1. Economics

2. Why are companies in business?
- to make money
How do companies know how much money they need?
- budgets
budget –
estimates of income and expenses

3. Raising Company Money:
1. sales
2. equity financing
- selling stock
3. debt financing
- acquiring loans

4. How do companies manage their money?
- accounting
accounting –
process of maintaining financial records

5. Financial Records:
- manage and control the company’s money
- measure financial health of the company
Financial health of businesses has a large effect on:
- economics

6. - the part of something that relates to money
Economics
- the science concerned with the process or system by which goods and services are produced, sold, and bought
- the part of something that relates to money

7. Historically, what has been the relationship between production and a countries economy? - high production makes for a strong economy and country - poor production makes for a weaker economy and country

8. How does a high rate of production (GDP) help the economy
How does a high rate of production (GDP) help the economy? - jobs - directly - indirectly - spending - taxes

9. Gross Domestic Product (GDP)
- the total value of the goods and services produced by the people of a nation during a year
- doesn’t include the value of income earned in foreign country
- United States GDP
2012 = $15.68 trillion
- Haiti GDP
2012 = $7.8 billion

10. What are the effects on a locality or nation when there is a big change to the gross domestic product?