Please help me write what are the interesting statement in this section and why

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Please help me write what are the interesting statement in this section and why is it important to know at economics

8.2 How ARE FIRMS ORGANIZED? The primary goal of a business firm is to earn a profit for the owners of the company. The business firm is not created to employ people, nor is it bound to give money to the community. However, job creation and community prosperity are often the consequence of profit motivation. The firm organizes resources to produce and sell a good or service for profit. The production process seeks to utilize the optimal mix of resources. This occurs when the output desired is generated at the least cost. Not shirking product quality that customers desire, the firm strives for an efficient operation A legal form of organization is required of all businesses. The most basic method is to organize as a sole proprietorship. Many types of business firms, especially retail shops and restaurants use this form. Only one owner is allowed and the filing requirements with city, county and state agencies are minimal. A similar legal form is a partnership. Here, two or more owners operate the business together. The obvious advantage is that a pool of talent and funds is created. The main disadvantage is that a carefully worded contract between the partners may be necessary to assure that profits, losses and management disputes are dealt with fairly Another legal business organization is a limited liability company, which has an important feature that also does proprietorships and partnerships. Income earned by the business is not taxed until it passes through to the owners of the firm, thus avoiding double taxation This form of organization also has limited legal liability that corporations enjoy as described below The most important legal form of business is the corporation. Although many more firms are organized as proprietorships, partnerships and limited liability companies, corporations have much more business activity. A major advantage of corporations is that their owners have limited liability for the firm's debts. The owners can lose only the money paid for their ownership stake. The owners hold shares of stock that represent the stake they have in the firm. They elect a board of directors with the responsibility for managing the company. The firm periodically will pay dividends (i.e., part of the profits) to

Explanation / Answer

Most of all It is very important to a manager or a entrepreneur in the way that it explains the activity of a firm, formation of it and some besic economic properties which is very practicle to a firm in details. The main objective of a firm is profit maximizing which can be achieved by cost minimization by utilising the resourecs efficciently. The text gives prior information about leagl permision required for starting of a firm or shop.

There two bsics organizational struture which is very important to run a business that are horizomntal formation and vertical formation. There is also a risk and the primary solution is product diversification which refers tio sell various product so that decrease in one sell does not affect the business as business can make profit from other product.

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