...PAPER. COURSE: BUS: 1010: INTORDUCTION OF BUSINESS ORGANIZATIONS. SEMESTER: SPRING 2015 INSTRUCTOR: NAMADA JULIANA ADM NO: 644067 NAME: BRIAN KIPRUTO CHELIMO Table of Contents Abstract 3 2.0 Forms of Entrepreneurship 4 1.0 Introduction 4 1CREATION OF EMPLOYMENT 4 2Poverty reduction 5 3Socio-economic and political solutions 6 4Economic growth and Development 7 2.1 Entrepreneurial Effects in the Growth of Economy 8 Conclusion 9 REFERENCES 10 Abstract According to Chell & Ozkan, (2010), an entrepreneur is someone who is willing to bear the riskofa businessventure where there is a significant chance for making profit. Entrepreneurship is basically the practice of starting a business in order to earn profit on new found opportunities. Entrepreneurship is a challenging task as many businesses which start fail to take off. Entrepreneurship has many uncertainties especially when new products are created for which there is no existing market.Entrepreneurship affects economic growth in various ways. It is through entrepreneurship thatimportant innovations enter the market leading to new products or production process whicheventually increases efficiency through bringing competition in the market. This paper discourses the impact of entrepreneurship on economies. Ideas and concepts that emerge from entrepreneurs increase...
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...The Business Environment BUS 100 – Introduction to Business Professor Denel Pierre In order to understand business and the economy one need to know the meaning of business and its purpose within society. Business can be viewed as a legal entity to sell goods, make goods or provide a service to individuals. It’s an economic system where a for-profit and a non-profit company can exist in providing goods and services. Businesses operate within a network of distributors and producers of goods, consumers’ who purchase goods, within a demographic area based on their needs and wants. Within this network how a business is structured and form can affect the profitability of that business; also, how businesses perform can affect the overall performance of a country’s economy. Describe the role of business in the economy Being part of a capitalistic economy businesses are the main and most important component of it. Businesses play a role in every section of an economy, such as; manufacturing, healthcare, retail and service are examples of what involves businesses. Without a network of producers and distributors there will be no economy, if businesses do not exist then consumers will have to produce, create, store, and sell items themselves, basically everyone would be fending for themselves for every need and want. (Kelly, M., & McGowen, J. (2012) In today’s global businesses environment the economic impact can be felt internationally. As businesses go through cycles of...
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...index such as the consumer price index. Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. In our economy we have many different things that can affect it and how it is ran, did you know it just doesn’t affect the government, it affects households and businesses all around. Here I will describe to you how purchasing groceries, massive layoff of employees and decrease in taxes can affect all three just as much as the other one. Even though we know how these things can affect one mediate source, it affects all portions of our economy just as much as the other one. Some people may feel that when purchasing groceries, it will only affect the house hold it is going in along with the business that it was purchased from. However that isn’t the case, our government plays a huge part between the household purchasing groceries from the business of choice. It is both a referee and an actor, meaning; setting the rules that determine relations between business and households and collecting money in taxes and spending that money on projects such as defense and education (Colander, Chapter 3, 2010). From the government aspect it hits the business side, putting together the...
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...through Decision Decision-making are the process in how to make economics decision. Through economics comes decisive ways in making consult decision. This will show making individual decision in how a person uses economics to their lives. Economics effect every decision that someone make in the world. Example to the principles of individual decision-making Individual decisions have principles in how to make decision. Can someone just make on individual decision that does not affect him or her on economics decision. The principles for individual decision-making are to make your own decision. Individual decision-making personal or business decision because a person can make it for reason. Example if a person is makes a decision at home for their family then that come to the person decision-making. Then on the twist side, the business individual decision-making would be to change the business face. Changing the face of the company by figuring out how changing this will benefit the business. Decision in which compared the marginal benefits and the marginal costs associated with the decision What decision that a person make with marginal benefits and the marginal costs. Benefits and cost marginal are affecting decision-making. The process that takes these two marginal, which helps someone, make a decision that affect his or her choices in the economics aspect. Example a company uses these two marginal in expending the business overseas. This works because if company wants to...
