Corporate culture has been described as "the personality of a company." Imagine that you own your own business. Write two or more paragraphs describing the business and its corporate culture.

As Sol and Tom’s business continued to grow, they decided to open a storefront on the main access road into Branson. Unfortunately, their business was still too new to get a loan from the bank, and their personal credit standings would not support a loan the size they needed. They did have some friends who were interested in investing in their business. However, the friends did not want to be exposed to unlimited personal liability. What type of business organization seems ideal in this situation, and why?

Fill in the blank out of the following terms using the correct definitions.

-Consists of a parent company and numerous associated businesses that sell a standardized good or service.______

A. Sole proprietorship

B. Partnership

C. Corporation

D. Corporate bond

E. Business franchise

F. Nonprofit organization

G. Limited liability company

H. Cooperative

Why should a business plan be a continuing work-in-progress?

Why are ups and downs in the business cycle normal?

Dustin is planning to open a catering business. Give examples of a one-time fixed cost, an ongoing fixed cost, and a variable cost his new catering business might incur.

Why would business owners choose to reinvest profits ?

What is the profit function for a business venture and how is it determined?

Presented below are five independent situations.

(b) Dave Boyce and Davey Lopez each owned separate swing-set manufacturing businesses. They have decided to combine their businesses and try to expand their reach beyond their local market. They expect that within the coming year they will need significant funds to expand their operations.

Instructions

In each case, explain what form of organization the business is likely to take—sole proprietorship, partnership, or corporation. Give reasons for your choice.

If the couple in the previous problem plan to keep the business until age $70$ (for the next $12$ years), find each present value to see which business is the better buy in this case.

Many small businesses have to squeeze down costs any way they can just to survive. One way many businesses do this is by hiring workers as “independent contractors” rather than as regular employees. Unlike rules for regular employees, a business does not have to pay Social Security (FICA) taxes and unemployment insurance payments for independent contractors. Similarly, they do not have to withhold federal income taxes or the employee’s share of FICA taxes. The IRS has a “20 factor test” that determines whether a worker should be considered an employee or a contractor, but many businesses ignore those rules or interpret them loosely in their favor. When workers are treated as independent contractors, they do not get a W-2 form at tax time (they get a 1099 instead), they do not have any income taxes withheld, and they find themselves subject to “self-employment” taxes, by which they bear the brunt of both the employee and the employer’s share of FICA taxes.

Requirements

1. When a business abuses this issue, how is the independent contractor hurt?
2. If a business takes an aggressive position—that is, interprets the law in a very slanted way—is there an ethical issue involved? Who is hurt?

Drivers Wanted, Inc., needs funds, and Melissa Belk, the president, has asked you to consider investing in the business. Answer the following questions about the different ways that Belk might organize the business. Explain each answer. a. What forms of organization will enable the owners of Drivers Wanted to limit their risk of loss to the amounts they have invested in the business? b. What form of business organization will give Belk the most freedom to manage the business as she wishes? c. What form of organization will give creditors the maximum protection in the event that Drivers Wanted, Inc., fails and cannot pay its debts?

Many small businesses have to squeeze down costs any way they can just to survive. One way many businesses do this is by hiring workers as “independent contractors” rather than as regular employees. Unlike rules for regular employees, a business does not have to pay Social Security (FICA) taxes and unemployment insurance payments for independent contractors. Similarly, they do not have to withhold federal income taxes or the employee’s share of FICA taxes. The IRS has a “20 factor test” that determines whether a worker should be considered an employee or a contractor, but many businesses ignore those rules or interpret them loosely in their favor. When workers are treated as independent contractors, they do not get a W-2 form at tax time (they get a 1099 instead), they do not have any income taxes withheld, and they find themselves subject to “self-employment” taxes, by which they bear the brunt of both the employee and the employer’s share of FICA taxes. 1. When a business abuses this issue, how is the independent contractor hurt? 2. If a business takes an aggressive position—that is, interprets the law in a very slanted way—is there an ethical issue involved? Who is hurt?

What is a strong motivator that encourages ethical behavior in business?