for how to accomplish environmental and social goals and how to build and maintain trust and goodwill.