Jafet Alvarado Miranda Ms. Corina G.

Clavano
Applied Economics 11 / 03 / 2019

1. What is an organizational structure? Do you consider it as an important aspect in a

business?

An organizational structures defines how activities such as task allocation, coordination

and supervision are directed toward the achievement of organizational aims…
Organizational structure can also be considered as the viewing glass or perspective
through which individuals see their organization and its environment.

It is important because it provides guidance to all employees by laying out the official
reporting relationships that govern the workflow of the company. A formal outline of a
company´s structure makes it easier to add new positions in the company, as well,
providing a flexible and ready means of growth.

2. Define the external environment of a business.

An external environment is composed of all the outside factors or influences that impact
the operation of business. The business must act or react to keep up its flow or operations.
The external environment can be broken down into two types : The micro environment
and the macro environment.

The Micro environment : consists of the factors that directly impact the operation of a
company.
The Macro environment : consists of general factors that a business typically has no
control over. The success of the company depends on its ability to adapt.

3. Why is there a need for environmental analysis in a business ?

Environmental analysis is necessary because there are rapid changes taking place in the
environment that has a great impact on the working of the business firm. Analysis of
business environment helps to identify strength, weakness, opportunities, and threats.
4. Is competition needed in a company?

For consumers and good for business. When firms compete with each other, consumers
get the best possible prices, quantity, and quality of goods and services. Antitrust laws
encourage companies to compete so that both consumers and businesses benefit. One
important benefit of competition is a boost to innovation.

5. What is a tax ?

Taxes are involuntary fees levied on individuals or corporations and enforced by a

government entity - whether local, regional or national - in order to finance government
activities. In economics, taxes fall on whomever pays the burden of the tax, whether this
is the entity being taxed, like a business, or the end consumers of the business's goods.