...The Legal, Social, and Economic Environment of Business Michelle Casey Introduction to Business Unit 1 Legal, Social, and Economic Environments of Business When a person decides to start up a business of any kind, they have to decide what type of business it is going to be. There are three major types of businesses; sold proprietorship, partnership and corporation (Griffin 2005). Before deciding which the best one for the business is, the owner needs to know what each one is and how it operates. A sole proprietorship is a business that is owned and operated by only one person. Anyone can open up a business as a sole proprietor as long as they have the means and know how to do so. A lot of the “mom and pop” stores throughout the United States are classified as a sole proprietorship. They tend to be family owned and are very personable with their clients or customers which appeals to consumers. A partnership is when two or more people get together and decide to start a business. They decided how it will operate and how the profits will be shared. Most partnership businesses have people who are skilled in different areas which help the business become more successful. A corporation is when a group of stockholders have ownership of the business. A corporation can be expanded very easily throughout the United Stated. They have more funding available to them then any other kind of business form. The banks are more willing to lend money to corporations mainly...
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...Legal, Social, and Economic Environments of Business Johnathon L. Olive American InterContinental University Online Abstract Johnathon Olive, the writer—was given a scenario to write about using the different types of businesses. He made a management decision regarding which business type he believed would be the most likely to succeed and why based on the scenario. He also listed advantages and disadvantages of each business type regarding the scenario. Finally, he acknowledged the issues and prior knowledge of manufacturing a new product. Legal, Social, and Economic Environments of Business Have you ever had a lot to say to a special person, but never knew exactly how to put it together in a nice, sweet conversation? I have, it’s quite frustrating—I must add. It’s the same feeling, when you come up with a great idea or invention, but you have no idea of how you should go about getting your invention up off the grown and running. This will be based off a scenario of an inventor who enjoys working around the home, cleaning, cooking, and doing minor home repairs and remodeling. You have to consider how much knowledge you have on manufacturing a product, advantages and disadvantages of each business type, and making a management decision regarding which business type you believe would be most likely to succeed and why. How much knowledge do you have on manufacturing...
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...the economic environment on business How economic environment affects different businesses Content The economic environment consists of External factors in a business' market and the broader economy that can influence a business. You can divide the economic environment into: • The microeconomic environment - which affects business decision making - such as individual actions of firms and consumers(Market size, Demand, Supply, Competitors, Suppliers and Distribution chain, such as retailer stores) • The macroeconomic environment - which affects an entire economy and all of its participants. Many economic factors act as external constraints on your business, which means that you have little, if any, control over them (Interest rates, Taxes, Inflation, Currency exchange rates, Consumer discretionary income, Savings rates, Consumer confidence levels, Unemployment rate, Recession and Depression) • Describe at least two economic environment micro or macro. • Comparison of two contrasting economic environment - challenges business face • Describe how political factors impact on business activities during an economic environment(recession) i.e. recruitment of staff • social factors impact on business activities i.e. ethics( the business social responsibility policy) and suppliers and distribution chain • and legal factors impact on business activities i.e. employment law during recruitment of staff • Compare and contrast the political and social environment in two...
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...Year 12 BTEC Level 3 Subsidiary Diploma in Business BTEC Level 3 Diploma in Business Year 12 BTEC Level 3 Subsidiary Diploma in Business BTEC Level 3 Diploma in Business Unit 1- The Business Environment Unit 1- The Business Environment | Student name | ------------------------------------------------- Assessor name | | | Date issued | Completion date | Submitted on | 5th September 2013 | 29th November 2013 | 2nd December 2013 | Qualification | Unit number and title (Credit Value) | BTEC Level 3 Subsidiary Diploma in BusinessBTEC Level 3 Diploma in Business | Unit 1- The Business Environment Credit Value- 10 | | | Assignment title | | The aim of this unit is to give learners the fundamental knowledge of a range of business organisations, and the many factors that shape the nature of organisations operating in an increasingly complex business world. | | Assignment title | | The purpose of this assignment is to: 1. Know the range of different businesses and their ownership 2. Understand how businesses are organised to achieve their purposes 3. Know the impact of the economic environment on businesses 4. Know how political, legal and social factors impact on business. | ScenarioYou work for the Chamber of Commerce as a Business Adviser and have been asked to visit businesses in the local area to outline to them the variety of businesses which exist and to explain to them the factors which...
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... | | |Qualification |Unit number and title | |BTEC SUBSIDIARY DIPLOMA IN BUSINESS STUDIES |UNIT 1: BUSINESS ENVIRONMENT | |Learner name | Assessor name | | | | |Date issued | Hand in deadline |Submitted on | | | | | | | | |Assignment title(s) |Legal and organisational structures | | |Stakeholders and their influence...
