LEGAL REQUIREMENTS / UNIT IV - Virtual Enterprises International · 2019-04-05 · LEGAL...

LEGALREQUIREMENTS/UNITIV

“ThebusinessofAmericaisbusiness”–CalvinCoolidge

TableofContents

LESSON1:TheChangingU.S.JobMarketHANDOUTIV.1.A,“Reading”

HANDOUTIV.1.B,“Chart”

HANDOUTIV.1.C,“NewJobs”

HANDOUTIV.1.D,“Cartoon”

LESSON2:TheRoleofBusinessintheU.S.EconomyHANDOUTIV.2.A,”BusinessBenefits”

HANDOUTIV.2.B,“SmallBusiness:SlidesA,B,andC”

HANDOUTIV.2.C,“AdvantagesandDisadvantages”

HANDOUTIV.2.D,“Cartoons”

LESSON3:FormsofBusinessOwnershipHANDOUTIV.3.A,“Decisions”

HANDOUTIV.3.B,“SoleProprietorships”

HANDOUTIV.3.C,“Partnerships”

HANDOUTIV.3.D,“Corporations”

HANDOUTIV.3.E,“SweetOpportunities”

LESSON4:EthicsandSocialResponsibilityHANDOUTIV.4.A,“BusinessEthics”

HANDOUTIV.4.B,“WritingaCodeofEthicsforBusiness”

HANDOUTIV.4.C,“SocialResponsibility”

HANDOUTIV.4.D,“EthicsCases”

LEGALREQUIREMENTS“ThebusinessofAmericaisbusiness”–CalvinCoolidge

TableofContents:pageii

LESSON5:LawsRegulatingBusinessesHANDOUTIV.5.A,“Cartoon”

HANDOUTIV.5.B,“Regulations”

HANDOUTIV.5.C,“Contracts”

HANDOUTIV.5.D,“SourcesofLaws”

LESSON6:LawsProtectingWorkersHANDOUTIV.6.A,“EmployeeBillofRights”

HANDOUTIV.6.B,“Worker’sRights”

HANDOUTIV.6.C,“Assignment”

LESSON7:RegulatingBusinessesActivitiesHANDOUTVI.7.A,“ConsumerComplaints”

HANDOUTIV.7.B,“ConsumerProtection”

HANDOUTIV.7.C,“PromotingFairCompetition”

LESSON8:TheEconomy,Society,andtheEnvironmentHANDOUTIV.8.A,“CarryingCapacity”

HANDOUTIV.8.B,“LivingBeyondNature’sMeans”

HANDOUTIV.8.C,“FlatEarthEconomics”

HANDOUTIV.8.D,“Sustainability”

LESSON9:TaxConsequencesHANDOUTIV.9.A,“Cartoon”

HANDOUTIV.9.B,“Taxes”

HANDOUTIV.9.C,“TaxesandGrowth”

LESSON10:InsuranceHANDOUTIV.10.A,“WhatisInsurance?”

HANDOUTIV.10.B,“TypesofBusinessInsurance”

HANDOUTIV.10.C,“SocialInsurance”

HANDOUTIV.10.D,“KeepingInsuranceCostsDown”

UNITIV/LESSON1

TheChangingU.S.JobMarket

TimeFrame1day

StandardsNESLegalRequirements,socialandphysicalenvironment:

DetermineIssuesandTrendsinBusinessNESSkills:Preparewrittenreports

FollowdirectionsApplyeffectivelisteningskills

GuidingQuestionWhatarethecurrenttrendsintheU.S.jobmarket?

MaterialsHandoutsIV.1.A‐D

InstructionalObjectivesStudentswillbeableto:

analyzegraphsandchartsdetailingcurrentU.S.employmentstatisticsandtrendswithinjobsectors.

identifyandexplaincurrenttrendsintheU.S.jobmarket.

interpretpoliticalcartoons.

TeacherBackgroundAvarietyofforceshaveledtosignificantchangesintheU.S.jobmarket.Theseforcesincludethetechnologyrevolution,theGreatRecessionof2008,andglobalization.

Inthislesson,theclasswillinterpretapoliticalcartoon.Then,studentswillanalyzedata,foundingraphs,charts,readings,involvingdifferentjobsectorsandemploymenttrendsintheUnitedStates.

TeachingStrategies/SupportingActivities DistributeHandoutIV.1.A,“Reading.”Havestudentscompletetheexerciseonthehandout,then

havethemexplaintheiranswerstothefollowing:

– Whatdidyousuggestasaheadlineforthisarticle?

– Whydoestheauthorofthisarticlesay,“Athoroughunderstandingoftheever‐changingjobmarketisnecessaryforsuccess?”

– Whichindustriesprovidedthemostjobsatthetimethisarticlewaswritten?

– Whatwerethefastestgrowingnationalindustriesatthetimethisarticlewaswritten?

– Basedonthisarticlewhatadvicewouldyougivetopeopleplanningtheircareertoday?


UNITIV/LESSON1:page2 DistributeHandoutIV.1.B,“Chart.”Havestudentcompletetheexerciseonthehandout,thenhave

themexplaintheiranswerstothefollowing:

– Whatconclusiondidyoudrawfromstudyingthischart?

– Whichthreeindustriesgrewthemostatthetimethischartwascreated?Howcanyouexplainthisgrowth?

– Whichthreeindustriesshrankthemostatthetimethischartwascreated?Howcanexplainthedeclineofjobsintheseindustries?

– Inplanningacareer,whatcouldonelearnfromstudyingthischart?

DistributeHandoutIV.1.C,“NewJobs.”Havestudentsexplaintheiranswerstothefollowing:

– Howcanyouexplaintheheadlineonthishandout,“Changingjobmarketrequireschangefromjobseekers”?

– Inwhatwaysisthejobmarketchanging?

– Explaintheheadinginthisarticlethatstates“EducationPays.”

– Whattypesofjobsareexpectedtohavethelargestnumberoflosses?Whatarethereasonsforthelosses?

– Whatadviceisrecommendedforthosewith“MiddleSkillsJobs”?

– Asafuturejobseeker,whatisthemostimportantinformationyoulearnedfromthisarticle?

Summary/AssessmentAskstudentstoclipandsummarizethreearticlesfromnewspapers,magazines,ortheInternetthatillustratesomeofthechangingtrendsinthejobmarkettoday.

FollowUpDistributeHandoutIV.1.D,“Cartoon.”Havestudentscompletetheexerciseonthehandout,thenhavethemcompletethefollowingassignment,inwhichtheywillwriteaone‐pagepaperusingtheguidelinesbelow:

Gatherresearchtodiscussthejobsituationoverthepastsixmonthsandtheforecastforemploymentforthenextfewmonths.

Discusswhatthisresearchshowsaboutwhetherornotthejobsituationisimprovingfromthatpicturedinthecartoon.

AnalyzethreesuggestionsfortheaddingjobstotheU.S.economy,indicatingtheadvantagesanddisadvantagesofeachsuggestion.


UNITIV/LESSON1:page3

HandoutIV.1.A,“Reading”Directions:Readthehandoutandwriteaheadlineforthisstoryonthelinebelow.

(Headline) Whether you are just beginning your educational career or are about to embark on your post-graduation job search, a thorough understanding of the ever-changing job market is necessary for success.

While there are jobs available in every field, be sure to research what experts are saying about hot jobs and particular industries. Some businesses are passing trends, and today’s hot jobs might be cut back next year. Some industries have not been predicted to grow in the coming years, and so offer little chance of advancement or even lateral movement. Your objective is to discover the industries that are expected to grow and get involved while opportunities are available and job descriptions can be self-defined.

For 2008, the United States Census Bureau reports that the professional service, managerial, clerical, and production industries will provide the most jobs for Americans. Careerinfo.net reports that the fastest growing national industries are health and medical services, including residential, outpatient, and facilities support services, educational services, software publishing, and management, scientific, and technical consulting services.

Industries outside of health care are also expected to provide more jobs during 2008. Cable and subscription programming, Internet publishing and broadcasting, and computer systems and design services are all expected to expand. The lowest job-producing industries include technical, farming, craft, and sales.

Besides being aware of which industries are most likely to hire new employees in 2008, job seekers also need to research the amount of income these jobs will provide. Just because there are openings, it does not mean available jobs will provide enough to make ends meet or achieve the lifestyle you want. According to the United States Census Bureau, the highest paying jobs of 2008 will be in the fields of engineering, computers, and business. The lowest paying careers will include education, science, and liberal arts.

According to statistics, the hot jobs of 2008 will be in the medical and health profession, and consultation services. Your objective isn’t just to find the best careers out there; you need to discover the best careers out there for you. Your perfect career will balance the salary you expect and the kind of work that interests you. Financial success is essential, but so is emotional and spiritual fulfillment.

Keep an eye on the job market. New industries emerge all the time, and your best chance of success depends on your ability to get on board while the field is still growing.

ArticleSource:http://EzineArticles.com/?expert=Alyssa_Bentley



HandoutIV.1.B,“Chart”Directions:Studythechartbelowandanswerthequestionsintheexerciseonthispage.

U.S. Workforce Chart of 2008 from the Bureau of Labor Statistics

Takenfrom:BureauofLaborStatistics

Exercise:Basedonthechartanswerthefollowingquestions:

1. Inwhichareawerethemostworkersemployedin2008?_________________________________2. Inwhichareawerethefewestworkersemployedin2008?________________________________3. In2‐3sentences,discussoneconclusionthatafutureworkercoulddrawfromstudyingthischart.

________________________________________________________________________________

________________________________________________________________________________



HandoutIV.1.C,“NewJobs”Directions:Readthehandoutbelow.

Changing Job Market Requires Change from Job Seekers ByRuthMantell,MarketWatchInPrint:Sunday,May23,2010

EvanPhillipswaslaidoffbyGeneralMotorsin2008,andisstillseekingfull‐timework.The25‐year‐oldKalamazoo,Mich.,residentworkedatanow‐closedMichiganplantforoverayear.Phillipsisn’tcountingonthereturnofhisoldjob.He’sbackatschool,trainingtobecomeaphysicaltherapistassistant.

Post‐high‐schooleducationisimportantforworkerswhowanttorampuplifetimeearnings,especiallywhentheiroldoccupationdownsizes,economistssay.“Oneofthethingsthathasbecomereallyimportantisnotjustthatpeoplegetoutofhighschoolandgotocollege,butthatpeoplegobacktoschool.Thatsortoftraininghelpsquiteabitintransitioningpeopletonewcareers,”saidHall,oftheBureauofLaborStatistics.

EducationPays

Whileadditionalschoolingcomeswithopportunitycosts,educationbumpsupearnings,datashow.Thepaybackformoreeducationisatahistorichigh,accordingtoarecentreportbyDavidAutor,aneconomistattheMassachusettsInstituteofTechnology.Thehourlywageofthetypicalcollegegraduatewas1.95timesthehourlywageofthetypicalhighschoolgraduatein2009,upfrom1.5timesin1963.Allofthegaintookplaceafter1980.

TheCensusBureaurecentlyreportedthatworkerswithanadvanceddegreeearnedmorethan$83,000onaveragein2008,comparedwithabout$59,000forthosewithabachelor’sdegree,andabout$31,000forthosewhosehighestdegreewasahighschooldiploma.Andinaweaklabormarket,atleastonemajoropportunitycost—foregoneincome—issmaller.

WinnersandLosers

Amongthe20occupationsexpectedtohavethelargestnumberofjoblossesbetween2008and2018,15areeitherproductionorofficeandadministrativesupportoccupations,accordingtoaBLSreport.Bothare“adverselyaffectedbyincreasingplantandfactoryautomationortheimplementationofofficetechnology.”Meanwhile,the20occupationsexpectedtohavethebiggestjobgainsincomingyears—includinghealth,education,sales,andfoodservice—willaccountforone‐thirdormoreofallnewjobs—5.8millioncombined.

Separately,arecentreportbyAutorfoundthatmiddle‐skilljobs—includingsales,officeandadministrative,andproductionworkers—havelostshareintheemploymentpoolinthelastthreedecades.“Employmentlossesduringtherecentrecessionwerefarmoresevereinmiddle‐skillwhite‐andblue‐collarjobsthanineitherhigh‐skill,white‐collarjobsorinlow‐skillserviceoccupations,”accordingtoAutor’sreport.

Changesintechnology,internationaltrade,andoff‐shoringallplayapartintheshrinkingshareofmiddle‐skillsjobs.Technologyhasdisplacedclericaljobsandeliminatedsomeoftheneedformiddlemanagerswhotrackperformance,saidLawrenceKatz,aneconomistatHarvardUniversity.Buttherearetasksacomputercan’tperform,hesaid.“Robotscandoalotofthings,buttheycan’t



figureoutwhat’strashandwhataretheimportantpapersonmydesk,”Katzsaid.“Theycanmonitortruckdrivers,buttheydon’tsubstituteforthem.”

TempSectorGrowing

Withabout2millionworkers,thetemporaryhelpservicespoolisasmallpartofthelabormarket’s130millionnonfarmemployees.Butthisleadingindicatorofthelabormarketisgrowing.TheLaborDepartmentdescribestemporaryhelpservicesfirmsasthosethatprovidetemporaryemployeestootherbusinesses“tosupportorsupplementtheirworkforce.”

There’sanother,biggergroupoftemporaryworkers:contingentworkers,representingabout31percentoftheworkforce.Thatcategoryincludespeoplewhodonothavestandardfull‐timeemployment.Asthelabormarketrecovers,anduntilemployersfeelsignificantlymoreoptimistic,employersmaycontinuetotaptempsastheylooktocontrolfixedcosts.

Tempgigscanleadtopermanentpositionsforworkers.“Ifyougetyourfootinthedooronatemporaryassignment,youhavetheopportunitytoengageyoursupervisorandshowthemyouhaveanunderstandingofthecompany’smissionanddedicationtohelpthem,”saidRichardWahlquist,chiefexecutiveoftheAmericanStaffingAssociation.

AdaptedfromCopyright2010St.PetersburgTimes



HandoutIV.1.D,“Cartoon”Directions:Studythecartoonbelowandanswerthethreequestionsthatfollow

KarlWimer,DenverBusinessJournalCartoonTitle:JobBurnPublicationDate:Friday,July16,2010

Takenfrom:http://editorialcartoonists.com/cartoon/display.cfm/88296/

Exercise:

1. Whoisthemaincharacterinthispoliticalcartoon?Whydoeshelooklikehe’ssuffering?2. WhatistheconnectionbetweenobjectsA,B,andCandthemaincharacter?3. Whatmessageisthecartoonististryingconveyinhisdrawing?4. Whatwouldbeagoodtitleforthiscartoon?

