Intro to businees Essay Example | Topics and Well Written Essays - 1000 words

Intro to businees - Essay Example The taxes collected by government from businesses are used to finance public projects and social programs. Businesses also contribute to the well being of a society through their social corporate responsibility programs. Corporate social responsibility (CRS) is about how companies manage the business processes to produce an overall positive impact on the members of a society (Baker, 2004). The philanthropic initiatives of businesses are important for the economy because they directly help the social class that is in greater need in our country which is the poor people of the nation. Businesses are also important to the economy because they manufacture and create products that people need and desire. For instance the activities of businesses create the food supply people consume on a daily basis. The activity of businesses also impacts the world trade of products between different countries across the world. Profit and non profit organizations play some similar and other different rol es in the economy. Both types of organizations help provide the economy with jobs for the people. The non-profit sector is composed of the private non-profit organizations and the government. Profit organizations are the main contributors of tax revenue for the government. The goal of these businesses is to maximize shareholders wealth, while the goal of non-profit organizations is to provide free services to help social causes in a community. Non-profit organizations such as the Red Cross assist society whenever there is a disaster and there are constantly collecting blood from donors to help sick people. Often profit organizations donate money to non-profit organizations because these organizations are more adept at using money more effectively to help poor people. For example a $45 donation to the non-profit organization Feed The Children enables the entity to purchase $225 of food and other essential items. A major difference between profit and non-profit organizations is that b usinesses operate in order to maximize their profit, while non-profit organizations operate on a zero sum budget which means that any money they collect during a year is supposed to be totally spent to reach zero by the end of the fiscal year. The largest non-profit organization is the government. In the United States as of 2010 there were 21.29 million governmental employees (Numberof, 2012). This implies that the government is the largest non-profit organization in the United States. The money the government collects from taxes and other revenue sources is used to finance different programs including the military, education, and many other social programs. The monetary policy in the United States of America is set by the Federal Reserve. The two main aspects of monetary policy are the money supply and credit. The interest rates in the banking industry are dependent on the prime rate the Federal Reserve sets. The chairman of the Federal Reserve is Ben S. Bernanke. The fiscal policy in the United States is controlled by the Federal government. Fiscal policy deals with how the government spends its money. One of the biggest obstacles the Federal government faces is the accumulated deficit. This deficit has been growing a lot since the War on Terror that started in 2001. A product that I am familiar with is a new invention created by the company WildRavenModels. This firm created the world’