What concept refers to the traditional business model focused on maximizing profit for owners?

The concept that refers to the traditional business model focused on maximizing profit for owners is indeed rooted in the principle of the for-profit business. This model prioritizes financial gain and shareholder value, meaning that the primary objective is to generate profit, which can then be distributed among the owners or shareholders of the business.

For-profit businesses operate under the assumption that their success is measured by their profitability, which drives their decisions, strategies, and overall operations. This focus on profit maximization can lead to various business activities designed to enhance revenue and reduce costs, reflecting the prioritization of the owners' financial interests above other potential stakeholders' interests.

In contrast, a social enterprise incorporates social or environmental missions into their operations while seeking profit, but their primary focus isn't solely on maximizing financial returns. Corporate responsibility relates to ethical considerations and the role a company plays in society, which extends beyond just profit. Public service usually denotes entities that operate with the goal of benefiting the public rather than generating profits for owners. Understanding these distinctions clarifies why the for-profit business model is characterized by its profit-maximization goal.