1. What is the fundamental goal of business? Do all organizations share this goal?The fundamental goal of business is to earn a profit. Not all organizations share this goal because they are nonprofit organizations.
2. Name the forms a product may take and give some examples of each.
The forms a product may take are tangible and intangible. Tangible goods are computers, clothing, automobiles, and food. Intangible goods are services or ideas made by people.
3. Who are the main participants of business? What are the main activities? What other factors have an impact on the conduct of business in the United States?The main participants of business are employees, customers, and owners. The main activities are management, marketing, and finance. The other factors that have an impact on the conduct of business in the United States are economic systems, the free-enterprise system, the concepts of supply and demand, and the role of competition.
4. What are four types of economic systems? Can you provide an example of a country using each type?The four types of economic systems are Communism, Socialism, Capitalism, and Mixed Economies. China uses communism in the way that the government owns and operates everything. India uses socialism in the way that individuals only own small businesses and the government owns and operates all major industries. The United States uses Capitalism in the way that all individuals own and operate all businesses.
5. Explain the terms supply, demand, equilibrium price, and competition. How do these forces interact in the American economy?Supply is the number of products that businesses are willing to sell at different prices at a specific time. Demand is the number of goods and services that consumers are willing to buy at different prices at a specific time. Equilibrium price is the price at which the number of products businesses are willing to supply equals the number of products consumers are willing to buy at a specific price. Competition is the rivalry among businesses for consumers’ dollars. These forces interact in the American economy by preventing sellers who have to sell at higher prices and buyers who cannot afford to buy goods at the equilibrium price from participating in the market.
6. List the four types of competitive environments and provide an example of a product of each environment.
The four types of competitive environments are pure competitions which include wheat. Monopolistic competitions include aspirin. Oligopoly includes airlines. Monopoly includes utility companies.
8. Why are fluctuations in the economy harmful?Fluctuations in the economy are harmful because it can cause spending declines. Also a decline in employment, production, and income.
10. Explain the federal government’s role in the American economy.
The federal government’s role in the American economy is the federal, state, and local governments intervene in the economy with laws and regulations designed to promote competition and be able to protect consumers, employees, and the environment.
Page 33- Guidelines for the Development of the Business PlanWhen you start to make a business proposal you must include the business description, a brief marketing plan, and a competitive analysis. These three titles will help support the idea you have for your business. The business description is a basic summary of the image you have for your business to be successful. The marketing plan includes how you will be promoting this business at the location you desire.
The final written business plan should include your industry and market analysis because you need to know your competition in the field you are entering. In the final written plan all titles should be followed by specific goals you would like to achieve in your business and the ending note should be an executive summary. These plans must be developed thoroughly and thought through a great deal in order to have a successful business.
Book: Business Management and Organization