Chapter 1 Case “The Desert Enterprise” Pg. 21
Q1- Moving from Partnership to a corporation has many advantage and disadvantage.
The advantages of corporation are as follows:
1- Can borrow money and own property by its own name.
2- Can be a general partner or a limited partner in partnership
3- Can own stock in another corporation
4- Ownership can be easily transferred.
5- Unlimited life of corporation.
6- Limited liabilities of stockholders for corporate debt.
However, the disadvantages of corporation are as follows:
1- Complicated to form as its needs to prepare articles of incorporation and bylaws.
2- Expensive as its need huge money to form
3- ...view middle of the document...
We define social responsibility as a business’s obligation to maximize its positive impact and minimize its negative impact on society. Although many people use the terms social responsibility and ethics interchangeably, they do not mean the same thing. Business ethics relates to an individual’s or a work group’s decisions that society evaluates as right or wrong, whereas social responsibility is a broader concept that concerns the impact of the entire business’s activities on society. From an ethical perspective, for ex- ample, we may be concerned about a health care organization or practitioner over- charging the provincial government for medical services. From a social responsibility perspective, we might be concerned about the impact that this overcharging will have on the ability of the health care system to provide adequate services for all citizens.
The most basic ethical and social responsibility concerns have been codified as laws and regulations that encourage businesses to conform to society’s standards, values, and attitudes. At a minimum, managers are expected to obey these laws and regula- tions. Most legal issues arise as choices that society deems unethical, irresponsible, or otherwise unacceptable. However, all actions deemed unethical by society are not nec- essarily illegal, and both legal and ethical concerns change over time. Business law refers to the laws and regulations that govern the conduct of business. Many problems and conflicts in business can be avoided if owners, managers, and employees know more about business law and the legal system. Business ethics, social responsibility, and laws together act as a compliance system requiring that businesses and employees act responsibly in society.
Chapter 2 Case “Deep Water Experts” Pg. 51
Q1- Create an Income Statement for 2010 and 2011.
Deep Water Experts
2010 Income Statement