‘Adding value to resources’ is one of the main activities of business. Explain.

Adding value to resources is indeed one of the main activities of a business. Here's a step-by-step explanation:

1. Resource Acquisition: Businesses start by acquiring resources. These resources could be raw materials, human resources, or even intangible assets like intellectual property.

2. Transformation Process: Once these resources are acquired, businesses use their expertise, technology, and processes to transform these resources into a product or service. This transformation process is where the business adds value to the resources. For example, a car manufacturer takes raw materials like steel, rubber, and glass and transforms them into a car.

3. Value Addition: The value addition is the difference between the cost of the resources and the price at which the final product or service is sold. This is also known as the value added. For example, if the raw materials for a car cost $10,000 and the final car is sold for$20,000, the value added is $10,000.

4. Customer Satisfaction: The ultimate goal of adding value to resources is to satisfy the customer's needs or wants. The more value a business can add to its resources, the more it can satisfy its customers and the more successful it will be.

5. Profit Generation: The value added also contributes to the profit of the business. The higher the value added, the higher the profit margin for the business.

In conclusion, adding value to resources is a crucial activity for any business. It not only helps in generating profits but also in satisfying customer needs and staying competitive in the market.