business contribution to the wellbeing of a nation Flashcards
what is a business’ contribution to the wellbeing of the nation?
all businesses have individual targets such as being financially successful and to meet the needs of customers.
but businesses also play a collectively central role in a nations social and economic wellbeing
economy
an economy is an area of the production, or trade, ad consumption of g/s by different agents in a given geographical area.
business contribution to economy: employment opportunities
- businesses make goods and provide services which creates jobs and employs ppl
- high levels of employment benefits economic wellbeing of nation bc individuals can use income to purchase g/s
- having more indi employed that can use wages to purchase g/s supports growth of nation and creates more job opp.
business contribution to economy: taxation revenue
- business sell g/s to make revenue -> portion of rev used to pay employ -> govt taxes indi a % of their income
- govt also earns tax rev when we buy g/s (GST= 10% tax)
- govt also get company tax
business contribution to economy: infrastructure
basic physical and organisational structures and facilities (eg buildings, roads, schools) needed for the operation of a society or enterprise.
govt often responsible for finding infra but during development many businesses involved.
business contribution to economy: economic growth
overall function of business within economy is to produce g/s that indi want to buy. when busi sell more the vale of g/s increases -> economic growth.
business contribution to economy: international trade
rather than just selling in own country businesses are also exporting g/s
exporting = positive impact on economic growth as money from oversea fueling nation
importing = allowed many busi to bring supplies from overseas -> reduces business costs and price for customer
business contribution to economy: R+D
- contributes to the improvement of existing products and business process
- aims to help busi meet demands of customers, cut costs and improve affordability of products.
lower prices improve standard of living bc consumers can buy more g/s
how do employment opp benefit the economy?
employed indi are likely to be happier and more fulfilled as may experience les financial stress as are earning. unemploy rate decrease -> less crime bc more ppl can afford housing and g/s
how does tax revenue benefit the economy?
govt uses tax rev to provide essential services to aust such as healthcare and edu.
how does infrastructure benefit the economy?
help ensure that economy and society are capable of functioning smoothly. busi such as construction companies employ indi to create, maintain and develop infra.
how does economic growth benefit the economy?
total value of g/s produce by economu over period of time measured by gdp. gdp grows by s greater amount than its growth in pop
