DSST Things to know_Intro to Business

Bureau of labor statistics compiles a number of

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Bureau of Labor Statistics – compiles a number of economic indices to aid businesses and workers (USDA) Dept of Agriculture – farm subsidy programs, WIC programs (women Infant child) Child Nutrition Dept of Health and Human Services – (FDA) Food and Drug Administration oversees food safety Dept of Commerce – responsible for areas of trade, economic development, technology, business development, environmental stewardship, patents, trademarks, imports and exports, and manufacturing standards (FTC) Federal Trade Commission – consumer protection, deceptive advertising practices Telemarking Sales Rule Pay Per Call Rule Equal Credit Opportunity Act Stocks – Par Value – face value Net Gain – purchase price Valid Contract: Stated offer and acceptance Mutual consent Exchange value (dollar amount or trade amount) Be legal Be in proper form depending on amount and term of contract Tort: No contract: intentional, liability, negligent Property: Intellectual Tangible Real Tangible Personal Intangible Personal Bankruptcy: Stockholders get paid last in Chapter 11, business bankruptcy
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Fiscal and Monetary Policy: Taxes and Government Spending Business Cycles – fluctuations in the economy (expansio ns and contractions, peaks and valleys) o Expansions are known as “booms” o Severe contractions are “depressions” o Less severe contractions are “recessions” Inflation – when price levels rise across the economy rise Deflation – when price levels across the economy decline Aim of Fiscal Policy Keep prices in check in order to slow inflation Expand demand in order to lower unemployment Increase in Inflation: Government raises taxes to slow down the economy, higher taxes less money for consumers to spend on goods and services Recession (downturn in economy): Increase Government spending, government borrows money by selling Treasury bonds, notes, bills -OR- Government cuts taxes, gives consumers additional money to spend on goods and services o Doesn’t always work, consumers save or pay off old depts. With extra money Federal Reserve Bank (FED) – Independent Agency Nations central bank Operates the 12 district banks of the Federal Reserve System Oversees member banks in those districts Sets the nations general money and credit policies by: o Discount Rate – the rate charged to banks to borrow money (higher the rate the less the bank will borrow, less they can lend, slows the economy) o Reserve Requirement – Percentage of their deposits that member banks must hold in reserves against their deposits o Open Market Operations – mechanism to buy and sell bonds and securities on the open market (buying puts money into economy to stimulate, selling takes money out of the economy to slow it down) Entrepreneur Characteristics: Innovative Resourceful Risk takers Flexible Self motivated Able to work with others Good leaders Able to see the big picture Steps for Entrepreneur to create business plan: First Steps: Goals and objectives
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Bureau of Labor Statistics compiles a number of economic...

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