Business The Back Bone Of Economy

1125 words - 5 pages

|
Business |
The Back Bone of Economy |
|
Amy Lopez |
11/4/2012 |

[Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] |

Business is the back bone of any economy. It forms an economies foundation and without business your economy would be almost no existent and nothing more than a barter system really. Life would look much like a feudal system of our ancestors.
In the US we have a capitalistic economy and business is the main component of it. Business is in every corner of every sector of what we ...view middle of the document...

This type of society would not be practical at all.
This is why people create trade with each other. Instead of having to provide ourselves with everything, we can focus on producing one product or expertise. We can then specialize in that product or expertise to make it the best on the market and then sell it for a profit. If everyone else does the same (in theory) we can all trade with each other and all obtain the best goods and the best knowledge.
A major part of this capitalist economy we have created is a competitive market. Competitive markets work fairly simply. How much wheat should a Farmer produce if wheat sells at $3 per bushel? How many pairs of shoes should Stride rite produce and sell if the market price of shoes is $40? These questions concern the supply behavior of perfectly competitive firms. We assume that our competitive firm maximizes profits, which are equal to total revenues minus total costs. Profit maximization requires that the firm manage its internal operations efficiently and make sound decisions in the market place.
Why would a firm want to maximize profits? Profits are like the net earnings or take home pay of a corporation. They represent the amount a firm can pay in dividends to the owners, reinvest in new plant and equipment, or employ to make financial investments. All these activities increase the value of the firm to its owners.
Competitive firms cannot affect the price; the price for unit sold is the extra revenue that the firm will earn. For example, at a market price of$40 per unit, the competitive firm can sell all it wants at $40. If it decides to sell 101 units rather than 100 units, its revenue goes up by exactly $40.
I’ve mainly discussed what a business that is for profit does in our economy but what about nonprofits? How do they work? A nonprofit organization, or NPO for short, is an organization that uses extra revenues to achieve a goal typically instead of distributing its profits. That’s not to say all nonprofits are charities. Kaiser Permanente, one of the largest health care providers in the US, is a nonprofit. Credit Unions are also nonprofits.
While not-for-profit organizations are permitted to generate excess revenues, they can’t be spent by the organization unless that spending is for...

Other assignments on Business The Back Bone Of Economy

Role Of Marketing Boards In Kenya To The Economy

1306 words - 6 pages . Consumers think of price stabilization as imposing minimum prices rather than both maxima and minima. It is often assumed without discussion or evidence that price stabilization benefits the farmer and is beneficial to the economy. Role of marketing boards: 1. To provide price stability, marketing boards set the prices for farmers. During a season of high prices in the world market, they stash funds over and above the set local target, which they

Think Of The Economy As Being More Like A Cat Than A Washing Machine

480 words - 2 pages Rule 1: Think of the economy as being more like a cat than a washing machine. We are victims of the post-Enlightenment view that the world functions like a sophisticated machine, to be understood like a textbook engineering problem and run by wonks. In other words, like a home appliance, not like the human body. If this were so, our institutions would have no self-healing properties and would need someone to run and micromanage them, to protect

The Influence Of Law In Business

936 words - 4 pages The Influence of Law in Business Practice Intro to Business & Technology March 23, 2014 The Influence of Law in Business Practice There are several laws in the United States that are meant to set a standard for fair, balanced, and competitive business practices. These are, by design, a way to ensure that trade- international as well as domestic- is done in a reputable and progressive fashion. There are many aspects that come in to

What Is The Definition Of Business Communication

513 words - 3 pages What is the definition of business communication? Business Communication: communication used to promote a product, service, or organization. Business communication is nothing but, the communication between the people in the organization for the purpose of carrying out the business activities. It may be oral, verbal, written. Why Is Communication Important in a Business? Good communication matters because business organizations are made up of

The Role Of Ethics In Business Evolution

1680 words - 7 pages The Role of Ethics in Business Evolution Reconciling works of Managerial Literature, Business Ethics Writer and Catholic Social Teaching, Domènec Melé argued that a firm should be considered as a wholesome person and suggested the ethical implications of his view (Melé, 2012). The concept that a firm should be regarded as a legal person, and not just a profit seeking entity, was brought forth by the House of Lords in the (Salomon v. A. Salomon

