The Business Environment
James D Perkins
Dr. Marcus Crawford
January 27, 2012
Businesses are the main provider of jobs in a capitalist economy and the primary reason for economic growth. The definition of business is any activity that provides good and services in an effort to earn a profit. Businesses in the economy drive up the standard of living and overall quality of life for humans. These businesses produce the products we enjoy and in turn create jobs people need. The major difference between profit and nonprofit businesses is the main goal of profit organizations is to generate a profit for the owners and nonprofit is to use their surplus of funds to ...view middle of the document...
These businesses produce the products we enjoy and in turn create jobs people need. Businesses big and small pay taxes to our government that allows the government to function across the country. Thus business is a critical part of our economy.
The major difference between profit and nonprofit businesses is the main goal of profit organizations is to generate a profit for the owners and nonprofit is to use their surplus of funds to “advance the goals of the organization” (Kelly, 2012). With both profit and nonprofit, the ethics of the organization is key. For profit organization, their needs to be a balance on making profits and having honest business techniques. Nonprofit organizations can’t put their goal above and beyond all other goals. The balance of mass profit and making sure no harm is done to mankind is a balance scale that needs to be carefully considered.
“Fiscal policy and monetary policy refer to the efforts to shape the health of the economy” (Kelly 2012). Fiscal policy is our government finding ways to increase employment by generating growth through their financial decisions. Monetary policy refers to our Federal government’s decision making in increasing our money supply and the rise and fall of interest rates. These policies played a critical role in keeping America from entering into another financial depression a few years back. The Federal government came to the aid of many major businesses to protect them from going bankrupt. A few of these businesses were General Motors, AIG, Bank of America, and Fanny Mae. Thanks to the Federal governments aid General Motors has made a complete recovery to be one of the top selling automakers today in America. With the banking industry, the Federal government drop interest rates to help homeowners refinance to lower their mortgages and encourage more new home owners.
Fast food is one business that entered the global market rather quick and easy. I would follow the trend McDonalds made when going worldwide. McDonald’s biggest reason for success is marketing itself. They spend an incredible amount of money to advertise themselves and keep their name...