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...for inflation. • Nominal GDP- refers to the value of the goods and services that are produced in a country in a year, before the adjustments of inflation. • Unemployment rate - refers to the number of people in a country who do not have a job but are able to work. • Inflation rate - refers to how fast the prices of goods and services in a country are rising. The higher the rate is, the less the public’s purchasing power is. • Interest rate - refers to how an additional fee that is charged by a lender when money is borrowed. The higher the rate is, the more money will be charged to the borrower. Introduction Now that some of the fundamental terms of macroeconomics are defined, it is time to explore some of the economic activities of macroeconomics. “Macroeconomics is the study of an economy at the aggregate level, and is concerned with the workings of large sectors of the economy” (Colander, D., 2010). Fundamental activities of macroeconomics in relation to sectors of the economy include the purchasing of groceries, massive layoffs of employees, and decreases in taxes. These activities affect the government, households, and business as the resources flow throughout the economy and from one entity to the next. Purchasing of groceries Starting with the purchasing of groceries, it is important to understand that supply and demand play a huge role in the process. “Supply and demand interact with...
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...looking for a job or just simply does not have a job. It is measured by the number of people reportedly in the country at one time adjusted by those who are eligible to work and are not. Inflation rate are rates at which the economies prices are adjusting upward or downward. Prices increase and decrease and the measures show the strength or power. Interest rate is tax added back to the payback (what you owe). Fundamentals of Macroeconomics Paper Macroeconomics deals with such issues as national economic output and growth, unemployment, recession, inflation, foreign trade, and monetary and fiscal policy. Using macroeconomics we will study and explore the economy at the aggregate level because it is concerned with the workings of the whole economy or large sectors of it. The sectors include our government, households, and businesses. There are a multitude of different economic activities that affect our government, households, and businesses considering the following economic activities purchasing of groceries, massive layoff of employees, and decrease in taxes, I will describe how they affect the sectors of the economy. Purchasing of groceries, massive layoff of employees, and decrease in taxes are some of the activities that affect the growth of each of the economic sectors. Because...
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...macroeconomics as well as scenarios related to economics and how these terms and scenarios work together. Understanding these terms are important to doing business in today’s world and can help one gain a clearer picture of how things work in terms of money. Monetary rules help make life a bit easier by avoiding chaos, even if there are some that do not agree. One term used in economics is gross domestic product or GDP. GDP is defined as the final count on products that are manufactured within a given country and under a certain time period. The GDP includes products consumed for public and private use, government use, exports, and investments. Imports are not calculated in GDP because these goods are not produced in the specific country. The formula for calculating the GDP is GDP = C + G + I + NX. The C in this expression stands for the consumption or spending that occurs within a country during a given time period (normally a year) on the public or private sectors. The G in the expression stands for government consumption or spending in the same time frame in a given country. The I in the expression stands for the total number of what businesses within a given country spend on capital in that particular year, and the NX in the expression stands for the country’s exports – imports in that same year. Real gross domestic product (GDP) is the final value that the economic market gives to a product or service based on the current economy. This inflation is an adjusted measure that shows the...
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...What is the economy? The economy is a system which defines how a country is doing financially through production and consumption of goods and services and they supply of money. The three different types of economy are: market, planned and mixed. The economy consists of consumers, producers and the government. Planned economy A planned economy is when the government makes all the decisions for society. Producers working towards the economy are instructed on what to make. A benefit to this type of economy is that most workers are employed and most people enjoy a similar basic lifestyle. A disadvantage is that wages are controlled by the government; therefore motivation levels are not high. Market economy A market economy is when the government does not have much control and that they can do little to affect the economy. What they can do is provide legislations to protect customers and companies and making sure no business or organisation restricts competition. Furthermore, they provide needed services such as police and defence and they even ensure the country’s money supply is stable. An advantage of this is that businesses are motivated by profits to make products that customers will buy. A disadvantage is that if there is a major crisis affecting the economy without government intervention the economy would fail. Mixed economy A mixed economy is planned and market economy combined. In a mixed economy the government contributes and controls some resources and the market...