The Global Environment Of Business: New Paradigms For International Management

5311 words - 22 pages bargaining power in the employer/employee relationship and is changing the nature of human resource activities. In the knowledge economy, ongoing employee education and retraining programs have a greater importance and a central role in supporting the firm’s competitive advantage. E-business is changing the competitive positions of incumbents and new entrants, making start-ups easier and challenging monopolies. E-business has created a new set of ethical

The Role Of Business Economics In National Development

2924 words - 12 pages self evident, but there is considerable room for governments to facilitate entrepreneurship in a non-interventionist way. A smooth-running market economy is the best way to encourage entrepreneurship, rather than direct support. For instance, the role of government can be to provide business-friendly infrastructure by providing a framework of enforceable competition law that discourage monopolies and unfair competition as well as by intellectual

With Reference To Organisations Or Industries That You Know, To What Extend Do You Think That Recent Changes In The Uk Economy Will Have Inevitably Damaged The Long Term Profits Of Businesses That...

339 words - 2 pages With reference to organisations or industries that you know, to what extent do you think that recent changes in the UK economy will have inevitably damaged the long-term profits of businesses that operate in this country? Long-term profit is the amount of money a business makes (revenue minus costs) over a long term period. In this case it is referring to the profitability of a company and how much money it will be able to make in the future

Musculoskeletal And Aging

456 words - 2 pages years of age will have osteoporosis in their life. Because bone loss occurs without symptoms it is sometimes considered a silent disease. Osteoarthritis or sometimes called degenerative joint disease, (the surface layer of the cartilage breaks and wears off) which affects more men than women and can develop in younger people due to joint injury. This affects the fingers, neck, lower back keens and hips. The symptoms are stiffness, swelling and crunching feeling in the joints areas.

Skeleton

3619 words - 15 pages Chapter 6: Skeletal System: Bones and Bone Tissue Multiple Choice 1. Important functions of the skeletal system include A) protection of the brain and soft organs. B) storage of water. C) production of Vitamin E. D) regulation of acid-base balance. E) integration of other systems. Answer: a Level: 1 2. A band of connective tissue that attaches a muscle to a bone is a(n) A) aponeurosis. B) ligament. C) bursa. D

Work

328 words - 2 pages there is very little movement within this joint. Pivot joints are one or more bone rotates in a ring of another bone that does not move for example the neck and forearm. Ball and socket joints are a rounded end that slots in another bone the joints that are example of these are the hips and shoulders. Hinge joint is a joint that has a back and forth movement for example elbows, knees, fingers, and the jaw. Gliding joints are bones

Similar Documents

The Economy Of Uk Essay

2897 words - 12 pages sustained growth for over forty years whereas other countries have experienced recessions or very slow growth in the last few years, including the United States, Germany, France and Japan. There are three endogenous models of the business cycle in UK. The first one is the stock cycle. The stock cycle helps to explain some of the changes in national output. To see this we will look at what happened the last time that the economy had a recession. In 1989

Complexities Of The Us Economy Essay

563 words - 3 pages Complexities of the U.S. Financial System Professor Crawford Finance 100 10/28/2014 Complexities in the US Financial System The Federal Reserve System is the most powerful component of the US Economy. The Federal Reserve is made up of four components. There is a seven member Board of Governors that direct monetary policy. A 12 member Federal Open Market Committee (FMOC) that sets the target for the federal funds rate which

The Evolution Of Business Essay

1390 words - 6 pages The Evolution of Business Jennifer Sterkenburg OMM 640: Business Ethics and Social Responsibility Instructor Whitten September 4, 2013 The Evolution of Business Since the term “business” became a word everyone was familiar with, the purpose and principle behind business ethics and values was created. Even though no one in this day and age can be 100% sure how businesses were created, and how entrepreneurs were able to provide a sense of

The Business Of Water Essay

1645 words - 7 pages THE BUSINESS OF WATER CORPORATE GOVERNANCE AND BUSINESS ETHICS CASE STUDY ANALYSIS SUBMITTED BY: PRIYA BHATTER Who are the main stakeholders of beverage companies such as Cocoa Cola and Nestle in this case? How would you prioritize their stake and how legitimate are the different stakes? Consider the following stakeholders for beverage companies such as Nestle and Cocoa Cola in terms of legitimacy and importance of the stakes held