Verified Document

Business Environment Is Mainly Characterized By Various Essay

Business environment is mainly characterized by various human economic activities including the production, sale, and purchase of goods and services that are carried out with the main objective of earning profits. Generally, the business environment can be described as a set of conditions that facilitate and promote the human economic activities. This environment is basically comprised of the internal business environment and the external business environment. The internal business environment includes the factors that are within the control of business while the external business environment refers to factors that are beyond the control of the business enterprise. One of the most common aspects of the business environment and human economic activities is the economy, which is generally influenced by various factors. Role of Business in the Economy:

Business is defined as the management and coordination of individuals and resources in order to achieve specific production objectives, with the main goal of making profit. Together with commerce and markets, business generates many benefits for consumers since it's the basis with which these consumers experience an enhanced standard of living. This is mainly because business enterprises obtain resources like labor and equipment that helps them to specialize in the manufacture of specific products and services. Therefore, the role of business in the economy is to improve the variety, quantity, and quality of products and services available to consumers while the prices of these products and services decreases ("The Role of Business in the Economy," n.d.). Therefore, business plays an important role in the economy in impacting the consumers' standard of living. Through the presence of business in the economy, consumers are able to obtain more products and services that enhance their living standards in ways that could be nearly impossible without the existence of business in the economy.

Roles of For-profit and Non-profit Organizations in the Economy:

The for-profit and non-profit organizations play an integral role in the economy because of their significance in the business environment and operations....

The for-profit organizations are involved in the production of goods and services as well as the provision of employment in order to generate financial gains or profits. Similarly, the non-profit organizations are involved the manufacturing of products and services as well as the provision of employment. However, these non-profit organizations are not in the businesses with the aim of financial gain or profits. The non-profit organizations generate revenue, employ individuals, and manufacture products and services with the main goal of serving environmental and humanitarian needs. On the contrary, the for-profit organizations assist in improving the living standards of people through taxes that the government uses in providing facilities to individuals and for societal well-being.
Impact of Current Fiscal and Monetary Policy on the Economy:

In nearly every major trend in the market, there are always some underlying economic factors such as GDP growth rates. The underlying economic trends are significant determines of the event that take place to organizations and their stock prices. The economy is usually impacted by two major types of economic policy i.e. current fiscal policy and monetary policy. The fiscal policy is an economic policy that is initiated by the President or Congress through taxation law and government spending. Since taxation is one of the essential tools in fiscal policy, the government can efficiently transform the amount of disposal income that is available to taxpayers through changing tax laws. Through such measures, the disposable income would go the government rather than consumers and then pass on to companies or business enterprises. Secondly, the government can choose to increase spending through direct purchase of products and services from private firms ("Introduction to the Economy," n.d.). This would in turn increase the flow of money through the economy and enhance the disposable income available to consumers.

The second type of economic policy with which the government can impact the economy is through monetary policy that is initiated by the central bank of a country like the Federal Reserve in the…

Sources used in this document:
References:

Bernanke, B. (2011, February 9). The Economic Outlook and Monetary and Fiscal Policy.

Retrieved November 3, 2012, from http://www.realclearpolitics.com/articles/2011/02/09/the_economic_outlook_and_monetary_and_fiscal_policy_108845.html

"Introduction to the Economy, Fiscal and Monetary Policy." (n.d.). Investorguide.com. Retrieved November 3, 2012, from http://www.investorguide.com/igu-article-284-basic-economic-concepts-introduction-to-the-economy-fiscal-and-monetary-policy.html

"McDonald's Issues First Worldwide Social Responsibility Report." (n.d.). CSR Press Release.
Retrieved November 3, 2012, from http://www.csrwire.com/press_releases/25172-McDonald-s-Issues-First-Worldwide-Social-Responsibility-Report-
"The Role of Business in the Economy." (n.d.). Module 16 -- Markets and Commerce. Retrieved November 3, 2012, from http://www.econedmontana.org/16_business_economy.pdf
Cite this Document:
Copy Bibliography Citation

Related Documents

Social Media in the Business Environment in
Words: 2879 Length: 7 Document Type: Essay

Social Media in the Business Environment In the past few years, there has been a tremendous and dramatic increase in the use of social networking sites and social media such as Facebook and Twitter. This is particularly because of the low-cost, user-oriented, and highly collaborative means of communication that continues to evolve through its own impetus. Consequently, social networking sites or social media are based on certain principles that the corporate

Business Management
Words: 1684 Length: 4 Document Type: Essay

Strategic Alliance Businesses in the modern business environment are increasingly faced with the need to develop effective strategies in order to improve their competitive advantage and increase revenue. As a result, businesses are increasingly forming strategic partnerships or alliances with other entities for several reasons. Strategic alliances between various businesses are mainly geared towards exchanging or publishing information, conducting joint trade shows or meetings, providing education and training programs, sale

Sainsbury's Business Environment Mission, Vision, Objectives, Goals...
Words: 3320 Length: 10 Document Type: Essay

Sainsbury's Business Environment Mission, vision, objectives, goals and core competence Sainsbury's chain of supermarkets is the leading store of food retailing in Britain. A single store offers approximately thirty-two thousand varieties of products among them fresh produce and own brand comprising of fifty percent total products. A variety of grocery products and quality foods are sold by the chain of supermarkets. Additionally, they offer other services and products such as petrol stations,

International Business Environment Today's Micro
Words: 2692 Length: 9 Document Type: Essay

"Opening up the financial system to foreign capital flows can lead, and has led, to disastrous financial crises, which have resulted in great pain, suffering and even violence" (Mishkin, 2006, p.9). Directly linked to the previous disadvantage and the basic definition of globalization, is the fact that the interdependence of sectors and institutions increases in a global market. In this instance then, a financial crisis within one country or within

Corporate and Business Level Strategies for GM
Words: 1854 Length: 6 Document Type: Term Paper

Business Level and Corporate Level Strategies Business-Level and Corporate-Level Strategies General Motors business level and corporate level strategies General Motors (GM) is a company based in the United States with its headquarters in Detroit, Michigan. GM is a publicly traded company that is listed on the New York Stock Exchange. GM designs, manufactures, distributes, and markets vehicle parts and vehicles (Laudon & Laudon, 2011). The company also sells financial services. GM acquired the

Business Management Post Responses on
Words: 554 Length: 2 Document Type: Essay

However, the prospect of relocating manufacturing operations abroad raises new potential issues that must be considered. Specifically, it may be ethically permissible to take advantage of certain prevailing circumstances in foreign countries that are responsible for lower labor (and other overhead) costs. On the other hand, there are also limits to that concept. It is not ethically permissible to relocate manufacturing operations to countries where economic and social conditions are

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now