Business+Observations


 * Business Observations ** 

1. Some businesses have been very successful. Two very profitable businesses have been D&M Designs and Macho Nachos. a. Why do you think they are so profitable? b. Can you name 5 very successful businesses in American history? Why do you think these businesses have been so successful? http://encarta.msn.com/encyclopedia_701610399/history_of_united_states_business.html **Answer a: ** I think that the successful businesses such as D&M Designs and Macho Nachos have been successful because their products are in demand and the prices for their products are reasonable. Also, presentation and advertisement is very important in business and the successful businesses have had both. **Answer b: ** Five very successful businesses in American history are McDonald's, Apple, Microsoft, Nintendo, and Taco Bell. I think these businesses have been so successful because they have good advertisements, charge reasonable prices, and their products are in demand.

2. Fruity Tutee sold smoothies which brought in a lot of revenue. The product was in high demand and many smoothies were sold. However, the business did not make a profit. Why do you think that is? Can you think of another business that might have a product in demand but doesn’t make a profit? http://www.wisegeek.com/what-was-the-dot-com-bubble.htm http://www.nethistory.info/History%20of%20the%20Internet/dotcom.html **Answer: ** I think that the Fruity Tutee business did not make a lot of profit, but sold a lot of smoothies because they didn't have enough supply of their product, and did not charge enough money to make a profit. Another business that might be in the same predicament is McDonald's. More and more people are turning to them in this time of need. When you order off the dollar menu, you can get a whole meal for $3.00. I don't think McDonald's was fully prepared for this swarm during our economy crisis, but I know they'll fix it.

3. Beginning this week I am going to “raise taxes.” Instead of charging you $2.00 per day at the cafeteria table, I am going to tax 25% of your profits. a. Will this have any impact on how you run your business? Explain. b. Can you describe some of the taxes the American Government has collected throughout history? http://www.treas.gov/education/fact-sheets/taxes/ustax.shtml http://www.tax.org/Museum/default.htm **Answer a: ** Yes, this raising of taxes will have a huge impact on most, if not all of our businesses. The people that make most money will have a huge chunk taken out of their profits, and the people that make little money will make even less. That's not even including how much gets taken out for our supply and advertising! **Answer b: ** Income Tax is a tax collected by the American Government. It is a tax on your income or salary. A few other examples of taxes the American Government collects is Payroll Tax, which is very similar to Income Tax, Property Tax, which is a tax on real or personal property, State and Local Taxes, and Federal Tax.

 4. To solve the problem of paying taxes to another government (me), your government can acquire my land. __Describe __ another time in American history when the United States acquired land that it did not originally own? This can be land that was colonized, purchased, or conquered. http://en.wikipedia.org/wiki/Overseas_expansion_of_the_United_States http://geography.about.com/od/politicalgeography/a/usboundary.htm http://www.animatedatlas.com/movie.html **<span style="font-family: Arial, Helvetica, sans-serif;">Answer: **<span style="font-family: Arial, Helvetica, sans-serif;"> Another time in American history when the US acquired land that it did not originally own was the Louisiana Purchase in 1803. It was called the greatest real estate deal in history. The US government purchased the land from Napoleon of France for about $15,000,000.

<span style="font-family: Arial, Helvetica, sans-serif;"> 5. Do you think it’s good for your business to have competition, or would you like to get rid of your competition? Explain. **<span style="font-family: Arial, Helvetica, sans-serif;">Answer: **<span style="font-family: Arial, Helvetica, sans-serif;"> I think it's good for businesses to get competition because a little friendly competition never hurt anyone. In fact, you need competition to see how well you're doing compared to them. If you're selling something right next to someone else, then you'll get to see what's in higher demand, and see what prices are most reasonable for your target consumers.