A

B C

UNITIV/LESSON2

TheRoleofBusinessintheU.S.Economy

TimeFrame2days

StandardsNES:BusinessFoundations: BusinessConcepts:ExplaintheRoleofBusinessinSociety

NES:Skills—FollowdirectionsMakeoralpresentations

ApplyeffectivelisteningskillsPreparewrittenreports

GuidingQuestionWhatistheroleofsmallbusinessesintheU.S.economy?



defineactivitiesperformedbybusinessesintheU.S.andhowtheybenefitsociety.

identifycharacteristicsofsmallbusinessesintheU.S.today.

explaintheeconomicimpactofsmallbusinessesintheU.S.

TeacherBackgroundBusinessplaysakeyroleinAmericansociety.Specifically,businessescreateawidevarietyofgoodsandservicesforthepublicandprivatesectors.Inaddition,businessesprovidejobsfromwhichworkersderivetheirincomes,withwhichtheybuygoodsandservicestomeettheirneedsandwants.Finally,businessespayasubstantialamountintaxestotheFederal,state,andlocalgovernments,whichgotowardprovidingnumerouspublicgoodsandservices.Thislessonwillfocusmostlyonsmallbusinesses,avitalpartoftheU.S.economyandtheplacewheremostentrepreneursgettheirstartinbusiness.

Inthislesson,studentswillexaminehowbusinessesbenefittheU.S.economy,decidingwhichofthesebenefitsismostimportant.IntheHandoutsIV.2.B‐C,theclasswilllooksomeofthefeaturesthatdefinesmallbusinessandsmallbusinessownersintheU.S.today.Finally,thestudentswillinterpretacartoonthatillustratessomeoftheconflictsbetween“momandpop”storesandlargechainsthatthreatenmanysmallbusinesses.



TeachingStrategies/SupportingActivities DistributeHandoutIV.2.A,“BusinessBenefits.”Havestudentscompletetheexerciseonthehandout

andthenhavethemexplaintheiranswerstothefollowing:

– WhatdidyoulearnaboutthebenefitsbusinesscontributestoAmericansocietyfromthis

handout?

– Whichoftheseactivitiesrepresentsthemostimportantcontributionbusinessesmaketoourcountry?

– Arethereothercontributionsthatbusinessesmakesthatdonotappearonthisslide?

DistributeHandoutIV.2.B,“SmallBusinessSlidesA,B,and,C.”Havestudentscompletetheexerciseonthehandout,thenhaveexplaintheiranswerstothefollowing:

– WhatdidyoulearnabouttheimpactofsmallbusinessesfromSlideA?

– ExplaintheinformationcontainedinSlideBaboutsmallbusinessowners?

– HowdoesSlideCexplainwhysmallbusinessesthriveinthiscountry?

– Insummary,whatmakessmallbusinessessoimportanttotheU.S.economy?

DistributeHandoutIV.2.C,“AdvantagesandDisadvantages.”Havestudentscompletetheexercise

onthehandout,thenhavethemexplaintheiranswerstothefollowing:

– Summarizesomeoftheimportantadvantagesofsmallbusinesses.

– Summarizesomeoftheimportantdisadvantagesofsmallbusinesses.

– Dotheadvantagesofoperatingasmallbusinessoutweighthedisadvantages?

Summary/AssessmentAskstudentstoexplaintheiranswerstothefollowing:

HowimportantaresmallbusinessestothehealthoftheU.S.economy?

FollowUpDistributeHandoutIV.2.D,“Cartoon.”Havestudentswritetheiranswerstothequestionsonthehandout.Discusstheanswertothesequestionsinawholeclasssession.Asasummary,asktheclasstoexplaintheiranswerstothefollowing:

AreweasacountrybetteroffiftheMomandPopstoreswinthefightagainstbigbusinessordowehavemoretogainifthebigbusinesseswin?



HandoutIV.2.A,”BusinessBenefits”Directions:Theslidebelowcomesfromapresentationtitled“WhatBusinessesDoforUs.”Circlethebenefitbelowwhichyouthinkismostimportantforthecountry.

Business benefits society by: • Supplying goods and services that customer cannot, or do not want to, produce

themselves.

• Creating jobs for customers, suppliers, distributors and coworkers. These people make money to support themselves and their families, pay taxes and use their wages to buy goods and services.

• Continually developing new goods, services and processes.

• Investing in new technologies and in the skills of employees.

• Building up and spreading international standards, e.g., for environmental practices.

• Spreading “good practice” in different areas, such as the environment and workplace safety.

CSR‐Swedenwww.ioe‐emp.org

� � � � � � � � � � � � � � �t � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � u� n� � � � � � � � � � � � � �

� � � � � � � E� � � � � � � : N� � � � � � u�

� U� N/V� � iai� O� e� � � � � � / � U� 2� � � � � � � � O� � O� � U� � � F�� i � o� � � � � t � � m� � m� � � � � � � � � � e � � � t � � � � � � i t � � � tt � t � � � � � � � W� � � � � � � � r � a� � t � � � � � e � � � u�

�

Slide A

Slide B



Copyright ©2008 by South -Western, a division of Thomson Learning. All rights reserved Chapter 6

31

Why Small Businesses Thrive

6

Independence and a better lifestyle

Personal satisfaction from work

Best route to success

Rapidly changing technology

Major corporate restructurings and downsizing

Outsourcing

Resilience

Takenfrom:South‐Western,adivisionofThomsonLearning

Exercise:SelecteitherslideA,B,orCandwriteoneparagraph,inthespacebelow,usingwholesentences,summarizingtheinformationcontainedintheslideyouselected.

Slide C

� � � � � � � � � � � � � � �t � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � u� n� � � � � � � � � � � � � �

� � � � � � � E� � � � � � � : N� � � � � � n�

� U� N/V� � iai� O� e� � L� UV� � � � � U� � � � � � L� UV� � � F�� a� � � � � � � � t � � � W a � � � � � s � � � � � � � � � � � t � t � � � � � � � � � � � � t � � s � � � � � � � � t � � � � � � i t � � � tt � tu�

� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � w�



HandoutIV.2.D,“Cartoons”Directions:Studythecartoonandcompletetheexercisethatfollows.

The Death of Moms And Pops” by John Pritchard

Takenfrom:http://www.pritchettcartoons.com/bulkmart_c.htm.

Directions:Basedonthecartoonabove,answerthequestionsbelow.

1. Whatisthemeaningofthe“MomandPops”gravestone?2. Whodoes“BulkMart”and“NicheCo.”represent?3. Whatisthemessagethecartoonististryingtosendaboutsmallbusinessestoday?

UNITIV/LESSON3

FormsofBusinessOwnership

TimeFrame2days

StandardsNESLegalRequirements,socialandphysicalenvironment:Selectformsofbusinessownership

NESSkills:FollowdirectionsMakeoralpresentationsPreparewrittenreports

Workinteams

GuidingQuestionWhatarethedifferentformsofbusinessownership?

MaterialsHandoutsIV.3.A‐5


discusspersonalmotivationsthattheywouldconsiderimportantinlaunchingabusiness.

identifytheadvantagesanddisadvantagesofsoleproprietorships,partnershipsandcorporations.

provideadviceonchoosingaformofbusinessorganizationtopeopleinterestedinlaunchinga

business.

TeacherBackgroundAnentrepreneurstartinghisorherfirstbusinesshasanumberofkeydecisionstomake.Oneofthefirstdecisionswillbehowtoorganizethebusiness.Therearebasicallythreeformsofbusinessorganizationstochoosefrom:thesoleproprietorship,thecorporation,orthepartnership.Eachformofbusinesscomeswithitsownadvantagesanddisadvantages.

Inthislesson,theclasswilllookatpersonalconsiderationsimportanttotheminstartingabusiness.Then,theclasswillbedividedintogroupstoparticipateinacooperativelearningactivityinwhicheachgroupmakesapresentationabouttheadvantagesanddisadvantagesofthesoleproprietorship,partnershiporcorporation.Inthenextactivity,studentswillanalyzebusinessscenariosandmakerecommendationsabouttheformofbusinessownershipsuitabletospecificindividualsbasedontheirpersonalities,familysituations,emotionalneeds,andskillsets.



TeachingStrategies/SupportingActivities DistributeHandoutIV.3.A,“Decisions.”Havestudentscompletetheexerciseonthehandout,then


– Howdidyourespondtoconsideration#1?Explain.



– Whichoftheseconsiderationsdidyoufindtobeofgreatimportancetoyouinlaunchinga

business?

Dividetheclassintogroupsoffoureach.Distributeeachofthefollowinghandoutstoadifferentgroup:IV.3.B,“SoleProprietorship,”IV.3.C,“Partnership,”andIV.3.D,“Corporation.”Askeachgroup

tostudyitshandoutandpreparea1‐2minutepresentationabouttheinformationcontainedinthehandouttheyreceived.Aftergivingthegroupssufficienttimetopreparetheirpresentations,allow

threegroupstopresenttotheclasstheinformationcontainintheirHandouts.Afterthepresentationshavebeendelivered,askstudentstoexplaintheiranswerstoeachofthefollowing:

– Whatarethekeyadvantagesanddisadvantagesofthesingleproprietorship?

– Whatarethekeyadvantagesanddisadvantagesofthepartnership?

– Whatarethekeyadvantagesanddisadvantagesofthecorporation?

– Ifyouwerestartingabusinesstomorrow,whichformoforganizationwouldyoutochoose?

Explain.

Summary/AssessmentAskstudentstovoteonwhattheyviewasthetopthreefactorstoconsiderwhenchoosingtheformofownershipforanewbusiness(Seelistbelowforresponses).Remindthemtotakeaccountofwhattheyhavelearnedastheyvoteonthesefactors.Discussthereasonsfortheirchoices.Werethereanyotherimportantfactorsthattheythinkaremissingfromthelist?

Theresourcesneededtostartandexpandthebusiness.

Yourlevelofexpertisestartingandmanagingabusiness.

Yourwillingnesstosharedecisionsandprofits.

Thelevelofliabilityyouandanypotentialpartnersarewillingtoaccept.

Thetaximplicationsofyourchoices.

Howlongyouseeyourselfandanypartnersinvolvedintheventure.

Whetherthisventureissomethingyouwanttoliveonafteryouandanypartnersaregone.



FollowUpDistributeHandoutIV.3.E,“SweetOpportunities.”Assigneachstudentoneofthefourclientsonthehandout,withthetaskbeingtomakearecommendationastoformofbusiness(soleproprietorship,partnership,orcorporation)thattheclientshouldoperate.Havethestudentsexplaintheiranswerstothefollowing:

Whichform(s)ofbusinessdidyourecommendtoClient#1?Explain.






HandoutIV.3.A,“Decisions”Directions:Assumeyouareplanningtolaunchabusinessinthenearfuture,butarenotsureabouttheformthatbusinessshouldtake.Inthinkingaboutwhetherthebusinessshouldbeasoleproprietorship,partnership,orcorporation,indicatehowimportantthefollowingconsiderationsaretoyouinrunningthebusinessbyplacingacheckmarkintheappropriatebox.Bepreparedtoexplainyourchoice.

Considerations Extremely Important

Of Some Importance

Not Important Not Sure

I would prefer a business in which two or three people make all key decisions, contribute their skills and money, and share responsibilities, profits, and expenses.

I would prefer a business in which I make all key decisions and keep most of the profits with little interference from others even if it means most of the work falls on my shoulders.

I would prefer to establish a fairly large business organization (capable of raising large sums of money—perhaps by selling shares of the business to the public) even if it means much of the decision-making is delegated to a number of people.



HandoutIV.3.B,“SoleProprietorships”Thevastmajorityofsmallbusinessesstartoutassoleproprietorships.Thesefirmsareownedbyoneperson,usuallytheindividualwhohasday‐to‐dayresponsibilitiesforrunningthebusiness.Soleproprietorsownalltheassetsofthebusinessandtheprofitsgeneratedbyit.Theyalsoassumecompleteresponsibilityforanyofitsliabilitiesordebts.Intheeyesofthelawandthepublic,thebusinessandthesoleproprietorareoneinthesame.

AdvantagesofaSoleProprietorship

Easiestandleastexpensiveformofownershiptoorganize.

Soleproprietorsareincompletecontrol,andwithintheparametersofthelaw,maymakedecisions

astheyseefit.

Soleproprietorsreceiveallincomegeneratedbythebusinesstokeeporreinvest.

Profitsfromthebusinessflowdirectlytotheowner'spersonaltaxreturn.

Thebusinessiseasytodissolve,ifdesired.

DisadvantagesofaSoleProprietorship

Soleproprietorshaveunlimitedliabilityandarelegallyresponsibleforalldebtsagainstthebusiness.

Theirbusinessandpersonalassetsareatrisk.

Maybeatadisadvantageinraisingfundsandareoftenlimitedtousingfundsfrompersonalsavings

orconsumerloans.

Mayhaveahardtimeattractinghigh‐caliberemployeesorthosethataremotivatedbythe

opportunitytoownapartofthebusiness.

Someemployeebenefitssuchasowner'smedicalinsurancepremiumsarenotdirectlydeductible

frombusinessincome(onlypartiallydeductibleasanadjustmenttoincome).



HandoutIV.3.C,“Partnerships”Inapartnership,twoormorepeopleshareownershipofasinglebusiness.Likeproprietorships,thelawdoesnotdistinguishbetweenthebusinessanditsowners.Thepartnersshouldhavealegalagreementthatsetsforthhowdecisionswillbemade,profitswillbeshared,disputeswillberesolved,howfuturepartnerswillbeadmittedtothepartnership,howpartnerscanbeboughtout,andwhatstepswillbetakentodissolvethepartnershipwhenneeded.Yes,it'shardtothinkaboutabreakupwhenthebusinessisjustgettingstarted,butmanypartnershipssplitupatcrisistimes,andunlessthereisadefinedprocess,therewillbeevengreaterproblems.Theyalsomustdecideup‐fronthowmuchtimeandcapitaleachwillcontribute,etc. AdvantagesofaPartnership

Partnershipsarerelativelyeasytoestablish;howevertimeshouldbeinvestedindevelopingthepartnershipagreement.

Withmorethanoneowner,theabilitytoraisefundsmaybeincreased.

Theprofitsfromthebusinessflowdirectlythroughtothepartners'personaltaxreturns.

Prospectiveemployeesmaybeattractedtothebusinessifgiventheincentivetobecomeapartner.

Thebusinessusuallywillbenefitfrompartnerswhohavecomplementaryskills. DisadvantagesofaPartnership

Partnersarejointlyandindividuallyliablefortheactionsoftheotherpartners.

Profitsmustbesharedwithothers.

Sincedecisionsareshared,disagreementscanoccur.

Someemployeebenefitsarenotdeductiblefrombusinessincomeontaxreturns.

