Critical Thinking Question
1. Why wouldn’t Google take the simpler and cheaper route of creating a
strategic alliance with DoubleClick, rather than purchasing the company
outright?
Answer :
Since the DoubleClick system allows advertising to target ads to
specific types of web surfer, control, and when the right time to increase
their advertising. These systems also allow advertisers to monitor the
effectiveness of their ads count by counting click-through rates and other
important data, so users can google it easier to access the process and bring
many benefits to the company google.
2. The FTC doesn’t have the authority to stop the Google acquisition on the basis
of privacy concerns, but should it? Why or why not?
Answer :
Because according to google, what they do is aimed at improving the
ability of Google products to users not violate users' privacy because google
google product users can select and adjust the privacy policy without having
to d share to fellow users disseminate much less google by google, then
instead FTC was not authorized to stop google.
3. What are the risks of buying a company simply to keep it out of a competitor’s
hands? What is likely to happen to the acquired firm when this happens?
Answer :
The risks are the owner old company has created a bad image of the
company, employees inherited to us may not be appropriate, the location of
the company might not be appropriate, equipment and facilities may already
have improved, which in turn changes the innovations may be difficult to be
applied.
ONLINE
Visit Google’s website at www.google.com and click on “Advertising
Programs”. If you were a sole proprietor, how could you use these services to
promote your business? If you were the advertising manager of a major
corporation, how might you use Google’s advertising services? (For the latest
information on Google’s acquisition of DoubleClick and other strategic mergers, visit
www.prenhall.com/bovee and click on “Real-Time Updates.”)
Answer :
If I am a sole proprietor I will use this service in order to attract
consumers with ads always updating regularly and highlight the emotional
high quality advertising and excessive advertising that can interfere with the
consumer, as well as if I was the manager of ads I would do the same to
attract consumers to the Company's products I am interested.
Question for review
1. What are the three basic forms of business ownership?
1. individual ownership
2. ownership partnership (partnership)
3. corporation
2. What is the difference between a general and a limited partnership?
Answer :
The difference between general partnership (individual business) and
a limited partnership (limited peorangan) is a general partnership is a
partnership where all owners are running a business together and bear the
business debt free. The obligation to bear the loss of business debt is
unlimited. While the limited partnership is a partnership between one or
more general partners and one or more limited partners. General partner is
the owner who has unlimited liability. Limited partners are business owners
who invest their money in the business but does not have management
responsibility and obligation to bear the burden of the debt exceeds the
value of its investment
3. What is a closely held corporation, and why do some companies choose this
form of ownership?
Answer :
The purpose of the holders of the company are the ones who hold
shares in the company are usually not only two people but more. Dab usually
several companies to choose the type of ownership is because not everyone
is able to move itself. Sometimes there who have great business skills but do
not have the capital, or have the capital but still need others to build a
business from scratch in the sense that many shareholders of people who
work in it to strengthen the company still exist
4. What is the role of a company’s board of directors?
Answer :
Leading companies with established policies - policies of the
company, overseeing the duties of the employee and the head (manager),
approve the annual budget of the company, submit a report to shareholders
on the company's performance
5. What is culture clash?
Answer :
Culture clash / clash of cultures is a misunderstanding and discord
between different cultures.
Questions for analysis
6. Why is it advisable for partners to enter into a formal partnership
agreement?
Answer :
Due to competition and priotasi demands, increasing resource
constraints, the increasing needs of consumers and industry concern then we
should use all sources extensively.
7. To what extend do shareholders control the activities of a corporation?
Answer :
Establish production plan with the development of a more
sophisticated and teklnologi bardaya high competitiveness.
8. How might a company benefit from having a diverse board of directors that
includes representatives of several industries, countries, and cultures?
Answer :
Managerial ownership and institutional ownership are the two main
mechanisms of corporate govermance that can help control agency
problems in business.
9. Why do so many mergers fail?
Answer :
Causes of companies fail because the organization is a matter of
conflicting such conflicts of interest to financial problems.
10. Ethical Considerations. Your father sits on the board of directors of a large,
well-admired public company. Yesterday, while looking for an envelope in his
home office, you stumbled on a confidential memorandum. Unable to resist the
temptation to read the memo, you discovered that your father’s company about
the possibility of a merger, with Dad’s company being the survivor. Dollar signs
flashed in your mind. Should the merger occur, the value of the other company’s
stock is likely to soar. You’re tempted to log onto your E*TRADE account in the
morning and place an order for 1,000 shares of that company’s stock. Better still,
maybe you’ll give a hot tip to your best friend in exchange for the four Cherrybelle
tickets your friend has been flashing in your face all week. Would either of those
actions be unethical? Explain your answer.
Answer :
I think that is very unethical because all the trade or business activity
has never escaped from ethics. Unethical acts that include stealing,
cheating, reduce weight or lie that has to do with the business. And also
because stealing is an act which is not good if we build a business.
Questions for Application
10. Suppose you and some friends want to start a business to take tourist on
wilderness backpacking expeditions. None of you has much extra money, so
your plan is to start small. However, if you are successful, you would like to
expand into other types of outdoor tours and perhaps even open up
branches in other locations. What form of ownership should your new
enterprise take, and why?
Answer :
Forms of ownership of the new company that I took in this condition
is peresekutuan ownership or parntership because with the additional
funding from partners will greatly assist the development of the business
and in this way there will probably be a lot more specialization because
the partners could better focus on its respective specialties in order to
serve different types of customers.
