TVM - TRUE VALUE METRICS
What is the PURPOSE of?
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What is the PURPOSE of FINANCIAL PERFORMANCE
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The conventional wisdom in some circles is that the purpose of business is to make profit, and if a business makes profit, then there will be an optimization of the economy and the maximum of benefit for society. This is the basic premise of the Adam Smith argument for a laissez faire market economy, and it has worked better for most of the last three hundred years than the alternatives.
The modern version of this argument is that business has to optimize its performance relative to the interest of the owners … the stockholders. Some executives have argued that to do anything else is a breach of trust and executives could be held accountable in law for their actions.
This idea has been challenged. Whether or not the law requires optimization of business for the benefit of stockholders, there are initiatives to make it clear that the 'purpose' of the business is to make a contribution to society using the resources of the business. One such initiative in the United States is the B Corp movement, which specifically has articles in the Bye Laws to ensure that social benefit is a legitimate goal of the business.
Whether or not there is a problem in law to do things that are valuable for society … for people and planet … the metrics of state, progress and performance may be structured so that it is possible to see what is going on and understand the implications.
Earning PROFIT has been the main PURPOSE of investor owned business organizations for a very long time ... though there is evidence that many of the biggest success stories have been for companies that conbined a great social purpose as well as giving return for the investors. For example, in the late 19th century, Lever Brothers (which eventually became Unilever) started as a business to produce low price soap to make it possible for poor people to wash themselves better and be more healthy.
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in a large multinational corporation
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in an owner operated small business
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What is the PURPOSE of Economic Activity
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What is the PURPOSE of ECONOMIC ACTIVITY
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from the perspective of an operating business
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from the perspective of an owner / investor
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from the perspective of a worker
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from the perspective of a consumer
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What is the PURPOSE of Financial-Services
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What is the PURPOSE of Infrastructure
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What is the PURPOSE of Manufacturing
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What is the PURPOSE of National-Security
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What is the PURPOSE of Personal-service
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What is the PURPOSE of PRODUCTS / GOODS AND SERVICES
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The purpose of a company, an organization, is to provide a structure within which products ... that is, goods and services ... can be produced efficiently.
It is important to
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from the perspective of society
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from the perspective of owners / investors
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from the perspective of employees
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from the perspective of consumers
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The many categories of PRODUCT
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Food
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Clothes
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Services
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Housing
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Knowledge
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What is the PURPOSE of PEOPLE
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PEOPLE
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as individuals
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as members of a family
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as children in a family
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as parents in a family
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as elders in a family
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as members of society
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as elders in a society
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as producers
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as consumers
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as employers
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as employees
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What is the PURPOSE of PLACE
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from the perspective of a company
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from the perspective of an individual or family
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Infrastructure
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A house
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A road
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Water mains
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Sewers
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Electricity distribution
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Electricity transmission (the Grid)
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Oil and gas pipelines
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Gas distribution
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Airports
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Seaports
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Railroads
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Bus terminals
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Train terminals
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Communications
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Data centers
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Military intelligence satellites
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Research satellites
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GPS satellites
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Religion
What is the purpose of religion
The purpose of religion is
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A church
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A synagogue
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A mosque
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A temple
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Retail
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A department store
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A discount store
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A supermarket
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A bodego
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A convenience store
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A liquor store
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Big box general store
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A clothing store
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Jeweler
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Flee market
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A computer store
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A furniture store
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A food market
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A butcher
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A baker
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A general store
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A bar
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A sports bar
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A gentleman's club
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Restaurants
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A coffee shop
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A chain restaurant
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A fast food restaurant
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A pizza place
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Personal service
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Hairdresser / barber
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Hair stylist
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Nails
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Spa
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Health club
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Pawn shop
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Shoe repair
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Laundromat
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Dry cleaners
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Service
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Automobile service
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Residential heating and air conditioning
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Landscaping and lawn service
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National Security
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The army
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The navy
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The air force
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The coast guard
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Special forces
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Intelligence
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Government
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Civil service
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Administration
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Executive
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Legislative
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Judiciary
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Regulators
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Ministry of Finance
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Ministry of Housing
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Ministry of Public Works
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Ministry of Defense
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Ministry of Foreign Affairs
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Ministry of Home Affairs
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Ministry of the Environment
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The budget
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The courts
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The prisons
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Statistics
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The census
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Health
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Medical research
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Hospitals
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Clinics
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Doctor's offices
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Training
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Doctors
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Doctor certification
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Nurses
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Nurse assistants
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Community health workers
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Advertising
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Pharmaceutical research
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Pharmaceutical patents
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Drug prices
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Health Insurance Company
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National health system
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Specialists
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Education
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Pre school education
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Kindergarten
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Primary school
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Secondary school
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Community college
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Vocation training
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University
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Post grad study
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Special education
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Financing students
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Financing educational establishments
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Manufacturing
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Supply chain
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Logistics
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Workplace safety
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Payroll
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Employee benefits
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Robotics
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Inventory control
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Quality control
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Marketing
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Advertising
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Trade shows
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Brand PR
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Risk management
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Food
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Agriculture
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Genetically modified seeds
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Fertilizers
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Pesticides
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'Roundup'
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Soil conservation
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Permaculture
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'Natural'
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Irrigation
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Antibiotics
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Growth hormones
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Managing runoff
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Localization
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Greenhouses
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Hydraponics
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Aquaponics
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Sports
For some people, sports is a business
For some, it is all about playing the game and winning
For some it is spectating.
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A professional team
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A star player
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A stadium
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Children's sport
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High school sport
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College level sport
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Gambling on sports
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Drugs in sports
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The Purpose of Arts and Culture. Music and Dance is to help make life worth living.
There is value in these things for those that are the creators.
There is value in these things for those that are the spectators.
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Music
Music seems to have been hard wired into the human conditions and a part of quality of life from early times.
Music seems to be everywhere
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A symphony orchestra
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A choral group
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A music ensemble
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A jazz group
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Percussion
Drums amd rhythm facilitate dance
Drums have also been used to enable communication.
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Opera
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Dance
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Classical ballet
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Contemporary dance
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Ballroom dancing
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Art
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Art galleries
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Museums
The purpose of a museum is to provide a window on the past, and to help people have a better understanding of the past.
The artifacts of a museum are an important resource for ongoing research into history.
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TO DO
Complete this paper
Flesh out this paper with a complete set of statements of purpose for all the elements listed
Develop an app
Develop a mobile app to build a database of statements of purpose that can be used for analysis
Incorporate purpose into the MDIA framework
Make purpose a part of the analysis of each of the main elements of MDIA
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