Running head: BUSINESS ENVIRONMENT
Professor Michael Mancini
Business is all around us nationally and internationally, they are what made our economy grow. Some business are growing fast as technology advance, however some business are weakening in the slow economy. Roles of Business in the Economy
The economy relies on business to provide goods or services within the nation. If there were no businesses, consumers would have to create, sell and produce products on their own. Many people would struggle with obtaining their need and wants in their everyday lives. Many different types of business create jobs which keep money flowing in the economy. Business replies on four factors of production, factors like natural resource material, capital, human resource and entrepreneurship. Natural resources are material that a person can’t create on their own like land, water, wind, and mineral deposit (Kelly, 2012). The value of such material can be at high demand or really low supply. Capital are technology, machine and tools use to provide goods and services (Kelly, 2012). Business usually uses their revenue to acquire, maintain, and upgrade their capital. Human resources are anyone who works for businesses in the economy. Entrepreneurship is any who take a risk to start their own business (Kelly M. , 2012). All those factors are essential to economy. Business goes though a different cycle that impacts the economy. If there is a high level of consumer spending profits will be greater for businesses and new jobs could be created. If there is recession, it means lower profits for business. In a recession, business cut back on spending and employees could lose their jobs. Another cycle is a depression which much company may go out of business and unemployment rates start rising fast. The sign of a recovery cycl...