Unit 1 Review Assignment
Unit 1 Review Assignment
Assignment Questions
Chapter 1 1. Identify and describe the five factors of production. In your opinion, which factor is the most important? Justify your decision.
Labor (Human Resources) Capital Entrepreneur Physical Resources Information Recourses In my opinion Physical Resources is the most important because if you do not have the physical equipment to provide the good or services that you’re selling then u have nothing to offer. I did not say capital because some things you do not need money (capital) to provide goods or services. Some companies these days merely just serve as a middle man for the big company to the consumers so in that case there really no labor or very little. Information …show more content…
Recourses wouldn’t be as important because, like I’ve mentioned, you really wouldn’t need this factor if you do not have the physical means to create the service or good. Example: You would not need money as much as you would need the physical tooling needs to repair engines for a trucking repair service. 2. In your own words, define the following terms: * Demand curve- a graph that shows amount of product are wanted compared to the different prices of that product.
* Supply curve- a graph that shows how much that product can be delivered compared to the different price of the product. * Equilibrium price- the price point of where the amount delivered and the amount of wanted are the same. * Gross Domestic Product- measurement of an product and good produce in a nation economy. * Real Gross Domestic Product GDP that has been compensate of currency and price changes * Inflation- when prices of everything rises in the economy 3. Supply and demand affects prices. Identify an instance in which a surplus of a product led to decreased prices. Identify an instance in which a shortage of a product led to increased prices. What eventually happened in each case and explain why it happened.
Pontiac (car automaker) had a surplus of cars due to the fact it couldn’t sell. Dealerships were slashing prices off the cars some up to $10,000 of the original price just to sell. Dealership had more cars than what was demanded. Nobody wanted to buy Pontiac because Pontiac failed to compete with other cars in it in the market and poor advertisement. Eventually Pontiac closed its …show more content…
doors.
Hybrids (part electric part gas automobile) prices at one time were the opposite of Pontiac. Some case dealerships were charging over $10,000 over the original price. Why? More people were willing to pay more for the car to ensure they would get one. Dealership couldn’t keep hybrid on the lot. Manufacturer could not supply the cars fast enough. Hybrids at the time were the only car that could get that city MPG that everyone wanted, especially when the gas prices skyrocketed. The demand was higher that what was produced.
Chapter 2 4. Who are an organization’s most important stakeholders? Why should a business be concerned with this group of major stakeholders?
Customers are organization most important stakeholder. With nobody to provide good and service there is not a profit to be made. There is no business without a customer. 5. There are four major areas of social responsibility with which businesses should be concerned. * Name and describe these four areas.
Responsibility toward the environment – The responsibility to not harm the environment or keep it to a minimum.
Responsibility towards the customers – Responsibility not to lose the customers trust and business.
Responsibility towards employees – Responsibility to treat all employees fair with hiring, recruiting, training, promoting, and compensation.
Responsibility towards investors – Responsibility to make sure investors get the due earnings and dividends. * If you owned a business, which one of these four areas would be the most important? Justify your decision.
If I owned my Recording Studio the most important area of responsibility would be to the customer. Making sure they get the sound and product that they were looking to get. A recording studio itself does not harm the environment to worry about that area of responsibility. * Identify a specific ethical or social responsibility issue that you might face in this particular area that you consider the most important.
Social responsibility toward the customer issue I probably would face is a customer who doesn’t want to abide by the rules in regards of paying for allotted time or paying in full when the session is finished. Also a customer that damaged equipment and says they did not damaged it. 6. In what ways do you think your personal code of ethics might clash with the operations of some companies? How might you, as an individual, try to overcome these differences?
My personal ethics clash with one of my previous employers. They would promise unreal deadlines to customer just to keep their business but try to cut corners to meet the deadline. Instead of giving a honest realistic deadline and explaining to why it cannot meet their deadline. I do not like cutting corner because I want to sleep a night knowing I did the job right, especially when it comes to other people cars. As someone once told me “if you wouldn’t let your mother drive away in it then you should let a customer drive away in it either.”
