6.3: The Second Law of Thermodynamics
Now we can consider an isolated system undergoing a cycle composed of an irreversible forward transformation (1 \(\rightarrow\) 2) and a reversible backward transformation (2 \(\rightarrow\) 1), as in Figure \(\PageIndex{1}\).
This cycle is similar to the cycle depicted in Figure \(\PageIndex{1}\) for the Joule’s expansion experiment. In this case, we have an intuitive understanding of the spontaneity of the irreversible expansion process, while the non-spontaneity of the backward compression. Since the cycle has at least one irreversible step, it is overall irreversible, and we can calculate:
\[ \oint \dfrac{đQ_{\mathrm{IRR}}}{T} = \int_1^2 \dfrac{đQ_{\mathrm{IRR}}}{T} + \int_2^1 \dfrac{đQ_{\mathrm{REV}}}{T}. \nonumber \]
We can then use Clausius inequality ( Equation 6.2.4 ) to write:
\[\begin{equation} \begin{aligned} \int_1^2 \dfrac{đQ_{\mathrm{IRR}}}{T} + \int_2^1 \dfrac{đQ_{\mathrm{REV}}}{T} < 0, \end{aligned} \end{equation} \nonumber \]
which can be rearranged as:
\[ \underbrace{\int_1^2 \dfrac{đQ_{\mathrm{REV}}}{T}}_{\int_1^2 dS = \Delta S} > \underbrace{\int_1^2 \dfrac{đQ_{\mathrm{IRR}}}{T}}_{=0}, \label{6.3.3} \]
where we have used the fact that, for an isolated system (the universe), \(đQ_{\mathrm{IRR}}=0\). Equation \ref{6.3.3} can be rewritten as:
\[ \Delta S > 0, \label{6.3.4} \]
which proves that for any irreversible process in an isolated system, the entropy is increasing. Using Equation \ref{6.3.4} and considering that the only system that is truly isolated is the universe, we can write a concise statement for a new fundamental law of thermodynamics:
For any spontaneous process, the entropy of the universe is increasing.


2: Alternative Forms of Business Organizations
After completing this chapter, you should be able to: (1) know the different forms of business organizations; (2) compare the advantages and disadvantages of alternative types of business organizations; and (3) identify how alternative forms of business organizations can influence a firm’s ability to achieve its financial goals and objectives.
To achieve your learning goals, you should complete the following objectives:
- Learn about the advantages and disadvantages of a sole proprietorship.
- Study the characteristics of firms best suited to be organized as sole proprietorships.
- Learn about the advantages and disadvantages of partnerships.
- Study the characteristics of firms best suited to be organized as partnerships.
- Learn about the advantages and disadvantages of C corporations and S corporations.
- Study the characteristics of firms best suited to be organized as C corporations and S corporations.
- Learn about the advantages and disadvantages of a Limited Liability Company (LLC).
- Study the characteristics of firms best suited to be organized as LLCs.
- Learn about the advantages and disadvantages of a cooperative.
- Study the characteristics of firms best suited to be organized as cooperatives.
- Learn about the advantages and disadvantages of a trust.
- Study the characteristics of firms best suited to be organized as trusts.
Introduction
The way a business is organized influences its ability to reach its goals and objectives. This chapter focuses on legal forms of business organizations that are widely used in the U.S. These include sole proprietorships, general and limited partnerships, limited liability corporations (LLCs), S corporations, and C corporations. Partnerships, LLCs, and C corporations are found across a wide spectrum of business types and sizes. LLCs are becoming increasingly important in the production agricultural sector, particularly with multi-generation family businesses. In family businesses, legal business structures which facilitate intergenerational transfer of assets has become particularly important.
Characteristics of businesses organizations that influence the ability of a firm to reach its goals and achieve its mission include: 1) who makes the management decisions; 2) how much flexibility does it have in its production, marketing, consumption, and financing activities; 3) its liability exposure; 4) its opportunities for acquiring capital; 5) how the life of the business is defined; 6) how the death of its owners affects the firm; 7) methods available for transferring the current owners’ interest to others; and 8) Internal Revenue Service definitions of business profits and their taxation. Thus, the way a firm is legally organized provides the framework to make financial management decisions.
