Introduction to Business Short Definitions

Please explain the meaning and implication of Ten on the following:

 

1. A market/free enterprise economy
2. Economic stabilization polices. The Fiscal and Monetary Policies)
3. Globalization
4. Neo-mercantilism
5. Entrepreneurship
6. Corporate double taxation
7. Angel Investors
8. Equity capital
9. Horizontal growth
10. Organization culture
11. Productivity
12. Bonds

 

Bonds

A bond is a debt investment in which an investor loans money to an entity that borrows the funds for a defined period of time at a certain interest rate. Bonds implications affect the economy by determining interest rates. Which influences the amount of liquidity that includes getting credit, loans and expand businesses.

 

Productivity    

Productivity is an economic measure of output (revenues and GDP) per unit of input (labor and capital).  Implications of labor productivity is very important for making economic gains in the market.

Organization culture

This refers to the values and beliefs and behaviors that determine how a company’s employees and management interact and deal outside the business. It is very important as implication in business because the culture keeps employees actively and passionately engaged and this impacts the values and norms of the business

Horizontal growth

 

Horizontal growth is the expanding of a firm’s activities into more regions and by increasing the range of products and services that they offer. Its implications are important because it implies alteration in competitive conditions and create more business opportunities to the organization.

Equity capital

It is a capital such as stock that is free of debt or a capital received for an interest in the ownership of a business.  Its implications represent the money contributed by owners and investors and a company’s reinvested profits.

Angel Investors

Angel investors are often former successful entrepreneurs that enjoy working with companies at the earliest stages of business formation so they continue working with startups in a particular industry.  Its implications are where angel investors fund startups and motivate new entrepreneurships to succeed.

Corporate double taxation

It refers to income taxes paid twice on the same source of earned income. It would occur when income is taxed at both the corporate level and personal level… its application is when the income tax levied once on corporate income and then again when profits are distributed as dividends to shareholders.

Entrepreneurship

It includes the capacity and willingness to develop, organize and manage a new business venture along with any of its risks in order to make a profit. Its implications involve innovation and risk-taking, and is an essential part of a nation’s ability to succeed in competitive global marketplace.

Neo-mercantilism

it is a theory that maximizes the benefits of a country such as higher prices for goods traded abroad and expansion of exports with concomitant reduction of imports. Its implications involve promoting exports, deterring imports, and controlling capital movement.

Globalization

It involves the opening of local businesses into a broader outlook in other nations and overseas. It could include economic, social, cultural, and political aspects. For instance, McDonalds is a global business that represent American chain restaurants.

Economic stabilization polices. The Fiscal and Monetary Policies)

Government use this strategy in order to have the economic growth constant, as well as price levels and unemployment. A fiscal policy is when the government uses revenue to influence the economy while monetary policies like the central bank control the supply of money.

A market/free enterprise economy

This type of economy is determined by the market and not the government which includes products, prices, and services. There is no government control over businesses is this kind of economy system.