Chapter 3 7. Identify and describe the key components of a business plan. Why is it important for a new start-up to create a business
plan?
Setting Goals and Objectives – a plan that defines the strategies for what needs to be done in all aspects of the business.
Sales forecasting- revenue forecast based off other existing business, the market and how the company will compete.
Financial planning - How to turn all activities into income. A breakdown of how much is needed before the company start to make profit. Balance sheets, break even charts and a cash budget is included in planning. 8. Assume you are going to open your own business. Answer the following: * Would you prefer to buy an existing business or start from scratch? Why?
I would prefer to buy an existing business just because most of the capital that’s needed will be less. Also the foundation is all readymade for you if it’s a good business your buying. Plus you have something to go buy and ways you can make that business better. * Would you choose to be a privately held corporation or would you choose to be publicly traded? Why?
I would choose to be private. I like more control over my business.
9. What are the two basic forms of noncorporate business ownership? What is one key advantage and one key disadvantage of each form?
Sole Proprietorship. Advantage, is that its sole ownership of the company. Disadvantage, is owner is personally liable for debt produce by the business. Creditor can make claim on personal asset.
10. Name and describe the six types of corporations. If you were going to start a new corporation, which type would you select?
Private. Stocks are held by a few and is not traded publicly
Publicly held Stocks are traded publicly
S Corporation operates like a corporation but is taxed like a partnership
Limited liability taxed like partnerships but has limited liability
Professional Corporation is protected from unlimited financial liability the members are not. Like doctors, lawyer, etc
Multinational Stock can be traded in different countries.
I would be a the LLC.
Upload Instructions: Press the Browse button and navigate to your document on your hard drive, press the "Open" button, and then the "Upload this file" button to complete the upload process. Select Send for marking.
If you are sending a note to your instructor along with your submission, select edit in the Notes section of the screen. Enter your note to the instructor and select Save changes. Once you are returned back to the assignment page, select Send for marking.
© ECPI, 2011
Assignment Questions
Chapter 1 1. Identify and describe the five factors of production. In your opinion, which factor is the most important? Justify your decision.
Labor (Human Resources) Capital Entrepreneur Physical Resources Information Recourses In my opinion Physical Resources is the most important because if you do not have the physical equipment to provide the good or services that you’re selling then u have nothing to offer. I did not say capital because some things you do not need money (capital) to provide goods or services. Some companies these days merely just serve as a middle man for the big company to the consumers so in that case there really no labor or very little. Information …show more content…
Recourses wouldn’t be as important because, like I’ve mentioned, you really wouldn’t need this factor if you do not have the physical means to create the service or good. Example: You would not need money as much as you would need the physical tooling needs to repair engines for a trucking repair service. 2. In your own words, define the following terms: * Demand curve- a graph that shows amount of product are wanted compared to the different prices of that product.
* Supply curve- a graph that shows how much that product can be delivered compared to the different price of the product. * Equilibrium price- the price point of where the amount delivered and the amount of wanted are the same. * Gross Domestic Product- measurement of an product and good produce in a nation economy. * Real Gross Domestic Product GDP that has been compensate of currency and price changes * Inflation- when prices of everything rises in the economy 3. Supply and demand affects prices. Identify an instance in which a surplus of a product led to decreased prices. Identify an instance in which a shortage of a product led to increased prices. What eventually happened in each case and explain why it happened.
Pontiac (car automaker) had a surplus of cars due to the fact it couldn’t sell. Dealerships were slashing prices off the cars some up to $10,000 of the original price just to sell. Dealership had more cars than what was demanded. Nobody wanted to buy Pontiac because Pontiac failed to compete with other cars in it in the market and poor advertisement. Eventually Pontiac closed its …show more content…
doors.