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... | | | | | |5th November 2012 |3rd December 2012 |3rd December 2012 | |Qualification |Unit number and title | | | | |BTEC Level 3 National Subsidiary Diploma in Business |Unit 1: The Business Environment | | | | |Assignment title |Similar Businesses in Different Worlds | |In this assessment you will have opportunities to provide evidence against the following...
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...and PLTS LO1: Know the range of different businesses and their ownership Introduction to unit and the structure of the programme Introduction to LO1 Range of different businesses: local; national; international; global; public; private; not-for-profit/voluntary; sectors of business activity (primary, secondary and tertiary) Business purposes: supply of products or services; difference between profit and not-for profit organisations Set up file for new unit Reflective questions AS1 Business types and ownership, Task 1; as individual or pair activity SB activities: • Starter stimulus • Tony and Guy • Aresenal • VSO • Primary, secondary and tertiary businesses Sample assignment brief Task 1.1 for P1; learners should spend the session time and NS time on this activity SB activities: • Poundland AS1 Business types and ownership SB Sample assignment brief Task 1.1 Stretch and support Assessment P1 PLTS RL BTEC National Business © Pearson Education Ltd 2010. Copying permitted for purchasing institution only. This material is not copyright free. BTEC National Business Unit 1 The business environment Unit 1 The business environment Scheme of work 5 3 4 5 Content...
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...FACTORS AFFECTING BUSINESS ENVIRONMENT SUBMITTED BY: AAYUSH VERMA INTRODUCTION A business firm is an open system. It gets resources from the environment and supplies its goods and services to the environment. There are different levels of environmental forces. Some are close and internal forces whereas others are external forces. External forces may be related to national level, regional level or international level. These environmental forces provide opportunities or threats to the business community. Every business organization tries to grasp the available opportunities and face the threats that emerge from the business environment. The term business ‘typically’ refers to the development and processing of economic values in society. Normally, the term is applied to portion of economic activities whose primary purpose is to provide goods and services for society in an effective manner. It is also applied to economics and commercial activities of institutions which having other purposes. Business may be defined as “the organised effort by individuals to produce goods and services to sell these goods and services in a market place and to reap some reward for this effort.” Functionally, we may define business as “those human activities which involves production or purchase of goods with the object of selling them at a profit margin”. Business organizations cannot change the external environment but they just react. They change their internal business components (internal...
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...The Macro Environment factors are: 1) Demographic Environment 2) Economic Structural Environment 3) Technological Environment 4) Political Environment MACRO-ENVIRONMENTAL FACTORS A business and its forces in its micro environment operate in larger macro environment of forces that shape opportunities and pose threats to the business. It refers the major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies. These factors include the economic factors; demographics; legal, political, and social conditions; technological changes; and natural forces. The important environmental factors are; (1) Economic Environment (2) Political and Governmental Environment (3) Socio-cultural Environment (4) Natural Environment (5) Demographic Environment (6) Technological Environment (7) International Environment. 1. Economic Environment: - Economic environment of business has reference to the board characteristics of the economic system in which the business operates. The business sector has economic relation with the government, capital market; household sector and global sector. These sectors together influence the trends and structure of the economy. The form and functioning of the economy vary widely. The importance external factors that affect the economic environment of a business are; (i) Economic Conditions: - The general Economic conditions prevailing in the country viz. national income, per capita...
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... SWOTT Analysis In business, SWOTT analysis that reflects company’s strength, weakness, opportunities, threats and trends also have great significance in accomplishing the objectives (Wheelan & Hunger, 2004). With the proper understanding of SWOTT analysis, organization will assess both the environmental factors i.e. internal and external that endlessly facilitate in attaining the pre-set objectives. External Forces & Trend Consideration In the ‘External Forces Analysis’ organic and natural health food shops the major forces included are the legal & regulatory forces, economic forces, competitive analysis and social factors. Legal and Regulatory Factors The legal and regulatory forces are very important for the business of organic food and natural health products. Human health is a highly sensitive issue for the company, so the legal regulation regarding this business is the license of human health administration to sale the food product (Wheelan & Hunger, 2004). It is necessary for the shop to get a certification and license of the nutrition available in the products (Bradford & Duncan, 2000). The legal and regulatory framework would enhance the capability of the strategy formation of the company with the inclusion of the varied legal and regulatory aspects of food and health products (Brown, 2009). Economic Factors The economies of the countries have frequent fluctuations in them due to changing economic environment (Wheelan & Hunger, 2004). This...
