The Business Environment
Due: February 3, 2013
Describe the role of business in the economy.
Businesses are the growth engine of the most successful economy. Everything that you can possible think of relates to the economy is business. Retail, services, agriculture, manufacturing, health care, even political campaigning all involves business. Without businesses we would have to fend for ourselves for everything. We would need to find our own food every single day; we would have to gather materials to create shelter because there would be no store to buy them from. We would have to make our own clothes out of fabrics we weaved from raw materials. This type of society would not be practical at all.
Compare and contrast the roles of for-profit and nonprofit organizations in the economy.
For-profit organizations are businesses and other organization whose primary goal is making money. A non-profit organization focuses a goal such as helping the community and is concerned with money only as much as necessary to keep the organization operating. Both businesses rely on the four fundamental resources to achieve their goals, (1) natural resources; (2) capital; (3) human resources; and (4) entrepreneurship (McGowan, 2011) So while they are different they operate the same way.
Discuss the impact of current fiscal and monetary policy on the economy.
The fiscal policy refers to the government efforts to influence the economy through taxation and spending decisions that are designed to encourage growth, boost employment and curb inflation (McGowan, 2011). Every year the government is supposed to create a budget or a financial plan that outlines expected revenue from taxes, fees and expected spending. If revenue is higher than spending the government incurs a budget surplus; however if spending is higher than revenue the government incurs a deficit (McGowan, 2011). This is what we are going...