Business Explain: Intro To Business

What is the purpose of the Federal Reserve? What are its goals?

The purpose of the Fed is to use monetary policy supply and influence and influence interest rates. The Fed has three major goals:

1. Price Stability
2. Sustainable Economic Growth
3. Full Employment

The Fed seeks to stabilize prices by regulating the money supply and interest rates. In turn, stable prices promote economic growth and full employment.

What is the Federal Reserve?

The federal reserve was established in 1913 and is the central banking system to which most large banks belong. The Fed divides the country into twelve districts, each with a member-owned Federal Reserve Bank. The twelve banks are coordinated by a board of governors.

What is the entry-level salary for an economist with a bachelor's degree? With a master's degree?

The median annual wage for economists was $99,180 in May 2015. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10% earned less than $52,540.

What is the current job outlook for economists?

In the next 10 years, the job outlook for economists is expected to grow by about 6% (there will be around 1000 more economist jobs available). This isn't exceptionally high or low but holds steady with most jobs today.

What educational background and training is needed for these jobs?

Most economists need a Master's Degree or a PhD. Although your degree doesn't have to pertain solely to economics, it does help later on to find a career. One of the main necessities is to have plenty experience and skill in mathematics.

What kinds of jobs do government economists perform? What about those who work in private industry? In education?

Federal government economist collect and analyze data about the U.S. economy, including employment, prices, productivity, and wages among other types of data. They also project spending needs and inform policymakers on the economic impact of laws and regulations.

Economists working for corporations help them understand how the economy will affect their business. Specifically, economists may analyze issues such as consumer demand and sales to help ad company maximize it its profits.
Economists working in education teach and conduct research to use in the classroom.

What issues interest economists?

Economists are interested in the economic well being of individuals as well as the economies around the worlds. Things that interest economist include market trends, financial securities, data tracking and the overall economic conditions from local economies to world economies

SWOT definition; How can it affect a company?

S- Strengths W- Weaknesses O- Opportunities T- Threats / By a company sitting down, looking at their strengths and weaknesses, they can use their strengths to eliminate / avoid threats. By them doing that, they can also look at new opportunities they may have.

Describe the steps in the managerial decision making process.

1. Identify the problem - difference between what is is / what you want 2. Generate - most important, open to ideas / brainstorming 3. Select - satisfied - solutions that are only adequate not ideal 4. Implement - unforeseen consequences, give alternatives for problem

What are the two component parts of TQM?

1. Commit a goal 2. Coordinate effort / Has lower operational costs, higher return on sales and investments, and makes up for expense.

Describe a Democratic Leader.

A democratic leader would be task-oriented, someone who doesn't care about your opinion, has little concern for employees, and is feared.

What's the difference between a Mission Statement and a Strategic Plan?

A mission statement is a statement of the basic purpose that makes an organization different from others. A strategic plan is a broad guide, to achieve long term goals set by the board of directors and top management.

What responsibilities do consumers have in business relationships and what is the most important?

Answer: Be honest, be reasonable, be active, be informed, and be involved. The most important responsibility as a consumer is to be informed.

Describe how the consumer movement came about.

Answer: Businesses used to take advantage of customers and false claims were made about products. Prices were often too high and products were unsafe. So the consumer movement came about to fight these unfair things.

Discuss how you should evaluate "where to put your savings".

Answer: You should evaluate where to put your savings by considering safety, return, liquidity, and taxes. Safety is assurance that the money you have invested will be returned to you. Return is the percentage of money that you will get back on your savings or investments over a year. Liquidity is the ease with which an investment can be changed into cash without losing its value. Taxes reduce your rate of return.

Discuss 3 of the types of financial services that are offered by financial institutions.

Saving services- is safe storage of funds for future use which they accept money from customers for safekeeping.

Payment service- the ability to transfer money to others when necessary for daily business activities.

Lending services- offered when people, businesses, and governments need to borrow money.

Discuss a budget? Main purposes of a budget?

Answer: A summary of planned expenses for a given period along with the estimated income for that period. The purpose of a budget is to keep track of your money, what you're spending it on and how to not overspend.

Discuss "credit history" and how its used by lenders?

Answer: Credit history is the borrower's history of how responsible they were with their credit. It's used by lenders so they can check to see how reliable this person is, and if it's worth lending to them if they will get their money back or not.

Discuss the advantages of using credit and the problems that can occur if credit is not used properly?

Answer: Credit can help if you need money for emergencies, such as unemployment, illness, death, or property loss. If credit is not used properly, it can cause one to go into debt and be spending all your money without even realizing it.