Business Purpose and Economics

Question 1 

Differing objectives of business have been put forward with a significant emphasis on profit maximization. However the purpose of business is not only profit maximization but also the creation of utility, creating employment for self and others, utilizing time properly, and the provision of essential goods and services. Additionally, in the era of technology, business is encompassing creation and promotion of innovation in a way to find solutions to daily challenges as well as offering support services to other businesses.

Question 2 

The bible has useful insight that can be useful in business. The bible has the following wisdom and insights that can be applied to business including treating employees fairly as well as offering the highest possible levels of customer service by putting oneself in the shoes of customers. Additionally, it is useful to be honest with customers and other stakeholders by always acting as though under constant watch. Finally, it is useful to realize that time and chance happens to everyone.

Question 3 

Businesses have five functional areas which are important in the daily running of ABC Suppliers. Planning is a critical function involving setting the company goals and scheduling of activities to achieve these goals. Organizing as a functional area revolves around the bringing resources together to achieve goals set out through planning. Additionally, staffing function requires identification of human resource requirements, training, and developing such resources to ensure adequate customer service. Another functional area is organizing which includes letting the human resource know what is required of them and offering appropriate supervision and motivation for business success. Finally, controlling function is the monitoring of success by setting performance standards and indices. These functions have helped ABC Suppliers to achieve success by laying down goals and combining the required resources towards achieving the goals. Additionally, ABC Suppliers utilizes the staffing function to find the right employees, who by being appropriately directed work towards the set performance indices.

Question 4 

According to the "Bureau of Economic Analysis", the American economy is growing with gross domestic product increasing at 3.4 % as at the third quarter of 2018. The economic growth is being spurred by increasing personal consumption expenditure, increasing spending by the private sector as well as the federal government, and nonresidential fixed investments.

Question 5 

Due to a deep freeze in the strawberry growing season that damaged crop, the supply of strawberries will decrease subsequently increasing prices if there are no changes in demand. The supply curve will shift to the left noting that less product will be supplied for higher prices all factors constant.

A rise in the minimum wage for entry-level employees will result to increase in disposable income by 7.5 dollars causing the demand for a chicken sandwich to rise because employees have more money to spend subsequently leading to a price increase for the chicken sandwiches. The total demand for chicken sandwiches will increase.

Increasing batteries storage capacity through technology will lead to a decrease in the market price for electric and hybrid automobiles since they are close substitutes. The electric and hybrid automobiles companies will seek to attract customers by reducing prices. The supply curve for the electric and hybrid automobiles will shift to the right.

Market prices for homes in the Dakotas will increase with increasing jobs from mineral and oil exploration. The increase in price will be due to an increase in demand for homes in the areas. The demand curve for homes will shift upwards such that more houses will be demanded at every price all factors constant.