The circular flow model in economics portrays the flow of products, money, and factor services in an economy. It includes major sectors such as households, businesses, government, and foreign trade. Three types of flows are illustrated: physical, monetary, and international. The equilibrium of injections and leakages determines the stability of an economy. (Word count: 50)
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Economics revolves around managing scarcity through wise decisions. Economic growth is crucial, involving rising national and per capita income sustained over a long period. It is tied to factors such as capital formation, technological progress, entrepreneurship, and population growth. Economic development encompasses social and political advancements, and is also impacted by non-economic factors like education and social attitudes.
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An economy is any activity that involves the production, consumption, exchange, and distribution of goods and services. The resources are managed to fulfill the needs of the local populace, economy, organizations, and governments. It is widely acknowledged that this social area focuses on the behaviors, exchanges, and external manifestations associated with the creation, utilization, and
A company should conduct business and generate revenue in ways that meet societal standards. Society grants permission to a business enterprise to engage in industrial or commercial activity and generate profits. In actuality, businesses can achieve long-term success by acting in a socially and ethically responsible manner. The business has a duty to make choices
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An industry that is in its early stages of development and is anticipated to have strong growth over the next several years is referred to as an emerging sector. Most industries in an economy are divided by economists into broad categories like the agriculture, manufacturing, and service sectors. A sector of the economy must meet
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Risk assessment is the process of locating potential threats to a company’s capacity to conduct business. These evaluations assist in identifying these innate company risks and offer tools, procedures, and controls to lessen their influence on daily operations. There are several hazards involved in managing a business. Some of these possible risks have the power to completely
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Environmental scanning, which is mostly used to determine the future possibilities of corporate organizations, is the process of learning more about the events and how they relate to the internal and external surroundings of the firm. Environmental scanning is the process through which a company examines the relevant environment to find opportunities and hazards that
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There are four types of Business Environment: Different Types of Business Environment Internal Business Environment The organization’s internal business environment is under its control. Important internal influences include, in brief: Culture and Value System: Corporate culture can be thought of as a set of common values and beliefs that influence the standards of behavior within an
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The business environment encompasses all external and internal factors that impact a company, affecting its operations and decision-making. It includes specific and general forces, dynamic nature, uncertainty, complexity, and relativity. Understanding the environment helps identify opportunities, plan, tap resources, improve performance, cope with changes, face competition, and adapt to threats. This knowledge is crucial to business success and growth.
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