The Interplay Between Business Finance and Economics

The Interplay Between Business Finance and Economics

Description/Paper Instructions

“The Interplay Between Business Finance and Economics: An Overview”

Business finance and economics are two distinct fields, but they are closely related and interdependent. Business finance refers to the management of money and other financial resources by firms, while economics is the study of how individuals, organizations, and societies allocate their scarce resources to meet their needs and wants. In this overview, we will explore the interplay between business finance and economics and how they affect each other.

One of the primary ways in which business finance and economics intersect is through the concept of supply and demand. Businesses use economic principles to determine the price and quantity of goods and services they offer. Economic theory suggests that the price of a good or service is determined by the interaction of supply and demand. When demand for a product is high and supply is low, the price will increase, and when supply is high and demand is low, the price will decrease.

Business finance also affects the economy by influencing investment and economic growth. Businesses require capital to finance their operations, and they often turn to investors and lenders to obtain that capital. The amount of investment available can affect the overall level of economic activity in a country or region. For example, if investors are hesitant to invest due to economic uncertainty, the overall level of economic growth may slow.

On the other hand, economic conditions can also affect the availability of investment capital. Economic conditions that are favorable for growth and profitability can attract investors, while economic conditions that are unfavorable can lead to a decrease in investment.

Another area where business finance and economics intersect is through financial markets. Financial markets are where buyers and sellers come together to trade financial assets such as stocks, bonds, and currencies. These markets play a critical role in the allocation of capital throughout the economy. Investors look to financial markets to earn a return on their investments, while businesses use financial markets to raise capital for their operations.

The behavior of financial markets is influenced by economic conditions, such as interest rates, inflation, and economic growth. Interest rates, for example, can impact the cost of borrowing and the availability of credit. Changes in interest rates can affect both the demand for credit by businesses and the willingness of investors to invest in financial markets.

In addition to financial markets, business finance and economics also intersect through government policies. Governments can use fiscal and monetary policies to influence economic conditions, such as interest rates, taxes, and government spending. Changes in these policies can affect the overall level of economic activity, as well as the behavior of businesses and financial markets.

For example, a government might lower interest rates to stimulate economic growth by making it easier for businesses to obtain financing. Alternatively, a government might increase taxes to reduce inflation or to fund government programs. Changes in government policies can also affect the behavior of financial markets, as investors and businesses adjust their strategies in response to changes in economic conditions.

In conclusion, the interplay between business finance and economics is complex and multifaceted. Economic principles and conditions affect the behavior of businesses, financial markets, and investors, while business finance also influences economic conditions through investment and capital allocation. Understanding the relationship between these two fields is crucial for businesses and investors alike, as it can provide valuable insights into the behavior of financial markets and the overall health of the economy.

The Interplay Between Business Finance and Economics

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.
GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER CLICK ON THE LINK HERE:  https://www.perfectacademic.com/orders/ordernow Also, you can place the order at www.collegepaper.us/orders/ordernow / www.phdwriters.us/orders/ordernow
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME]and Have It Done by Our PhD Qualified Writers!!

PLACE THE ORDER WITH US TODAY AND GET A PERFECT SCORE!!!