Chapter 8, Problem 23AA

a)

To determine

To ascertain: The type of business organization does G.T represents.

Explanation of Solution

From the image of cartoon G.T is a retail corporation. Corporations are the well known type of business association, and one that is chartered by a state and granted as an entity independent from its owners certain legal rights. Corporation is a form of company entity owned by several individuals but regarded as if it were a person by law; it may own land, pay taxes, contract, and so on. It has a separate and distinct life from those stockholders who own the stock of the company.

Economics Concept Introduction

Introduction: Corporation Organizations have power and obligations that individuals can enter into contracts, can lend and also can borrow money, prosecute, can hire employees, maintain their own properties, and have to pay tax.

b)

To determine

To ascertain: The kind of business is the M and P tortilla shop represent.

Explanation of Solution

From the cartoon image it is clear M and P is a bakery shop because dough are prepared basically in the bakery store may run on the process of partnership. As partnership Strategic alliances help everyone: companies, workers and clients. Company consists of more than two individuals, who provide the public with professional services.

Economics Concept Introduction

Introduction: Strengthening links between complementary businesses fosters cooperation and sustainability, enabling companies to provide services and answers to their queries that may help their customers and bring transparency .

c)

To determine

To evaluate: The double meaning of the word dough in the cartoon.

Explanation of Solution

The double meaning of the word dough here represents money. Entrepreneur can make windfall profits by their hard working and considering many risk factor. Entrepreneurs build organizations where millions of people are offered jobs. They turn capital into goods and services that are useful. They create goods and services, and improve the quality of people’s living in the country. The hardworking and innovation skills of the entrepreneur generates productivity.

Economics Concept Introduction

Introduction: Business is also a source of government earning. so business services can generate to government earnings in the various forms of taxes like excise duty, sales tax , income tax, proper tax , entertainment tax, etc. that can enhance the economy to progress.