Bus_100_Assignment_1_N_Shah

A)What are the 5 dimensions of the business environment? Describe the key elements of each
area as they relate to U.S.-based businesses.
Response:
Revenue, Cost, Assets and Liabilities, Strategy and Stakeholders.
Revenue
The competitive market can affect revenue in two ways: (a) A small business may not be able
to increase prices if it is in a very competitive market (b) A business may have to change its
product type and product ideas to support its competition.
Cost
A small business may experience increases in costs, such as raw materials and labor.

Assets and Liabilities

Assets include cash and inventory, while liabilities include short-term and long-term debt.

Strategy
Successful businesses project growth and embrace change. They know how to balance day-to-
day operational management with long-term strategic thinking.

B)Explain the role and importance of entrepreneurship to the wealth of an Economy. In

essence, describe how entrepreneurship help both the economy and government meet
the needs of a society?

Response:
The Government provides an incentive to serve its people by employing its resources to
leverage the entrepreneur’s in creating wealth. The wealth can be created in various ways:
invention, creation, support, technological improvements or enhance the product life.
Policies are created to meet the underlying goal to preserve the rights of public. When
entrepreneurs introduce products that are genuinely appealing and provide real world
environmental solutions, their ideas get considerably more traction.
 Entrepreneurs think outside the box. This capacity for thinking outside of the box helps
large businesses and who shared the same values. Corporate jobs tend to reward
workers who put in long hours and don't question company policies. Small businesses
thrive on ongoing learning, which requires fresh thinking, new ideas and unusual
approaches to problem solving.

C) In your opinion, what are some signs that people in the United States have a high standard
of living?  What are some signs that such a high standard of living may be negatively
affecting their quality of life? 
Response:
Standard of living can be categorized into two types: High and low. A high
standard of living for example where families tend to use of luxury goods such
as big houses and expensive clothing habits while a low standard of living
mainly focuses on daily meals and clothing for everyday purpose.
An example of a high standard of living having a negative impact is when
individuals do not have enough time to relax from the workplace. For example,
individuals may have to work harder and longer to maintain the high standard
of living, and thus do not take vacation.