PART I:

1. What are the advantages and disadvantages of the corporation as a form of business organization?

2. Explain how the capacity utilization rate and the interest rate affect the level of investment.

3. Explain why building up capital takes a great deal of sacrifice.

4. What has happened to our personal savings rate in recent years, and how has that affected our level of investment?

5. Why are virtually all large business firms corporations?

6. The Swanson Company, a partnership, was formed in 1999 by Jill Swanson, Jenne Swanson, Duke Swanson, Gage Swanson, and Maggie Swanson. In 2000, Holly Swanson and Missy Swanson were taken into the partnership. In 2001 Duke Swanson left the partnership and Brenda Swanson and Jerry Swanson joined it. In 2002 Jill Swanson left the partnership and Buddie Swanson joined it. In 2003 Forrest Swanson joined the partnership. Explain why it would have been easier for this company to have begun as a corporation rather than as a partnership.

7. You and three friends have saved $100,000 and decided to form a computer repair business. Would you form a partnership or a corporation? Explain why you made this choice.

8. You own a furniture manufacturing company that employs 200 people, many of whom have worked for you for over 20 years. Although your company is profitable, you could raise your profits by 20 to 30 percent by shifting your production to Southeast Asia. Will you move your operations abroad? Explain why or why not.

PART II: ESSAY

Directions: Compose an essay that clearly presents your critical analysis of the thought that Americans spend more on services than on durable and non-durable goods. In addition, how is it possible to consume more than your income? Please provide real-world examples (this can be from the media or your own experiences).

Please refer to the textbook and supplemental readings when completing this assignment.

The reflection papers must be typed, double-spaced, with 1-inch margins and 12-point type following APA format. Your work should be a minimum of 2 pages (not including the title and reference pages). Please visit the Academic Resource Center for guidelines on using LIRN and APA format.