Thepartnershipmayhavealimitedlife;itmayenduponthewithdrawalordeathofapartner. TypesofPartnershipsthatshouldbeconsidered:

1. GeneralPartnership

Partnersdivideresponsibilityformanagementandliabilityaswellasthesharesofprofitorlossaccordingtotheirinternalagreement.Equalsharesareassumedunlessthereisawrittenagreementthatstatesdifferently.

2. LimitedPartnershipandPartnershipwithLimitedLiability

Limitedmeansthatmostofthepartnershavelimitedliability(totheextentoftheirinvestment)aswellaslimitedinputregardingmanagementdecisions,whichgenerallyencouragesinvestorsforshort‐termprojectsorforinvestingincapitalassets.Thisformofownershipisnotoftenusedforoperatingretailorservicebusinesses.Formingalimitedpartnershipismorecomplexandformalthanthatofageneralpartnership.

3. JointVenture

Similartoageneralpartnership,butisclearlyintendedforalimitedperiodoftimeorasingleproject.Ifthepartnersinajointventurerepeattheactivity,theywillberecognizedasanongoingpartnershipandwillhavetofileassuchaswellasdistributeaccumulatedpartnershipassetsupondissolutionoftheentity.



HandoutIV.3.D,“Corporations”Acorporation,charteredbythestateinwhichitisheadquarteredisconsideredbylawtobeauniqueentity,separateandapartfromthosewhoownit.Acorporationcanbetaxed,itcanbesued,anditcanenterintocontractualagreements.Theownersofacorporationareitsshareholders.Theshareholderselectaboardofdirectorstooverseethemajorpoliciesanddecisions.Thecorporationhasalifeofitsownanddoesnotdissolvewhenownershipchanges.

AdvantagesofaCorporation

Shareholdershavelimitedliabilityforthecorporation'sdebtsorjudgmentsagainstthe

corporations.

Generally,shareholderscanonlybeheldaccountablefortheirinvestmentinstockofthecompany.

(Notehowever,thatofficerscanbeheldpersonallyliablefortheiractions,suchasthefailuretowithholdandpayemploymenttaxes.)

Corporationscanraiseadditionalfundsthroughthesaleofstock.

Acorporationmaydeductthecostofbenefitsitprovidestoofficersandemployees.

CanelectScorporationstatusifcertainrequirementsaremet.Thiselectionenablescompanytobetaxedsimilartoapartnership.

DisadvantagesofaCorporation

Theprocessofincorporationrequiresmoretimeandmoneythanotherformsoforganization.

Corporationsaremonitoredbyfederal,stateandsomelocalagencies,andasaresultmayhavemorepaperworktocomplywithregulations.

Incorporatingmayresultinhigheroveralltaxes.Dividendspaidtoshareholdersarenotdeductiblefrombusinessincome;thusitcanbetaxedtwice.



HandoutIV.3.E,“SweetOpportunities”Directions:Readthefourscenariosandprepareawrittenrecommendationinyournotebookastowhatformorformsofbusinessorganizationyouthinkisbestfortheclientyouhavebeenassigned.Statethereasons for your position. There will also be some disadvantages to the business form you choose.Identifyatleastonenegativeandsuggesthowyoumightminimizeit.

Client1:WhenIwasthreeyearsold,Istartedmakingcandywithmygrandmother.Iamnow10andIwanttosellchocolatecandywithafarmthemetomyfriendsandfamily.MyproductideasincludeBrownCows(chocolatecowsonastick),PigsinMud(marshmallowdippedincaramel,nutsandchocolate)andFarmEggs(jellybeansdippedinchocolate).Thestart‐upexpensesformybusinessareprettysmall:afewcandymolds,candyandchocolate.)Myparentshaveagreedto loanmethemoneyIwillneedandto letmework inthefamilykitchen.SchoolworkhastotakepriorityoverbusinesssoifIhavemoresalesthanIcanhandle,Iwillprobablyaskfriendsormyolderbrother tohelp.Mybrother isalsoprettygoodatmathandcomputers sohecouldhelp me with keeping track of my expenses and advertising. I really like the productdevelopmentandpackagingpartofthebusiness.

Client2:Afterapprenticingforanothercandymaker,Istartedmyfirstcandybusinessatage18.Unfortunately,myfirstattemptatstartingabusiness(aswellasmysecond)wasafailure.Afterarockystart,mythirdtrywasmoresuccessful–Ihavejustreceivedafortunefromthesaleofmycaramelbusiness.Duringmyworldtravels,Idiscoveredanddecidedtobuynewequipmentthatmakeschocolate.Today,onlythewealthycanaffordchocolate.Withthisnewtechnology,Ithink I canmake a chocolate that everyone can afford. Inmymid‐thirties, I know very littleaboutmakingchocolatebut Iamwillingtotakethetimeto learn. Iwantmy lifetocenteroninventingnewcandies,buildingthisnewbusiness,andlayingoutanewcommunitythatwillbeawonderful place for the people I hire to live. I prefer to leave day‐to‐day operations of thecompany—handlingproduction,sales,marketinganddistribution—tosomeoneelse.

Client 3: I have substantial experience working in the candy industry. I helped my fatherintroduceaverypopularchocolatebarintheU.S.andhaveworkedinthefactoriesoftwoofthebestchocolatemakersintheworld.Today,Iamathirty‐plusyear‐oldbusinesspersonoperatingacompanyIstartedsellingcandyandpetfoodsacrossEurope.WhiletravelinginSpainrecently,Isawacandy‐coatedchocolatethatIthinkwillsellwellintheU.S.IwouldliketocreateanewAmerican business producing this candy. I have at least 80 percent of themoney for gettingstartedbutIamconcernedaboutgettingthechocolateusedinproduction.Thereisawargoingonanditmaybedifficulttogetthisimportantingredientwithouttakingonapartnerwhohasconnectionstoachocolatemaker.Ilikethechallengeofbuildingbusinessesandfindingwaystomakethemoperatemoreefficiently.Ialsoprefermakingdecisionsonmyown.

Client4:Iaminmylatethirties.Ihaveworkedmyselfupfromhandlingmailtobeinganagentforawellknownentertainmentagency.Inowrepresentseveralfamousmusicians.PeoplesayIamanenthusiasticandtirelesspromoter.Tohelpmyclientsgetjobs,Iusebite‐sizedchocolatechipcookiesasacallingcard.MyaunttaughtmehowtobakecookieswhenIlivedwithherasateenager.BeforeIdroppedoutofhighschoolandjoinedtheairforce,Iwasgettingvocationaltraining in the food tradesbut I havenever runmyownbusiness. Someofmy friends in theentertainment industryhaveencouragedmetoopenastorethatwouldsellmycookies.Theyhaveofferedtohelp financemyventure inexchangeforpartialownership.Mycookieswouldlookandtasteverydifferentfromthecookiessoldinthegrocerystorestoday.

Takenfrom:http://www.econedlink.org/lessons/docs_lessons/533_Sweet_Opportunities_teacher.pdf

UNITIV/LESSON4

EthicsandSocialResponsibility

TimeFrame2days

StandardsNESLegalRequirements,socialandphysicalenvironment:Distinguishbetweenlegal,ethical,orsocialresponsibility

NESSkills:FollowdirectionsApplyeffectivelisteningskills

Preparewrittenreports

GuidingQuestionHowmuchofapriorityshouldentrepreneursplaceonethicsandsocialresponsibilitiesinrunningtheirbusinesses?


InstructionObjectivesStudentswillbeableto:

identifytheessentialethicalandsocialresponsibilitiesforwhichbusinessesshouldbeheld

accountable.

developamodelcodeofethicsforasamplebusiness.

discussthechallengesentrepreneursfaceinlivinguptotheirethicalandsocialresponsibilitiesinrunningtheirbusinesses.

TeacherBackgroundBusinessethicscanbedefinedaswrittenandunwrittencodesofprinciplesandvaluesthatgoverndecisionsandactionswithinacompany.Inthebusinessworld,theorganization'sculturesetsstandardsfordeterminingthedifferencebetweengoodandbaddecisionmakingandbehavior.Inthemostbasicterms,adefinitionforbusinessethicsboilsdowntoknowingthedifferencebetweenrightandwrongandchoosingtodowhatisright.Thephrase“businessethics”canbeusedtodescribetheactionsofindividualswithinanorganization,aswellastheorganizationasawhole.Socialresponsibilitiesrefertoobligationstoactwithconcern,sensitivity,andawarenessoftheimpactofone’sactionsonothers,particularlythedisadvantaged.Ofteninbusiness,ethicsandsocialresponsibilitiesconflictwithegosandthequestforprofitscreatingamoraldilemmaforentrepreneurs.



Inthislesson,studentswilldefinethetermethics,especiallyasitappliesinbusiness.Then,theywillexaminesomeethicaldilemmasthatconfrontbusinesses.Basedontheseinitialexercises,theclasswillattempttowriteacodeofethicsfortheworkplace.Later,studentswillreadabouttheworkofBusinessforSocialResponsibility,anorganizationthatattemptstofocustheattentionofbusinessoncommunityneeds.Thislessonwillconcludewithanactivityinwhichstudentswillbeassignedoneofthefivecasesrelatedtoethicsinbusiness.Usingthe“StepsforEthicalDecisionMaking,”theywilldecidewhatistheappropriateethicalactiontotake.

TeachingStrategies/SupportingActivities Askstudentstodefinethetermbusinessethics.Thenhavethemexplaintheiranswerstothe

following:

– Howdoesthedefinitionyoujustgavecomparethisone:Businessethicsarethe“writtenand

unwrittencodesofprinciplesandvaluesthatgoverndecisionsandactionswithinacompany.”

– Basedonthisdefinitionhowwouldyoudefinebusinessethics?

– Howarebusinessethicsdifferentthanlawsthatregulatehowbusinessesoperate?

DistributeHandoutIV.4.A,“BusinessEthics.”Dividestudentsintopairs.Havestudentscompletetheexerciseonthehandout.Thenrevieweachofthetwoscenarioswiththeclassanddiscussthepair’s

answerstothesetofquestionsaccompanyingeachscenario.Aftercompletingthistask,askstudentstoexplaintheiranswerstothefollowing:

– Whatdowelearnaboutsomeoftheethicaldilemmasconfrontingpeopleinbusinessfromthis

exercise?

– Whyaresomeoftheissuespeopleinbusinessfaceindealingwithscenariossuchasthese?

– Astheownerofabusiness,whatwouldbethebestwaytoensurethatyourbusinessandall

employeesactinanethicallyappropriatemanner?

DistributeHandoutIV.4.B,“WritingaCodeofEthicsforBusiness.”Havestudentscompletethe

exerciseonthehandout,thenhavethemexplaintheiranswerstothefollowing:

– Whatdidyoulearnaboutwritingabusinesscodeofethicsfromthisreading?

– Readtotheclassthesamplecodeofethicsyouwrote.(Callonthreevolunteers.)

– Whatdidyoufindmostdifficultaboutwritingthissamecodeofethics?

– Whichoneofthesethreesamplecodesofethicswouldworkbestformostbusinesses?

DistributeHandoutIV.4.C,“SocialResponsibility.”Havestudentscompletetheexerciseonthe

handout,thenhavethemexplaintheiranswerstothefollowing:

– Basedonwhatyoureadhere,howwouldyoudefinesocialresponsibility?

– Whatdidyoulearnfromthereadingaboutthekindsofthingsbusinessesaredoingtoshowtherearesociallyresponsible?



– Towhatextentisitpossibleforbusinessestoworktowardsachievinggoalslikesavingthe

planet,helpingthepoor,andmakingmoneyatthesametime?Doyouthinkthesegoalsshouldbeequallyimportanttothebusiness?

– Whatdoesthewriterofthisarticlemeanwhenhesaysthat“Thedangeristhattherhetoricof

corporatesocialresponsibilitycanbeaneffectivedisguiseforseriouslyantisocialbehavior?”

– Thearticlepointsoutthat78%ofAmericansweighacompany'ssocialreputationwhenmakingbuyingdecisions.Towhatextentdoyouweighacompany’ssocialreputationwhenmakinga

buyingdecision?

Summary/Assessment Askstudenttoexplaintheiranswerstothefollowing:

– Howmuchofapriorityshouldentrepreneursplaceonethicsandsocialresponsibilities,asopposedtoearningprofits,inrunningtheirbusinesses?

– Inwhatwaysarelegal,ethical,andsocialresponsibilitiessimilaranddifferentfromeachother?

FollowUpDistributeHandoutIV.4.D,“EthicsScenarios.”Assigneachstudentoneofthefivecasesonthehandout,askingthemtosuggestinwritingwhatthepersoninthecasetheywroteaboutshoulddo.Thesesuggestionsshouldincorporateto“SixStepstoMakingEthicalDecisions”thatappearonthehandout.



HandoutIV.4.A,“BusinessEthics”Directions:Workingwithyourpartner,readeachofthefollowingscenarios.Then,answerthequestionsthatfolloweachscenariotodeterminewhethertheindividualsactedethically.

Scenario1Henryownsalargetractoflandinthenorthernpartofthestate.ForseveralyearstherehasbeeninformaltalkamonglawmakersanddevelopersaboutdevelopinganewInterstatehighwaythatwouldrunrightthroughHenry’sland.However,Henryhasheardnothingaboutthis.Thelandhasbeeninhisfamilyforover50years.Heplanstoretirethereinthreeyearsandbuildanewhomeforhimandhiswife.

Jamie,amajordeveloperinthestate,isawareofthepossibilityofthenewInterstatehighway.HeknowsthatHenry’slandcouldbeveryimportanttotheprojectifitmovesforward.Thelandownercouldmakeasubstantialprofit.

JamiedecidesthathewillmeetwithHenryandoffertobuyhisland.HeplanstoofferHenryabouthalfofwhatthelandwillsellforiftheInterstateprojectdevelops.HedoesnotplantotellHenryaboutthepossibilityoftheproposedInterstateproject.

DiscussionQuestions

1. Whatarethemajorethicalissuesinvolvedinthiscase?

__________________________________________________________________________________

__________________________________________________________________________________

2. IsJamieactingethically?Explainyouranswer.

__________________________________________________________________________________

__________________________________________________________________________________

3. DoesHenryhavearighttoknowaboutthepossibilityoftheInterstateproject?Explainyouranswer.

__________________________________________________________________________________

__________________________________________________________________________________

4. WhatwouldyoudoifyouwerealanddeveloperwhowasinterestedinpurchasingHenry’sland?

__________________________________________________________________________________

__________________________________________________________________________________



Scenario2Asunitmanager,youareresponsibleformonitoringthee‐mailandInternetusageofthefourpeopleyousupervise.Ifyoufindanythingthatviolatesthecompany’sacceptableusepolicy,youaretoreportittothedepartmentalmanager.

