Assignment #1: The Business Environment
Professor Jane Osburn
BUS 100 Introduction to Business
The role of business in an economy is involved in any type of activity that provides goods, services, or both to consumers in an attempt to earn a profit. Business drives up the standard of living of quality and quantity of goods and services available to a population and contributing to the higher quality of life in which is overall sense of well-being experienced by either an individual or a group. Business also helps raise the standard of living through taxes. However businesses do not only provide the products and services that people acquire, but they as well provide job opportunities that people
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The difference between for-profit and nonprofit businesses is that a for-profit business is for the financial benefit of its owners and/or shareholders. Profit is the goal which is the financial reward that a business earns in the sales or revenue, minus the expenses such as the cost of goods and the cost of salaries and the business pays taxes on that profit. When a for-profit business goes out of business, its assets can be liquidated and the proceeds distributed to the owners or the shareholders. A nonprofit business is a business-like establishment that employs people and produce goods and services. A nonprofit business has a mission that benefits a greater cause for the community, society, or the world. It does not pay taxes, but it also cannot use its funds for anything other than the mission for which it was formed. Nonprofit businesses can and do make a profit, but it must be used solely for the operation of the organization or, in the case of a foundation, granted to other nonprofit organizations. When a nonprofit goes out of business, its remaining assets must be given to another nonprofit.
The impact of our current fiscal policy is that government efforts to influence the economy through taxation and spending ideas that they believe will encourage growth, boost employment rate, and curb inflation. Although most economists will agree that lowering taxes can boost the status of the economy by leaving more money in