Intro to Business Chapter 2,3,4

In: Business and Management

Submitted By Misharen
Words 1540
Pages 7
Chapter 2: Economics: The Framework for Business

1. How does economics relate to business? Can an understanding of economics help business people succeed? If so how? Economics relates to business because it teaches business people how to make choices that can get their business the most revenue with the least amount of cost. The understanding of economics can help business people succeed, economics can teach you things like marginal cost and revenues and this is essential to an type of business. Economics can teach you statistics that if used properly can provide you with an upper hand against competition.

2. Compare and contrast microeconomics and macroeconomics. How do the 2 approaches interrelate? Use a specific example to explain.

Macroeconomics and Microeconomics are both dealing with economics but indifferent levels, Macroeconomics is the study of a country's overall economic issues and Microeconomics deals with economics on an individual consumer,families and individual businesses. They can affect how much you can purchase for your family and what is available for you to purchase for your family.

3. What are the fundamental elements of the free market economic system? How can businesses thrive within this system?

1. The rights to own a business and keep after-tax profits
2. The right to private property
3. The right to free choice
4. The right to fair competition
Free Market economies allows businesses to thrive by allowing owners to keep the profits, encouraging growth.

4. Describe the 4 degrees of competition within the free market system. Offer 2 to 3 examples of each type of competition by filling in the chart. Pure Competition: A market structure in which a very large number of firms sell a standardized product into which the is very easy in which the…...

Similar Documents

Intro to Business

...Business Now: Change Is the Only Constant Review Questions 1. What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why? Human resources, capital, natural resources entrepreneurship, and technology. its likely to increase because all of these factors continue to increase 2. What role does entrepreneurship play in the economy? Who stands to gain from the success of individual entrepreneurs? How do other parties benefit? It is a key to the economy all economies support it all of them can gain from it when a new Business is started Businesses can decrease the workplace environment and not pay all employees but it does provide more jobs 3. When did American business begin to concentrate on customer needs? Why? Around the relationship era because satisfied customers became advocates for a business spreading the word 4. How do nonprofit organizations compare to businesses? What role do nonprofits play in the economy? How do they interact with businesses? Non profits are Business like but their primary goal does not include profits nonprofits are not in the Business for financial gain Businesses focus on things that will gain profit. The profit that goes to non profit orgs is used to better the community or charities in the Business case it goes to owners 5. What...

Words: 254 - Pages: 2

Intro to Business Review: Chapter 1

...1. What factors contribute to the rapid pace of change in business?  Is the pace likely to accelerate or decrease over the next decade? Why? Answer: Some key factors contributing to the rapid pace of change in business are the economy and Wall Street. The interest rates and loan terms have greatly changed businesses. It is harder to borrow money, as a small business especially. The job market has also changed businesses dramatically. I believe the pace will accelerate over the next decade. The economy is recovering from the recession of 2008 and the business are buying and selling again and the unemployment rate is declining. 2. What role does entrepreneurship play in the economy?  Who stands to gain from the success of individual entrepreneurs?  How do other parties benefit? Answer: Entrepreneurial enterprises can kick start an economy, creating great opportunity for everyone involved in the building, developing and manufacturing of the product . The downside is that it could force out competing business.     3. When did American business begin to concentrate on customer needs?  Why?   Answer: Business began to focus on the customer needs during the Marketing era. The reason was more intense competition, which gave consumers more choices. Because of this meeting customer needs became an imperative for business success.   4. How do nonprofit organizations compare to businesses?  What role do nonprofits play in the economy?  How do they......

Words: 322 - Pages: 2

Intro to Business

...Ch 1 Assign - Business Now: Change is the Only Constant 1. According to the text book there are four main factors that contribute to the rapid pace of change in business. Natural Resources is anything that offers an output in its natural state. For example land, water, wind, and mineral deposits. Capital is synthetic resources such as buildings, machines, and technology. Human Resources is the people working in the economy. Entrepreneurship are the people who take the risk of launching and operating their own business. The rapid pace of change in business will continue to accelerate. With all of the factors that contribute increasing business has no other choice than to change. 2. Business is any organization that provides goods and services in an effort to earn a profit. 3. 3.  Explain the role of business in the economy. 4.  What are the 5 dimensions of the business environment? Discuss the key elements in each area as they relate to U.S.-based businesses. 5.  The Changing Face of the Workforce - According to the 2010-2011 Occupational Outlook Handbook published by the Bureau of Labor Statistics, the composition of the American workforce is projected to shift between 2008 and 2018.  The most obvious shifts are expected to occur in demographic groups based on race/ethnic origin and age.  The following charts represent the projected percentage changes in specific race/ethnic origin and age groupings: Race/Ethnic Origin ...

