Final answer:
The statement is true as businesses aim to generate profit by providing goods and services needed in an economy, contributing to GDP and subject to the business cycle's influence.
Step-by-step explanation:
The simplistic definition that business refers to "All profit-seeking activities and enterprises that provide products and services needed or desired in an economic system" is essentially true. Every business, no matter its size, aims to generate profit, which is calculated by the formula Profit = Total Revenue - Total Cost. Businesses operate within an economic system and are influenced by various factors, including government regulations, ethical codes, and the state of the economy. They contribute to the Gross Domestic Product (GDP) and are a fundamental part of the business cycle. When a business ceases to exist, it is often due to its inability to generate sufficient profits to cover its costs. This profit motive is a foundational aspect of the capitalist system, where private ownership and wealth creation through profit are central themes.