Describe the role of business in the economy.
Business is what makes up our economy. Without business we wouldn’t have an economy. Business IS economy. Get where I’m going with this? There is no easier way to explain this concept. Business brings services and products which brings employment, which brings salaries and income. Economy depends on the progress or performance of big and small businesses. The type of economy in the United States is a capitalistic economy. This means that it revolves around the big and small businesses in our economy. If the major businesses are doing well, our economy will do well too.

Compare and contrast the roles of for-profit and nonprofit organizations in the economy.
The two types of organizations in our economy are for profit and non profit. For profit organizations sole purpose is to bring in more money that it spends. Or in other words, to simply make a profit. With profit made, the business owners can choose to keep all the money for themselves or they can use it on their business to expand it or do anything else that they feel necessary. They can also use some or all of it to share between their employees. This is where compensation plans such as employee profit sharing comes from. Whatever they do with their profit made, is their choice. Some forms of for profit organizations include; partnerships, small or large corporations and sole proprietorships.
A non profit organization provides services to the community without making a profit. They are not allowed to makes profits at all. Some of these organizations are exempted from paying federal corporate income taxes. Section 501 of the Internal Revenue Code lists the circumstances in which non profit organizations do not have to pay these taxes. One of these circumstances is if the organizations are providing charitable, educational, religious or scientific services to