Words: 537 - Pages: 3

Intro to Business

...Ownership Structures By Martha Linn Intro to Business in a Tech World Professor Timothy Hawley 2 July 2013 The four main types of business ownership are: 1. Sole proprietorship 2. General partnership 3. Limited liability company(LLC), and 4. Corporation These differ from each other in many ways: how many owners, risk and liability, the ease in which they are set up and dismantled, and the ways they are taxed. In the following paragraphs I will attempt to explain and provide examples of these four types. In the case of sole proprietorship, the explanation is self-evident. One person owns a business and is in total control of all of the decision making, the risk and the liability. Any income is taxed as personal income, and all costs are assumed by the single owner. An example of this would be my friend Jenalea Johnson’s store Jena’s Jems. She makes beautiful hand crocheted items for babies and adults, photographs them herself, and then displays them in her online store. She is responsible for all of the merchandise, the picture quality, the shipping costs, and the complaints from customers, if there are any. And her profits, if she realizes any, are taxed along with the income she receives from her “day job”. A general partnership is slightly more complicated in that you have two or more people involved in the business. All the owners of the business share in the financial obligations of the business. This is a common......

Words: 556 - Pages: 3

Intro to Finance Chapter 2

...INTRO TO FINANCE CHAPTER 2 SUMMARY 1. The Balance Sheet Also known as Statement of Financial Position Lists the firm’s assets and liabilities The Balance Sheet Identity: Assets = Liabilities + Stockholders’ Equity Current Assets: - Cash or other market securities (short-term low-risk investments that can be easily sold and converted to cash) - Account Receivable (amounts owed to firm by customers who purchased on credit) - Inventories (raw materials, work-in-progress, finished goods) - Other assets (items such as pre-paid expenses like insurance) Long-term Assets: - Net property, plant and equipment (real estates or machinery that produce tangible benefits for more than one year) shows the book value of these assets (acquisition costs less accumulated depreciation) - Goodwill and Intangible Assets (brand names and trademarks, patents, customer relationships), suffers from amortization or impairment charge (value lost over time) - Others such as property held for sales, investments in long-term securities Stockholders’ Equity The difference between the firm’s assets and liabilities An accounting measure of the firm’s net worth Book Value is inaccurate as - Assets are mainly valued based on their historical cost rather than their true value today - Many of the firm’s valuable assets are not captured on the balance sheet (such as expertise,......

Words: 652 - Pages: 3

Business Intro

...ASSIGNMENT ONE: CHANGE DUE Sept. 7, 2014 1.  What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why?  (Your opinion, supported by reasoning, not just a list from the text)  2.  What role does entrepreneurship play in the economy? Who stands to gain from the success of individual entrepreneurs? How do other parties benefit?  3.  When did American business begin to concentrate on customer needs? Why?  4.   What are the factors of production? (list with a definition) How can economies grow when one or more of the factors is weak?  5.      What are the fundamental elements of the free market/capitalist system? What are the fundamental rights of capitalism? How can businesses thrive within this system?  (Explain)  6.  Describe the key principles of socialist and communist economic systems. Does more government control mean less economic opportunity?  Why or why not?  7.  Why do most countries have neither “pure” market nor “pure” planned economies? Is the trend toward the market end of the spectrum likely to continue? Why?   8.   What is an ethical dilemma? (define)  9.  Think of a time you faced an ethical dilemma at work, at school, or at home. Be sure to choose a situation in which you had to choose between two options, each with negative consequences for you or someone else. What values were involved? What choice did you make? What was the impact on each party involved? Would you make the same......

Words: 288 - Pages: 2

Intro to Business

...Economic Systems, Socialism, and Supply & Demand Patrick Domench Intro to Business and Technology Professor Armes DeVry University September 7, 2014 The best system to handle a disaster of epic proportions is Capitalism. We live in a Capitalist system now and we have been through many natural disasters that have rocked our communities and we have always pulled together and gotten through everyone so far. We have even been attacked in New York, one of the largest cities in the USA, and we were able to rebuild. In the free market system the private sector owns most of the resources, this leaves the main function of the government to facilitate and aid economic activity. This is particularly strong in a disaster type situation because the infrastructure of the economy would be disturbed, so in this case the government would be focused on rebuilding and encouraging investment in the private sector. The private sectors main concern is profit and this greatly aids regeneration. A Socialist system would not be best in an emergency situation and I refuse to speculate that it would be. Firstly, the question itself is academically dishonest. It presumes an answer to a postulation or theory, then demands the student to support the results of that theory with "proof". It's like a rhetorical question, but sinister in its intellectual pre-suppositions. Like asking "Everyone knows that Crisco is better than butter in making croissants, now you prove it"! Secondly, it is......