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...whose concentration is on subcategories or individuals and how they make decisions. The use of macroeconomics can have a direct impact on the choices made for the nation’s economic benefit. When employing macroeconomics an economist can determine why products have decreased or increased in price. It analyzes many factors that play part in the health of the economy. This study, though, complicated can be employed to encourage different government policies that develop a certain affect for instance; increased government spending can create jobs and increase employment this is called expansionary policy. Decreased government spending can have the opposite affect this is contractionary policy. Macroeconomics Terms There are different terms associated with macroeconomics are important to know and understand. One known term is Gross Domestic Product (GDP). GDP is the value of all finished goods and services produced in a certain country during a certain time frame. GDP measures a country’s standard of living. Two words associated with GDP are real GDP and nominal GDP. Real GDP is the measure of the gross domestic product value adjusted for change in prices; this can be owing to inflation. Nominal GDP uses current prices on products and services (Colander, 2010). Unemployment rate is another important part of macroeconomics it indicates the percentage of people currently unemployed. This helps identify where the economy is currently at and what policies may need to go into effect...
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...P5 In the following report I will discuss how different changes in economic climate effect the activity of a business in two different countries. Furthermore, I will discuss how different aspects of economic theory effect how Apple and RSCPCA operate in The United Kingdom and in India. Apple Inc. Apple is a global electronics manufacturer based in the USA and founded in 1971. Apple produces and sells luxury electronic products including consumer electronics, online services, computer software and personal computers. | United Kingdom | India | GDP | $2.902 trillion | $2.047 trillion | GDP per capita | $41,092 | $1,625 | Inflation | 1.2% | 9.3% | Unemployment rate | 6.0%, 1.96 million | | Population | 64.1 million | 1.25 billion | Exchange rate ( US$) | 1.57 | 0.016 | Interest rate | 0.5% | 7.75% | The economic cycle The output of an economy is the total value of the goods and services produced in that economy. The ripple effect The ripple effect, also known as the multiplier effect, is when an action in the economy causes a bigger overall effect in the economy. Population The population of a country is defined by how many people live in that country. UK: 64.1 million India: 1.25 billion India has a huge population which is much larger than the population of the UK. This means that Apple will have much more potential customers in India and therefore there will be a higher volume of demand in India for Apple products. Inflation...
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...Macroeconomics Paper Jeremy Noah ECO372 May 7, 2012 Watson Ragin Fundamentals of Macroeconomics Paper In the following, there will be a breakdown of different terms that are involved in the macroeconomic conversation. There will also be a few different examples that affect government, households, and businesses. An explanation of how each scenario affects these entities will be given as well. Economic Terms The first term that will be described is gross domestic product. This term takes a couple different actions and puts them into a final amount. When a country makes investments, exports goods, and imports goods, there will be a final amount of a positive amount or negative amount that comes back as profit or loss to it. Along with this amount, the entire private and public sector companies report their profits and losses and these numbers are figured into the gross domestic product figure. Real gross domestic product refers to a more inflated figure when it comes to an accurate number. Basically, normal gross domestic product refers to a base year such as 2010. If prices have gone up since then and someone is looking for a real gross domestic product number for 2012, then the adjustment for inflated prices will affect the normal gross domestic product number to accurately reflect the real amount. Nominal gross domestic product is the next term. This refers to the gross domestic product minus the inflation factor. This would mean that if the nominal gross domestic product number...
