Business Management: Analysis of Economic Concerns and Policies

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Added on  2023/06/17

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This presentation provides a detailed analysis of the general economic concerns and policies associated with business management. It explores how government policies, labor markets, monetary policy, and fiscal policy impact business operations. The presentation further discusses capital markets, including crowdfunding and cryptocurrencies, as methods of generating capital. It concludes that macroeconomic policies significantly affect the business environment, emphasizing the importance of effective business management in navigating these economic factors. The presentation references books and journals to support its analysis.
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PRESENTATION
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INTRODUCTION
Business management is the process of managing and coordinating the business operations of an
organisation.
It includes the tasks of allocating the resources and accomplishing the goals in effective manner.
Macroeconomic policies helps in setting a plan while working on action that will influence the
economy of the area.
This presentation deals with a detailed analysis of general concerns and policies associated with
business management.
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General economic concerns
General economic concerns are the problems that are limiting the growth of business either by
restricting the use of resources or by setting up of strict rules and regulations.
Government policies are responsible in influencing the interest rates and increasing the
borrowing costs in the process.
These policies are associated with the rise in taxes, lifting prices on certain products, affecting the
business in negative way while the decrease in interest rates affects the business positively.
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General economic concerns
Labour markets issues includes the wages of the staff along with the regulations to be followed
while hiring and firing employees.
It includes the duration of probation period that is to be served within the company.
Labour markets are responsible for setting labour rights and setting the criteria for minimum
wage by the company.
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Monetary policy
Monetary policy is set to control the quantity of money that is available within the economy
through various channels from where new money can be supplied.
It aims to influence various factors such as inflation, rate of consumption, growth of economy
along with overall liquidity.
It affects the supply and demand of money within economy.
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Monetary policy
Demand for money is affected from various reasons such as the level of income in individuals,
interest rates, and inflation costs.
Transaction includes the exchange of money.
Precautionary is about taking precautions against the outcomes of uncertainty.
Speculative motive for demanding the money helps in creating a value as an asset for the
company.
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Fiscal policy
It is the estimation of taxes and other aspects involved in government spending that will impact
the economy of the place.
Fiscal polices use budget instruments.
Taxation affects business by altering the demands of goods.
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Fiscal policy
Social security has a huge contribution towards the salary of employees and will go directly
towards the provident fund account.
Budget deficits are associated with the government expenditure from the extended revenues
attained from taxes along with other sources.
Sustainability of public debts is build by government and is accompanied by the growth of public
demands.
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Capital markets
Capital markets are the intermediaries related with the financial securities that can be brought or
sold.
Primary capital market is the insurance and sales within equity- backed security for the investors.
Secondary capital market leads to trading security that is offered by the company while selling its
offerings within primary markets.
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Capital markets
Crowdfunding is the process of raising money from numerous individuals.
Cryptocurrencies are various form of payments associated with exchanged goods online.
This digital currency exists on just electronic terms and serves the purpose of fixing traditional
problems with currencies.
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CONCLUSION
It can be concluded that the macro-economical policies affect the business environment in various contexts.
Business management is important for the company to stay afloat in their business operations.
Economic concerns includes, government policies, labour markets and other parameters.
There are different types of policies such as monetary and fiscal that has different functions in terms of
economics.
Capital markets includes various forms of generating capital for the business such as crowdfunding.
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REFERENCES
Books and Journals
Čepel, and et.al., 2018. Business environment quality index in the SME segment. Journal of
Competitiveness.
Cepel, and et.al., 2019. Selected economic factors of the quality of business environment. Journal
of International Studies.
Roman, A., Bilan, I. and Ciumaș, C., 2018. What drives the creation of new businesses? A panel-
data analysis for EU countries. Emerging Markets Finance and Trade, 54(3), pp.508-536.
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