Words: 1094 - Pages: 5

Intro to Business

...Chapter 7 Questions The benefit that is most appealing to me is the opportunity to make money. This is the most appealing to me because I have always wanted to make money ever since I was a little kid. The most obvious entrepreneurial characteristic that I have the willingness to work long hours and spend my time on a project. I have no qualms with investing the man hours into a project if it may mean success. I do think it is possible to obtain characteristics someone originally lacks but it will take hard work and time. Failure plays an important role in entrepreneurial success. Most often an entrepreneur will not be successful on their first try and will have to try again. If an entrepreneur can not recover from failure he will never succeed. To convince family and friends to support your idea it needs to be good and appeal to your family and friends. If they do not feel like they would use your product they are less likely to support it. In my opinion it would be impossible to keep the relationships professional because you are too close to them. I would buy a franchise to get used to running and managing a business before starting from scratch. Other funding options aside from personal assets would be a small loan from a bank or family member. I think that they do not tap into more resources because no one who is starting a business wants to start it with substantial debt. The opportunity that is most compelling is the ability to infiltrate a niche market......

Words: 479 - Pages: 2

Intro to Business

...Chapter 10 – Use and Effectiveness of Motivational Techniques 1. Think about your current or most recent job. What types of motivational techniques are, (or were) being used? How were they applied in the workplace? My current employer uses job enrichment and behavior modification as motivational techniques. Allowing employees to adjust their portfolios by increasing or decreasing the number of clients is part of the job enrichment where I work. This provides employees to have some control over their job. They also use behavior modification that is used to reinforce good or targeted behavior such as recognizing employees when exceeding expectation. 2. Identify one technique from your answer to question #1. How well did that technique work to motivate you? Your co-workers? Behavior modification has not been a motivator for me and is a pathetic attempt to reinforce a targeted behavior. There a select few employees that are praised for good behavior; meanwhile the remaining employees are working hard to get the job done while meeting the needs of our clients. It’s discouraging to see no reward for loyalty and productivity. Several of my co-workers are not motivated by this technique and find is repulsive that the same people receive positive reinforcement. On the opposite spectrum is that negative behavior is addressed more often than positive behavior. I am self motivated and do not feel the need to be recognized, but find it unfortunate that only a......

Words: 399 - Pages: 2

Intro to Business

...Business Principles Module 1 March 28, 2015 Darlene Trombka 1) What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why? Natural Resources, Capital, Human Resources, Entrepreneurship and Technology all play a factor in rapid change of pace. They are likely to increase because all of these factors are growing rapidly. It is said that it will likely accelerate over the next decade because of the economic stimulus package designed to not only create jobs, but also to build infrastructure. 2) What role does entrepreneurship play in the economy? Who stands to gain from the success of individual entrepreneurs? How do other parties benefit? The role of entrepreneurship in the economy is to inspire new business ventures that support wealth building and future prosperity. Entrepreneurs create new business opportunities in all areas of industry; the support the growth and health of a country’s national economy. Without entrepreneurship, a country’s economy may lack innovation, employment opportunities and profits. People risk their time, money and other resources to start and manage a business. But they also give hope to a better workforce. A lot of peple who are unemployed now may find jobs that are more flexible and challenging working for a small business owner. 3) When did American business begin to concentrate on customer needs? Why? American’s started to focus on customer......

Words: 933 - Pages: 4

Intro to Business

...Homework - Week 1 Intro to Business & Technology Which economic system is best suited for handling a crisis of epic proportions (hurricane, flood, blizzard, forest fire, etc.)? Why? Natural disasters cannot be predicted. Americans, as well as people in communities worldwide, are not prepared for these types of situations. The economic system is best able to cope and recover in the event of these types of natural disasters. The free market system is the most able because it involves a sector owning most resources. This leaves the government’s main function as facilitating and aiding economic activity. The government is focused on rebuilding investment in the private sectors. For example, the government would introduce ways of lending money, such as grants and low interest loans, which would help low sector get on with their main concerns. Their main motivation would be profit, which would be greatly aid regeneration. In 2011, a tornado tore through Joplin, MO. Economics Professor Dan Smith researched the effects of economic freedom on disaster relief surrounding the aftermath. He wrote in the News Tribune: “In contrast to other recoveries in which federal and state governments orchestrate recovery, policymakers allowed the free market, voluntary sector to guide recovery in Joplin, demonstrating how effectively economic freedom can help communities rebuild after a natural disaster.” (Smith, 2012). As one of our discussion topics this week was based on......