Hybrids (part electric part gas automobile) prices at one time were the opposite of Pontiac. Some case dealerships were charging over $10,000 over the original price. Why? More people were willing to pay more for the car to ensure they would get one. Dealership couldn’t keep hybrid on the lot. Manufacturer could not supply the cars fast enough. Hybrids at the time were the only car that could get that city MPG that everyone wanted, especially when the gas prices skyrocketed. The demand was higher that what was produced.
Chapter 2 4. Who are an organization’s most important stakeholders? Why should a business be concerned with this group of major stakeholders?
Customers are organization most important stakeholder. With nobody to provide good and service there is not a profit to be made. There is no business without a customer. 5. There are four major areas of social responsibility with which businesses should be concerned. * Name and describe these four areas.
Responsibility toward the environment – The responsibility to not harm the environment or keep it to a minimum.
Responsibility towards the customers – Responsibility not to lose the customers trust and business.
Responsibility towards employees – Responsibility to treat all employees fair with hiring, recruiting, training, promoting, and compensation.
Responsibility towards investors – Responsibility to make sure investors get the due earnings and dividends. * If you owned a business, which one of these four areas would be the most important? Justify your decision.
If I owned my Recording Studio the most important area of responsibility would be to the customer. Making sure they get the sound and product that they were looking to get. A recording studio itself does not harm the environment to worry about that area of responsibility. * Identify a specific ethical or social responsibility issue that you might face in this particular area that you consider the most important.
Social responsibility toward the customer issue I probably would face is a customer who doesn’t want to abide by the rules in regards of paying for allotted time or paying in full when the session is finished. Also a customer that damaged equipment and says they did not damaged it. 6. In what ways do you think your personal code of ethics might clash with the operations of some companies? How might you, as an individual, try to overcome these differences?
My personal ethics clash with one of my previous employers. They would promise unreal deadlines to customer just to keep their business but try to cut corners to meet the deadline. Instead of giving a honest realistic deadline and explaining to why it cannot meet their deadline. I do not like cutting corner because I want to sleep a night knowing I did the job right, especially when it comes to other people cars. As someone once told me “if you wouldn’t let your mother drive away in it then you should let a customer drive away in it either.”
Chapter 3 7. Identify and describe the key components of a business plan. Why is it important for a new start-up to create a business
plan?
Setting Goals and Objectives – a plan that defines the strategies for what needs to be done in all aspects of the business.
Sales forecasting- revenue forecast based off other existing business, the market and how the company will compete.
Financial planning - How to turn all activities into income. A breakdown of how much is needed before the company start to make profit. Balance sheets, break even charts and a cash budget is included in planning. 8. Assume you are going to open your own business. Answer the following: * Would you prefer to buy an existing business or start from scratch? Why?
I would prefer to buy an existing business just because most of the capital that’s needed will be less. Also the foundation is all readymade for you if it’s a good business your buying. Plus you have something to go buy and ways you can make that business better. * Would you choose to be a privately held corporation or would you choose to be publicly traded? Why?
I would choose to be private. I like more control over my business.
9. What are the two basic forms of noncorporate business ownership? What is one key advantage and one key disadvantage of each form?
Sole Proprietorship. Advantage, is that its sole ownership of the company. Disadvantage, is owner is personally liable for debt produce by the business. Creditor can make claim on personal asset.
10. Name and describe the six types of corporations. If you were going to start a new corporation, which type would you select?
Private. Stocks are held by a few and is not traded publicly
Publicly held Stocks are traded publicly
S Corporation operates like a corporation but is taxed like a partnership
Limited liability taxed like partnerships but has limited liability
Professional Corporation is protected from unlimited financial liability the members are not. Like doctors, lawyer, etc
Multinational Stock can be traded in different countries.
I would be a the LLC.
Upload Instructions: Press the Browse button and navigate to your document on your hard drive, press the "Open" button, and then the "Upload this file" button to complete the upload process. Select Send for marking.
If you are sending a note to your instructor along with your submission, select edit in the Notes section of the screen. Enter your note to the instructor and select Save changes. Once you are returned back to the assignment page, select Send for marking.
© ECPI, 2011