Topic 3 critical issues in a business success and failure Flashcards
business prelims
what is a economy
the system of production, distribution and consumption of goods and services within society
What are economic conditions
government and market influences that can alter the economy in minor and drastic ways. doing this affects
what is the business cycle
a cycle that represents the amount of economic growth during certain periods
what happens during expansion
it allows businesses to grow quicker and easier due to increased consumer confidence
what is inflation
it is when products go to really high prices
what happens during recession
people chose to save their money
lack of demand for products
loss of jobs
list policies and strategies that the government use to avoid extremes in the cycle (3)
fiscal policy
monetary policy
microeconomics reform
what is the fiscal policy
government spending in order to lower taxes
what is monetary policy
the bank increases interest rates in order to combat inflation
what is microeconomic reform
policies directed to achieve improvements in economic efficiancy
what can technology do for businesses (2)
make task easier may give companies a competitive edge
types of technology that can help bussinesses
accounting software
computer technology
latest technology
office tecnology
