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video case

CHAP 1

1

Doing Business Privately : Amy 's Ice Cream

Question 1 . Amy 's ice cream differs from publicly held corporation Publicly held corporations offer their stocks to the general public . The public then may buy stock at the stock market price . Prices in the stock market increase and decrease depending on the need of the buyer to buy and the seller to sell . Also , the public corporation can have thousands of stockholders . Amy , however , has a private corporation that does not offer its stocks as investment to the general public

. This is also called a close corporation because there are only few corporation owners (Wegandt ,1998

Question 2 . Advantages of corporations such as Amy 's

The advantages of a corporation is that more people can be join . This means that there will be more capital or money to use in the daily operations of the business . The corporation will have more money to buy equipment and other materials . Also , the owners will only be liable for corporation debts up to the investments . Customers would prefer to buy products from a big company like a corporation . Suppliers also prefer to sell their products to big companies like the corporation

Question 3 . To survive , Amy gives to charitable events instead of paying for advertising . Also , Amy allows customers to taste the products and give their criticisms as to the taste , color , price and others Also , job applicants method are being used . In to increase her business growth rate , she has to advertise to people . She has to continue with her current marketing strategy of giving to charity events in to stay in business

Question 4 . She has to confront her family member stockholders and explain whether the corporation was able to generate more money from selling ice cream when compared to the operation of the ice cream business . She will have to explain why she needs additional money from the family member stockholders Question 5 . Amy should not transform into a publicly held corporation because she is still new in the corporation business . She has be learn the tricks of the ice cream business before . The public corporation is too complex for her to handle at present

CHAPTER 2

Conducting Business Ethically and Responsibly : Patagonia

Question 1 . Patagonia demonstrates its sense of social responsibility when it became a pioneer in clean climbing where he invented chocks that slip into the cracks in the mountain rocks without leaving any house . The company also donates one percent of sales or ten percent of pretax profits to the environmentalist groups

Question 2 . Paragonia 's culture will help increase profits because the people will buy the Patagonia products when they get to know that the owners are contributing money to the environmentalist groups . Paragonia is limiting its growth rate in not to violate environmental laws

Question 3 . Other strategies that Chouinard company use to ensure the continued existence of the company is to reduce the number of products it will...

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