Business plays a major role within our economy. There are different types of businesses such as retail, healthcare, banking, etc. Businesses are the major providers of jobs and economic growth in a capitalistic economy. For example, if the economy were to slow down, businesses would also slow down, which could impede growth and expansion. This would cause a domino effect in which businesses may begin to cut costs and people could lose their jobs. As a result, this would increase the economy’s unemployment rate, which means more people would be out of work and there would be less consumer spending to keep the economy growing. When the economy is growing, businesses are also growing. More funds are available to businesses, which would help them grow and expand their business. This would result in a low unemployment rate, which means people are working and the consumers would have money to spend to increase economic growth.
There are many differences that for profit and nonprofit organizations have. For-Profit organizations have goals of starting a business solely for the purpose of making money. These businesses usually sell good or a service for profit. Nonprofit organizations usually have a mission that helps the community or general public and are not established to gain a profit.. An example of a non profit organization would be the Doug Flutie Jr. Foundation. This nonprofit organization requests donations to help children with autism, especially since it has become a growing problem in children over the last 5 years. A for profit organization, such as Verizon Wireless, would provide a person with cell phone service in exchange for a cost that the consumer will have to pay. Many nonprofit organizations are tax free because they do not gross more than $5,000 annually. Most for profit organizations pay taxes in order to keep the government functioning. Nonprofit organizations can make profit, but it must be used solely for the mission at hand. When a for profit organization goes out of business the assets must be distributed to the owners or the shareholders, whereas a nonprofit organization assets must go to another nonprofit organization (http://nonprofit.about.com/od/qathebasics/f/nopvspro.htm).
Per the textbook, “Fiscal policy refers to government efforts to influence the economy through taxation and spending decisions that are designed to encourage growth, boost employment, and curb inflation” (Marce, 2009). An example of fiscal policy would be the stimulus package that was signed by President Obama in 2009. Major companies such as GM were bailed out by the government and given funds to help keep the business afloat in order for workers to keep their jobs. The huge mortgage meltdown caused the government to step in and create programs such as the first time home buyers credit. This credit was given to stimulate the housing market and get first time home buyers to purchase houses. There are also several programs out to help those who are struggling and may foreclose on their home.
Per the textbook, “Monetary policy refers to actions that shape the economy by influencing interest rates by the supply of money” (Marce, 2009). As a result of the economic crisis that took place a few years ago, it caused the economy to contract. Therefore, the federal reserve had to increase the money supply in order for businesses to obtain loans, for purposes of expanding their operations. Also, with more money being available, this would result in lower interest rates. For example interest rates on home loans have dropped over the last few years making it more affordable for consumers to purchase homes.
In today’s economy, many companies are entering global markets in order to increase growth and market share. Apple is a company that is well known for producing reputable electronics such as computers, iPods, and iPhones. This company has a great marketing team in which they have produced a great strategy to by making sure that company’s secrets are kept, no exceptions. This allows them to keep their consumers on the edge of their seats when speaking about new technology. They always release their products in the United States first, and they do this not only for quality assurance, but also allow other countries to anticipate their products. They hold a conference here in the United States and invite other from all over the world to display their new products. This is one method in their strategy of accessing the global market. They also due a lot of market research on where in the world it would be best to sell their products.
Verizon Wireless believes in being an ethical and socially responsible organization. Integrity and honesty are values that the company holds in high regard. As a result of the unethical decisions made by top management from corporations such as WorldCom and Enron, more companies are holding themselves accountable for actions of senior management as well as staff level members who keep the company functioning. Verizon Wireless has been very successful over many years as they provide great customer service to its customers and treat them with respect.
