Comprehensive Report on Business Management and Macro-Economic Policy

This report provides an overview of business management and macro-economic policies, focusing on the economic environment and its impact on businesses. It discusses various economic issues arising from events like the Covid-19 pandemic and their effects on sales and profit margins. The report also delves into monetary policies, detailing the supply and demand for money, and the implications of transaction, precautionary, and asset motives. Fiscal policies are examined in terms of their macro-economic effects, public expenditure deficits, and the sustainability of public debt. Furthermore, it explores the roles of primary and secondary capital markets in raising money for investment, including crowdfunding and cryptocurrencies as sources of funding. The report references academic articles and online resources to support its analysis of these crucial economic and business management topics.

BUSINESS MANAGEMENT AND
MACRO-ECONOMIC POLICY
(Source :Chapter 13: The economic environment, 2020)
Economic environment policy

TABLE OF CONTENT
 INTRODUCTION
 ECONOMIC ISSUE AND THEIR IMPACT ON BUSINESS ENVIRONMENT
 MONETARY POLICIES, SUPPLY AND DEMAND FOR MONEY
 FISCAL POLICIES, ITS MACRO ECONOMIC EFFECTS AND ITS PUBLIC EXPENDITURE DEFICITS
AND SUSTAINABILITY OF PUBLIC DEBT
 ROLE OF PRIMARY AND SECONDARY CAPITAL MARKET IN RAISING MONEY FOR
INVESTMENT
 REFERENCES

INTRODUCTION
 Business management can be defined as process of organizing, planning and implementing set of activities
so that firm can earn high profit margin and market share.
 Macro economic policy have main objective to enhance growth, inflation, employment in the society so that
all individuals have sufficient income to stay health and better lifestyle (Iqbal, Gan and Nadeem, 2020).
 This presentation has covered crucial information related to economic issue, its impact, monetary policies
and supply and demand of money.
 At last it has covered what are the different sources of raising capital for making investment.

ECONOMIC ISSUE AND THEIR IMPACT ON BUSINESS
ENVIRONMENT
Economic is social science that study pertaining to the way people interact with value
likewise in production, distribution and consumption of products and services for
benefits of all individuals living in the society. In current scenario, there are numerous
economic issue because of Covid-19 impact as it resulted in decreasing overall sales
volume and profit margin of the company (Blair, 2020). Likewise:
(Source: What is Economic Environment? 10 Factors
affecting it, 2021)
Economic environment

CONT.
 GOVERNMENT POLICIES
 INCOME DISTRIBUTION AND EMPLOYMENT
 LABOUR MARKET:

MONETARY POLICIES, SUPPLY AND DEMAND FOR
MONEY
 Monetary policies can be understand as control of quantity of
money that is available within the economy and channel from which money
can be supplied to required individuals.
 The central bank through controlling the supply of money focus on
influencing on factor such as economic growth, inflation and liquidity.
 Supply can be defined as total amount of monetary assets in the economy at
specific point of time.
 While demand is amount of money that all individuals required in order to
live a better lifestyle.

IMPLICATION OF DIFFERENT ASPECTS OF
DEMAND FOR MONEY
 Transaction, precautionary and asset motive are three different aspects of demand for money that
are required by individuals in order to meet all their expense and satisfied their wants.
 Likewise, transaction demand is aspects that stated that money that is required by individuals in order to buy
specific good and services so it is related with income.
 Secondly, precautionary demand is another aspect that clarify that individuals may require fund in order to
meet any type of financial emergencies.

FISCAL POLICIES, ITS MACRO ECONOMIC
EFFECTS AND ITS PUBLIC EXPENDITURE DEFICITS
AND SUSTAINABILITY OF PUBLIC DEBT
 Fiscal policy can be defined as use of government spending and
taxation in order to influence the economy with an motivate to reduce
poverty, unemployment in the country.
 Government by increasing or decreasing the economic activities can
easily affect the economic outcome.
 Such as when it has budget deficit then it encourage economy activity,
on the other hand in case of budget surplus, it slow down economic
activity.

CONT.
 Thereby it can be stated that fiscal policy contribute in social security contribution, pension and other
benefits as government by providing employment to people in government organization is provide them
safety and security.
 Likewise, government of UK has make use of fiscal policy of spend the revenue earn through taxes in
creating public transport, providing education and other benefits to people living in the society.

CONT.
 Public expenditure deficit occur when overall government expenditure exceed its revenue that is gained from
different sources such as tax and others.
 For example, the government has earned revenue from taxed around £793 billion in 2021 but it has spend
around £1093 for overall growth and development of economy.
 On the other hand, Sustainability of public debt is just opposite as in it the government have earned more
revenue as compared to make expense during the year.
 For instance, around 945 billion has been spend but it has earn revenue through tax around 1274 billion so
it is more public debt that can be used in public development or their benefits in future scenario.

ROLE OF PRIMARY AND SECONDARY CAPITAL
MARKET IN RAISING MONEY FOR INVESTMENT
 Primary capital market is selling financial products
likewise debt and equity stock and bond to the
investors that are ready to invest capital in the
company to earn a particular rate of interest.
 While the secondary market emphasis on making use
of trade existing securities in raising money for
investment.
 Therefore, crowdfunding and cryptocurrencies are
various sources through which fund can be easily raise.
Such as:

CONT.
 CROWFUNDING
 CRYPTOCURRENCIES

REFERNCES
 Al‐Thaqeb, S .A and et. al., 2020. The pandemic and economic policy uncertainty. International Journal of
Finance & Economics.
 Iqbal, U., Gan, C. and Nadeem, M., 2020. Economic policy uncertainty and firm performance. Applied
Economics Letters, 27(10). pp.765-770.
 Stiglitz, J. E., 2017. Macro-economic management in an electronic credit/financial system (No. w23032).
National Bureau of Economic Research.
 Blair, T., 2020. The economic framework for New Labour. In Policy Makers on Policy (pp. 161-180).
Routledge.
 Chugunov, I. Y. and Pasichnyi, M. D., 2018. Fiscal policy for economic development. Науковий вісник
Полісся, 1(1 (13)), pp.54-61.
 Online
 Chapter 13: The economic environment, 2020, [Online]. Available Through :<
https://kfknowledgebank.kaplan.co.uk/acca/chapter-13-the-economic-environment >.