How does the economy defined the business financially
A business is part of the economy, where goods and services are exchanged or sold at a particular time. Business is an organization where investment is an essential factor and it also leads the business at a higher level. When any investor or a businessmen invest then he expect some profit from that organization. It means investment and profit both are significant factor and in absense of any factor it is impossible to run business. Apart from this, in busines, decision making is also an vital factor to decide best action among two or three course of action.
In any economy, business is very important as it is the engine of growth, which provides employment and allow people to make money by the excahnge of goods and services. In absense of this organization, no economy could be succeed. Businness sell goods and services to the people while economy decided the demand and supply of the goods and services.
So in economy, business is an organization which provides goods and services to the customers and make money from them. In economics, various theories are applied and with the help of qualitiative methods , diversity of an organization and the situation of the various market related to the business, are decided.
Like economics, financial term is also an imporatnt term for the business. Financing process provides funds for the business activities. There are many financial instituions which provide loan for the business. So, this process of lendind of the financial instituons are also a part of the business. Thses instituions are also helpful in creating cash flows, assests and income for the business enterprises.
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