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Assess The Impact Of Fiscal And Monetary Policy On Davis Group

2012 Words9 Pages

Public company
A nonprofit organization is formed for the purpose of serving a public. Also one of the public organization purpose is to provide services free of charge or below the cost price this can be such as the NHS or even the Royal Mail where they are being run by the government but aim to be profitable.
Voluntary organization The main purpose of voluntary organization is to perform varied functions for the welfare, integration, solidarity of the society and helping others without monetary compensation and do not make a profit from their activities.
Co_operative
The main purpose is mutual support for members or the promotion of a specific purpose or social benefit,and also to provide goods and services to the cooperative. …show more content…

The sellers of the good that the guy purchased know that a marginal person need or wants that good, so they will allocate resources to make more. They guy who got that product needs or values it more than other goods as he chose to buy it.
So resources are allocated to who needs it most.or who has themselves provided the most resources into the market.
Task 2.2 Assess the impact of fiscal and monetary policy on Davis Group and their activities(Explain more,definition)
The economy of UK faced a period recession in 2008 which caused its Gross Domestic Product (GDP) to fall and the British economy shrank by 7.1%. The economy experienced high negative budget deficits, UK's debt situation was critical and high inflation took over.

Fiscal Policy:Value Added Tax (VAT) increased,Income tax for richer middle classes rose,The following monetary policy also came into play (Monaghan, 2011):
Monetary Policy:Quantitative easing that is, increasing money supply,Lowering interest …show more content…

The major competitors are Tesco, Sainsbury's, Asda and Morrison's that are dominating the super market. Though there are different companies but Tesco is almost holding 35% of the market capital. But changes in the policy of the competitors will change the activities of Tesco has an organization has to adjust its policies with the existing market to cope with the competition (Buzzle, 2013). So, when other organization changes the policy to stay in the competitive position then Tesco has to change the business policy. Tesco normally made competition policy considering the cost and product

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