Maryisnotonlyyourcoworker,butsheisalsoagoodfriendoutsideofwork.RecentlyyoufoundthatMaryhasbeenspendingalargepartofherworkdayresearchinghealthcareandvisitingthewebsitesofassistedlivingcenters.YouknowthatMary’sfatherhasbeenhavingsomehealthproblems.Maryisveryconcernedaboutherfatherandhowbesttohandlehishealthcareissues.ButasMary’ssupervisoryouareconcernedbecausemuchofherworkdayisbeingspentonpersonalissues.Herworkisbeginningtosuffer.

DiscussionQuestions

1. Whatarethemajorethicalissuesinvolvedinthissituation?

__________________________________________________________________________________

__________________________________________________________________________________

2. WouldyoutalktoMaryasafriend?Whyorwhynot?

__________________________________________________________________________________

__________________________________________________________________________________

3. WouldyoutalktoMaryashersupervisor?Whyorwhynot?

__________________________________________________________________________________

__________________________________________________________________________________

4. WouldyoureportMary’sinappropriateuseofcompanytimetothedepartmentmanager?Whyorwhynot?

__________________________________________________________________________________

__________________________________________________________________________________

5. WouldyouignorethisandhopeMarycorrectsherworkhabits?Whyorwhynot?

__________________________________________________________________________________

__________________________________________________________________________________

6. Whatdoyouthinkisthebestapproachtotaketohandlethissituation?

__________________________________________________________________________________

__________________________________________________________________________________

Takenfrom:“BusinessEthics”,Entrepreneurship:IdeasinAction,CynthiaGreene,CengageLearning



HandoutIV.4.B,“WritingaCodeofEthicsforBusiness”

Directions:Acodeofethicscanhelpabusinessdetermineitsprioritiesandvalues.Afterreadingthehandoutbelow,completetheexercisethatfollows.

HowtoWriteaCodeofEthicsforBusiness:WhatisaCodeofEthics?Acodeofethicsisacollectionofprinciplesandpracticesthatabusinessbelievesinandaimstoliveby.Acodeofbusinessethicsusuallydoesn'tstandalone,itworksinconjunctionwithacompany'smissionstatementandmorespecificpoliciesaboutconducttogiveemployees,partners,vendors,andoutsidersanideaofwhatthecompanystandsforandhowit'smembersshouldconductthemselves.

Thekeyindistinguishingacodeofethicsfromtheseotherdocumentsistohittherightlevelofspecificity.Itshouldaddressboththeparticularnuancesofthecompany'sindustryaswellasitsbroadergoalsforsocialresponsibilityandshouldbeconcreteenoughtoserveasaguideforemployeesinaquandarywithoutlayingoutrulesforeverysituationthatcouldarise.

Policiescanincludeissuessuchasacompany'scommitmenttonotworkwithvendorswhousechildlabororareenvironmentallyharmful,notdiscriminatingintheirhiring,andnottakingbribes.Forexample,recentlywhenIkeawasopeningtheirfirstlocationinRussia,theywereapproachedbylocalbigwigsrequestingakickbacktoturntheirutilitiesonjustbeforethestore'sgrandopening.Itwouldhavebeeneasytocavetothepressureoftheirresponsibilitytostakeholders,creditors,andemployeesbutIkeahasafirmnobribespolicy.Togetaroundtheproblem,theyleasedpowergeneratorstogettheirstorelitupintimeforitskickoff.

"Acodeofethicsisaboutcorporateculture,"saysMichaelConnor,theeditorandpublisheroftheonlinemagazineBusinessEthics."[Manysmall‐tomedium‐sizedbusinesses]haveacodeofethics;it'sprobablynotwrittendowninmanycasesbutitwouldn'thurtifitwas."

Connorbelievesthatthere'snosuchthingasabusinessbeingtoosmalltobenefitfromacodeofethics.Havingacodeis"oftenviewedasaluxuryorsomethingthatisanaddedcost,"hesays."Therealitythesedaysisthatthebusinessthatdoesnothaveacodeofethicssubjectsitselftoamuchgreaterriskinitsday‐to‐dayoperationsandifthereisanunfortunateincident,theyexposethemselvestomuchgreaterrisk[from]regulatoryandprosecutorialauthorities."

“HowtowriteaCodeofEthicsforBusiness”,byJoshSpiroFeb24,2010,Inc.Magazinewww.inc.com/guides/how‐to‐write‐a‐code‐of‐ethics.html Exercise:Writeasamplecodeofethicsforabusinessinyournotebook,reflectingvaluesthataremostimportanttoyou.Thesamplecodeshouldinclude5‐10statementsdealingwiththefollowingaspectsofcorporatelife: therelationshipwithbetweenemployees,therelationshipbetweentheemployeeandthecompany;therelationshipwithconsumers,therelationshipwithgovernmentandthelaw,therelationshipbetweenthecompanyandsocietyandthecompany’srelationshipwiththeenvironment.Forexample,onestatementinthesamplecodemightsay:“Employeesshouldrespecteachother’sdiversitiesrelatedtoreligion,gender,andnationalbackground.”



HandoutIV.4.C,“SocialResponsibility”Directions:Readthehandoutbelowandcompletetheexercisethatfollows.

Latelastfall,some600businessleadersgatheredatthefifthannualmeetingofanorganizationcalledBusinessforSocialResponsibility.BSRstartedoutasasmallnetworkofprofit‐mindedliberalbusinesspeople,eagertoprovethatyoucansavetheplanet,helpthepoor,andmakemoneyatthesametime.Butinthelastfewyearstheorganizationhaswelcomedhundredsofmainstreamcompaniesintoitsranks.

Sessionafterjam‐packedsessionexaminedinnovativemeansofmakinggoodworkspayoff.Atonesession,abrightyoungmarketerfromaprominentshoecompanyexplainedthefinanciallogicofofferingfreebootstoCityYearyouthactivists(i.e.,sotheirhip,urbanfriendswouldwantsome,too);atanother,acompanyinthehightechworldpresenteddiagramsinaslideshowdemonstratinghowon‐sitechildcareandmedicalcareminimizestheamountoftimeemployeesspendawayfromtheirdesks.

Whatrapidlywasbecomingapparent,fromallthevideosandglossybrochuresandslideshowsandspeeches,wastheveryreal—andgrowing—valuethatcompaniesareplacingoncultivatinganappearanceofsocialresponsibility,whatevertheiractualpracticesmaybe.Perhapsevenmoresignificantisthevalueofbrand‐imageforfirmsmarketingconsumergoodstoabroadsegmentofthepublic.ARoper‐Conepollfoundthat78%ofAmericansweighacompany'ssocialreputationwhenmakingbuyingdecisions.Cutting‐edgemarketingstrategyprescribesbuildingrelationshipswithconsumersbyconveyinganimpressionofwhatthewholecompanystandsfor,whichissupposedtobreedlong‐lastingbrandloyalty.Conceptsofcause‐relatedmarketing(attachingabrandnametoacharitytosellproducts)andstrategicphilanthropy(makingcharitablecontributionswithcorporateinterestsinmind)arecommon.

Alookatthecontrastingcasesoftwoathleticshoecompanies—CompaniesAandBshowsjusthowimportantcleverpublicrelations,combinedwithtargetedphilanthropy,canbeforacompany.Overtheyears,CompanyAhasmademanyfriendsintheinternationalhumanrightscommunityand,byextension,everywhereelse.Thelate‐80s"HumanRightsNow!"concerttour,featuringStingandBruceSpringsteen,garneredhugepublicityinCentralEuropeandseveralThirdWorldcountries,associatingthebrandwithcompellingpopicons.AndtheHumanRightsAwardssponsoredbyCompanyA,nowinitstenthyear,recognizesandrewardsgenuinelyinspiringactivists.WinnershaveincludedRanaHusseini,aJordanianjournalistwhoexposedwidespread"honorcrimes"againstwomen(includingmurder)thatgovirtuallyunpunished;andDydierKamundoofCongo,oneofthefewactiviststochallengethemilitary'ssystematictortureofprisoners.

CompanyB,meanwhile,haslargelyneglectedtherealmofstrategicphilanthropy.Itsclumsyeffortstoappearfriendlytowomenthroughits"Ifyouletmeplay"adcampaignhavebackfired,withtheNationalOrganizationforWomenandotherwomen'sgroupsmountingacampaigntopublicizetheexploitationofwomenandgirlsinCompanyB’splantsinVietnam,China,andIndonesia.



CompanyBhasbeenthetargetofboycotts,repeatedmediainvestigations,andinternationalprotest.CompanyAhasexperiencedalmostnoneofthesethings.Tobesure,CompanyB'soveralllaborrecordisworse,butnotthatmuchworse.There'sstillplentytocomplainaboutwithCompanyA:Thecompany'scontractingfactoriesinSouthernChinaareriddledwithwage,hour,andhealthviolations,andCompanyAcontinuestoexploitchildlabortostitchsoccerballsinPakistandespiteapublicpledgetoputanendtothepractice.

Thedangeristhattherhetoricofcorporatesocialresponsibilitycanbeaneffectivedisguiseforseriouslyantisocialbehavior.Butthereis,ofcourse,anothersidetothatcoin:namelytheopportunitytopointouthypocrisyinitsextremeform.

Adaptedfrom:TheBusinessofSocialResponsibility”,byBetsyReed,May/June1998http://www.dollarsandsense.org/archives/1998/0598reed.html

Exercise:Basedonthereading,indicate,byplacingacheckmark,whichofthefollowingstatementsabouttheattitudeofbusinesstowardssocialresponsibilityistrue,false,ornotcertain.

Statement True False Not sure 1. Most businesses today care less about being

socially responsible than at any time in history

2. Among the actions businesses have taken to demonstrate their social responsible are: offering free boots to youth activists of the year, offering free child care to employees, and sponsoring human rights awards.

3. Sometimes a company’s actions to demonstrate its social responsibility cover up actions that may do harm to people.

4. Most companies believe the acting socially responsible will result in increased profits.



HandoutIV.4.D,“EthicsCases”Directions:Youwillbeassignedoneofthefivecasesbelow.Usingthesixstepsthatmakeupthe“StepsforEthicalDecisionMaking,”thatappearatthebottomofthishandout,decidewhateachpersoninthecaseyouareassignedshoulddo.

Forallfivecasesbelow,assumeyouareemployedbyXYZComputerSystems,alargecomputermanufacturingcompanywithapproximately2000employees.XYZhasasubsidiaryinalargemetropolitanareainIowa.

CASE 1: Adrian is an administrative assistant in the Human Resources Department. Her good friend, John, is applying for a job with the company and she has agreed to serve as a reference for him. John approaches her for advice on preparing for the interview. Adrian has the actual interview questions asked of all applicants and considers making him a copy of the list so he can adequately prepare. What should she do?

CASE 2: Emma works in Quality Control. Once a year, her supervisor gives away the refurbished computers to the local elementary school. No specific records are kept of this type of transaction and Emma really needs a computer for her son who is in college. Her supervisor asks her to deliver 12 computer systems to the school. What should she do?

CASE 3: Mario is the secretary in the Facilities Management Department. He has just received a new computer and wants to try it out. Though his supervisor has a strict policy about computer use for business purposes only, he wants to learn the e-mail software more thoroughly than his training can provide. One good way to do this, he figures, is to write e-mail messages to his friends and relatives until he gets the knack of it. He is caught up on all his work and only has 30 minutes left to work today. His supervisor left early. What should he do?

CASE 4: Raymond and Corey are talking in the hallway about the employee benefits program. Corey, who has had some recent financial trouble, explains to Raymond how the benefits program has a loophole that will allow him to receive some financial assistance that he really needs to help pay health care costs for his mother. Catherine, a fellow worker, overhears the conversation. Later, Catherine is approached by her supervisor who says he heard a rumor that some people were taking advantage of the company benefits program. What should she do?

CASE 5: Tom was recently hired to work as a receptionist for the front lobby. As receptionist, he is responsible for making copies for the associates. His son, Buck, comes in and needs some copies for a school project. He brought his own paper and needs 200 copies for his class. If he doesn’t bring the copies with him, he will fail the project. The company copier does not require a security key nor do they keep track of copies made by departments. What should he do?

StepsforMakingEthicalDecisions

1. Identifytheethicalissueorproblem.2. Listthefactsthathavethemostbearingonthedecision.3. Identifyanyonewhomightbeaffectedbyyourdecisionandhow.

4. Explainwhateachaffectedpersonwouldwantyoutodoabouttheissue.5. Listthreealternativeactionsandidentifythebestandworstcasescenarioforeachalternative,

anyonewhowouldbeharmedbythischoice(andhow),anyvaluesthatwouldbecompromisedbyselectingthisalternative,andanyautomaticreasonswhythisalternativeshouldnotbeselected(legalissues,rules,etc.).

6. Determineacourseofaction. Adaptedfromhttp://jcomm.uoregon.edu/~tbivins/j495/Worksheet.html

UNITIV/LESSON5

LawsRegulatingBusinesses

TimeFrame2days

Standards:NESLegalRequirements,socialandphysicalenvironment:

DescribetheelementsthathavetobeprovenforacontracttoexistIdentifyandknowwheretoobtainlawsandthesourcesoflawsthatgovernbusiness


GuidingQuestionTowhatextentarethelawsgoverningbusinesses,investors,andconsumersjustified?



examinesomeofthelegalissuesrelatedtocontracts,intellectualpropertyrights,leasing,

permits,andlicensesthatmostbusinessesfacetoday.

explaintherationalefortheregardforcontracts,intellectualproperty,leasing,permitsand

licenses,etc.

discussthesourcesofthelawsgoverningbusinessestoday(statutes,administrativelaw,

commerciallaw,andcommonlaw)andtowhatextenttheyshouldstillapplytobusinessestoday.

TeacherBackgroundAtpresent,businessesmustabidebyanumberoflaws,administrativestatutes,commonpronouncementsthatinvolveregisteringabusiness,requiringabusinesstoobtaincertainlicensestooperate,abidingbycontractualagreements,andrespectingcopyrightlaws.Somepeoplearguethattherearetoomanylawsandregulationsfoistedonbusinessandthattheyderivefromtoomanysources.Yetotherssay,businessesneedbothmorelawsandstricterlawstoguidetheiroperationstopreventabusesaffectingconsumersandinvestors.

HandoutIV.5.Aasksstudentstointerpretacartoonthatimpliesthatgovernmentregulationsaretooburdensomeonbusiness.InHandoutIV.5.B,studentsgettoexpressanopinionastowhetherornotcertainlawsthatregulatebusinessarenecessary.Finally,inHandoutIV.5.C,studentslearnsomethingaboutthekindsofcontractsthatarecommoninbusiness.IntheFollowup,studentsexaminefourofthevariedsourcesoflawsregulatingbusinessesincluding:statute,administrativelaw,commerciallaw,andcommonlaw.



TeachingStrategies/SupportingActivities DistributeHandoutIV.5.A,“Cartoon.”

– Whatishappeninginthiscartoon?

– Whatisthecartoonistsayingaboutthedifferentregulationsgoverningbusinessoperations?

