Question

Please answer the following questions, for a business class

1) Discuss at least 2 advantages and 2 disadvantages of being an entrepreneur

2) The elements of the business environment are: economic and legal, technological completive, social and global. Select any two and discuss the potential impact on a business.

3) Explain the relationship between supply and demand in a free market economy? How does the equilibrium point related to the concept of supply and demand?

4.) Compare and contrast Standard of Living and Quality of Life.

5.) Identify and describe the 5 factors of production and their relationship to wealth creation.

6.) List an advantage and disadvantage of each of the following economic systems: Capitalism, socialism, communism.

Answer 1

1) Everything has its positive and its negative, enterpreneurship is no different. The two importance of being an enterpreneur is that you get the drect control on your company you can get the work done the way you want. The work culture is very casual and it is not a centralized or standardize way that the company operates so you can have room for creativity where you dont have to worry about the standadization.

But the disadvantage is that it setting a company has a good gestation period so you wont be able to make money for some few years. And the work load will be very high so holidays like saturday and sunday wont be there for an enterprenur.

2) I am picking up Economic and technological completive.

So the economic condition of any economy plays a very crucial role in an enterpreneur's life. Before setting up the business you need to see that if the economic condition of the nation is favarourable for the business or not. If the GDP growth is sluggish and demand is not that high then it will be dangarous for any business to start. The legality related to business is also important. A strick and stern legal procedure will create hinderance to the business.

In addition to the economic and legal, technological completive is also important. How the innovation has been and how you are planning to take over the market is very crutial. How you create an edge by having a competitve advantage is very important.

3) Supply is the quantity that is supplied by sellers at a particular price whereas demand is the quantity demanded by the buyers at a particular price. Supply is positively related to price and demand is inversely related to price. And in a free market they tend to come to an equlibrium where the quantity demanded is equal to quantity supplied at a particular price.

4) Standar of living and quality of living can be complemented as well as can be contrasted. Uuslally is it said that the increase in standard of living will have an automatic impact on the quality of the living. But there are difference between the two. Standard of living is more like the wealth, healthcare, infrastructure etc improving. But quality of ligfe is an intangible thing and cannot be measured. It is more to do with the society taboos and stereotypes which are breaking so that the quality is improving. The thinking of people improving etc.