2) Services, Why Did It Grow? Characteristics? Give Two Examples

Jesica Islas AMN - 195 January 29, 2007 Professor Lipitz Midterm

Midterm Questions

2) Services, why did it grow? Characteristics? Give two examples A service is any activity or benefit offered. In order to be a service one of the following have to be true: the receiver have to benefit, the product have to be intangible, the company offering the service needs to have a good reputation and the service cannot be separated from the producer. The growth of the service has been remarkable over the last decade. Some of the reasons why the service industry grew remarkably were that: the living standards of people are much better now, we have more leisure time, our country has a better economy, we have more specialized work, the technology have advance, and there is more advertisement now of this services and consumers are aware of them. Some characteristics of services are: less physical work, since there is less physical work more women goes into this industry, also elderly people instead of retiring or after they retired they go into the service industry. There are more part-time jobs available, so full-time students or people that do not need a full time job go into the industry. This kind of company, that provides services instead of goods are easier to start, because they require less investment and are less boring. Some of the problems a service business may have are: the selling idea, because the service can not be touched, setting a price; because when you set a price for a good, you can refer to the money you spend or invested on it, but how do you set a price in something you can not touch? Well, service companies set their prices according to their competitors prices, and the demand that the customers have. Another problem is to have and maintain a good reputation because that is how you attract and keep your customers. Two Examples are:  When you go to a tax firm to do your taxes. Although you can touch the tax paper (1040), the knowledge that the CPA used to put the numbers in is consider a service. Jesica Islas AMN - 195 January 29, 2007 Professor Lipitz Midterm

 Beauty Shops, Barber Shops. - are types of services that have increased over the years. They are small businesses that have been open because of the great demand in the neighborhoods. 3) Why New York City is such an important World City? New York City is considered the world capital, not just because of its economy, but because of its diversity in cultures and in industries. The city which includes the five boroughs (The Bronx, Manhattan, Brooklyn, Queens and Staten Island) has over 8 million residents. Some of the industries that New York has are: media, finance, fashion, culinary arts, and, the city is consider the diamond trade capital. We find the Culinary Arts industry along the whole city, there are over 25,000 restaurants in the city, which include specialties and food from all over the world, such as Chinese, Japanese, Hispanic (And all the diverse cuisine that this implies) West Indian, Greek and much more. The Fashion Industry is located mainly in midtown Manhattan. That is where the entire warehouse are concentrated, and where all or most of the retailers go to buy their products. New York City is also consider the Diamond Trade Capital, if you go to downtown Manhattan you will find Jewish people with their briefcases trading diamonds in the street, although you won’t notice what they are doing, you’ll notice the black briefcases. The finance capital is consider to be Wall Street. This is the place where all the stocks are trade. Referring to the Media Industry, there are places along the City such as CNN, that accepts tourist and give them a tour showing them how a show goes on TV, and how they give directions to the audience. The cultures around the city are unbelievable. You can find Hispanics; mainly in Uptown Manhattan, Corona Queens and The Bronx, White-Americans; through Manhattan and Staten Island, African American; The Bronx, Brooklyn and Queens. In the Island of Manhattan you can find places such as “Little-Italy” and “China Town” which are named after the strong population from those countries. 8) Forms of business; Sole proprietorship, Partnership, Corporation and Franchises. The forms of business are: Jesica Islas AMN - 195 January 29, 2007 Professor Lipitz Midterm