– Whatwouldbeagoodtitleforthiscartoon?

– DothinkthattheAmericanpeoplebenefitmoreifbusinesshasfewerormoreregulationsto

follow?

DistributeHandoutIV.5.B,“Regulations.”Havestudentscompletetheexerciseonthehandout,thenhavethemexplaintheiranswerstothefollowing:

– Whatdidyoulearnaboutsomeoftheregulationsbusinesseshavetofollowfromthishandout?

– Explainwhichofthesethreeregulationsyoubelievearenecessary?Explain.

– Explainwhichofthesethreeregulationsyoubelieveareunnecessary?Explain.

– Whichwereyouunsureabout?

– Whichofthesethreeregulationswouldbemostburdensometobusinesses?

– Howdotheseregulationsprotectconsumers,investors,andinsurefreecompetition?

– IfnoneofthesethreeregulationsexistedwouldthathelporhurttheAmericanpeople?

DistributeHandoutIV.5.C,“Contracts.”Havestudentscompletetheexerciseonthehandout,then


– Whatdidyoulearnaboutcontractsfromthisreading?

– Whyarecontractssuchanimportantpartofdoingbusiness?

– Howdoescontractlawprotectconsumers,investors,andinsurefreecompetition?

– Whichofthecontractslistedonthispagewouldbeusedbymostbusinesses?


OnbalancedoAmericansbenefitoraretheyhurtmorebythevariouslawsregulatingbusinessinthiscountry?

FollowUpDistributeHandoutIV.5.A,“SourcesofLaws.”Havestudentsexplaintheiranswerstothefollowing:

Compareandcontrastthefourdifferentsourcesoflawsregulatingbusinesses?

Towhatextentaretheselawsnecessaryorunnecessary?

Whichofthesesourcesoflawscouldwedoawaywith?



HandoutIV.5.A,“Cartoon”Directions:Studythecartoononthehandoutandanswerthequestionsintheexercisebelow.

PropertyName:SigneWilkinson'sEditorialCartoonsCartoonistName(s):SigneWilkinsonCartoonistGroupImageNumber:SigneWilkinson62972

Takenfromhttp://www.cartoonistgroup.com/store/add.php?iid=62972

Directions:Answerthequestionsbelow.

1. Whatishappeninginthiscartoon?2. Whatmessageisthecartoonistisexpressingabouttheregulationsbusinesseshavetofollow?3. Whatwouldbeagoodtitleforthiscartoon?



HandoutIV.5.B,“Regulations”Directions:Threecommonregulationsgoverningbusinessesappearonthispage.Indicatewhetheryoubelievesuchregulationsarenecessary,unnecessary,oryouarenotsure.

Regulation and Explanation Necessary Unnecessary Not Sure

1. Registering the business with the appropriate government agency.

If you organize as a sole proprietorship or partnership and want to use a name for your business different from your own, you will need to register the business name. For example, if you start a catering business from your home and want the business known as Delicious Deliveries, you will need to register that name. In New York State you register with the County Clerk’s Office in the county where the business is located.

2. Obtaining the required licenses and/or permits.

There may be special licenses and permits required for you to operate your specific business. These documents may be issued by federal, state, or local governments. Here is an example. If you wanted to open a bakery you would need a Food Processing Establishment License, which “assures that foods processed in New York for humans are pure and wholesome and food processing establish-ments conform to proper operating and sanitary standards.” The application fee for this license is $400.

3. Observing Intellectual property copyrights. Intellectual property is the original, creative

work of an artist or inventor and may include songs, novels, artistic designs and inventions. A copyright protects against unauthorized duplication of original works. Anyone who violates the copyright law will be subject to a penalty.

Adaptedfrom:Entreskillshttp://www.oe2.nyssbdc.org/



HandoutIV.5.C,“Contracts”Directions:Acontractisalegallyenforceableagreementbetweentwoormoreparties.Acontractiscreatedwhenanofferismadeandaccepted.Eachpartytothecontractreceivessomebenefitandincurssomeobligation.Contractsmaybewrittenorverbal.Itisbesttoputagreementsinwriting.Itiseasytoforgetormisinterpretwhateachpartyagreedto.ItisadvisabletoseeklegalcounselforhelpinwritingacontractortoreviewacontractbeforeyousignitViolatingtheagreementisknownasabreachofcontract.Whenthisoccurs,thepartiesmaygotocourt,useamediator,oragreetoarbitrationtoresolvethedispute.

Exercise:Followingaresomecommonbusinesscontracts.Checkthefivetypesofcontractsthatyoubelieveyouwouldusemostinoperatingabusiness.

1. BillofSale:Adocument,suchasaninvoice,thatrecognizesthetransferofownershipofanitemorproperty.

2. PurchaseOrder:Issuedbyabuyer,thisdocumentauthorizesthepurchaseofgoodsorservices.

3. Warranty:Aguaranteethataproductorservicewilloperateordeliveraswaspromised.

4. SecurityAgreement:Aborrowerwillagreetosurrenderparticularassetstothelenderiftheborrowerfailstopayofftheloan.

5. EmploymentAgreement:Awrittenorverbalunderstandingbetweenemployerandemployeeofthedutiestobeperformedbytheemployeeinreturnforaspecificwageorsalary.

6. IndependentContractorAgreement:Acontractwithaself‐employedindividualtoperformcertainservicesforasecondparty.

7. DistributionAgreement:Acontractdealingwiththemarketingofaproduct.

8. ConfidentialityAgreement:Partiestothecontractagreenottosharewithothersthecontentofwrittenandoralcommunicationsregardingaspecifiedtransaction.

9. EmploymentSeparationAgreement:Identifiesthetermsofanemployee’sendofemploymentwithanemployer.

10. RealPropertyLease:Rentaloflandorbuildingspacebytheownertoasecondparty.

11. EquipmentLease:Rentingequipment.

12. AdvertisingAgencyAgreement:Contractwithacompanytopromoteyourproductorservice.

13. StockPurchaseAgreement:Contractbetweenaprivatecompanyanditsshareholdersregulatingthesaleandtransferofthefirm’sshares.

14. PartnershipAgreement:Acontractbetweenpartnersinabusinessstipulatingtherightsandresponsibilitiesofeachpartner.

15. JointVentureAgreement:Atemporaryarrangementbetweentwofirmstoachieveaspecificgoal.

16. AgreementtoSellaBusiness:Abusinessownersellsthecompanytoabuyer.Takenfromhttp://www.oe2.nyssbdc.org/Entreskills2/Chapters/Chapter10/Section4.php



HandoutIV.5.D,“SourcesofLaws”Directions:Readthehandoutbelow,whichdescribesfourmajorsourcesforlawregulatingbusinesses.

Therearefourmajorsourcesoflawsregulatingbusinesses.Thesesourcesare:

1. Statutes:Onthefederal,stateandlocallevelsstatutesaremadeorwrittenbytheU.S.Congress,andthestateandlocallegislativebodies.ThefederallawusuallyallowsforthecreationoffederaladministrativeagenciessuchastheInternalRevenueServicewhichisresponsibleforenforcingthetaxlawsortheEqualEmploymentOpportunityCommissionwhichischargedwithmonitoringcompaniesfordiscrimination.Thereisasimilarstructureonstateandlocallevelssuchasthestatetaxandlabordepartments.

2. AdministrativeLaw:Thefederal,stateandlocalagenciesissueregulationsthattellcitizenshowthe

lawsareinterpretedandapplied.Thereareanalogoussourcesofthelawonthestateandlocallevelssuchasthestateconstitution,thestatetaxagenciesandlabordepartment.Administrativelawgovernsthepowerandactionstakenbytheseagencies.

3. CommercialLaw:Thiscanincludetreatieswithforeigncountriesandspecificcommerciallawssuch

astheUniformCommercialCode,whichgovernscommercialtransactionsinmoststates.4. CommonLaw:Thecourtsonthefederal,state,andlocallevelsinterpretthelawandexplainhow

theyareappliedinthecasesthatcomebeforethecourt.Somelawscomenotfrominterpretationofastatute,butfromthewaybusinesshasbeendoneoverthecenturiesandhowrulesthatthecourtshaveappliedasdisputeshavebeenresolvedovertheyears.Thisisknownasthecommonlaw.Contractlawisgenerallygovernedbycommonlaw,andasspecificsocietalchangeshaveoccurred,specificlawsmaybepassedtoincorporatethesechanges.Forexample,provisionshavebeenpassedinmanystatestoallowforfaxedande‐mailsignaturesoncontractstobebinding.

Takenfrom:www.Entreskills.org



UNITIV/LESSON6

LawsProtectingWorkers

TimeFrame2days

StandardsNESLegalRequirements,socialandphysicalenvironment:Distinguishbetweenlegal,ethical,orsocialresponsibility

Explainandprovidearationaleforcompanies’policiesthatgiveallworkersequalopportunityinrecruitment,retention,andadvancement

NESSkills:FollowdirectionsWorkinteams


CreatingPowerpointslides

GuidingQuestionDothelawsprotectingworkersgotoofarornotfarenough?

MaterialsHandoutsIV.6.A‐C


discussthoselawsthatapplytoworkersregardingfairemployment,disabledworkers,sexualandracialdiscriminationandsexualharassmentintheworkplace.

explainthebenefitstobusinessofprovidingworkersequalemploymentopportunitiesandaworkplacefreeofdiscriminationandsexualharassment.

evaluatetheextenttowhichlawsprotectingworkersgotoofarornotfarenough.

TeacherBackgroundThestruggleforworker’srightshasgoneonforsometime.Whiletherehavebeenanumberofsignificantlegalachievementsrelatedtodiscriminationintheworkplace,workerswithdisabilities,andworkingconditions,manyworkersbelievethatmoreneedstobedonetomaketheworkplacemorehospitable,jobsmoresecure,andconditionssafer.

Usingthehandoutsinthislesson,studentswillexplorethelawsthatprotectemployeesfromunfairhiringorpromotionpractices,discrimination,sexualharassmentandunsafeworkingconditions.ThroughInternetresearch,studentswilldiscoveradditionallawsenactedtoprotectemployeesanddescribetheirpurpose.ThestudentswillpresenttheirfindingsinaPowerPointpresentationtotheentireclass.



TeachingStrategies/SupportingActivities DistributeHandoutIV.6.A,“Employee’sBillofRights.”Havestudentscompletetheexerciseonthe


– Askfourstudentstolistandexplaintheemployeebillofrightstheycreated.

– WhichoftheseBillsofRightscontainthoserightsthatyouconsidermostessential?

– Doyouthinkthegovernmentneedstopasssuchabillofrightsordoyouthinkmostemployees

havetheserightsnow?

DistributeHandoutIV.6.B,“Worker’sRights.”Havestudentscompletetheexerciseonthehandout.

Thenhavethem,explaintheiranswerstothefollowing:

– Inwhatwaysdidtheselawsimproveconditionsintheworkplace?

– Whichoftheselawswasthemostimportantaccomplishmentforworkingpeople”?

– Suggestalawthatshouldbeonthislist,butisn’t.

DistributeHandoutIV.6.C“Assignment.”Dividetheclassintogroupsoffoureachandassign

studentsthetaskdescribedonthehandout.Givestudentsanadequateamountoftimetopreparetheassignment.Onthedaythatthepresentationsaremade,askstudentstoexplaintheiranswerstothefollowingafterthelastpresentationhasbeencompleted:

– Whatdidyoulearnfromthesepresentationsaboutthestruggleforemployee’srights?

– Whichoftheselawsrepresentedthemostimportantachievementforworkers?

– Basedonwhatyouheard,whatadvicewouldyougivetoemployeesseekingadditionalrightsin

thefuture?


Towhatextenthavetheselawsprotectingemployee’srightsdoneenoughtoprotectworkers?

Towhatextentdoesmoreneedtobedonetoprotectworkers?

FollowUpInviteapanelconsistingofworkersandemployeestoclasstodiscussexistingconditionsintheworkplace.Focusonthequestion:Towhatextentdoworkersneedadditionalrightsthanthosealreadyprovided?



HandoutIV.6.A,“EmployeeBillofRights”Directions:Createabillofemployeerightsonthispage.Thisdocumentshouldconsistofbetween5‐10rightsallworkersareentitledto.Increatingthisbillofrights,considerissueslikehiringandfiring,benefitsandvacationpolicies,maximumhours,minimum/maximumages,discrimination,fairwages,righttojoinunions,safeworkingconditionsetc.



HandoutIV.6.B,“Worker’sRights”Directions:Thishandoutcontainsanumberofimportantrightsgrantedtoworkers.Nextto#6,suggestonelawthatshouldbepassed,butismissingfromthelistbelow.

EmployeeRightsLaws

1. FairLaborStandardsActof1938 Establishesmaximumhoursemployeescanwork,rulesforchildlabor(under16),payratesfor

overtimeworkandminimumwage.2. CivilRightsActof1964 Prohibitsdiscriminationonthebasisofrace,color,religion,sexornationalorigininhiring,

promotion,discharge,pay,benefits,training,etc.TheselawsareenforcedbytheEEOC(EqualEmploymentOpportunityCommission).

3. OccupationalSafetyandHealthActof1970 Employersmustmaintainsafeworkingconditionsforemployees.Recordsmustbekeptandtraining

mustbeprovidedtothoseworkingwithdangerousequipmentorsubstances.TheOSHA(OccupationalSafetyandHealthAdministration)inspectsfacilitiesandmakesrecommendationsforchanges.

4. AmericanDisabilitiesActof1990(TitleI) Bansdiscriminationagainstemployeesbasedondisabilities.Businesseswith15+employeesmust

accommodatetheneedsofemployeeswithdisabilities,evenifthefirmcurrentlydoesnothavedisabledemployees.

5. FamilyMedicalLeaveActof1993 Businesseswith50+employeesmustprovideuptothreemonthsofunpaidleaveifaserioushealth

conditionaffectstheemployee,theemployee’schild,ortheemployee’sparentorspouse.Maleandfemaleemployeescanalsotakeleaveintheeventofabirthoradoptionofachild.

6. Othernecessarylaws________________________________________________________________

_________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________



HandoutIV.6.C,“Assignment”Directions:Theclasswillbedividedintogroupsoffourstudentseach.EachgroupwillbeassignedoneofthefivelawsonHandoutIV.6.Bandaskedtocompletethefollowingtasks:

Researchthatlaw(theDepartmentofLaborhasalotofinformation–www.dol.gov;alsowww.osha.govandwww.ada.org),especiallyseekinginformationaboutthehistoryofthelaw,the

purposeforthelaw,theconditionthelawwasexpectedtocorrect,theextenttowhichthelawhasimprovedconditionsforworkers,whatproblemsremainrelatedtoconditionsthelawwasintendedtochange.

