"The desire of corporations to maximize profits creates conflict with the general welfare of the nation at large. "
Discuss the extent to which you agree or disagree with the opinion stated above. Support your views with reasons and/or examples from your own experience, observations or reading.
The fundamental theory of capitalism states that corporations should operate to maximize their shareholders' value, which can be accomplished one way by maximizing their profits. The above statement is too strong because corporations who maximizes profit do not necessarily cause conflicts for society. Corporations profits are passed through to shareholders who then invest their profits to create new companies. This perpetual cycle is positive and necessary for the nation to progress forward economically.
In the bare minimal, a corporation needs to generate enough revenue to cover it's cost of operation, including fixed costs such as rent and equipment and variable costs such a labor. Additionally, in order for a corporation to stay competitive in its respective industry, it must make continual investment in its equipment, research or people. For example, drug companies invest significant amount of money in research and development in order to stay ahead of their competitors. However, the cost of research and development is not free, and a corporations must raise capital to cover these costs from shareholders and investors. For shareholders to invest their money, they must be guaranteed a positive return. Therefore, in order for a corporation to sustain long term, they must earn a profit.
Furthermore, many corporations with excess profits oftentimes gave back to their community. For example, many global corporations, such as Microsoft, have launched numerous non-profit ventures to help communities in need. Microsoft, partnered with the Gates Foundation, strives to improve the quality of education in the US, as well as other nations. Thus, a corporation can maximizes profits and at the same time increase welfare of the nation at large.
However, there are small sample of corporations that maximize profits at the expensive of the general welfare. For example, a company that has a monopoly on a market can implement policies that conflict with the general welfare of the nation. For example, before electricity companies were regulated, the electricity prices were atrociously high and prevented large number of people from gaining access to electricity. Luckily, most nations have passed laws and established government agencies that serve to regulate companies to ensure fair practice and protect the welfare of the nation at large. A delicate balance must exists between a free market and government regulations. If regulations are too heavy and onerous, it can stymied corporation growth and be detrimental to the welfare of the nation.
Consequently, in the spirit of capitalism, corporations should continue to maximize profits for their shareholders as long as the proper regulations are set in place.
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2013-08-24 | sunilsreeram | 40 | view |
2013-07-15 | zen123 | 80 | view |
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Sentence: Corporations profits are passed through to shareholders who then invest their profits to create new companies.
Description: A noun, plural, common is not usually followed by a noun, plural, common
Suggestion: Refer to Corporations and profits
Sentence: Thus, a corporation can maximizes profits and at the same time increase welfare of the nation at large.
Description: A modal auxillary is not usually followed by a verb, present tense, 3rd person singular
Suggestion: Refer to can and maximizes
Sentence: However, there are small sample of corporations that maximize profits at the expensive of the general welfare.
Description: The fragment small sample of is not usually preceded by are
Suggestion: Possible agreement error: Replace are with is
Sentence: A delicate balance must exists between a free market and government regulations.
Description: A modal auxillary is not usually followed by a verb, present tense, 3rd person singular
Suggestion: Refer to must and exists
Sentence: If regulations are too heavy and onerous, it can stymied corporation growth and be detrimental to the welfare of the nation.
Description: A modal auxillary is not usually followed by a verb, past participle
Suggestion: Refer to can and stymied
Sentence: If regulations are too heavy and onerous, it can stymied corporation growth and be detrimental to the welfare of the nation.
Error: stymied Suggestion: ?
flaws:
No. of Grammatical Errors: 5 2
Sentence Length SD: 5.21 7.5
Read this link about sentence length SD:
http://www.testbig.com/question/questions-about-essay-e-rater
There are a lot of 'For example,...'.
More arguments wanted before you put examples.
Attribute Value Ideal
Score: 4.5 out of 6
Category: Good Excellent
No. of Grammatical Errors: 5 2
No. of Spelling Errors: 1 2
No. of Sentences: 21 15
No. of Words: 420 350
No. of Characters: 2266 1500
No. of Different Words: 212 200
Fourth Root of Number of Words: 4.527 4.7
Average Word Length: 5.395 4.6
Word Length SD: 3.026 2.4
No. of Words greater than 5 chars: 180 100
No. of Words greater than 6 chars: 143 80
No. of Words greater than 7 chars: 101 40
No. of Words greater than 8 chars: 77 20
Use of Passive Voice (%): 0 0
Avg. Sentence Length: 20 21.0
Sentence Length SD: 5.21 7.5
Use of Discourse Markers (%): 0.667 0.12
Sentence-Text Coherence: 0.293 0.35
Sentence-Para Coherence: 0.522 0.50
Sentence-Sentence Coherence: 0.083 0.07
Number of Paragraphs: 5 5