 Sole Proprietorship is a form of business in which one person owns, manages, and operates a business. This form of business is the most popular in the United States with approximately the 72% of business. Some of the advantages are: easy to setup, single taxation (the company does not pay taxes, just the owner based on the income), you are your own boss, and you set the rules as well as the hours of operations. Some of the disadvantages are; difficult to raise capital (not enough assets to back it up), unlimited liabilities (if someone sues the company, and the company assets does not cover the total amount, they can go after your personal assets), limited lifespan (if the owner dies, the company dies with him/her).  Partnership is a form of business in which two or more people own, manages and operates a business. There are two types of partners; the general partner; which share responsibilities of the day to day business, and the limited partner; these kinds of partners do not run the business, they just collect their dividends. This form of business with only 8% of business opened is the least popular in the United States. The Advantages are: single taxation, easy to set-up (partnership contract), easier to raise capital (more partners to back it up), some of the disadvantages are: unlimited liability (if the business does not cover the law sue, they take the personal assets of the partners equally according to the percentage that they own in the company) and limited lifespan, if one of the partners die the partnership needs to be closed.  The last form of business is a Corporation. A corporation is when a group of people own the company and they elect the board of directors which would run, manage and operate the business. Corporation with a 20% is the second most popular form of business in the United States. A corporation can do business in the same state; known as domestic, out of state; known as foreign, and out of the country; which is known as alien. Some advantages are unlimited lifespan, which means that if one of the shareholders die; the corporation keeps on going, limited liability; if the corporation gets sue, the shareholders personal assets are protected; they are just liable for the amount they invested, another advantage is easy to raise capital. Some of the disadvantages is: double taxation, the corporation pays taxes on the profit, and the shareholders pay taxes on their dividends. Jesica Islas AMN - 195 January 29, 2007 Professor Lipitz Midterm

Franchises are the businesses such as McDonalds, Burger King, Dunkin Donuts, etc, that you find them everywhere but they have different owners. The founder of the business or franchisor is the owner of the name and the one authorized to sell the franchises, they receive royalties. The franchisees are the receivers, in this case the one buying the franchise. Some advantages are: you have a well-known name, advertising is done for you, they train you, and you have your suppliers already. Some disadvantages are: you can’t change the suppliers or the rules and regulations of the business. 9) What role did Robert Moses played in NYC? Robert Moses was known as the city’s god father. He did more than anyone else would. Although he was ambitious and arrogant, personal wealth did not interest him. In the half century following 1924 Robert Moses transformed the city completely. He was the greatest builder and creator, he built recreation facilities, roads, such as highways and bridges, and created better housing. The bad thing about Robert Moses was that he did not know when to stop and he started kicking people out of their houses to build whatever he thought was necessary. He was a visionary without power until he met Governor Alex Smith, and became his right hand man. The first project that Robert Moses built was Johns’ Beach at Long Island. He took a playground from Long Island and transformed it into a public beach, which cause controversy, because Long Island was a white city and they were rich people, and Robert took it away from them and made a public beach. Although he never learned how to drive, he knew that the next step was to construct the roads to get to Johns’ Beach, so he constructed the parkways, and he supervised every little detail. People say Robert Moses was always fair, and honest to the people that worked for him. Three months after Johns’ Beach open, the stock market crashed, and great depression began. The Federal Government put the Americans back to work, and in 1934 Robert Moses became the boss of all public workers. When Major LaGuardia came to power he gave the opportunity to Moses to redesign the city. And the new Moses project was the Triborough Bridge which was worth forty-five million dollars. On 1939 he got Jesica Islas AMN - 195 January 29, 2007 Professor Lipitz Midterm

the legislation to provide him financial authority over the bridge, and he used those funds to keep on the construction over the city. Later on, Robert Moses became the Republican Governor candidate, he ran an arrogant and caustic campaign and he lost by the most difference in the state. The new governor swallowed his pride and kept Moses on work. Then he built the parks and created the Henry Hudson Parkway. On 1949 the Federal Government had a program to clean the slumps, the solution was higher buildings with green landscaping. Robert Moses took charge to get rid of the slumps, but he got more attention for what he destroyed, than for what he built, this project was called the urban renewal. He also built the Lincoln Center, the Cross Bronx Expressway, Niagara Falls, and Verrazano Bridge and was involve in the Whitestone Bridge and the Throgs Neck Bridge. In 1968 he lost the authority of the Triborough Bridge. Although he was credited with seventy-two-billion-dollars worth of projects he died in 1981 at the age of 92 with only fifty-thousand-dollars.