Preparea10‐to15‐minutepresentation,inwhicheachgroupmemberhasasubstantialrole,explainingtheinformationgatheredinyourresearch

CreateatleastthreePowerPointslidestoaccompanythepresentation

UNITIV/LESSON7

RegulatingBusinessesActivities

TimeFrame2days

StandardsNES:LegalRequirementsandtheSocialandPhysicalEnvironment:

Explainhowgovernmentregulatesbusinesstoencouragefreecompetitionandprotectrightsofconsumersandinvestors.


Preparewrittenreports

GuidingQuestionInwhatwaysareinvestorsandconsumersprotectedintheirdealingswithbusiness?



discusslawsthatregulateandencouragefreetrade.

explainhowthegovernmentworkstoprotectbusinessinvestors.

examinetherightsconsumershaveinbusinesstransactions.

TeacherBackgroundPriortothe20thcentury,thereweremanywhoarguedthatitwasinthecountry’sbestinteresttoleavebusinessalone.Itwasthoughtthatbypursuingapolicyoflaissez‐faireAmericansasawholewouldbenefit.TheProgressiveEraoftheearly20thcentury,resultingfromtheabusesengenderedbytheAgeofIndustrialism,rejectedthelaissez‐fairepoliciesinfavorofamoreactivegovernmentroleinregulatingbusinessactivities.Thismoreactiveroleresultedinlawspassedthatwereintendedtoprotectfairtrade,theconsumer,andtheinvestor.

HandoutIV.7.Apresentsstudentswithalistofcommonconsumercomplaintsandasksthemtocomparetheirexperienceswiththoseofotherconsumers.InHandoutIV.7.B,theclasslooksatsomeconsumerprotectionlawsandevaluatestheeffectivenessofthoselaws.TheShermanandClaytonAnti‐trustActsareofferedinHandoutIV.7.C,withstudentsbeinggiventhetaskofapplyingthoselawstoasamplecase.IntheFollow‐Upexercise,theclasswillhavetheopportunitytoexaminethelegalprotectionaffordedtoinvestors.

TeachingStrategies/SupportingActivities DistributeHandoutIV.7.A,“ConsumerComplaints.”Havestudentscompletetheexerciseonthe




– Whatconclusionscanyoudrawfromreadingthispageofconsumercomplaints?

– Towhatextentwastheconsumercomplaintyouidentifiedsimilartothosementionedonthispage?

– Whoismosttoblameforthesecomplaints:theconsumerorthebusinessowner?

DistributeHandoutIV.7.B,“ConsumerProtection.”Havestudentsexplaintheiranswerstothe

following:

– Whataretheseconsumerprotectionlawsabout?

– TowhatextentdotheseconsumerprotectionlawslimitthekindofconsumerproblemsmentionedinHandoutIV.7.A?

– Howcanyouexplainthelargeamountofconsumercomplaintsdespitetheseconsumer

protectionlaws?

DistributeHandoutIV.7.C,“Anti‐TrustLaws.”Havestudentscompletetheexerciseonthehandout,

thenhavethemexplaintheiranswerstothefollowing:

– Howweretheselawsintendedtopromotefaircompetitionamongbusinesses?

– InwhatwaysdidtheClaytonActimproveonwhatwasincludedinSherman?

– ArelawslikeShermanandClaytonnecessaryorwouldwebetteroffwithoutthem?

– Whatweretheimportantfactsinthecaseusedintheexercise?

– ApplyingtheShermanandClaytonActs,howwouldyoudecidethiscase?Didtheagreement

betweenthetwogasstationownersviolateeithertheShermanorClaytonActs?


Wouldconsumersandinvestorsbebetteroffifthegovernmentletbusinessaloneandpassedfewerlawsofthekinddiscussedinthislesson?

FollowUpAskstudentstowriteaone‐pagepaperdescribinghowtheSecuritiesExchangeActandtheDoddFrankActprotectinvestors.Inthepapermakesurestudentsdiscussinvestor’srightstoaccessfinancialinformationaboutthesecuritiesbeingofferedtothepublicandtheprohibitionagainstfraudulentpracticesandmisrepresentation.Inaddition,askstudentstoexplaintheiranswerstothefollowing:

HowdotheSecuritiesExchangeActandDodd‐Franklawhelpprotectinvestors?

Inlightoftherecentfinancialcrisisinwhichmanyinvestorslostagreatdealofmoney,dotheseacts

protectinvestorsenough?



HandoutVI.7.A,“ConsumerComplaints”Directions:Afterreadingthehandoutbelow,completetheexercisebelow.

Top 10 Consumer Complaints ByJuliannePepitone,staffreporterJuly27,2010:Cnnfn.com

Here'sthelistofthetop10areasthatgeneratedthemostconsumercomplaintslastyear.

No.1:Autos.Car‐relatedcomplaintswerealsotheNo.1spotin2008.Amongthefrustrations:misrepresentingvehiclesforsale;lemons;faultyrepairs;leasingandtowingdisputes.

No.2:Credit/Debt.Billingandfeedisputes;mortgage‐relatedfraud;creditrepair;debt‐reliefservices;predatorylending;illegalorabusivedebtcollectiontactics.

No.3:Homeimprovement/Construction.Shoddywork;failuretostartorcompletethejob.

No.4:Utilities.Serviceproblemsorbillingdisputeswithphone,cable,satellite,Internet,electricandgasservices.

No.5:Retailsales.Falseadvertisingandotherdeceptivepractices;defectivemerchandise;problemswithrebates,coupons,giftcardsandgiftcertificates;failuretodeliver.

No.6:Services.Misrepresentations;shoddywork;failuretohaverequiredlicenses;failuretoperform.

No.7:Internetsales.Misrepresentationsorotherdeceptivepractice;failuretodeliveronlinepurchases.

No.8:Householdgoods.Misrepresentations;failuretodeliver;faultyrepairsinconnectionwithfurnitureorappliances.

No.9(tie):Landlord/Tenant.Unhealthyorunsafeconditions;failuretomakerepairsorprovidepromisedamenities;depositandrentdisputes;illegalevictiontactics.

No.9(tie):Homesolicitations.Misrepresentationsorfailuretodeliverindoor‐to‐door,telemarketingormailsolicitations;do‐not‐callviolations.

No.10:Healthproducts/services.Misleadingclaims;unlicensedpractitioners;failuretodeliver.

Exercise:Identifyaconsumercomplaintinvolvingasituationthathasoccurredtoyou,afamilymember,etc.Inwriting,describethesituation,theactionyoutook,andtheoutcome.



HandoutIV.7.B,“ConsumerProtection”Directions:Readthehandoutbelow,detailingalistofconsumerprotectionlaws.

Federal Consumer Protection Laws TheWheelerLeaActThe1938amendmenttotheFederalTradeCommissionactauthorizedtheFTCtorestrictunfairordeceptiveacts;alsocalledtheadvertisingact.Untilthisamendmentwaspassed,theFTCcouldonlyrestrictpracticesthatwereunfairtocompetitors.ThisbroadenedtheFTC'spowerstoincludeprotectionforconsumersfromfalseadvertisingpractices.

TheFederalFoodDrugandCosmeticActof1938Thislawbansthesaleofimpure,improperlylabeled,falselyguaranteedandunhealthfulfoods,drugsandcosmetics.TheFDAenforcestheselaws.

TheConsumerProductSafetyActof1972Thislawsetssafetystandardsforproductsotherthanfoodordrugs.ItcreatedTheUnitedStatesConsumerProductSafetyCommission(CPSC)asanindependentagencyoftheUnitedStatesgovernmenttoprotectagainstunreasonablerisksofinjuriesassociatedwithconsumerproducts.Theyareresponsibleforproductrecalls.

TruthinLendingActof1968Lendersmustprovidedetailsonthelendingarrangement,specificallycostssuchasfinancechargesandtheAPR(AnnualPercentageRate).

FairCreditBillingActof1974Thislawestablishedproceduresforresolvingbillingerrorsonyourcreditcardaccount.

CreditCARDActof2009TheCreditCardAccountabilityResponsibilityandDisclosure(CARD)Actof2009isafederallawpassedbytheUnitedStatesCongressandsignedbyPresidentBarackObamaonMay22,2009.Itiscomprehensivecreditcardreformlegislationthataims"...toestablishfairandtransparentpracticesrelatingtotheextensionofcreditunderanopenendconsumercreditplan,andforotherpurposes."



HandoutIV.7.C,“PromotingFairCompetition”Directions:Readthehandoutbelowandcompletetheexercisethatfollows:

Anti-trust (anti-monopoly) laws prevent unfair competition by prohibiting businesses from creating an environment in which businesses cannot freely compete. Two major anti-trust laws were the Sherman Act (1890) and the Clayton Act (1914).

The Sherman Anti-Trust Act:

1. Prohibited companies from entering into contracts, or alliances/conspiracies to restrain trade by price fixing, dividing up markets and territories or boycotting products.

2. Prevented a competitor from abusing power when it has obtained a monopoly or 75% of the market share.

The Clayton Act added to the Sherman Act by:

1. Preventing businesses from entering into "tying" agreements that do not allow customers or suppliers to deal with other companies and

2. Permitting strikes, peaceful picketing, and preventing unions from being treated as “illegal trusts” as was allowed in the Sherman Act.

Exercise:UsingeithertheShermanorClaytonActsasaguidehowwouldyoudecidewhetherornotGasstationsA&B,violatedeithertheShermanorClaytonActsinthefollowingcase.

GasstationsA&Bselltwodifferentbrandsofgasoline.Inordertoincreasehersales,theownerofgasstationAbeginscuttingprices.Sothathewillnotlosemorebusiness,theownerofgasstationBstartstodothesamething.Soonpricesgetsolowthatneithergasstationismakingmuchofaprofit.Asaresult,theownerofBapproachestheownerofAandsuggestsanendtothepricewar.BsuggeststhefollowingtoA,“Whydon’twestopthisfoolishnessandjustagreethatneitherofuswillchargemorethan“x”dollarsand“y”cents,norlessthan“a”dollarsand“b”centsforagallonofgas.Inthisway,we’llbothstayinbusinessandmakeadecentprofit.”

UNITIV/LESSON8

TheEconomy,Society,andtheEnvironment

TimeFrame

2days


ExplainhowbusinessactivityimpactstheenvironmentNESSkills:Followdirections


GuidingQuestionsTowhatextentshouldthewellbeingofsocietyandtheplanetguidetheactivitiesofbusinesses?



definethetermsustainabilityandhowitrelatestovariousbusinessactivities.

explaintheconceptofcarryingcapacityasitrelatestohumans,naturalsystems,andbusinesses.

discusstheconnectionsbetweenhumanactivitiesandtheplanet’scarryingcapacityforlifeandforhumans.

examinethemeansbywhichbusinessescanvarytheirresourcesusedtoaltertheplanet’scarrying

capacity.

TeacherBackgroundBusinessactivitiescanaffecttheenvironmenteitherpositivelyornegativelytoaverylargedegree.Howeco‐friendlyacompanyiswhenitcomestousingenergytoheatandcoolthebuilding,tobringproductsintoit,andtoremovewastefromithasamajorimpactonthelocalcommunity,thenationandtheplanet.

Inthislessonstudentswillbecomefamiliarconceptslikecarryingcapacity,naturalcapital,andsustainabilityandtheirrelevancetotheworldofbusiness.UsingHandoutsIV.8.A‐D,theclasswillfocusonreading,writingandcriticalthinkingskills.



TeachingStrategies/SupportingActivities DistributeHandoutIV.8.A,“CarryingCapacity.”Havestudentsexplaintheiranswerstothefollowing:

– BasedonHandoutIV.8.A,howwouldyoudescribetheconceptofcarryingcapacity?

– Towhatextentcanbusinessaffectthecarryingcapacity?

– Whataresomeofthethingsbusinesscandotopreserveasmuchcarryingcapacityaspossible?

– Towhatextentaremostbusinessestodaypreservingordiminishingtheearth’scarryingcapacity?

DistributeHandoutIV.8.B,“LivingBeyondNature’sMeans.”Havestudentscompletetheexerciseonthehandout,thenhavethemexplaintheiranswerstothefollowing:

– WhyisHandoutIV.8.Btitled“LivingBeyondNature’sMeans?”

– Inwhatwayshavetheactionstakenbybusinessexploitedthisnaturalcapitalfasterthanitcanbereplenished(fasterthantheEarthcanreplaceit)?

– Towhatextentarebusinessestoblameforuslivingbeyondnature’smeans?

– Canbusinessreversethisexploitationofnaturalcapitalwithouthurtingtheirprofits?

DistributeHandoutIV.8.C,“Flat‐EarthEconomics.”Havestudentscompletetheexerciseonthe


– Basedonthishandout,howwouldyoudescribe“Flat‐EarthEconomics?”

– Howdoesflat‐eartheconomicscomparetothe“ecologicaleconomic”model?

– Whataresomeofthethingsbusinessescandotofollowtheecologicaleconomicmodelasopposedtotheflat‐eartheconomicmodel?

DistributeHandoutIV.8.D,“Sustainability.”Havestudentscompletetheexerciseonthehandout,thenhavethemexplaintheiranswerstothefollowing:

– Whatdidyoulearnaboutsustainabilityfromreadingthesedefinitions?

– Whatdothesedefinitionshaveincommonwitheachother?

– Basedonthesedefinitions,giveadefinitionofsustainabilityinyourownwords?

– Towhatextentaremostbusinessesenemiesoralliesinthefightforsustainability?

Summary/AssessmentAskstudentsexplaintheiranswerstothefollowing:

Towhatextentarebusinessesenemiesoralliesinthefighttopreservetheenvironment?

FollowUpAskstudenttowriteaone‐pagepapersuggestingfivethingsthatbusinessescandotosavetheenvironmentfromfurtherdestruction.



HandoutIV.8.A,“CarryingCapacity”Directions:Readthehandoutbelow.

Carrying Capacity

CarryingCapacity:Themaximumpopulationofaspeciesthatcanbesustainedindefinitely(overalongperiodoftime)inagivenhabitatorplace.

OurEcologicalFootprint:ReducingHumanImpactontheEarth,MathisWackernagelandWilliamRees;illustrationsbyPhileTestemale(NewSocietyPublishers,1996)http://www.newsociety.com.



HandoutIV.8.B,“LivingBeyondNature’sMeans”Directions:Readthehandoutbelowandcompletetheexerciseatthebottomofthispage.

Living Beyond Nature’s Means

TECHNOLOGICALLY ACCELERATED RESOURCE USE

SUSTAINABLE RESOURCE USE

Throughphotosynthesis,theEarthovertimebuiltupavaststockofessential“naturalcapital”whichsupportslifeonourplanet.However,moderntechnologyenableshumanstoexploitthisnaturalcapitalfasterthanitcanbereplenished(fasterthantheEarthcanreplaceit).

