What would our world be like without businesses in our economy? Frankly, it would be quite unimaginable. Without businesses, people would have to be completely self-sufficient and would have to be experts at all traits of life, such as cooking, agriculture, health, education, construction, etc. This type of society would not be practical. In this paper, the importance of businesses and its role in society will be discussed, along with profit and nonprofit organizations, current fiscal and monetary policies, global markets, and social responsibility.
There are four factors of production that play a vital role for an “economic system to work and create wealth” (Kelly & McGowen, 2012, p. 6). The first factor of production is natural resources. Without the basic building blocks, such as land, fresh water and mineral deposits, it would be difficult to continue to produce and grow in any business. Secondly, capital goods are essential to a business to produce goods and services. They include machines, buildings, information, technology, etc. Capital goods will never stop being in demand as long as businesses are around. Thirdly, human resources are necessary for the knowledge and development of people in the workplace. Today, technology makes learning and working more simplified. The last factor of production is entrepreneurship. Entrepreneurs see opportunity for success and use their resources to create growth and opportunity for the economy (Kelly & McGowen, 2012, p. 6). All businesses depend on these four factors to achieve their economic objectives.
Another major component of...
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