Chapter Six, Problem # 1
The benefits of keeping the business as a sole proprietorship are that the revenue will only be taxed twice, that the proprietor will be in whole control of the business, and that there are less laws and guidelines shake sole proprietorships. The disadvantages of keeping the business as a sole proprietorship are that the owner will have full legal responsibility for any responsibilities the business incurs, that the owner cannot go to the open to raise assets via trade equity of business, and that if the owners dies, the business will finish to leaving. That is contrary to a Corporation the owner done have this liability issues as a sole proprietor, corporation safeguard this.
Chapter Six, Problem # 2
Drucker’s 3 question are the following: 1. In what department or area required an excellence in order to achieve company’s goal. 2. In which department, when underperformed would endanger the results. 3. Different value important for the company.
Business 1.
The case of export Company where it has different division which involves of accounts, export, banking, HR, administration and marketing. Each and every division or areas is required to accomplish company’s goal because all divisions are dependent. Export division is the most significant division, because it needs synchronizing as well as compelling care of all forms. So any difficult in export division would make complications for the company. In Export Company, it is essential to have good confidence, integrity and desire to accomplish objective of the company.
Business 2.
The other case can be taken as engineering unit. Manufacture and attaining departments is very significant and it involves proper preparation and managing to succeed the company’s goal. Fail is not tolerable in manufacture department as it would spoiled other department. Quality check. High ethics,