The business environment is constantly changing as time goes by. There are several factors that affect the aspects of the business environment such as benefits, costs, and risks of conducting business. The type of business, economic, government, and legal influences are major contributors to the business environment, Riordan Manufacturing, Huffman Trucking, Kudler Fine Foods, McBride Financial Services, The Elias Group, and Smith Systems are business that are affecting by those influences. Types of business may include sole proprietorship, partnership, limited partnership, corporation, limited liability partnership, limited liability company, c-corporation, and s-corporation.
Riordan Manufacturing, Inc. is a global plastics manufacturer partnership that was founded in 1991. (Ecampus) The partnership makes it possible to raise more capital and to share ownership responsibilities. Like the sole proprietorship, the partnership arrangement carries unlimited liability for the owners.(Foundations) While the partnership offers the advantage of sharing possible losses, it presents the problem of owners with unequal wealth having to absorb losses. (Foundations)
It manufactures products such as plastic beverage containers, plastic fan parts, heart valves, and medical stents. Economic influences on the business environment are interest rates, inventory levels, consumer confidence, unemployment rate, and gross national product. All of these have a drastic effect on the business.
Government influences include regulations, export restrictions, import tariffs and quotas, and government debt. The government influences can help or cause major problems for a business. The changes in regulations will force the business to meet and stay up to date with codes and policies. The government debt will make it hard to borrow money and will like raise interest rates.
The legal influences are minimum wage, discrimination, union, local, and environmental protection laws. Minimum wage affects the company by determining the minimum amount that is allowed to pay an employee. Discrimination and union laws are laws that can have adverse affects when it comes to a lawsuit. Riordan has to make sure it’s following the environmental laws to ensure that regulation and standards are being followed.
Huffman Trucking is a sole proprietorship that was founded by K. Huffman in 1936. It has continued to grow since World War II and the increased demand for carrier services. It is a sole proprietorship that has unlimited liability to the owner. The profits or losses of a sole proprietorship are taxed as though they belong to the individual owner. (Foundations)
Its economic influences are inflation rates and unemployment rate. Unemployment plays a big part in business today. When unemployment rises, business and profits tend to drop. It’s important to stay ahead of the game and be prepared for the worse. History shows that the economy can decline at any moment.