Economic Influence on a Business

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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. Stock market is where the Longleat’s stakeholders can buy shares and invest in business because they get a slice of ownership in the company, their company can be completely taken over.

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As a large business Longleat has to face a number of economical factors such as taxation, interest rates, labour. Stock markets is not one of the important factors faced by Longleat because Longleat is a private limited company and it would only give shares to the investors it selects. Factors such as tax are common in every business, Longleat has to pay tax to the government such as income and self – employment. This is important because without paying tax the business cannot continue. Longleat carries out many activities and they need money to carry out their activities so ...

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*** 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.