11. How This Affect You. Do you own or have you ever considered owning
stock? If so, what steps have you taken to ensure that company
management has shareholder interest in mind
Answer :
By increasing the number of revenue sales profit will increase. Profit
company that will provide income or high-income high enough for the
shareholders of the company, so as to lure other businesses to invest or
buy shares of our company.
12. Integrated. You’ve developed considerable expertise in setting up new
manufacturing plants, and now you’d like to strike out on your own as a
consultant who advises other companies. However, you recognized that
manufacturing activity tends to expand and contract at various times during
the business cycle. Do you think a single-consultant sole proprietorship or a
small corporation with a half dozen or more consultants would be better
able to ride out tough times at the bottom of a business cycle?
Answer :
I think that has a consulting firm to help companies get through the during the bankruptcy. By entering a consultant to the company by the
company's management will tebantu thought and analysis of the many
people in the company.
Sharpening Your Communication Skill
You have just been informed that your employer is going to merge with a
firm in Thailand. Because you know very little about Thailand culture and business
practices, you think it might be a good idea to do some preliminary research-just in
case you have to make a quick trip overseas. Using the Internet or library sources,
find information on Thailand culture and customs and prepare a short report
discussing such cultural differences as social values, decision-making customs,
concepts of time, use of body language, social behavior and manners, and legal
and ethical behavior.
Answer :
Little did I know about the culture and wide - range of Thailand
Thailand is a country that most of the people are Hindu Buddhist. And
Thailand was the same as in ASEAN culture friendly when on to talk to. If
we understand the language in Thailand or who spoke the English
language at least difficult for our body language can be understood by the
person to perform simple communication. Business opportunities in there
pretty good for all the circles. And also quite famous tourist places in the
world such as cultural tourism or beautiful nature such as in Phuket and
Bangkok.
Discovering Career Opportunities
Are you best suited to working as a sole proprietor, as a partner in a business,
or in a different role within a corporation? For this exercise, select three
businesses with which you are familiar: one run by a single person, such as a
dentist’s practice or a local landscaping firm; and one that operates as a
corporation, such as Target or Wal-Mart.
Answer :
I'd rather have a Sole Proprietor company because then we also create
jobs for others.
1. Write down what you think you would like about being the sole
proprietor, one of the partners, and the corporate manager or an
employee in the businesses you have selected. For example, would you
like having full responsibility for the sole proprietorship? Would you like
being able to consult with other partners in the partnership before
making decisions? Would you like having limited responsibility when you
work for other people in the corporation?
Answer :
I want to take full responsibility in every part of the business,
including administrative decisions and debt if I owe. This provides
considerable benefits aside from mere control. And business owners
who megajukan licensing business as a sole proprietor are more likely
than those who had to submit a form to the corporation.
2. Now write down what you might dislike about each form of business. For
example, would you dislike the risk of bearing all legal responsibility in a
sole proprietorship? Would you dislike having to talk with your partners
before spending the partnership’s money? Would you dislike having to
write reports for top managers and shareholders of the corporation?
Answer :
I would put my life in risk positions. I borrowed money to start
a business that will come from personal loans and therefore I am
responsible to pay it back. If the business fails, this means melikuidisi
all my assets to repay the loan. Therefore, it may be difficult to start a
business or a greater risk if a sole proprietorship. I can only have a
smaller business plan.
3. Weight the pluses and minuses you have identified in this exercise. In
comparison, which form of business most appeals to you?
Answer :
The surplus we can find a wide range of growing businesses in
the outcome there, to learn the business can add to our knowledge if
a time will open up new business. The drawback if not clever set time
will interfere. And if we are not good at looking at opportunities we
may be having trouble
Follow the Fortunes of the Fortune 500
Quick! Name the largest corporation in the United States, as measured by
annual revenues. Give up? Just check Fortune magazine’s yearly ranking of the 500
largest U.S. companies. The Fortune 500 not only ranks corporations by size but also
offers brief company descriptions along with industry statistics and additional
measures or corporate performance. You can search the list by ranking, by industry,
by company name, or by CEO. And to help you identify the largest international
corporations, there’s a special Global 500 list as well. www.fortune.com.
Answer :
American Exspress
Type
Traded as
Industry
Predecessor(s)
Founded
Headquarters
Public
NYSE: AXP
Dow Jones Component
S&P 500 Component
Banking, Financial services
Livingston, Fargo & Company
Wells, Butterfield & Company
Wells & Company[1][2]
Buffalo, New York, United States (1850)
Three World Financial Center,
New York City, New York, United States
Area served
Key people
Worldwide
Kenneth Chenault
(Chairman & CEO)[3]
Products
Services
Revenue
Operating
income
Net income
Total assets
Total equity
Employees
Website
Charge card, credit cards, traveler's
cheque
Finance, insurance, travel
US$ 029.962 billion (2011)[4]
US$ 006.956 billion (2011)[4]
US$ 004.935 billion (2011)[4]
US$ 153.337 billion (2011)[4]
US$ 018.794 billion (2011)[4]
62,500 (2011)[4]
AmericanExpress.com
ONLINE EXPLORATION
Find out what is required to incorporate a business in your state. You might
begin by searching the CCH Business Owner’s Toolkit site at www.toolkit.cch.com. If
you were going to start a small business, would you choose to incorporate or choose
a different form of legal organization? List the pros and cons that incorporation
presents for the type of business you
Answer :
And supporting factors that impede efforts:
• Supporting
- Media can be through advertising product promotions
- Adequate Technology
- Smart Marketing to promote products that we have
• Obstacles
- Capital is less
- The placement of less strategic
- The purchasing power of the poor
- Quality of unstable products