Quamie Lancello Mr. Feinberg Economy November 30, 2017 Business InvestmentSay no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original EssayIn a person's life, they are likely to receive many opportunities to invest in a business, but how do you know which ones are good choices to invest in? Some of the things investors typically look at when choosing candidates to invest in are the company's operating costs, the company's potential profits, and how the company responds to changes in supply and demand. These components help investors determine whether a business is a risky investment or a potentially profitable investment. Looking at all these components in my interview, I concluded that investing in 3SixtyDesign, Mr. Arius' company, would be a good idea. One thing an investor needs to ask themselves is operating costs. Operational costs are the normal routine costs needed to run your business smoothly. These costs are different depending on the type of business, there are several different operating costs when budgeting a business. Some operating costs are fixed, meaning they are almost the same from month to month, for example rent. On the other hand, the rest of the operating costs are considered variable and can vary from month to month, such as utilities. I think this business had a good operating cost as it was able to support itself on the profits it made and not go to the department. There are 6 different supply shifters that can increase, decrease, or disrupt your supply chain. For example, one supply-changing factor that can influence the supply chain is nature. Nature can create conditions that make it impossible to create and transport goods, such as hurricanes. Another example of supply shifting is war. Wars and other armed conflicts can prevent a country from accessing the materials it needs to function. They create uncertainty about the future availability of raw materials and the risk associated with reduced supply can have a significant impact on prices and demand. Technology is also a factor in changing supply. Technology makes it much easier to increase production. This makes it cheaper to produce goods by increasing supply. The main changing factor in this company's offer is the season. The company's demand increases during the spring as people want nice homes during the summer. Nature also takes part, since it is an architecture company, if a natural disaster hits people would need to repair their houses. Demand is determined by how much customers want or need a product. Product prices play an important role in its demand. In some cases cheaper products tend to get higher demand and in some cases more expensive products seem to get higher demand, because in both cases, for whatever reason, people want it more based on price. Another way to determine demand is based on the expectations a company has for a product. If a company expects a product to perform well, then it also expects demand for that product to be high, vice versa. The company I chose expected their products to perform well in certain seasons, which meant they had a way to anticipate changes in demand. Profit is the monetary gain realized when the amount of revenue earned by a business exceeds its operating costs. The profits obtained go to the owners of the company, who.