Which of the following best explains how trade enables greater specialization among?

Which of the following best explains how trade enables greater specialization among?

Which best explains how trade enables greater specialization among producers? Trade allows people to focus on one kind of production and trade for their other needs. Borrowing money becomes more expensive and there is less investment in production.

Which of the following best explains why large companies pay less for goods?

Which best explains why large companies pay less for goods from wholesalers? Large companies have better-paid employees who are better negotiators. Correct Answer. Large companies can buy all or most of a wholesaler’s stock.

Which best explains why a large company can undersell small retailers?

Answer:Many times, a large company can undersell small retailers because their operating costs are much lower. Due to them being able to lower costs, they are able to sell their items for less than the small retails who have more money invested in the cost of their product.

What’s the best explanation of how businesses help increase the standard of living?

As businesses and employees increase their wealth, they tend to spend more, which increases demand for more goods and services, furthering economic growth. The economic activity generated by business leads to an increase in standard of living.

How do businesses affect standard of living?

Along with the standard-of-living increases inherent in raising local employment, the presence of many business types can raise the standard-of-living further by providing a wider range of services and amenities in the local area.

Why is it important for businesses to think beyond profit?

A business must have reason to exist beyond that of making money and maximising shareholder value. Profit is too temporary to guide a business by. If a business’ main purpose is to make a profit, this will both lead to a lack of strategic direction and reduced staff motivation.

What is purpose beyond profit?

Purpose Beyond Profit is a survey of executives from across the globe that seeks to understand trends and challenges in measuring, disclosing and understanding the value that companies create.

What is the meaning of business beyond profit?

The most powerful purpose statements look beyond profit. This means they talk only of the good the brand seeks to create without stating the obvious goal of every business: profit. It is within the context of profit making that goodness makes a difference.

Is business all about making profit?

Business is a deeply human institution, but its purpose is not to make as much money as possible. The purpose is something else. We need to put purpose back into capitalism because business is primarily about purpose and creating value for stakeholders — money and profits follow. Business and ethics go hand in hand.

What type of small business makes the most money?

Most Profitable Small Businesses

• Personal Wellness.
• Courses in Other Hobbies.
• Bookkeeping and Accounting.
• Consulting.
• Graphic Design.
• Social Media Management.
• Marketing Copywriter.
• Virtual Assistant Services. Finally, last on our list of the most profitable small businesses: virtual assistant services.

What can a business do with its profit?

The main way that firms use profit is to: Pay dividends to shareholders. Invest in increasing capacity or expanding into new markets. Invest in research and development.

How much profit should I reinvest in my business?

If you want your business to keep purring down the freeway, you’ve got to put more money into it. I personally say 50%. There’s no hard and fast rule but reinvesting half of the business income back into the business is a good rule of thumb.

How much profit can you take from your business?

An alternative method is to pay yourself based on your profits. The SBA reports that most small business owners limit their salaries to 50 percent of profits, Singer said.

How much should I pay for a small business?

According to the U.S. Small Business Administration, most microbusinesses cost around $3,000 to start, while most home-based franchises cost $2,000 to $5,000. While every type of business has its own financing needs, experts have some tips to help you figure out how much cash you’ll require.

What type of business should I start at home?

There are a number of businesses that you can now start to earn from home. Some of the popular ones being: start an online store. conduct online classes….Service-based home business ideas include:

• Tutoring.
• House cleaning.
• Freelance writing.
• Personal training.
• Virtual assistance.
• Dog-walking.
• Marketing.
• Designing.