Business 101 - Assignment Questions Research Paper

Business 101 - Assignment Questions - Research Paper Example In the capitalism context, making profits is the key motive of operation. Under capitalism, resources are privately owned, and so are the implications of the underlying activities (Rae & Hill, 2010). To the businesses, these rights and freedoms come at price. Capitalism makes business owners accountable to the society and to the market economy in which they conduct their business. Pollution, taxation, and social responsibility are other key aspects that make business owners hate capitalism. Most importantly, capitalism encompasses business competition, a critical factor that determines the success or failure of a business. Demand line shows the quantity of a product that would be bought at a given price level. In this respect, changes in market demand will affect quantity of a product demanded in that market. Desirable products correspond to high quantities of demand, and vice versa (McEachern, 2012). on the same note, changes in price affect the quantity demanded of a product. The same principle applies as far as paper and related products are concerned. A demand line shift to the left for paper follows the above-discussed principle. This move represents a scenario where paper would become a less desirable product. The less desirable a product becomes, the lower the quantity demanded and subsequently bought of that product. The demand line, therefore, would shift to the left to represent a decline in the quantity demanded of paper at a given price level. A left shift in demand line, therefore, is negative. It is attributed to reduced paper demand and a subsequent decline in the price level. Business entities are required to comply with relevant rules, regulations, or laws. In particular, taxation is a fundamental practice in the economic setting. Federal taxes apply to incorporated business entities, which are treated as separate taxable business entities. In other words,