Describe the role of business in the economy. I think that Business is the economy what I mean by this is If there is no business’s then there would not be a talk of economy at all businesses are the main component of the economy. The economy of the country depends upon the employment provided by big and small businesses and produces the goods and services which we rely on in our daily lives. Businesses have a role in many section of an economy, such as; manufacturing, healthcare, retail and service are examples of what involves businesses. Businesses pay taxes to the government and allow the government to function on the tax collected from them. There for business is the pivotal part of economy, and our way of life. Without producers and distributors there will be no economy, if businesses do not exist then consumers will have to create and sell items themselves. It would be a free for all and everyone would be in it for themselves for every need and want. (Kelly, M., & McGowan, J. (2012). The role of business is to make it easier for us to create money and spend it throughout our economy. For example, manufacturing businesses use resources and transform them into products or services. We would have to get our own food, gather materials and make our own shelter, and make our own clothes form harvested raw materials. (Kelly, M., & McGowan, J. (2012). Compare and contrast the roles of for-profit and nonprofit organizations in the economy. In this economic system in providing goods and services both for-profit and non-profit companies can exist in providing goods and services, but differ widely in their purpose and ways of working. For example nonprofit organizations play a critical role in the economy, often working hand-in-hand with businesses to improve the quality of life in our society. Focusing on areas such as health, human services, education, art, religion, and culture nonprofits are business-like establishments, but their primary goals do not include profits. I would then compare and contrast that to all the other organizations that have some kind of service delivery as their primary goal, rather than a financial goal. (I say 'all the others' because 'non-profit' assumes you count all organizations and then exclude only the profit seekers. (http://answers.philanthropypost.com)
This can include differences in financial sources, strategy selection, and various management priorities, although one of the similarities which isn't widely reported is that they both have owners expecting a return on their invested resources, as non-profits are owned by the community. The difference arising from this is that they deliver their returns in different ways, as profit is paid in dividends, whilst non-profits distribute their return to their community owners in the form of their services. (http://answers.philanthropypost.com)
Discuss the impact of current fiscal and monetary policy on the economy. When the economy is in a recession (when business and consumer confidence is very low and perhaps where deflationary pressures are taking hold) monetary policy may be ineffective in increasing current national spending and income. In this case, fiscal policy might be more effective in stimulating demand. Other economists disagree – they argue that short term changes in monetary policy do impact quite quickly and strongly on consumer and business behavior. Consider the way in which domestic demand in both the United States and the UK has