Creating, Financing, and Marketing a Business

In: Business and Management

Submitted By kylequincy
Words 387
Pages 2
The Business Environment
I. Describe the role of business in the economy.
Businesses play an important role in the development and growth of our economy. By creating jobs, which helps the economy grow as well as improving the quality of life within the community? When a business thrives, they are able to hire more employees - which mean there are more people within the community with jobs that are able to spend on a range of goods more we spend the more the economy grows. “Studies show that consumer spending, accounts for 70 percent of U.S economic activity”.

II. Compare and contrast the roles of for-profit and nonprofit organizations in the economy.
Both businesses and nonprofits rely on production. The combination of these factors is imperative for an economic system to function and create wealth. Most business’s work with nonprofit organizations to increase their impact within the community. Businesses supply goods and services, to communities in an effort to make a profit. While a nonprofit organizations main, focus is not to earn revenue but to enhance the public welfare. Additionally, businesses are taxed, while nonprofit organizations are often eligible for tax-exemptions.

III. Discuss the impact of current fiscal and monetary policy on the economy.
“Fiscal and Monetary policies are tools that the Federal Reserve Bank, and the government uses to help keep the economy running smoothly. The United Stated has had recessions, but our economy has always been able to revive itself relatively quickly. Fiscal and monetary policies help the economy by establishing rules and regulations that can be changed over time to better serve our economy as a whole”. These policies were established in an effort to influence the economy through taxations and spending decisions. As well as, the policies were designed to encourage growth, boost employment and…...

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