The Business Environment
Our economy survives on the fact that business is the cornerstone of our financial stability. The economy is driven by business. Businesses provide the goods, products, and services in which our society needs to sustain from day to day. Without business we not have the ability to work and earn the money needed to purchase the items that we use and need. We do not have to produce our own goods needed to sustain life. Businesses and employees both pay taxes to the Government which creates more jobs and this creates more money to fund the programs build the infrastructure needed to sustain an economy.
Compare and contrast the roles of for-profit and nonprofit organizations in the economy. Two types of businesses that exist today are either business that operate with clear goal of making a profit, or the other being a business that operates with the intention of making no profit. A for profit business must sell its goods and services for more than it cost them. The business has to consider everything it takes to buy and sell its goods. The cost of doing business which includes, payroll, taxes, advertising, raw materials, insurances, resources, and inventory all must be
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The money that is left over is the profit. A non-profit business usually a church or civic organization will operate on the basis of not having any proceeds let over after the cost of business is taken out. For example; I am currently a member of United Services Automobile Insurance Company (USAA). USAA is a non-profit insurance company that offers its products to active duty, veteran, and retired service members at reduced rate compared to other insurance companies. At the end of every fiscal year USAA returns the profits to its members to maintain its non-profit status.
Discuss the impact of current fiscal and monetary policy on the economy. Current fiscal policy has a small payroll tax break in place for most American’s, which is intended to stimulate the economy, however the savings are by far being spent on the increased goods and service price because of much higher than usual fuel prices. With the low interest rates driven by current monetary policy banks continue to tighten the requirements necessary to borrow money leaving most people stuck with under water mortgages and high interest rate loans they can do nothing about.
Select a product or service with which you are familiar and outline a strategy for accessing global markets. To conduct international trade you must first know the rules, laws, and regulations of the United States for importing and exporting goods and services. You would also need to know the rules, laws and regulations of the foreign countries that you are importing of exporting to and from. I would also have to consider the customs and values of the people that I would be dealing with in the country that I importing from and exporting to.
I would have to consider the exchange rate and if there are any import tariffs and taxes that would have to be factored into the cost of the final product. I would have also weight the cost of shipping and the time that it would take to get the goods to from the countries I would be trading with. Select an organization with which you are familiar and discuss the impact of that organization’s level of social responsibility on a stakeholder group of your choice. The nursing home and convalescent care industry is my choice to discuss on this topic.
Nursing homes are regulated and monitored by local, state and federal government. The staff is trained and certified to provide the best level of care according to the governing agencies. The government provides social workers to act as the advocate for the residents of these facilities. The advocates report the daily actives and record and investigate issues and complaints on behalf of the residents. The nursing home staff has a social responsibility to provide the best care for each of the residents of the home no matter who is watching or monitoring them.
My mother in-law and brother in-law are residents of the same nursing home. Most residents of the home do not have any family that is willing to check on them and ensure that they are being cared for. The families trust the staff to take care of their loved ones. We visit the home on daily basis to ensure that they are being cared for properly. Unfortunately we have to utilize nursing homes to care for our family members when we can no care for them. Our family members experience a better quality of life due to the fact that we visit daily to ensure that the care is being provided.