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INTRODUCTION.

Business enterprise is the unit of control which is busy in production and distribution of
commodity. Due to the macro-economic variable, business enterprise can gate opportunity by
positive or negative effect so it will help the entity or business organization to know how to do
their business

Inflation

Inflation is the upward movement of price. This it can pose opportunity an business operation
when the inflation occurred pushed up so according to the law of supplier, business operation
will be high and producer can make the great profit, but in another side when inflation occurred
if lead the forcing the consumer to cut back their purchase and at the entity or business it will
lead to reduce the investors and bring the shortage and loss to the entity.

Government spending

When the about of government spending it concern with all expenditure done by the government
such as infrastructure, social service, treasury like hospital schools etc. so this government
spending is big project so it can be a opportunity for business enterprise due to the government
will buying the requirement from various them but on other hand this government expenditure
pose an opportunity of business operation at the entity will be more loser because the
government make the social need at good service at lower cost. Example government they make
expenditure on social service like hospital, so many people lay an public service than private
service.

Tax

Tax is the compulsory contribution to state revenue, levied or imposed by the government on
workers income, and business profit or added to the cost of some goods, services and transaction.
At the case of tax in opportunity of business enterprise it poses that:-

In term of tax deduction or exemption from tax it leads the business enterprises to increase
profit, saving and investment. When the of tax rises it enable the increases of cost, so in case of
the entity it lead the consumer to reduce the expenditure and cause the fall on business sales.
Government roles and regulation

Actually, as the government have the rules and frame work which used in business that are able
to make competition against each other, that are change the way of operation.

So at this issue of government roles and regulation the key area that pose opportunity in business
operation are:-

Economic policy (taxes and interest): At interest when raises the interest rates it lead to increase
production of commodity in business enterprises so as to increase the quantity supply and make
the profit.

Legal change: At this legal changes it deals such as:-

i. Providing increasingly tightly protection for consumer to profit then against


unscrupulous business practice. At this it lead the organization to be at good condition.
ii. Create tighter rules an what constitutes fair competition between business.

Employment

Employment is paid work agreement between employee and employer. At this employment
opportunity if it can pose an business operation it enable the organization to get more efficiency
that lead the higher production an entity, as the higher production lead the more profitable, rises
and expansionary to the entity. But the less of employment lead to shortage of production in
organization.

CONCULUTION

Opportunities are related to favorable circumstances that the company needs to make use of in
order to improve its position on the market. Threats are factors that cannot be controlled but need
to be acknowledged. Macro economic factors have a strong influence on how successful on
business. Therefore the macroeconomic variable is more important at the business enterprise
operation.

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