Q1. (1) What are four principles for designing an efficient as well as effective origination?

For the design of efficient and effective organization there are four principles that one has to consider. The first principle is contrast, this is idea of using different colors, sizes and shapes that will draw the attention of the readers. In using this you have to choose colors which combine dark and light shades. You have to use different font for the titles, caption for creating the visual contrasts in the texts. In order to make your design unified you should stick with two to three diverse elements for being able to keep the outline unified.

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The second principle is repetition which assist in creating unity. The main rule for this indicates that one has to reuse some of the key theme in the design for the readers to easily identify besides being in a position of locating your brands. For instance, if one is using red, blue as well as white as same signature color for the logo then you have to repeat the same color in each print publications being ordered. It could also be utilized by the fonts and shapes that one selects.

Third principle is alignment; this is placement of all the designed elements on the single page. If a text is put at the top left corner of a page besides placing the logo in center of this page with the images which are scattered around the edges, then the reader will not be able to know where they can be looking for the specific info about the corporation. If the company sensibly arranges elements on page in order for all text and imageries to align with invisible line, then this will create logical flow which is pleasing to the eye.

Final principle is proximity; this teaches one to preserve the connected images, paragraph as well as title which are visually convened together. This plan does not just permit having whiter space, it also communicates the info in the ad in a succinct manner. When the most relevant image as well as words are placed close to one another on pages, visual signals are send to readers for the basics having same thing in the common. Through these the readers are able to locate the vital detail for the advertisement as well as internalizing the persuasive messages.

(2) What are differences between the line activities as well as staff activities?

The main aim for the two is ensuring that an organization is able to meet the needs of the business objectives. How this is achieved is what differentiate this two. While for the line activities it involves the actual core work for meeting business objectives, the staff activities assist line function in the meeting of the objectives.

For line activities its one that directly involve the core work of the organization. It involves primary activities including manufacturing, purchasing, selling among others that is required for meeting objectives of a business. Example of the activities involve operations, sales and marketing (McDaniel, Lawrence and Carl,2009).

For staff activities they involve assisting line function with the specialist advice as well as expertise including research and training for meeting objectives of a business. The example for this comprises of accounting, human resources, public relation as well as legal department which are staff activities (McConnell,2007).

(3) What are critical tasks in business? How can we identify critical tasks?

For the tasks they are critical in the case where there is no slack time which means they cannot be delayed without in any way affecting the other tasks. The tasks could also be serious if it has been recognized in the plan by the time constraint including starting on, as sooner as possible or not later as starting date which can be used for the identification of the tasks.

(4) Discuss advantages as well as disadvantages of the centralized vs decentralized decisions making as well as under what kind of situations for choosing each one of them.

There are advantages and disadvantages for why the organization could choose centralized and decentralized decision making.

Advantages of centralized

In this the management keeps the external communication including business to business relationships that assist in keeping the company messaging more efficient and consistent. It also assists in the standardization of the products as well as materials which assist in speeding up the preparation as well as procurement process.

Disadvantages of centralized

The strategies limit creativity for top management which make most of decisions. This could result to complications for the company that is trying to adjust to the changes in the market. For the greatly centralized organizations they are involved in the fast stepped products as well as rapidly varying industry which cannot reacting quickly to changes in demands of the clienteles.

When it comes to the decentralized it tries to avoid some big drawbacks faced in centralized but still it has got its drawbacks that managers have to avoid. This can work best for the organizations that do not deal directly with customers.

Advantages of decentralized

This has got an immediate contact with the customers where the management have got more ability for making decisions. This can result to efficient managerial decisions due to the low level managers having more direct control over the daily activities and could reward or discipline the employees as it is required. It increases the flexibility in making decisions.

Disadvantages of decentralized

The business has got more riding concerning decisions which were completed by the staffs. This mean that incase the employees lack the required knowledge then this could greatly damage the organization. For small organizations they are least likely to adapt decentralization since have lower levels management making their decisions could be expensive to organization. For the large organization they can successfully adapt this since they have got a strong upper management which are more talented to give more responsibilities.

Q2. What are advantages and disadvantages of Corporations? What are advantages and disadvantages of the Sole Proprietorships?

Corporation is business which is recognized by state as the legal unit that is distinct from the proprietors. There are advantages and disadvantages associated with this entity which include:


The main advantages for this entity include limited personal liability, continuity of the business, easy to transfer the ownership and having a better entrance to the capital as well as occasional taxes benefits where the legal structures as well as benefits which are received usually depend on a given setup of the business.