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...McDonalds in the UK and India or China. You must pick two of the following topics (Economic, Demand, Supply, Changes in Supply and Demand or Government interaction) and cover the points below: Economic Outline * Describe the importance of stability in each of the economic environments. * How do changes in the different economic environments impact the business (growth, recession, ripple effect)? * Describe the levels of inflation in each of the economic environments. * What is the availability and cost of credit in the different economic environments? * What is the availability and quality of labour in each of the different economic environments? * Outline any changes in government policy (legal, fiscal and monetary) in each of the economic environments. Demand * How is the business influenced by the following in each economy? * Affordability of the products * competition * Availability of substitute products * Level of GDP * Needs and aspirations of consumers Supply In each economic environment: * How is the business influenced by the availability of raw materials and labour? * What logistics are available to the organisation? * Does the business have the ability to make profit? * What competition is there for raw materials? * Is there any government support available? Changes in supply and demand For each economic environment: * Draw the supply and demand curves for the selected organisation *...
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...FACTORS AFFECTING BUSINESS ENVIRONMENT SUBMITTED BY: AAYUSH VERMA INTRODUCTION A business firm is an open system. It gets resources from the environment and supplies its goods and services to the environment. There are different levels of environmental forces. Some are close and internal forces whereas others are external forces. External forces may be related to national level, regional level or international level. These environmental forces provide opportunities or threats to the business community. Every business organization tries to grasp the available opportunities and face the threats that emerge from the business environment. The term business ‘typically’ refers to the development and processing of economic values in society. Normally, the term is applied to portion of economic activities whose primary purpose is to provide goods and services for society in an effective manner. It is also applied to economics and commercial activities of institutions which having other purposes. Business may be defined as “the organised effort by individuals to produce goods and services to sell these goods and services in a market place and to reap some reward for this effort.” Functionally, we may define business as “those human activities which involves production or purchase of goods with the object of selling them at a profit margin”. Business organizations cannot change the external environment but they just react. They change their internal business components (internal...
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...BUSINESS ENVIRONMENT Understanding the environment within which the business has to operate is very important for running a business unit successfully at any place. Because, the environmental factors influence almost every aspect of business, be it its nature, its location, the prices of products, the distribution system, or the personnel policies. Hence it is important to learn about the various components of the business environment, which consists of the economic aspect, the socio-cultural aspects, the political framework, the legal aspects and the technological aspects etc. In this chapter, we shall learn about the concept of business environment, its nature and significance and the various components of the environment. In addition, we shall also acquaint ourselves with the concept of social responsibility of business and business ethics. OBJECTIVES After studying this lesson, you will be able to: ? explain the meaning of business environment; ? identify the features of business environment; ? describe the importance and types of business environment; ? describe the recent developments in Indian Economy that have greatly influenced the working of business units in India; ? explain the concept of social responsibility of business; ? state the social responsibility of business towards different interest groups; and ? explain the concept of business ethics. 3.1 MEANING OF BUSINESS ENVIRONMENT As stated earlier, the success of every business depends...
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...BTEC LEVEL 3 Unit 1 THE BUSINESS ENVIRONMENT ASSIGNMENT ONE Within this unit you will consider the different types of businesses and sectors, their strategic plans and consider their main stakeholders. In the second half, you will be considering the impact of external influences (political, legal and social) on businesses. Scenario: You are a junior journalist working for the Business Review. You have been asked to write an article for prospective businessmen and women thinking of setting up a new business. Most businessmen and women you have spoken to are not sure about the legal ownerships and activities of businesses generally. They also feel they require more information regarding how some local, national, international and global businesses operate. You should research two organisations; one should be a not-for-profit organisation and the other a for-profit organisation. (For-profit organisation should be McDonalds; you must now select a not-for-profit organisation of your choice). P1: describe the type of business purpose and ownership of two contrasting businesses. Here you will need to include all the information outlined below: 1. TYPE OF BUSINESS BY SECTOR The type of business in terms of: * Geographical scope (local, national, international or global) * Sector (primary, secondary, tertiary) * Type of goods/services offered 2. TYPE OF OWNERSHIP * Describe the different types of ownerships (Public/private sector; sole...
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...Unit 1: The business environment Help sheet 1.1.1 P1 Describe the type of business, purpose and ownership of two contrasting businesses To achieve P1, you must complete Task sheet 1.1.1, a case study, as well as Worksheets 1.1.1 to 1.1.4. You must also write a detailed presentation about two organisations. • You must ensure that the two organisations chosen are very different. For example, a large plc, such as Tesco, and a charity, such as Save the Children. This will make it easier to compare the environments. • It is a good idea to choose organisations that you are interested in, but that also have a large amount of information available. Therefore, spend some time researching a few organisations that might be of interest to see which one will make this task the easiest. • The same organisations will be used for tasks other than P1 so look ahead in the assignment to make sure the information you will need is available. • Once you have chosen your organisations, you need to research them in order to be able to identify the type of businesses they are. You must identify which scale they operate at and what sector they operate in. Make sure you give evidence and reasoning to back up your decisions. • The purpose and ownership of a business can often be seen on its website. However, you may find a phone interview very useful for collecting all the information you need. This can then be used as evidence. Remember to reference your work when necessary. ...
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