Words: 974 - Pages: 4

Intro to Business

...1. Review the marketing definition of product. Why do you think marketers define product so broadly? How does the definition of product affect quality? 2. Draw a goods and services spectrum, and determine where to place the following products along the spectrum: a nightclub, a new motorcycle, a designer shoe store, an Internet search engine, a new snowboard, and a photography class. What are the reasons for your choices? 3. List five examples of products that are commonly purchased as either business products or consumer products. How would the classification impact the marketing strategy? 4. Would it ever make sense for a firm to offer a new product line that they know would cannibalize an existing line? Explain your answer. 5. What are the three different levels of product innovation? Which is most common? Can a business survive long term with only continuous innovation? Why or why not? 6. What are the four stages of the product life cycle? How does product life cycle stage impact marketing strategy? Product Life Cycle Stage Key Marketing Strategies 7. How has marketing promotion evolved over the past decade? How has technology contributed to the changes? 8. Why are the key risks and the potential rewards of product placement in both movies and television? Do think this promotional tool will continue to grow? Why or why......

Words: 274 - Pages: 2

Intro to Business

...Wells Fargo Vs. Competitors Amber Andersen Globe University / Minnesota School of Business Wells Fargo Vs. Competitors For this paper I have chosen to pose the question “Who are Wells Fargo’s main competitors and how are they competing? In doing so I will be discussing five different concepts learned through this course. According to the website by “Investopedia” the main competitors of Wells Fargo are the other three of the “big four” major U.S. banks that include: JPMorgan Chase, Citigroup and Bank of America. One way Wells Fargo sets itself apart from its competitors is by their use of Technology to increase profits and revenue. There are several different channels for banking services. According to the website “Market Realist” these channels include: branch, phone, mail, ATM and online banking. Of these different banking services available, servicing customers through branch banking actually costs a bank the most money. Next comes phone banking and then ATMs in terms of their servicing costs. Due to the low maintenance cost, online banking is the cheapest mode for servicing customers in the long run. Wells Fargo looks to optimize its use of technology which will reduce the banks cost of operations therefore increasing its profitability. How does Wells Fargo’s use of product development and business cycle defer from their competitors? “Market Realist” also states that Wells Fargo believes that by creating an enjoyable place of work, their employees in return......

Words: 666 - Pages: 3

Intro to Business Chapter 2 Review Questions

...employment rate, the GDP, & taxation policies. Use a specific example to explain. Macroeconomics controls how much money you bring home & microeconomics controls how much you can buy. 4. What is the difference between fiscal and monetary policy? Fiscal policy is the government effort to influence the economy through taxation & spending whereas, monetary policy refers to the Federal Reserve’s influence of interest rate changes & the supply of money. What role does politics play in shaping these policies? Politics can make taxes higher & influence interest rates. 5. What are the fundamental elements of the free market economic system? The fundamental elements of the free market system are: the rights to own a business and keep after-tax profits, the right to private property, the right to free choice, and the right to fair competition. How can businesses thrive within this system? Businesses can thrive in a free market economy by getting to keep their profits after taxes & having the freedom to do what they want....

Words: 489 - Pages: 2

Intro to Business

...Legal Forms of Business, The Start-Up Decision Jonathan Mendiola American InterContinental University On-line BUSN105-1201A-282 ABSTRACT The decision to pursue the form of a corporation to start his business is based on the facts provided. The product requires special technology that will be costly. Considering his lack of financial and management skills this would be the best way for his new invention to take ground. Legal Forms of Business, The Start-Up Decision Introduction John Doe (Inventor) has invented an appliance that will meet everyday consumer needs. Although he is skilled at inventing, he lacks the financial and management skills needed to manufacture and market his invention. Thus, he is faced with certain challenges in introducing this new and possibly valuable product. But, John Doe is convinced that his new invention will be more efficient and consumer friendly. Some of the challenges that are foreseen are, funding difficulties, and competition with other similar products currently in the market. His wife is concerned that his invention may not develop and his venture will take a significant amount of time away from his family. In addition, as it stands, the market, using special technology for his invention, is saturated and will have an annual growth of 2%. John Doe expects to see a growth in sales once the product has been accepted in the market place. Because of the diverse technology that is incorporated in this product, the......

Words: 699 - Pages: 3