In basic terms a business can be defined as an entity that provides merchandise and services to others who wish for or require them. When starting a new business, the first thing that must be considered is the ownership structure. Will the business be a corporation, a partnership, a sole proprietorship or a limited liability company? Which one of these types of ownership will suit the business depends on the type of trade and the needs of the venture.
Introduction Big Drive Auto is a multistate dealer of several manufacturer’s cars and trucks. Big Drive not only sells the cars but a large part of their business is servicing the autos. This paper will address the managerial decisions that are affected by increasing interest rates and how increasing interest rates affect the cost of operating a business. The current yield curve will be discussed and what this means for Big Drive Auto’s organizational decision making. This paper will analyze how the change in interest rates can change consumer demand. In closing, some other monetary variables, such as durability, government taxes, and capital goods on hand will be explored.
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