Exercise:Inoneormoresentences,describehowtechnicallyacceleratedresourceuseleadsto“livingbeyondnature’smeans.”________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________



HandoutIV.8.C,“FlatEarthEconomics”Directions:Readthehandoutbelowandcompletetheexercisethatfollows.

“Flat-Earth” Economics

ConventionaleconomicsseestheEarthasalimitlessflatplaneimposingnoreallimitsoneconomicgrowth.Bycontrast,anewer,“ecological”economicmodelseestheworldasafinitesphere.AllresourcescomefromtheEarthandarereturnedtoitindegradedform.Materialgrowthisthereforelimitedbytheecosystem’scarryingcapacity—itscapacitytoproduceresources,performecosystemservices,andprocesswastes.

OurEcologicalFootprint:ReducingHumanImpactontheEarth,MathisWackernagelandWilliamRees;illustrationsbyPhileTestemale(NewSocietyPublishers,1996)http://www.newsociety.com.

Exercise:Inthechartbelowlistthemajordifferencebetween“flateartheconomics”andthe“ecological”economicmodel.

Flat-earth Economics Ecological Economic Model



HandoutIV.8.D,“Sustainability”Directions:Readthehandoutbelowandcompletetheexercisethatfollows

DefinitionsofSustainability

1. “Improvingthequalityoflifewhilelivingwithinthecarryingcapacityofourecosystems.”CaringfortheEarth:AStrategyforSustainableLiving.(Gland,Switzerland:1991).(IUCN‐TheWorldConservationUnion,UnitedNationsEnvironmentProgramme,WorldWideFundforNature).

2. “Sustainabilityis‘long‐term,cultural,economicandenvironmentalhealthandvitality’withemphasisonlong‐term,‘togetherwiththeimportanceoflinkingoursocial,financial,andenvironmentalwell‐being.’”www.scn.org/sustainable/susthome.html

3. “Sustainabilityencompassesthesimpleprincipleoftakingfromtheearthonlywhatitcanprovideindefinitely,thusleavingfuturegenerationsnolessthanwehaveaccesstoourselves.”www.foe‐scotland.org.uk/campaigns/sustainable‐scot/

4. “Sustainabilitymaybedescribedasourresponsibilitytoproceedinawaythatwillsustainlifethatwillallowourchildren,grandchildren,andgreat‐grandchildrentolivecomfortablyinafriendly,clean,andhealthyworld.”www.avenue.org/Gov/TJPDC/sustain.html

5. “Sustainabilityismeetingtheneedsofallhumans,beingabletodosoonafiniteplanetforgenerationstocomewhileensuringsomedegreeofopennessandflexibilitytoadapttochangingcircumstances.”

—JerrySturmer,SantaBarbaraSouthCoastCommunityIndicators

6. “Sustainabilityisadynamicconditionwhichrequiresabasicunderstandingoftheinterconnections

andinterdependencyamongecological,economicandsocialsystems.

7. Sustainabilitymeansprovidingarichqualityoflifeforall,andaccomplishingthiswithinthemeansofnature.”—JaimieP.Cloud,SustainabilityEducationCenter,www.sustainabilityed.org

8. “Asustainablesocietyisonethatisfar‐seeingenough,flexibleenough,andwiseenoughnottoundermineeitheritsphysicaloritssocialsystemsofsupport.”—DonellaH.Meadows,etal.,TheSustainabilityInstitute,“BeyondtheLimits”

9. “Sustainabledevelopmentisdevelopmentthatmeetstheneedsofthepresentwithout

compromisingtheabilityoffuturegenerationstomeettheirownneeds.”WorldCommissiononEnvironmentandDevelopment.OurCommonFuture.(Oxford,GreatBritain:OxfordUniversityPress,1987),p.8.(FrequentlyreferredtoastheBrundtlandReportafterGroHarlemBrundtland)

10. “SustainableDevelopmentispositivechangewhichdoesnotunderminetheenvironmentalorsocialsystemsonwhichwedepend.Itrequiresacoordinatedapproachtoplanningandpolicymakingthatinvolvespublicparticipation.Itssuccessdependsonwidespreadunderstandingoftherelationshipbetweenpeopleandenvironmentandthewilltomakenecessarychanges.”—HamiltonWentworthRegionalCouncil,www.hamilton‐went.on.ca/vis2020/thevis.pdf



Exercise:Inthespacebelowwriteyourdefinitionofsustainability.

UNITIV/LESSON9

TaxConsequences

TimeFrame2days


Describethenatureofbusiness’staxandreportingrequirementsNESSkills:Followdirections


GuidingQuestionsHowdoindividualandbusinesstaxesaffecttheentrepreneur?



explaintaxrequirementsfordifferentformsofbusinessownership.

examinetheargumentsforandagainstcuttingbusinesstaxesastheyapplytopromotingeconomicgrowth.

takeapositionontheissueofwhethercuttingbusinesstaxesisgoodfortheeconomy.

TeacherBackgroundInthewakeoftheGreatRecessionandtheimportanceofreducinggovernmentdebt,oneofthemostdivisiveargumentsrelatestotheissueoftaxingbusinesses.Specifically,manyarguethatcuttingbusinesstaxeswillstimulategrowth,whiletheothersidecontendstheraisingtaxesisnecessarytocutdeficitsandpromoteagrowingeconomy.

HandoutIV.9.Apresentsacartoonaboutbusinesstaxesandaskstheclasstointerpretthecartoonist’sopinionaboutsuchtaxes.InHandoutIV.9.B,studentsexaminethemyriadoftaxesthatconfrontbusinesspeopleandtakeapositionastowhichofthosetaxesismostnecessary.TheargumentaboutwhetherbusinesstaxespromoteorretardeconomicgrowthispresentedinHandoutIV.9.C.



TeachingStrategies/SupportingActivities DistributeHandoutIV.9.A,“Cartoon.”Havestudentscompletetheexerciseonthehandout,then


– Whodothecharactersinthiscartoonrepresent?

– Whatishappeninginthiscartoon?

– Whatistheopinionofthecartoonistabouttaxesonsmallbusinesses?

DistributeHandoutIV.9.B,“Taxes.”Havestudentscompletetheexerciseonthehandout,thenhavethemexplaintheiranswerstothefollowing:

– Whatdidyoulearnabouttaxesthatbusinesspeoplepayfromthishandout?

– Whichofthetaxeslisteddidyoufindnecessary?

– Whichdidyoufindunnecessary?

– Whatotherinformationwouldyouneedtodecidewhetherornotthesetaxesarenecessary?

– Towhatextentdoyoubelievetaxingbusinesseshelpsorhurtstheeconomy?

DistributeHandoutIV.9.C,“ArgumentsonTaxes.”Havestudentscompletetheexerciseonthis

handout,thenhavestudentsexplaintheiranswerstothefollowing:

– Whatisthishandoutabout?

– Whatisthemostconvincingargumentinfavorofcuttingtaxesonbusinessesasspurtoeconomicgrowth?

– Whatisthemostconvincingargumentinfavorofraisingbusinesstaxesasaspurtoeconomic

growth?


Basedonwhatyoulearnedinthislesson,whatshouldapersonopeninghisorherfirstbusinessknowabouttaxes?

FollowUpAssignthefollowingprojecttostudents:

Gatherresearchontheissueofwhetherornotcuttingtaxesonbusinesspromoteseconomicgrowthandjobs.

Writeaneditorialofatleasttwoparagraphsgivingyouropinionastowhethercuttingtaxesonbusinesspromoteseconomicgrowth.Intheeditorial,consideratleastthreeargumentsfavoring

andthreeargumentsopposingcuttingtaxesonbusinessasameanstospurringeconomicgrowth.



HandoutIV.9.A,“Cartoon”Directions:Studythecartoononthishandoutandcompletetheexercisebelow

Exercise:Answerthefollowingquestionsaboutthecartoonabove.

1. Whodothetwocharactersinthecartoonrepresent?2. Whatactionsarehappeninginthecartoon?3. Whatisthemessagethecartoonististryingtoconveyabouttaxesonsmallbusinesses?4. Whatwouldbeagoodtitleforthiscartoon?Takenfrom:http://www.cartoonaday.com/u‐s‐government‐wants‐to‐raise‐taxes‐to‐help‐small‐business‐cartoon/



HandoutIV.9.B,“Taxes”Directions:Studythefourtypesoftaxespaidbybusinessesthatarediscussedinthishandout.Inthespacetotheleftofthetaxwriteoneofthefollowingletterstogiveyouropinionastowhetherthattaxis:N(necessary),U(unnecessary),or?(notsureorneedmoreinformation).

BusinessTaxesTheformofbusinessyouoperatedetermineswhattaxesyoumustpayandhowyoupaythem.Thefollowingarethefourgeneraltypesofbusinesstaxes.

IncomeTax

Self‐EmploymentTax(forindividualswhoareself‐employed)

PayrollTaxes

ExciseTax

1._________IncomeTax

Allbusinessesexceptpartnershipsmustfileanannualincometaxreturn.Partnershipsfileaninformationreturn(Partnersthemselvesareresponsibleforthepaymentsoftaxesonanyprofitearned.).

Thefederalincometaxisapay‐as‐you‐gotax.Youmustpaythetaxasyouearnorreceiveincomeduringtheyear.Anemployeeusuallyhasincometaxwithheldfromhisorherpay.Estimatedtax

Generally,youmustpaytaxesonincome,includingself‐employmenttax(discussednext),bymakingregularpaymentsofestimatedtaxduringtheyear.

2._________Self‐EmploymentTax

Self‐employmenttax(SEtax)isasocialsecurityandMedicaretaxprimarilyforindividualswhoworkforthemselves.YourpaymentsofSEtaxcontributetoyourcoverageunderthesocialsecuritysystem.Socialsecuritycoverageprovidesyouwithretirementbenefits,disabilitybenefits,survivorbenefits,andhospitalinsurance(Medicare)benefits.Generally,youmustpaySEtaxifeitherofthefollowingapplies.

Ifyournetearningsfromself‐employmentwere$400ormore.

Ifyouworkforachurchoraqualifiedchurch‐controlledorganization(otherthanasaministeror

memberofareligiousorder)thatelectedanexemptionfromSocialSecurityandMedicaretaxes,youaresubjecttoSEtaxifyoureceive$108.28ormoreinwagesfromthechurchororganization.



3._________PayrollTaxes

Whenyouhaveemployees,youastheemployerhavecertainemploymenttaxresponsibilitiesthatyoumustpayandformsyoumustfile.Payrolltaxesincludethefollowing:

SocialSecurityandMedicaretaxes(Thefullamountofthesetaxesissharedbytheemployerand

employee.)

FederalUnemployment(FUTA)tax

4._________ExciseTax

Thissectiondescribestheexcisetaxesyoumayhavetopay.Excisetaxesrelatetospecificproductsorservices.Youwouldhavetopaysuchtaxesifyou:

Manufactureorsellcertainproducts.

Operatecertainkindsofbusinesses.

Usevariouskindsofequipment,facilities,orproducts.

Receivepaymentforcertainservices.

Takenfrom:http://www.irs.gov/businesses/small/article/0,,id=98966,00.html



HandoutIV.9.C,“TaxesandGrowth”Directions:Formanyyearspeoplehavearguedaboutwhetherornottaxesonbusinesspromoteeconomicgrowthandjobs.Inthesourcebelow(relatedtothestateofMichigan),circlethebestargumentforandthebestargumentagainstraisingtaxesonbusiness.

Governor of Michigan, Rick Snyder, said the Michigan Business Tax was bad for business.

“I propose replacing it with a flat six-percent corporate income tax. Let’s take a job-killer environment; let’s start creating jobs.”

He said it on the campaign trail. He made the point to business leaders.

“You’re paying tax on your individual tax return and then you’re paying a second tax. And for some people the effective tax rate could be over ten-percent. That is not how you create a job.”

And after the tax restructuring was approved by the legislature, Governor Snyder made the point again during a joint news conference with fellow-Republicans.

“It’s about really energizing our private sector to go out and create jobs because government doesn’t create jobs. And we’re all in fierce agreement on that principle.”

But does cutting the business tax for most small business actually create jobs? To be fair, Republicans have clarified that cutting business taxes is a factor in creating jobs and they don’t want to predict how many or when those jobs will be created.

Now, I certainly don’t know whether cutting business taxes will create jobs, so I emailed every living Nobel Prize winning economist in the country and asked, “Is that true? Will cutting the state business tax for most businesses create jobs?”

I heard from about a fourth of the Nobel-laureate economists and the response was a mixed bag. Some said, ‘Absolutely. Cutting the business tax will create jobs.’ Some said, ‘Not necessarily. State taxes are just one small factor in job creation.’ Others said, ‘That goes beyond my field of study. I couldn’t comment on that.’

So, the best and brightest economists in the country—at least as measured by the Nobel committee—don’t agree on whether cutting a state business tax will create jobs.

Another way to determine whether cutting taxes will create jobs is to ask the business people whether the tax restructuring in Michigan will prompt them to hire. That’s what the Small Business Association of Michigan did. Rob Fowler is the President and CEO of the group. His association surveyed its membership. About 450 small business responded to questions about how they might use the money they’ll save under this new tax restructuring.

“Add employees, 48% said yes. Expand your business, 52% said yes. Buy new equipment, 51% said yes. Raise wages and benefits for your current employees, 50% said yes. Realize the profits, that is, take the profits, 50% said yes. And obviously those don’t add up to a hundred, so what they were telling us is, ‘We’ll do some combination of these things.’ I would argue all of those things are positive for the Michigan economy, including ‘realize the profits.’” Now, keep in mind, the new business tax doesn’t go into effect until the start of next year. So, this is what these small business owners say they intend to do.

So,where’sthatleaveus?Thefactis,noteventheNobel‐winningeconomistscanagreeonananswer.Thestatementcuttingbusinesstaxescreatesjobsisnotaproveneconomicprinciple.It’sapoliticalstatement,asortofarticleoffaith.Ahope.

Taken:http://michiganradio.org/post/nobel‐economists‐mixed‐taxes‐and‐jobs‐equation‐0

UNITIV/LESSON10

Insurance

TimeFrame2days



Prepareawrittenreport

GuidingQuestionsHowmuchandwhatkindsofinsurancedobusinessesneed?



describethebasicprinciplesofinsuranceandtheimportanceofinsurancetoentrepreneurs.

explainthedifferentkindsofinsurancerequiredbybusiness.

discusssuggestionsforkeepinginsurancepremiumsaslowaspossible.

TeacherBackgroundWhenitcomestothepurchaseofinsurance,thebusinessownermustbea)preparedtopurchasehowevermuchinsuranceisnecessaryandb)abletoarticulateaclearstatementofwhattheirbusinessdoes—andstaywithintheboundariesofthatstatement.Otherwise,heorshewillfacethepossibilityofpurchasingunneededinsurancecoverageornothavingtheappropriatecoverage.

