- 6 Marks
Question
Explain briefly the following business terms:
i. Fiscal policy
ii. Monetary policy
iii. Monopoly
iv. Downsizing
v. De-layering
vi. Outsourcing
Answer
i. Fiscal policy: This refers to the use of government spending and taxation to influence the economy. It is aimed at managing economic growth, inflation, and employment levels.
ii. Monetary policy: This is the process by which a central bank manages the supply of money, interest rates, and inflation to ensure economic stability and growth.
iii. Monopoly: This occurs when a single firm dominates a market, controlling the supply and pricing of a product or service, often leading to reduced competition.
iv. Downsizing: This is the practice of reducing the number of employees in an organization, typically to cut costs and improve efficiency.
v. De-layering: This involves reducing the number of levels in an organizational hierarchy to streamline operations and improve communication.
vi. Outsourcing: This is the practice of contracting out business processes or services to third-party providers to reduce costs or improve efficiency.
- Tags: De-layering, Downsizing, Fiscal Policy, Monetary Policy, Monopoly, Outsourcing
- Level: Level 1
- Topic: The Business Environment
- Series: MAY 2018
- Uploader: Theophilus