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Economic Influence on a Business

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Introduction

Economic Influences Economic influence is when a business is affected in any way by the economical factors. Economic Factors are the main elements that affect financial matters of a business like tax, interest rates, banks and stock markets. There are different ways in which different economic factors can affect a business for example the taxation is one of the main factors that can affect a business, it can affect the business because they have to pay tax to the government on the energy they are using or they have to pay some profit that they make to the government as tax. Interest rates are charged on every loan that a business takes from the bank, this can affect a business because if they keep on borrowing the loan they would have to pay extra money back to the bank this can affect a business in making profit. ...read more.

Middle

when they borrow money they have to pay the bank back with extra money so this is one of another important factors faced by the business because if they don't take a loan they might loose their money by carrying out activities because they can cross the budget limits and business cannot take a loan without willing to pay back the bank with extra money. One of the other important factors are labour, Longleat needs its labour to continue working and Longleat has to pay its employees, employees would have to paid differently according to their posts. Taxes are also charged on imports and exports but Longleat does not import or export a lot because they can use local or national suppliers to provide them with everything they need because of this Longleat does not have to suffer for and there customers are not hit by high pricing. ...read more.

Conclusion

stock and Longleat would have to wait until the suppliers have the stock again and Longleat's suppliers might also be importing products, if this happens then Longleat would have to wait longer which might make a bad image of Longleat in front of customers. Location can be another factor in economy if changed because it can affect the supplies of a business as well as its customers. Longleat is located in wilthshire and Longleat's location is significant as it has to be in reach of its customers easily and also it has to be in reach of suppliers otherwise Longleat would face many difficulties. Some factors related to the Location can be the environment, if Longleat would have been set in such a location where taxes for environment are high then it would cost them more and would affect the customers. ?? ?? ?? ?? ...read more.

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Here's what a teacher thought of this essay

3 star(s)

***
The writer brings in many non economic factors and does not develop the economic ones enough. They should consider the effect of the economy on Longleat's customers much more as this will have a big influence on Longleat's success. If the economy is doing poorly, fewer customers will want to pay for an expensive day out in Longleat. This willl severely affect Longleat's income.

Marked by teacher David Salter 21/03/2012

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