1. Stakeholders are anyone who has a vested interest in he success of a company, momentarily or otherwise. All stakeholders are important in some regard, whether they compose the employment force of a firm, the customer base or outside media.
2. Profit is the revenue that a business accrues in excess of its expenditures, while risk is what a business undertakes in efforts to increase profits. Risk has the chance to equate to negative profits so only a certain amount of risk is ideal, attempting to achieve maximum profits.
3. Entrepreneurship Involves a lot of being your own boss and managing business and financial decisions on your own. It yields more freedom and you set your own schedule. Yet it also has some downsides such as no …show more content…
The United States has a mixed economy, we are both capitalist and socialist. Sweden also has a mixed economy, being mostly socialist with aspects of capitalism.
7. The four phases of a business cycle are contraction, expansion, peak and trough. Contraction is the slowing of a companies growth, it occurs after a peak and is the realignment period where a company slows its growth and reduces employment. Expansion is much the opposite, a company grows and increases profits, employment is increased. A peak is the highest point of expansion, where a company has grown past what it can maintain and employment is at its highest point. A trough is again the opposite, the lowest point in contraction where the company must grow from.
8. Socio-Cultural differences can create trade difficulties in world markets when business practices or modals are not accustomed to practices of a people of another region. Americans work more hours than citizens of many other countries, a business applying that model in another country could face resistance from employees and thus a profit …show more content…
A business that sells stock for their company accrues a variety of advantages and disadvantages. Advantages include increased capital, funds have been invested from a variety of sources. This capital is free of debt, which subtracts huge potential negatives. Disadvantages include loss of control of the business, shareholders now have a say in how a business operates. Also, management may be tempted to appease shareholders in the short term rather than plan well for the long
36. Diversification in investing entails having a variety of investment sources to maximize security of investment. Rather than simply investing in stock, one could invest in mutual funds, etfs, securities or any number of alternative sources.
37. Buying on a margin means purchasing more stock than you pay for at a given time while agreeing to pay for the excess at a later time. Only a certain amount of stock may be purchased on a margin, at a rate set by the federal reserve.
38. Three institutions that compose the banking system are credit unions, commercial banks and investments.
39. Banks differ from credit unions as credit unions offer low interest rates on loans and mortgages whereas banks provide a location to store capital that is relatively easily accessible. Banks provide both savings and checking accounts where credit unions do