Business Scenarios
... quality of capital resources, worker training, and management techniques have caused the output of goods and services to increase. Productivity in the past years has been raised up based upon high worker motivation and less working hours for those that work. 9. Worker productivity is related to standard of living because the higher productivity a worker accomplishes provides higher wages and better prices for everyone. 10. One characteristic of the business cycle is that they all work together, in bad or good times, to improve the economy of our nation and better provide to the people. 11. High level of inflation is considered harmful because people increase their spending and so do the products of the businesses. (Continuous increase) 12. Inflation and deflation need to be solved in our economy today because prices still rise and fall based on demand and times of recession and depression. Reviewing your Reading: CH 6 1. Julie Alcess found in starting her own business that she is in charge of the loss and gain of profits, and the management of it. 2. The disadvantages that Julie found being the sole proprietor were delay in planning, worker organization, and the decisions of controlling the company. 3. The five activities that Julie performed as manager were planning, organizing, staffing, leading, and controlling the business. 4. The advantages of partnership for Julie Alcess and Andy Davidson were that there was a $20,000 profit at the end of the year; providing Julie and Andy additional bonus pay. 5. Six items that should be agreed upon and recorded in the articles of partnership should be the name of the business, the partners’ investments and salaries, sharing of profit losses and gains, responsibilities, and agreed terms for death of a partner. 6. Two advantages that a corporation has over a partnership are more sources of capital and liability summed up to an owner’s investment. 7. Two disadvantages of a corporation are difficulty to start the corporation and owners do not have control over decisions unless an officer. 8. Julie and Andy were assured ownership of the company in the corporation are that Julie received 12,000 shares at $10 and Andy received 6,00...