The Role of Business in the Economy Dissertation

The Role of Business in the Economy - Dissertation Example of Owners Type of Liability Advantages Disadvantages 1. Sole Proprietorship One Unlimited in the form of personal liability in relation to business debt 1. Total profit generated is retained by the owner 2. Formation and dissolution are easy tasks 3. Owners are characterized by having flexibilities 1. The financial liability is unlimited in nature 2. Limited opportunity of financing 3. Deficiencies in management 4. Lacks continuity 2. Partnership More than one The business creditors are a threat to the personal assets held by any of the partners 1. Formation is easy 2. Can be benefited from partners having management skills which are complementary in nature 3. Financial capacity is expanded 1. Financial liability is unlimited in nature 2. Interpersonal conflicts between partners 3. Lacks continuity 4. Difficulty in dissolution 3. Corporation The no. of shareholders is unlimited. For the S Corporations it can have a maximum of 75 shareholders Limited 1. Financial liability is limited in nature 2. Management having specialized skills 3. Financial capacity is expanded 4. Large scale economic operations 1. Formation and dissolution are costly and difficult in nature. 2. Disadvantages because of taxation 3. Legal restrictions Question 2 Define the entrepreneurship and the nature and importance in the economy of small business Entrepreneurship can be defined as the ability to develop and create something new. Entrepreneurship has been defined by different authors in various ways. For example, according to A. H. Cole, entrepreneurship is defined as an activity which is done purposefully by any individual to initiate or generate profit through the manufacture and distribution of services and goods having economic value. Similarly, it is defined by Peter Drucker as a practice and not a kind of art or science. It is actually a base of knowledge, and entrepreneurship is not only a means of earning money but also a medium of creativity, imagination, flexibility, ability to undertake risks, and the ability to utilize change as a means of new opportunity (Mohanty, 2005, p.10-11). Entrepreneurship can be very advantageous for the economy of small businesses. Most of the small businesses in an economy are initiated through the efforts of a single person, who is known as the entrepreneur. They are successful in setting up the business successfully through the effective utilization of business opportunities in the market. The entrepreneurs are characterized by having the ability to take considerable amount of risks and are self motivated (NCSEE, n.d.). The small businesses set up by the entrepreneurs help to boost the economic growth and also serve for the purpose of meeting the various needs of the people locally. Question 3 Describe the basic accountability process and financial statements used in business Accounting can be defined as the process of recording and reporting of financial transactions after proper analysis of the collected information about the business transactions. These financial transactions are required to be recorded and represented in an orderly manner so as to facilitate useful information required for the decision making process of its users. The proper interpretation of information represented in the financial statements also forms a part of the basic accounting process of any business entity. The information about the financial transac

The League of Nations Essay Example | Topics and Well Written Essays - 2250 words

The League of Nations - Essay Example War weariness is a common phenomenon, more so when the gains from such wars are intangible and far removed from domestic affairs. In the aftermath of prolonged periods of conflict, "war prevention assumes a high priority[and]the favoured technique is to institute measures of cooperation and consultationwith a view to preventing war"(Buzan 1983, 163). The League of Nations established in 1919 in the aftermath of World War I, was one such attempt to change the focus of war prevention from individual to collective security. For such an organization to be effective, it had perforce to have the backing of the major powers. Great Britain, France, Italy, Japan, and later Germany and Russia - all great powers in their own right - joined the League of Nations. The United Sates on the other hand, was the only major power not to join the League in spite of having been instrumental in creating it in the first place. According to Meg Harney, "While an excellent idea in theory, the League met with repeated problemssimply because nations had not adapted their foreign policy to change". The Senate Foreign Relations Committee was one such institution that could neither envision nor endorse this shift from a, 'balance of power' diplomacy to a new diplomacy giving greater weightage to collective security. This dichotomy i.e. ... onal requirements was highlighted by Robert Putnam in his 'two-level game' theory, and the failure of the United States to join the League of Nations could be analyzed in this context. To this end a brief overview of the theory would not be out of place to place in perspective the salient aspects of the theory, against the backdrop of the events leading to the formation of the League of Nations. The clash between President Wilson and the Senate over the formation of the League of Nations has been analyzed form many viewpoints. While some analysts see it as nothing more than the outcome of partisan politics, others view it as a clash of ideas between the 'internationalists' and the 'isolationists'. Though formally articulated only in 1988, the US failure to join the League of Nations can also be viewed through the lens of Putnam's 'two-level game' theory. It is a well-known fact that national leaders are simultaneously discharging their duties at two levels - the international level and the national level - with a dynamic interplay between the two. National leaders do not conceive of foreign policy in a domestic vacuum, nor domestic policies without considering the international ramifications. As far as foreign policy is concerned, they have to consider the interests of their domestic constituencies, balancing the 'costs' of implementing foreign policy initiatives against domestic imperatives such as national economy and social welfare. Thus, the right moves at one level (of the game) can affect the other level, ultimately impacting upon the deliberations at that level. An analogy could be that of a magnet held below a sheet of paper controlling the movement of a metallic token placed above the sheet. Keeping this in mind, Robert Putnam summarized the connections