Business in the Economy
|The Business Environment |
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|Karron Lay |
|February 2, 2013 |
BUSINESS IN THE ECONOMY
To understand how a business affects the economy we must first understand the meaning of what a business is by definition. A business is “an organization or enterprising entity engaged in commercial, industrial or professional activities”. (Investopedia, 2013) A business or firm produces the products or services that consumers need, want, or desire. Most businesses or firms operate for profits, which is “the financial reward that comes from starting and running a business”. (Kelly & McGowen, 2012) When a business is not making a profit they are operating at a loss. This could be due to the amount of funds that a business or firm must cover such as their expenses to produce products or services. If the business or firms ' expenses are more than the profits, then business or firm is operating at a loss. If a business is running at a loss it could be due to key economical dimensions such as the economic environment, competitive environment, technology environment, social environment, or global environment.
How a business or firm deals with these key economical dimensions can make or break them. If the economy is in any way in a fiscal crisis, many consumers can be unemployed or saving their earnings for harder times to come. With the competitive environment, if more than one business or firm is offering the same product they must compete
| |
|Karron Lay |
|February 2, 2013 |
BUSINESS IN THE ECONOMY
To understand how a business affects the economy we must first understand the meaning of what a business is by definition. A business is “an organization or enterprising entity engaged in commercial, industrial or professional activities”. (Investopedia, 2013) A business or firm produces the products or services that consumers need, want, or desire. Most businesses or firms operate for profits, which is “the financial reward that comes from starting and running a business”. (Kelly & McGowen, 2012) When a business is not making a profit they are operating at a loss. This could be due to the amount of funds that a business or firm must cover such as their expenses to produce products or services. If the business or firms ' expenses are more than the profits, then business or firm is operating at a loss. If a business is running at a loss it could be due to key economical dimensions such as the economic environment, competitive environment, technology environment, social environment, or global environment.
How a business or firm deals with these key economical dimensions can make or break them. If the economy is in any way in a fiscal crisis, many consumers can be unemployed or saving their earnings for harder times to come. With the competitive environment, if more than one business or firm is offering the same product they must compete
Cited: Businessdictionary.com. (2013, February 02). Retrieved from social Responsibility: http://www.businessdictionary.com/definition/social-responsibility.html Fritz, J. (2013, February 02). about.com. Retrieved from How Is a Nonprofit Different from a For-profit Business?: How Is a Nonprofit Different from a For-profit Business? Investopedia. (2013, February 02). Retrieved from http://www.investopedia.com/terms/b/business.asp#axzz2JmilHtdZ Kelly, M., & McGowen, J. (2012). BUSN 4, 4th Edition. Mason: Cengage Learning. P&G. (2013, February 02). Retrieved from Social Responsibility: http://www.pg.com/en_US/sustainability/social_responsibility/grant_application.shtml United States Department of Labor. (2013, February 02). Retrieved from Bureau of Labor Statistics: http://www.bls.gov/ ----------------------- BUS 100 Strayer University Dr. Matt Keogh