Businesses, or firms as they are often referred to in economics, are vitally important to any economy. They produce the goods and services that we consume, they provide employment and incomes and they also drive technological progress.
If you consider the huge variety of goods and services that businesses produce, their different sizes and the methods of production and distribution they use, you would be forgiven for thinking that they must all behave differently and have a wide variety of objectives. Could it be, however, that they all share a similar financial motivation for taking a business risk? The range of objectives that firms might aim to achieve is a popular topic for economics questions.
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