In the circular flow model, resources flow from the household sector to the business sector and are converted into output that is supplied to households through the product market.
What is business?
- Business is the process of making a living or producing income via the creation, acquisition, and sale of goods (such as goods and services).
- "Any activity or enterprise performed for profit" is also included.
- Since the business entity is not legally distinguishable from the owner by the use of a business name, the owner of the business is accountable and liable for any commitments made by the business.
- If a business accumulates debt, creditors may seize the owner's personal belongings.
Why does a business exist?
- A business purpose reveals the driving force behind a company's establishment.
- It outlines both the goals of the company and what makes it special.
- A company purpose is substantially shorter than both a mission statement and a value statement.
Learn more about business here:
https://brainly.com/question/15826679
#SPJ4
