Chapter 8.1, Problem 1R

To determine

To explain the importance of the terms, Entrepreneurs, Startups, Small-business incubators, Inventory & Receipts.

Explanation of Solution

The significance of the above mentioned terms are as follows:

·         Entrepreneurs: They are important for any business because they help in improving the living standard and wealth of the people in it and related businesses. They bring innovative ideas so that new markets can be developed and better products can be provided in the economy.

·         Startups: startups are significant for the development of the market because they not only bring new products with innovative technology but also help in creating employment in the economy which helps directly in the economic growth of the nation.

·         Small-business incubators: These are defined as tools for economic development and they hold major importance for the economy as they help in creating new businesses in the nation by providing the assistance with many services of development and management so that the nation can grow as a whole in different sectors of the economy.

·         Inventory: It is important for any business as it provides the details of what the company has and how much it is worth of. This helps the companies to take proper decisions for the future production purposes and to maintain their finance with efficiency.

·         Receipts: These are important as these are used legally in the working of the taxes payable. It shows the difference between the taxable and non taxable income of the businesses & helps in claiming all possible deductions.

Economics Concept Introduction

Introduction:

Entrepreneur: Entrepreneurs help in creating things and innovating so that the wealth can be enhanced along with growth in social welfare.

Startups: It is a young company established by budding entrepreneurs to bring new products in the markets.

Small-business incubators: It is a company which helps in the development of new companies in the market by providing them the services of training or providing them the office space for work.

Inventory: These are the goods or the finished goods used in the production in a firm.

Receipts: It is a document including the information about the transaction held of the sale and purchase between two businesses.