The Business Environment Essays

976 Words Mar 8th, 2013 4 Pages
The Business Environment

BUS 100 – Intro to Business

The Business Environment

The role of business in the economy

A business is an economic system that provides goods and services with the aim of generating revenue. The notion of a possibility of being able to earn a profit itself offers incentive for starting ones own businesses. For growth and development to be achieved in any given economy, the government must strive to ensure that the environment is conducive which induces investments and while at the same time attracting international investments. Business offers an alternative source of employment in the economy (Asli, Inessa &
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2969).

Compare and contrast the roles of for-profit and nonprofit organizations in the economy

Nonprofit and for profit making organizations play vital roles in the growth of any given country's economy. Organizations that are for profit produce goods and services and also provide various employment opportunities. The main aim is to generate financial gain while the nonprofits organizations main aim in the business is not financial generation. Contrarily, they offer employment, take in revenue from various sources and provide both goods and services with the main aim of serving humanitarian or environmental needs. The for profit organizations help raise the standards of living. This they do through submission of taxes to the government which spends it in the provision of basic facilities to the citizens and takes care of the general wellbeing of the society.

The impact of current fiscal and monetary policy on the economy

The government and the foreign reserve use the fiscal and monetary policy to steer the economy in the right direction. While, In fiscal policy, the government uses its spending and taxing powers to generate the desired impact on the economy, monetary policy for ignition or slowing economy, and its controller is the central bank. Both the fiscal and monetary policy has both been employed by the government. The aim is to influence both contraction and the expansion of the GDP as a measure of economic growth (Asli, Inessa & Vojislav,

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