A great deal about the economy of our country is being projected to us by means of news papers and television news channels. New age technology such as credit cards and internet banking has only resulted in negligence on the part of the people to understand the effects on the economy. Understanding the United States’ economy will help you in securing your life financially. No matter which part of the society you belong to, it is always better to have a clear picture of the country’s economy.
The economy can be simply explained as the act of buying or selling of products and services from changing oil in your car to having a hot dog at a ball game. A number of factors affect the economy and hence the economy influences our daily lives. The economy is represented mainly by the stock market but the stock market is probably not well understood by many in the country. People buy and sell stock on the stock exchange. These stocks can be called little “pieces” of a company and that you will come to own on buying them.
The stock exchange is a place where stocks are bought and sold. The stocks that are also considered as small “parts” of the company and buying these stocks could make you partly one of the owners of the company. The most important point when it comes to handling stocks is to retain the stock till it increases in price and then sell it when you find that it has a much higher value than it had when you had bought it. Almost all countries have stock markets. The New York Stock Exchange is the primary stock exchange in the United States.
Ordinary people can make lot of money from a well-planned investment but it is the business that reaps the full benefits. When more money is generated, businesses will find ways to increase profit a and plough them back into the economy to help create more jobs ,manufacture superior goods and invest in better and efficient methods to manufacture. This in turn will push business growth forward and boost the economy.
A business plays an important role in the economy and in turn the economy helps the business to grow by leaps and bounds. This is a never ending chain. The owner of a business creates the need for a service or a product when he decides to purchase his goods from his supplier. This helps the business to improve acquire bulk profits for both the owner and the supplier. Once this is over the cycle starts once again.
The economy gives rise to a business and the economy itself is a result of multiple businesses. This is a continuous cycle. Firstly an owner purchases from his supplier. Then service or a product is created and this is sold to get a good profit. Again the cycle starts all over again. As a result ithe business enterprise grows by leaps and bounds and acquires enormous profits.
Even though you have no plans of setting up a business, all these concepts are applicable to you, asf utility bills. These bills and the bills for supplies purchased by a business owner comprise an account payable. A proof of the amount of money that you owe to a company is an accounts payable. Business owners handle a huge number of supplies and often make investments on accounts payable audit. This audit precisely shows the amount of money spent.
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