Microsoft Word peachtree case study
National Economy Overview
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| 3.1.1 National Economy Overview The national economy, for the most part, will not impact the Company directly as its business is derived from the local and regional populated markets however, since the regional and local economies will generally follow trends in the national economy, expectations are that the Company will also see similar effects on its business environment. The following discussion will highlight the state of the economy on a national level, highlighting those areas which may have an impact on the region. 10 Internal Revenue Service, Revenue Ruling 59‐60, Section 3. Approach to Valuation, paragraph .03. Page 32 of 141 The persistence of high gas and oil prices into the second quarter of 2006, after several years of double‐digit percentage Increases and anticipated new record highs in the following summer months, is finally leading to higher prices in the broader economy. There is a growing sense among consumers and businesses that the rise in energy prices is more permanent than they thought, and they are starting to adjust their spending and supplier contracts accordingly. This information catches the attention of the Federal Reserve, as it means current inflation trends are becoming more entrenched in the rest of the economy and will soon start to filter into expectations about future inflation. The trucking and transportation industry is now actively and openly passing along higher fuel costs to their customers. Airfares and hotel room rates are on the rise. Perhaps more insidious is the jump in rents, as high home prices and rising interest rates shut more potential home buyers out of the housing market. The idea is that higher prices lead to ever higher prices. The only way for the Fed to short‐circuit this process is to slow demand enough so that companies can no longer safely pass along price Increases without losing a significant number of customers and market share. Download 0.84 Mb. Share with your friends:
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