ch01-pp - Learning Objectives-Chapter 1 s Identify four key...

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Learning Objectives-Chapter 1 Identify four key social and economic roles that businesses serve. List six factors that are contributing to the increase in the number of service businesses. Differentiate between a free-market system and a planned system. Explain how supply and demand interact to affect price. List the three major economic roles of the U.S. government. Define the gross domestic product and explain what it is used for. Identify five challenges that businesses are facing in the global economy. Highlight six ways in which the new economy differs from the old economy, and discuss whether the old economy rules are obsolete
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Business Defined A profit seeking activity that provides goods and services that satisfy consumers’ needs.
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Roles of Business Provide society with necessities. Provide people with jobs. Pay taxes. Reinvest profits into the economy. Success as a business helps the economy.
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Profit vs. Not-For Profit Profit …what remains after all expenses have been deducted from business revenue. Not-For Profit …profit is not the motive for being. However the business must still run efficiently and effectively. The purpose of the revenue is key.
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Business Classifications Goods producing May be capital-intensive: Businesses that require large investments in capital assets. Service businesses Generally considered labor-intensive: Businesses in which labor costs are more significant than capital costs. The malls are a great place to find service businesses.
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Sectors of the U.S. Economy Source: U.S. Department of Commerce, September 1999 Transportat ion & Utilities $676 (9%) Finance & Insurance $1,570 (22%) Other Services $1,656 (23%) Wholesale
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This note was uploaded on 07/10/2009 for the course FIN FIN taught by Professor Dr. during the Spring '09 term at Baptist College of Health Sciences.

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ch01-pp - Learning Objectives-Chapter 1 s Identify four key...

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