8’/Gov/Econ- Vinson

Unit Four

B ine O e a ion
Complete the following assignment after reading section of chapter of the Economics text

1. Most of you have (or have had) a job. Does shirking occur where you work? What impact does it
have on your work environment and productivity? What is your boss’s role as a monitor? If you
don t have a job tell me what your parents or friends say about their employer workplace

Shrinking occurs in most jobs that have shrinking occur when there are lots of employees. It is very
frustrating to have someone else's laziness and poor work ethic affect your pay or reputation. This
also happens at school when someone in a group project is slaking and it brings down the whole
group's grade. The monitor makes sure that everyone is working up to their potential or at least
what their job requires them to do. This makes sure that the hard workers are noticed among the
lazy ones and that they don’t get consequences because of someone else’s poor work ethic.

2. Provide a definition for each type of business and list at least two advantages and disadvantages of
each:

Sole Proprietorship When a single individual owns and manages a business

Advantages: Disadvantages:
● Easy to form and easy to dissolve ● Face unlimited liabilities
● All decisions are made by sole ● Usually end when death or retirement
proprietor of the sole proprietor

Partnership A business owned by two or more co workers

Advantages: Disadvantages:
● Benefits of specialization can be ● There are only general partners and
legalized limited partners
● The profit of the partnerships is the ● Decision making can become
income of the partners, only personal complicated
income taxes apply

Corporation Accompany owned by its stakeholders and is a legal entity

Advantages: Disadvantages:
● Owners are not personally liable for ● Subject to double taxation
debts of corporation, have limited ● Corporations are complicated to set up
liability
● Corporation continues to exist if one or
more owners sells their shares or dies

3. During synchronous time we listed some of the businesses we regularly patronize. Put as many as
you can into each of the three categories below (if you don’t have any under “Partnership”, that’s
okay):
 Sole Proprietorship Partnership Corporation

- Freelance workers - Amazon

- Publix super market - Taco bell
- Cargill - Apple
- Walmart
- CVS
- Starbucks

4. Most of us do a good deal of businesses with corporations these days. Tell me about one of the
corporations you listed above. Why do you buy from this business? What do you like about their
product/service? Why don’t you buy this product/service from a local sole proprietor?

One of the corporations I shop at is Walmart. I like how they provide everything from clothes to
food to sports equipment. I can go to Walmart and get almost everything I need, and it’s extremely
convenient. I feel bad shopping at Walmart knowing it isn’t as ethical as shopping at smaller, family
owned businesses. The reason I go to walmart instead is that it is cheaper and more convenient
than smaller businesses.

5. What is a franchise, and what are the advantages and disadvantages for the franchisee?

What is it A contract by which a firm (usually a corporation) lets a person or group use its
name and sell its goods or services

Advantages: National advertisement and growth with increase for the business

Disadvantages: Sometimes franchisers fail to provide financial and training support

6. Re-read the section titled “What Is the Ethical and Social Responsibility of Business” and tell me
whether you support the Nader view or the Friedman view, and why:

I agree with the Nader view because I think that it is way more ethical than the Friedman view.
When a customer is spending money on a product, they should be fully aware about what’s in their
product, how it was made, if anything was harmed in the process of it, etc,. Although the truth
might slow down sales and make them lose money, they are still doing what is ethically and socially
correct, in my opinion.