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...A report on “Business Environment” Date:___________________ Submit to:________________ Table of Contents TASK 2: Nature of the Operating Business Environment………………………………..…3 Introduction………………………………………………………………………………….3 1.1 Explain how economic systems attempt to allocate resources effectively………………3 1.2 Assess the impact of fiscal and monetary policy on “Lloyds Banking Group, UK”, and their activities………………………………………………………………………..5 1.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a “Lloyds Banking Group, UK”....................................................................................7 References…………………………………………………………………………………….9 TASK 2: Nature of the Operating Business Environment Introduction: The study discusses different types of economic systems and assesses how these economic system attempts to allocate resources efficaciously, explains the UK government policies (namely monetary, fiscal, social, and competitive policies) and assess the effect of all the above-mentioned policies on a “Lloyds Banking Group, UK”, UK based organization. The paper exposits market structure types (namely, perfect competition, monopoly, monopolistic competition, and other market structures. Finally, the paper describes the ways market structures define the output and pricing strategies of the companies. 1.1 Explain how economic systems attempt to allocate resources effectively Economic systems...
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...Unit 1: Business Environment | Assignment 3: The Impact of Business Environment on Organisations | For the attention of: Tracey baker | In this report I will talk how two businesses operate and function in two different economies. The report will also include a detailed outline on how political, legal, social factors affect both businesses in two economies. The two organisations may face challenges in the future and how political, legal and social factors may impact an organisation. P5 Tesco (UK) What is an economy? An economy is made of millions and millions of people making decisions, trading goods and services. The economy applies to everyone from individuals entities such as corporations and governments. The economy of a particular region or country is governed by its culture, law, history, and geography among other factors. There are three types of economies market economy, command economy and mixed economy. The economy is very influential on how good Tesco do in a financial year; so if there is a good economic environment the confident customers will be more willing to spend money than customers with low confidence, which means that Tesco is more likely to benefit if the customer confidence is high. Stages of high customer confidence can confidence can present opportunities for Tesco to expand or bring new products to the market. Low confidence of customer’s means that Tesco have to cut cost to maintain profits. The UK economy is currently in the...
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...In America's economy, there are different activities that will affect the government, households, and businesses in our economy. Some of the key activities are purchasing groceries that is a daily activity for most Americans; another example would be a massive layoff and a decrease in taxes. I will start with purchasing groceries; the amount of groceries that are purchased from a retailer will have an effect on businesses. The stores survival is based on getting consumers to spend money so they may stay in business and outperform their competitors. When consumers purchase groceries this affect, the government due to the taxes included in the prices that could impose a limit a person may purchase. Tracking consumers spending habits can help the government determined if the economy is strong or headed toward a recession. The groceries consumers purchase were produced on farms, which means a farmer or a company sold a product for themselves or a business that paid taxes on the revenue received. A company or farmer must pay taxes for equipment and products that are being used to produce their product and for employees. A consumer not only pays for the product they receive but government taxes. Massive layoffs of employees can have negative effects, not only on the company and individuals but also the government. When a company or business must lay off employees, this affects the economy due to the fact individuals will have less household income to spend in the economy. The past employer...
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...characteristics of each environmental factor as they relate to REI. U.S. Economy How does the current U.S. economy affect REI retail operations? 1. If the country was in a depression that would affect REI retail operations. People would begin to adjust their spending habits and would cut back on buying items that they don’t necessarily need such as a vast array of REI products. This would decrease REI sales which in turn would decrease revenue. 2. An economic downturn would not only affect retail operations it would potentially cost employees their jobs, or at the very least they would have to take pay cuts in order for REI to stay alive while the economy recovers. Global Economy How does the current global economy affect REI retail operations? 1. One example how the global economy would affect REI retail is if their products were purchased from overseas distributors and the currency values were to increase. REI would have to raise the purchase price of their products in order to turn a profit. The risk of doing that would be losing customers because they are charging more then consumers can afford or the consumer feels they can get a better price with REI’s competitors. 2. REI has joined other business to assist in banning and eliminate fair labor violations. Fair labor is an important issue. Everyone wants to be treated fairly in every aspect of business. REI joining along side of other business to eliminating these types of issues sends an important message to consumers...
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