In this part of my assignment I will be explaining the use of fiscal and
monetary policy and how these policies affect global/international
organisation. Later on I will be analysing the fiscal and monetary policies of
Microsoft. I will also be analysing what factors affect the computing and
technology market.
The organisation I have chosen to refer to in this part of my assignment is
Microsoft. Microsoft is a multinational software corporation headquartered
in, Washington that develops, manufactures, licenses, and supports a wide
range of products and services related to computing including Laptops,
computers, Xbox 360 and Office package. Bill Gates founded the company in
1975. Microsoft is the world's largest software maker, measured by revenues
and so far has made $89 billion up to now in 2015 alone.
Fiscal policy
Fiscal Policy is the way In which the government adjusts its spending levels
and tax rates to monitor and influence the economy nationally. The money is
spent by the government to boost public spending and this results in multiplier
effect as it would increase the flow of money and the demand would increase
as spending would increase. There are many types of taxes, such as VAT,
corporation tax etc.
Impact Of Changes In Capital Allowances
Capital allowances allow businesses to have the ability to claim tax
allowances on things they have purchased or invested. These claims are
made against the taxable profit made by business and help to reduce tax
payments. Capital allowances are mainly claimed on machinery and other
equipment’s and research and improvement development. Ultimately tax
allowances help businesses to reinvest in themselves for the future.
Capital allowance can have a great influence on a business. If it’s increased
there can be great benefits to Microsoft as they can research latest
equipment’s at a reduced price as they are not bound to pay the full tax hence
which saves them more budget for researching and innovating products..
They can also buy machinery at a cheaper price as they don’t have to pay the
full amount, this can ultimately help cut down its business costs and the
money saved can be re-invested in the business for further acknowledgement
and growth.
1
monetary policy and how these policies affect global/international
organisation. Later on I will be analysing the fiscal and monetary policies of
Microsoft. I will also be analysing what factors affect the computing and
technology market.
The organisation I have chosen to refer to in this part of my assignment is
Microsoft. Microsoft is a multinational software corporation headquartered
in, Washington that develops, manufactures, licenses, and supports a wide
range of products and services related to computing including Laptops,
computers, Xbox 360 and Office package. Bill Gates founded the company in
1975. Microsoft is the world's largest software maker, measured by revenues
and so far has made $89 billion up to now in 2015 alone.
Fiscal policy
Fiscal Policy is the way In which the government adjusts its spending levels
and tax rates to monitor and influence the economy nationally. The money is
spent by the government to boost public spending and this results in multiplier
effect as it would increase the flow of money and the demand would increase
as spending would increase. There are many types of taxes, such as VAT,
corporation tax etc.
Impact Of Changes In Capital Allowances
Capital allowances allow businesses to have the ability to claim tax
allowances on things they have purchased or invested. These claims are
made against the taxable profit made by business and help to reduce tax
payments. Capital allowances are mainly claimed on machinery and other
equipment’s and research and improvement development. Ultimately tax
allowances help businesses to reinvest in themselves for the future.
Capital allowance can have a great influence on a business. If it’s increased
there can be great benefits to Microsoft as they can research latest
equipment’s at a reduced price as they are not bound to pay the full tax hence
which saves them more budget for researching and innovating products..
They can also buy machinery at a cheaper price as they don’t have to pay the
full amount, this can ultimately help cut down its business costs and the
money saved can be re-invested in the business for further acknowledgement
and growth.
1
