ID150 SPRING, 2013 Deer MIDTERMPART2
Turn in to Blackboard. Essays should be one, short paragraph or more. 12pt-TNR-D-spaced
Enter your essay answers directly into this document and then post via the link. 8.5 pts. Each.
- What primary purpose does the rule of law serve in a capitalist economic system?
The rule of law is an essential in a capitalistic system so that the rights and roles of the majority are taken care. In a capitalistic society, only a few of the population own many resources and wealth. Without the rule of law, the rights of those who are not wealthy should be protected. With a capitalistic society, there is manipulation of prices. The economically weak should be protected by the rule of law.
- If Toyota is a Japanese company, how can we claim that TMMI in Princeton, Indiana is an American corporation?This is the case because it pays tax to the American Government. The tax is because of the services and the staff which are from America. Otherwise, the owners are Japanese. They are the directors and own everything in the company.
- How can any global citizen benefit by learning about and understanding the American corporation?
The American corporation is a good lesson to any global corporation. It teaches us that being global will require that we undertake our requirements and responsibilities for our country. Global citizens will benefit from the American Corporation lesson from the responsibility in which the American Corporation works from within the law. They do not cross the rule of law.
- Explain the Forbes article on GE and taxes from two perspectives.”the company pays its fair share of taxes.the company does not pay its fair share of taxes”
The GE pays a fair share of taxes. From the profits they make, they pay a lot of taxes up to 35% which is higher than the statutory tax brackets that is required. They are among the highest tax payers.
On the other hand, there are instances where GE can be said not to be paying taxes. This is based on the many branches in various countries. They strategically put these branches in countries that do not pay any taxes. This way, they do not live according to their tax payments.
- What does the big Mac index help us understand?
This is a way, informal though, in which the purchasing power parity is measured between two currencies. It gives a way in which the market can be tested to see if different costs of goods in different countries are the same. This concept has the aim of making the theory of exchange rates to be more understandable in simpler terms.
- In what ways are Ben and Jerry’s alike? different?
Ben and Jerry are different in several ways. Ben uses global strategy to manage the tax. The operations that they engage vary greatly.
- What is the difference between a global business strategy and a multi-domestic business strategy?
Global business strategy is a way in which a business engages business strategies in order to enter into new foreign markets. Multi-domestic business domestic strategy is the strategy on which a business expands within the original country. In this case, the owner is interested in with expanding the business locally.
- What are two ways that sole proprietorships are different from corporations?
Sole proprietors undertake their own business and make major decisions regarding the company. On the other hand, corporations are made up of a large number of shareholders. They influence the decision that the company will make.
- What does it mean to describe an entity as a “flow thru” tax entity?
This is an entity where an organization's return is treated to be the income of the investors. This way, the profits are not taxed at the organizational level. They will be taxed when they are in the hands of the investors.
- What does it mean to be intrapreneurial?
This is the case where an employee takes an idea and makes hat idea to generate money and profits. The idea is risky and requires a lot of input.
- What are the two main attributes of a level 5 leader?
The two main attributes of a level 5 leader is that he is a team player. They ensure that they contribute to the success of the group and ensure that the goals are achieved.
Another attribute of a level 5 leader is that they are highly capable. They have good and innovative ideas to contribute to the group.
