Describe the role of business in the economy.
Our economy survives on the fact that business is the cornerstone of our financial stability. The economy is driven by business. Businesses provide the goods, products, and services in which our society needs to sustain from day to day. Without business we not have the ability to work and earn the money needed to purchase the items that we use and need. We do not have to produce our own goods needed to sustain life. Businesses and employees both pay taxes to the Government which creates more jobs and this creates more money to fund the programs build the infrastructure needed to sustain an economy.
Compare and contrast the roles of for-profit and nonprofit organizations in the economy. Two types of businesses that exist today are either business that operate with clear goal of making a profit, or the other being a business that operates with the intention of making no profit. A for profit business must sell its goods and services for more than it cost them. The business has to consider everything it takes to buy and sell its goods. The cost of doing business which includes, payroll, taxes, advertising, raw materials, insurances, resources, and inventory all must be paid for out of the proceeds before a profit can be made. The money that is left over is the profit. A non-profit business usually a church or civic organization will operate on the basis of not having any proceeds let over after the cost of business is taken out. For example; I am currently a member of United Services Automobile Insurance Company (USAA). USAA is a non-profit insurance company that offers its products to active duty, veteran, and retired service members at reduced rate compared to other insurance companies. At the end of every fiscal year USAA returns the profits to its members to maintain its non-profit status. Discuss the impact of current fiscal and monetary...