Exam
Question 1
The American economy traces its way back to when there was a settlement of the migrants from the Europe in the United States. At that time, the America was occupied by the Natives who identifies by the tribe. Before the arrival of the European settlers, trading took place among tribes (Northrup 123).
Bartering, there was no common currency, and therefore, substitutes such as wampum and tobacco used as money. If you supply goods and receive other products, you must account for the VAT. Industrial revolution to present production era, use of the machinery brought about the industrial revolution. Advancement of technology helps in the fast production of goods, and this is vital for the future. The era of marketing to the present business world, some industries grew during this period. Today in determining of business design and strategy internet is essential.
Question 2
Gross domestic product is the measure of the money value of services and the final goods produced within a period. It’s used to gauge the performance of an economy of the country and comparing living standards of different countries. The rate of unemployment is the percentage of workers who are unemployed compared to the total labor force. It’s a job market key performance indicator. Families of the workers unemployed lose wages; the country also loses its services and goods contributions to the economy and purchasing power for the unemployed lost which may in return bring about unemployment of other workers this will lead to adverse effects on the economy. Consumer price index, this a measure that finds consumer goods prices weighted averages such as food, transportation, and medical care. The changes in CPI are related to variations in the cost of living in an economy.
Question 3
Strategies for reaching the global market, Exporting is the transportation of products for sale or trade over international borders. Examples of the products exported are proprietary software. Licensing, property right intellectual license does give ownership right to the holder of the property but only the right to use it. For example, the software is not sold that only right to use it granted. The franchise gives the right to the franchise to use franchisor’s trademark, name, enterprise product often within given boundary. It provides some degree of control and stable legal system in the international market is a requirement. Joint ventures, co-ventures remaining independent, it’s a business association that is temporary and aimed at making profits between the parties involved.
Question 4
Social responsibility calls for maintained balance by an individual or organization between ecosystems and economy. Economic responsibilities, it’s the responsibility of the business institution to services and goods that the society needs and in the process maximize the profit for its shareholders. Legal liability, they are societal procedures and rules that a business should follow. These are what are perceived to be right by the society on corporate behavior. These rules imposed by the local and state governments. Ethical responsibilities, it’s a requirement that the decision makers of the organization act with fairness, equity and impartiality and respect to the human right.
Question 5
A sole proprietorship is attractive because of the following; simpler tax filing, the filing fee for the company and owner is done together as the personal tax return, because all the incomes of the business considered as yours. Your kids can help you in saving the money because instead you can hire them without having to pay for their social security and medical cover separately. It’s Easy to change to other business structure like S corporation without any more paperwork. Disadvantages that include; personal liability, a sole proprietor is personally responsible for the obligations and debts of the business. Decision making solely depends on you and it's hard sometimes to trust your instincts. They are seen as a riskier investment, and therefore they don’t attract investors.
Question 6
Poor management: this is due to the lack of administration and business skills that are relevant in core fields like selling, finance, and production and purchasing. Insufficient capital, underestimation of how much money is needed, will lead to insufficient operating funds that will force the business to close down before their fair chance of succeeding. Location, this is a critical factor, a company that is struggling will survive in an excellent place because accessibility among other factors.
Work cited
Northrup, Cynthia Clark. The American Economy. Santa Barbara, Calif.: ABC-CLIO, 2011.
Print.
