The Connection Between Business Finance and Income Distribution

The Connection Between Business Finance and Income Distribution

Description/Paper Instructions

The Connection Between Business Finance and Income Distribution

Business finance and income distribution are two critical components of the economy that are closely related. The way a business manages its finances can have a significant impact on how income is distributed within a society. In this essay, we will explore the connection between business finance and income distribution.

Business finance refers to the management of money and other assets within a company. This includes activities such as accounting, budgeting, and investing. The goal of business finance is to maximize profits and minimize risks while also ensuring the long-term sustainability of the business.

Income distribution, on the other hand, refers to how the total income of a society is distributed among its members. This is determined by factors such as wages, salaries, investments, and government policies. Income distribution is a crucial aspect of economic policy because it can affect the overall well-being of a society.

One of the most significant ways that business finance affects income distribution is through the wages and salaries paid to workers. Businesses can choose to pay their workers high wages or low wages depending on their financial goals. If a business aims to maximize profits, it may choose to pay its workers lower wages to reduce costs. However, this can lead to an unequal distribution of income, with the majority of the profits going to the business owners and shareholders.

On the other hand, if a business prioritizes the well-being of its workers, it may choose to pay them higher wages. This can lead to a more equal distribution of income, as workers will have more money to spend and invest in the economy. Additionally, businesses that pay higher wages may attract more skilled workers, which can lead to increased productivity and profitability in the long run.

Another way that business finance affects income distribution is through investments. Businesses can choose to invest their profits in various ways, such as in new technology, research and development, or in expanding their operations. These investments can have a significant impact on the economy and can create new job opportunities and increase productivity.

However, the way that businesses choose to invest their profits can also have an impact on income distribution. For example, if a business invests its profits in automation technology that replaces human workers, it may lead to job losses and lower wages for workers. This can lead to an unequal distribution of income, with the majority of the profits going to the business owners and shareholders.

Alternatively, if a business invests in expanding its operations, it may create new job opportunities and increase wages for workers. This can lead to a more equal distribution of income, as workers will have more money to spend and invest in the economy.

Government policies also play a significant role in income distribution. For example, governments can implement policies such as minimum wage laws and progressive taxation to ensure that workers receive a fair share of the total income. Additionally, governments can provide social welfare programs such as healthcare and education to reduce income inequality and improve the overall well-being of society.

In conclusion, the connection between business finance and income distribution is a complex and multifaceted issue. The way that businesses manage their finances can have a significant impact on how income is distributed within a society. By prioritizing the well-being of workers and investing in the economy, businesses can help create a more equal distribution of income. Additionally, government policies play a crucial role in ensuring that income is distributed fairly and that all members of society have access to essential services and resources.

The Connection Between Business Finance and Income Distribution

RUBRIC QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points:  Student failed to submit the final paper. 20 points out of 50:  The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50:  The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately.  Elements of the required response may also be lacking. 40 points out of 50:  The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples.  The answer is complete. 50 points:  The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples.  No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points:  Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points:  Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points:  References to scholarly sources are occasionally given; many statements seem unsubstantiated.  Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points:  Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented.  APA 6th Edition is used with only a few minor errors.  There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points:  Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented.  APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points:  Student failed to submit the final paper. 5 points out of 20:  The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors  10 points out 20:  The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20:  The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points:  The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points:  Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements.  The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
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