Week 4 Writing Assignment

Topics: Monetary policy, Non-profit organization, Federal Reserve System Pages: 5 (1547 words) Published: July 30, 2013
Running head: BUSINESS ENVIRONMENT

Business Environment
Kary Ptak
Professor Michael Mancini
Strayer University
Business 100
May2, 2013

Business Environment
Business is all around us nationally and internationally, they are what made our economy grow. Some business are growing fast as technology advance, however some business are weakening in the slow economy. Roles of Business in the Economy

The economy relies on business to provide goods or services within the nation. If there were no businesses, consumers would have to create, sell and produce products on their own. Many people would struggle with obtaining their need and wants in their everyday lives. Many different types of business create jobs which keep money flowing in the economy. Business replies on four factors of production, factors like natural resource material, capital, human resource and entrepreneurship. Natural resources are material that a person can’t create on their own like land, water, wind, and mineral deposit (Kelly, 2012). The value of such material can be at high demand or really low supply. Capital are technology, machine and tools use to provide goods and services (Kelly, 2012). Business usually uses their revenue to acquire, maintain, and upgrade their capital. Human resources are anyone who works for businesses in the economy. Entrepreneurship is any who take a risk to start their own business (Kelly M. , 2012). All those factors are essential to economy. Business goes though a different cycle that impacts the economy. If there is a high level of consumer spending profits will be greater for businesses and new jobs could be created. If there is recession, it means lower profits for business. In a recession, business cut back on spending and employees could lose their jobs. Another cycle is a depression which much company may go out of business and unemployment rates start rising fast. The sign of a recovery cycle is business start to see positive outlook like an increase in revenue and unemployment stop growing at a high rates. For Profit and Non Profit Organization

There are two main types of business in the business environment, for profit and non-profits organization. Nonprofit and for profit business have the same business and management techniques (“Not for Profit” 2013). For profit organization main focus is to gain profit for the product or services they provide. For profit organization generate revenues to pay their employees, other business expense such state and federal taxes and the owner/s of the business keep the rest for wealth. Nonprofit organizations are typically reglious, charitable or educational organizations. The primary goals of nonprofit companies are to fulfill their organization mission and help the community. Nonprofit companies generate profit just like for profit companies, however nonprofit organization is run majority by volunteers and has a few paid staff. The revenue made in a nonprofit, does not have to pay taxes so after operation cost, the rest of the profit continue to fund the programs mission. Many nonprofit tend to reply on support from the government funding and large charitable donations from for profit companies. But in a slow economy, for profit are experiencing low level in profits and the government is cutting back on spending levels. Also, many people lose their jobs and are seeking help from nonprofit company for support, like services from food banks. Even though all business has the main goal of gaining profit, the usage of the revenues is different. Impact of Current Fiscal and Monetary Policy on the Economy In 2008, the nation went into an economic crisis, many American lost their jobs and homes which resulted in high unemployment rates and decrease in property values. Also the stock market lost about third of its value during that time, the feds tried to prevent an economic crisis (Kelly M. , 2012) The Federal Reserve board lowered interest rates to bail out major...

References: Effects of the Monetary Policy, (2013) Retrieved May 2, 2013, fr
http://www.investopedia.com/exam-guide/cfa-level-1/glodal-economic-analysis/monetry.asp
Profiles, (2013) Retrieved May 2, 2013,
http://www.forbes.com/companies/mcdonalds/
Kelly, McGowan. (2012). Managing the Economy Though Fiscal and Montery Policy In BUSN (4th ed.). ( p.19) Mason , Ohio: Cengage Learning.
Kelly, McGowan. (2012). Business Now . In BUSN 4 (4th ed.). Mason, Ohio: Cengage Learning .
Kelly, McGrowan. (2012). Seizing the Opportunity: Strategies for Reaching the Global Market. In BUSN 4 (4th) (p. 36). Mason, Ohio: Cenegage Learning.
Not for Profit Definition, (2013) Retrieved May 2, 2013, from
http://www.investopedia.com/terms/n/not -for profit.asp
What is the Fiscal Policy?, (2013) Retrieved May 2, 2013, from
http//.www.investopedia.com/articles/04051904.asp
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