InHandoutIV.10.A,studentscomparetheirdefinitionofinsurancewithanactualdefinition.

HandoutIV.10.Bpresentsstudentswithalistofthekindsofinsurancemostbusinessownersbuyfortheircompaniesandemployees.Finally,HandoutIV.10.Casksstudentstodeterminethemostvaluablesuggestionsforreducingbusinessinsurancecosts.

TeachingStrategies/SupportingActivities Askstudentstoexplaintheiranswerstothefollowing:

– Howwouldyoudefinetheword“insurance?”

– Whatkindsofinsurancedoyouthinkmostbusinessesneed?

– Howimportantisitthatbusinesseshavethenecessaryinsurance?



DistributeHandoutIV.10.A,“WhatIsInsurance?”Havestudentscompletetheexerciseonthe


– Howdoesthisdefinitioncomparetotheonewegaveearlier?

– Whatarethefivekeywordsyoucircledinthisdefinition?

– Accordingtothisdefinition,whatroledoesriskplayinthepurchaseofinsurance.

– Howdoesthisslideexplainhowtheholdersofinsurancepoliciesarepaidwhentheyhavea

loss?

– Inyourownwords,howwouldyouexplaintheconceptofinsurancebasedonthisslide?

DistributeHandoutIV.10.B,“TypesofBusinessInsurance.”Havestudentscompletetheexerciseonthehandout,thenhavethemexplaintheiranswerstothefollowing:

– Whatdidyoulearnaboutbusinessinsurancefromthishandout?

– Whatthesimilaritiesanddifferencesbetweenthevarioustypesofinsurancelisted?

– Whatisthemostessentialtypeofinsuranceforabusiness?

– Whichistheformofinsurance,which,ifyouhadto,youcoulddowithout?

DistributeHandoutIV.10.C,“SocialInsurance.”Havestudentscompletetheexerciseonthehandout,thenhavestudentsexplaintheiranswerstothefollowing:

– Whatisthehandoutabout?

– Basedonthehandouthowwouldyoudescribesocialinsurance?

– Inwhatwaysdoessocialinsuranceimpactonbusinessesandtheiremployees?

– Whichofthetypesofinsurancelisteddoyouthinkthegovernmentshouldcontinuetopayfor?Whichofthefivetypesofinsurancedoyouthinkthegovernmentshouldnolongerpayfor?

DistributeHandoutIV.10.D,“KeepingInsuranceCostsDown.”Havestudentscompletetheexerciseonthehandout,thenhavethemexplaintheiranswerstothefollowing:

– Summarizewhatyoulearnedfromthishandoutaboutkeepinginsurancecostsdown.

– Whydoesthewriterofthispiecesay,“Organizationisthefirststepinreducinginsurancepremiums?”

– Basedonthislist,whatwasthebestsuggestionyoufoundforkeepingcostsdown?

Summary/AssessmentAskstudentstoexplaintheiranswertothefollowingquestion.

Whymightthedecisionaboutthetypeandamountofinsurancetobuybeoneofthemostimportantdecisionsabusinessownerhastomake?

FollowUpInviteaninsuranceagentforsmallbusinessandabusinessownertoclasstodiscussimportantdecisionsthatbusinessownershavetomakeaboutinsurance.



HandoutIV.10.A,“WhatIsInsurance?”Directions:Underlinethefivekeywordsappearinginthedefinitionbelow,necessarytounderstandingthemeaningof“insurance.”

• A financial service allowing individuals to pool their exposure to risks of economic loss resulting from the occurrence of uncontrollable events such as fire, death, earthquakes, etc.

• Essentially, an individual pays a premium that buys guarantees of compensation for economic loss due to the occurrence of a predefined set of events.

• The premiums of the many are pooled and the losses of the few are compensated from the pool.

Takenfrom:bestpracticesconferenceJohnWipf.ppt



HandoutIV.10.B,“TypesofBusinessInsurance”Directions:Listedbelowarethemostcommontypesofbusinessinsurance.Assumethatyouwereopeningyourfirstbusinessandcouldaffordtopurchaseonlythreetypesofinsurancefromthelistbelow.Circlethethreetypesyouwouldpurchase.

Businessinsuranceisabroaddescriptionthatcanbebrokendownintoalistofninetypesofinsurancepolicies.Thoseninetypesofpolicieswillbebrieflyexplainedhere.

PropertyInsurancePropertyinsuranceinsuresagainstlossordamagetothelocationofthebusinessanditscontents.Itcanalsoinsurethepropertyofothersinyourcontrolwhenthelossoccurs.Propertyinsurancecanbeforaspecificrisk.Forexample,afireinsurancepolicyinsuresonlyagainstafirelosstothelocation.Atornadoisnotafireand,therefore,thatlosswouldnotbecovered.Theinsuredlocationcanbeowned,leasedorrented.

CasualtyInsuranceSomeinsurerswilllumppropertyandcasualtyinsurancetogetherandrefertothecoverageaspropertyandcasualtyinsurance.Infact,packagedpoliciesofpropertyandcasualtyareoftenthebestpurchaseabusinessownercanmake.Casualtyinsuranceinsuresagainstlossordamagetothebusiness.

LiabilityInsuranceLiabilityinsuranceinsuresagainstliabilitylegallyimposeduponyourbusinessbecauseofthenegligenceofthebusinessoritsemployees.Putanotherway,itprotectsyourbusinesswhenthebusinessissuedfornegligence.

CommercialAutoYourpersonalautomobilepolicydoesNOTcovervehiclesusedbyyourbusiness.Ifyourbusinessusesvehiclesoranythingthatisrequiredtobetitledbyyourstate,thenyouneedacommercialautopolicy.Commercialautocoverageinsuresagainstpropertydamagetovehiclesanddamagecausedtoothersbythosevehicles.

WorkersCompensationYouwillneedtoinsureyouremployeesagainston‐the‐jobinjuries.Everystateisdifferent.But,moststateshaveputintoplacesomeformofworkers'compensationsystem.Workers'compensationisasystemwheretheemployeeisnotallowed,bystatute,tosuetheiremployerforon‐the‐jobinjuries;but,inreturn,theemployermustparticipateinasystemthatprovidesnearlyautomaticpaymenttotheemployeeincaseofinjuryformedicalbillsanddamages.Therearemanyoptionsforworkers'compensationcoverage.Somestatesallowanemployertoopt‐outofthesystemiftheemployerisselfinsured,somerunthesystemthroughprivateinsurerswhileothersusestateagencies.

BusinessInterruptionBusinessinterruptioninsuranceinsuresagainstlossordamagetothecashflowandprofitofabusinesscausedbythebusinessbeingunabletooperatebecauseofinterruption.Theeasiestexampleistothinkaboutacriticalpieceofmachinerybeingstruckbylightning.Therepairstothemachinemaybecoveredbyothercoveragesuchaspropertyorcasualtyinsurance.But,ifyoucannotmakewidgetsforthreemonths,thanthereisnoreplacementofthatincomewithoutthiscoverage.



HealthInsuranceTobecompetitive,mostbusinessesneedtooffertheirworker’shealthinsurance.Thisinsuranceoffersahealthcoveragebenefittoyouremployees(andyou).

LifeandDisabilityInsuranceLifeanddisabilityinsuranceprotectsthebusinessagainstthedeathordisabilityofkeyemployees.Forexample,onepartnercarriesalifeinsurancepolicynamingthepartnershipasabeneficiary.Ifthatpartnerdies,andthebusinesshasplannedproperly,theproceedsofthepolicycanbeusedbythebusinesstobuyouttheshareofthedecedent'spartnershipinterestfromtheestate.

OtherInsuranceorScriptedPoliciesItcouldverywellbethatyourbusinessissouniquetohaveneedforcoveragethatisamixtureofsomeofthecoveragelistedaboveorsomethingwrittenspecificallyforyourparticularrisk.Onecanthinkofsomeactresses,actors,orsportsstarsthathavehadlegsinsuredatsomepointintheircareers.Thiswouldbeanexampleofascriptedpolicy.

ThisAbout.compagehasbeenoptimizedforprint.Toviewthispageinitsoriginalform,pleasevisit:http://businessinsure.about.com/od/insuringyourbusiness/tp/listtypesins.htm©2011About.com,Inc.,apartofTheNewYorkTimesCompany.Allrightsreserved



HandoutIV.10.C,“SocialInsurance”Directions:Onthehandoutbelow,youwilllearnaboutsocialinsuranceandfivedifferentexamplesofsocialinsurancethatAmericansreceivetoday.

Life is filled with risks. Uncertainty is the rule because nobody can predict with confidence his or her future state of wealth or health. Families once bore the primary responsibility for caring for their individual members in bad times, but modern industrial society has scattered family members to different jobs in different locations. Citizens have decided, through the political system, that we need financial protection against some of life's difficulties that are hard to face as individuals. These include old age, ill health, unemployment, disability that makes it impossible to work, injury on the job, and the death of a family breadwinner. For all these conditions, we rely on help from social insurance programs, which are financed by workers and employers.

Social Security

Pays benefits to retired and disabled workers and their families and to families of

deceased workers.

Medicare

Pays for health care for those over 65 and disabled

adults under age 65.

Workers’ Compensation & Disability

Pays for wage replacement and medical care for those injured or

killed on the job.

Unemployment Insurance

Provides partial wage replacement for those who

have lost their jobs.

Long-Term Care

Provides assistance with daily living activities when you need help. (Long-term care means assistance with things that healthy, independent persons can do without help.

These are basic activities of daily living: eating, dressing, using the toilet, bathing, getting out of bed, and crossing

the room to sit in a chair.)



Exercise:Theresomedebatetodaywhetherornotthegovernmentshouldcontinuetopayforallofsomeofthefiveexamplesofsocialinsurancelistedabove.Inthechartbelowindicatewhetherornotyoubelievethegovernmentshouldcontinuetopayforthesocialinsurancelisted.

Type of social insurance Government should pay

Government should not pay Not sure

1. Social Security 2. Medicare 3. Workers’ Compensation & Disability 4. Unemployment Insurance 5. Long-Term Care



HandoutIV.10.D,“KeepingInsuranceCostsDown”Directions:Readthehandoutbelowandcompletetheexercisethatfollows.

Here are some suggestions for lowering your insurance costs:

1. MakeSureYouHaveCopiesofAllPoliciesandUpdateYourInsuranceFile Startyourreviewbylookingatyourinsurancefile.Ifyoudon'thaveafile,now,isagoodtimeto

startone.Makesurethatyouhavecopiesofallpoliciesinyourfileandreadilyaccessiblewhenneeded.Makesuretherearecopiesofclaimsformsforeachpolicyinthefile.Youwillwanttocreateaseparateoff‐sitelocationforacopyofyourpoliciesandformsincasethisfileisdestroyed.Organizationisthefirststepinreducinginsurancepremiums.

2. CompareYourSchedulestoAutosandEquipmentActuallyOwned Agoodplacetostartwithyourpremiumreviewisananalysisofyourequipmentandauto

schedules.Doesyourbusinessstillownthevehicleslisted?Changingkeyequipmentcansometimesresultinpremiumsavings.

3. CompareYourNamedInsuredandKeyEmployeestotheEmployeesThatWorkForYou MuchlikeStep#2,thisstepinvolvesreviewingnameddriversand/orkeyemployeesidentifiedon

policiestomakesurethesepeoplearestillwithyourcompany.Manyemployerssimplyfailtoadjusttheirnamedinsuredendorsementswhenemployeesleave.But,thiscanresultinsignificantsavingsifthelossoftheemployeeresultsinlowerrisk.

4. LookforIrrelevantorRepetitiveCoverage Businesschangesanditmaychangedramatically.Somecoveragemaynolongerbenecessary.For

example,ifaportionofyourbusinesscloses,operationschange,oryouchoosetooutsource,thenitmaybethatyourbusinesscarriescoveragethatcanbeeliminated.

5. AdoptandMaintainaConsistentSafetyPlan Aconsistentsafetyplanwillincludetheeliminationofhazardsthatcanbecomeclaims.Makeita

goalofyourbusinesstoenforceasafetyplanandfollowthrough.6. ClassifyYourWorkforceCorrectly Significantsavingscanbeachievedbymakingsureyourworkforceiscorrectlyclassifiedbyyour

workers'compensationinsurerandliabilityinsurer.Yourpremiumsarebasedonthetypeofworkersused.Ifyouareapaintingcompanythatincidentallyusesladders,thenyoucouldbeincorrectlyclassifiedasaconstructionbusinessandyourpremiumswillbegreatlyinflated.Classifyeachworkerandmakesureyourinsurerdoessoalso.

7. DiscussYourPremiumsWithYourInsurerandInsuranceProfessional Toomanybusinessesdon'ttakethestepoftellingtheirinsurerthattheywantabetterrate.

Frequently,insurerswilldiscussthepremiumindetailandwillsuggestwaystohaveitreduced.8. BecomeActiveinTradeOrganizationsorProfessionalAssociations Mosttradeorganizationsorassociationshaveaffiliatemembersthatareinsurancecompanies.Asa

benefitofmembership,yourbusinessmayreceivesubstantialinsurancediscounts.



9. AdoptHealthSpecificChangesToYourWorkPlace Healthpremiumsandworkers'compensationpremiumswillbeyourhighest‐worktolowerthe

coststhroughahealthyworkforce.Committosettingagoodexample:quitsmoking,becomeactiveandseeyourphysicianregularly.Adoptanosmokingpolicyatyourcompany.Allowyogaorweightlossclassestobeheldatyourbreakroom.Encourageproperliftingtechniques.Considerapartialreimbursementofhealthclubmembershipasabenefit.Inotherwords,takingactivestepstocreateahealthyworkplacelowerspremiumdollars.

10. Training,Training,andMoreTraining Trainyourworkforceanddemandtrainingaspartoftheiremployment.MostInsurerswilloffer

substantialdiscountsforatrainedworkforce.Forexample,liquorliabilitypremiumscanbecutby15‐20%ifserversarerequiredtoattendalcoholawarenesstraining.Findoutwhattrainingwillreduceratesandgetyouremployeesinvolved.

ThisAbout.compagehasbeenoptimizedforprint.Toviewthispageinitsoriginalform,pleasevisit:http://businessinsure.about.com/od/insuringyourbusiness/ht/htlowerprem.htm©2011About.com,Inc.,apartofTheNewYorkTimesCompany.Allrightsreserved.

Exercise:WriteoneparagraphsummaryforanInternetpiece,providingadvicetothebusinessownerastohowtokeepinsurancecostsdown.

LEGAL REQUIREMENTS / UNIT IV - Virtual Enterprises International · 2019-04-05 · LEGAL...

Documents

Transcript of LEGAL REQUIREMENTS / UNIT IV - Virtual Enterprises International · 2019-04-05 · LEGAL...