Before getting into this business you have to fully understand since it could cost you money and time. The main disadvantages include lengthy process for application, there are rigid formalities and protocols which have to be followed, it could be quite expensive as well as one could be taxed double depending on the structures of the corporation.

When it comes to sole proprietorship it is easy to start since capital involved is minimal and there are disadvantages and advantages to this business entity which include:


Being your own boss

Keeping all the profits

Costs for starting are usually low


Establishment plus business operation is very simple.

Easy for changing the legal structures.


Limitless liability for debt

Raising of capital is a challenge.

Owner is responsible for all decisions.

Taxes are charged as an individual due to limited business life.

Q3. Based on the definition, compare three types of the Partnerships (General Partnerships, Limited Liabilities Partnership Plus Registered Limited Liability Partnerships) and find their major differences

When getting into partnership it is important to select one that fits your business model. There are different forms of partnership which one can choose from which include:

General partnership

This is the novel type of a partnership. General partner is owner of a partnership. This partners actively get involved in management of business as well as being able to come up with decisions on behalf of the company. They do not offer liability protection for partners. All the partners are liable in the case where one of the partner is sued. It has become less popular since the other type of partnership have got more protection of liability.

Limited liability partnership

This is the most choice for the professionals since they protect personal assets of the partners hence they could not be used in satisfying the debts of the business as well as liabilities. The individuals under this category could be held liable for wrongful acts but the other partners will not be liable for the acts.

Registered limited liability

This comprises the general and limited partner. This is established when the partner is the financier in the industry but not involved in daily operation of business. General partner’s is the one accountable for managing partnership and limited partner is investor. Limited partners are silent and invest the capital in the exchange of limited profit. Liability of partners is determined by the investment made in the company. They have got a limited liability in the debt of the company and the liability up to the amount they have invested in the business.

Q4. Explain 8 factors considered when evaluating the various type of legal structures. You should compare the 3 legal structures for every factor

Tax- The legal system for the company has got direct impact on amount of tax that has to be paid. Being a sole trader, you enjoy the tax benefits being in a position of claiming on the personal tax returns, as well as those in trust do not pay the profits income taxes.

Flexibility and the potential needs- it is vital to focus where one has to envisage the business going to the future while they are contemplating on the legal structures. An example is expansion of trust which is a subject for legal penalties, in order for it to be suitable structure for choosing from expanding target of the company.

Business Continuity-It is vital to consider the way you see the company continuing to a close. In case you want the company to end at the time you want it to end, it is better to become a sole trader. If you are looking towards securing legal structure, then you have to choose a legal structure.

Control-You have to consider the level for control that you want in the industry. If you are wishing to operate entity on your own, then you should choose the sole trader. Choice of the legal structures affects the aspects of the business that one can control and the one that you could legally owned.

Limitation of the Liability-Choice of the legal structures has got vital implication on the possible legal liabilities. Considering extend which has to be safe from individual legal obligation it is vital beforehand going for business structures. Considering the company being a protection from the personal asset becoming responsible to the losses as well as debts.

Cost plus the complexity for formation as well as the legal structures- Different legal structure have got different set up actions, complexities as well as costs. An illustration is sole traders is the simple to be set up as well as requiring fewer reporting requirement, complex structures like the trusts involving strict requirement for reporting as well as having to be set up by a solicitor.

Ongoing Administration-Though sole trader has got few reporting and administration requirements, complex legal structures including strict as well as difficult record keeping and the paper work requirements. It is important to ensure you have got the people, time as well as ability for abiding by the strict record keeping which is legally enforceable.

Ownership transferability-depending on legal structures one individual proprietorship in the business could be moved to the other owners in part or whole just by exchanging the piece of paper

Q5. What is the incremental analysis? Use the incremental analysis to find the Economics efficiency in the following production table

Output (Q)Net RevenueMarginal RevenueAmount of LaborTotal cost of LaborMarginal cost of LaborNet incomeNet marginal revenueEconomic efficiency


McDaniel, Lawrence and Carl, (2009). The future of the business. The essentials (4th, student ed.). Mason, OH: South-Western Cenage Learning. p. 182. ISBN 978-0324590753.

McConnell, R., (2007). The effective health care supervisor (6th ed.). Sudbury, Mass.: Jones and Bartlett Publishers. p. 51. ISBN 978-0763739515.

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