INSTRUCTIONS:

1. Scroll down to see the three questions that make up this quiz. Each question is worth up to 5 points.

2. Each answer should be no more than 1 page in length for each question. Use double-spacing, 12-point font, 1 inch margins, proper grammar, spelling, and punctuation, APA style citations and references, and headings where appropriate. You can include a list of references for all of the questions on a 4^th page.

3. Submit your answers to all three questions in a single MS Word document to your Assignment Folder in LEO by 11:59 p.m. EST on Sunday, September 21.

4. Good luck!

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QUESTIONS:

Question 1: Economy and Pricing

An early chapter we read discussed concepts from economics that are important for business students to learn about. Explain how prices are determined in a free-market economy. During the recent recession, consumers were less willing and able to purchase products they had grown accustomed to buying. Describe how the supply and demand curves were affected by consumers’ decisions to pull back on their spending. What do you think the prognosis is for the economy in the near and long term and why?

Question 2: Effects of NAFTA

NAFTA recently celebrated its 20 year anniversary. Your Saylor Foundation text stated that “by and large, NAFTA has been a success.” Not everyone agrees with this conclusion with one recent article (see: http://www.huffingtonpost.com/lori-wallach/nafta-at-20-one-million-u_b_4550207.html) asserting that there is “overwhelming evidence of NAFTA’s failure” and citing a poll that found that “53 percent of Americans believe that the U.S. should “do whatever is necessary” to “renegotiate” or “leave” NAFTA, while only 15 percent believe the U.S. should “continue to be a member of NAFTA” and another (see: http://www.nytimes.com/roomfordebate/2013/11/24/what-weve-learned-from-nafta/under-nafta-mexico-suffered-and-the-united-states-felt-its-pain) claiming that it has had a negative impact on the U.S. and “has cut a path of destruction across Mexico.” Which is correct – the text or the other articles? Explain what the actual results of NAFTA have been and what should be done about it going forward from the perspective of the participants. Should similar trade pacts such as the Trans-Pacific Partnership (see: http://www.washingtonpost.com/blogs/the-fix/wp/2014/04/23/why-almost-everyone-hates-the-trade-deal-obamas-negotiating-in-japan/) which has been years in making be passed or do possible detrimental effects need to be more carefully studied first?

Question 3: Legal Business Forms

Your text discussed a number of different legal business forms and you had the chance to think about what one you would choose for an organization you might like to start in one of our learning activities. Although most new businesses start out as sole proprietorships, few large businesses are organized this way. Why is the sole proprietorship such a popular form of ownership for new businesses? Are there features of sole proprietorships that might make them unattractive for growing businesses? What business forms would be most appropriate for a growing business? Is there one best form for a for-profit business, and why?