Sole Proprietorship
The sole proprietorship is a common organization form especially used by small businesses. A sole proprietorship is a business that is owned and operated by a single individual. Most sole proprietorships are family-owned businesses. The advantages of the sole proprietorship organization include:
- It is easy and inexpensive to form and operate administratively (simplicity);
- It offers the maximum managerial control; and
- Business income is taxed as ordinary (personal) income to the owner.
The disadvantages of the sole proprietorship include:
- It is difficult to raise large amounts of capital;
- There is unlimited liability;
- It is difficult to transfer ownership; and
- The company has a limited life that is linked to the life of the owner.
Sole proprietorships are typically organized informally and require relatively little paperwork to begin operations. It is the most simple among the alternative business organizations to understand and use. To begin operation, the individual declares himself/herself to be a business. In many cases, a license will be required to operate the business, but often the business begins simply by “opening its door.” The day-to-day operations of the firm are also organized informally and may be administered as the owner desires, subject to legal and tax restrictions. For example, certain taxes must be paid by specific dates. The vast majority of regulations small businesses face are independent of the legal form of the business. Metrics such as business size, number of employees, and location determine which regulations business face.
Since sole proprietorships are owned by a single individual, this form of business organization offers the maximum management control. In small firms, the owner of the business is often involved in all aspects of the business: purchasing, inventory control, production, sales, accounting, personnel and customer relations, as well as financial and general management. While the large amount of owner control can be a strength in small firms, it often turns out to be a disadvantage as firms begin to grow and the owner is no longer able to manage all aspects of the business. The owner must then hire competent staff to manage specific aspects of the business.
Additionally, the business is restricted by the financial resources available to the owner. This can restrict the startup of the business as well as its growth over time. In many cases, substantial cash outlays are required to make the capital purchases (land, facilities, equipment, cars, offices) to start the business and to provide initial overhead expenses (salaries, wages, supplies) until the business gets going. Further, it frequently takes two or three years before the business begins to show a profit. The owner of the business has to obtain these funds using his/her own equity (funds owned by the individual) and/or by borrowing funds, and borrowing requires collateral in the form of owner equity The amount that can be borrowed depends on the level of equity as well as the projected cash flow generated by the business. The lack of available financial capital for starting and expanding the business is a major drawback in the sole proprietorship. The profits from the business are taxed as personal income to the owner.
Sole proprietorships are subject to unlimited liability which means that the liability for business debts extends beyond the owner’s investment in the firm. For example, if the sole proprietorship is unable to cover its debts and obligations, creditors have the right to collect the personal assets that are not part of the business or other businesses of the owner. The owner may be forced to liquidate assets, such as a personal savings account, a vacation home, or other personal assets just to cover the firm’s obligations.
Another disadvantage of a sole proprietorship is that it has a limited life that corresponds to life of the owner. The owner may sell assets from the business to another sole proprietorship or business. However, if the business is not terminated prior to the death of the owner, then after the proprietor’s death, the assets remaining in the firm will be distributed according to the owner’s will or comparable instrument. When the owner dies, the business is terminated.
Partnerships
A general partnership is a business that is owned and operated by two or more individuals. The partners contribute to the business, share in management, and divide any profit. Partnerships are usually created by written contract among the partners, but they can be legally recognized even without a written agreement. If the partnership owns real property, the partnership agreement should be filed in the county where the property is located.
Advantages of partnerships include:
- They are easy and inexpensive to form and operate administratively;
- They have the potential for large managerial control;
- Business income is taxed as ordinary (personal) income to the owner; and
- A partnership may be able to raise larger amounts of capital than a sole proprietorship.
The disadvantages of a general partnership include:
- Raising capital can still be a constraint;
- There is unlimited liability;
- It is difficult to transfer ownership; and
- The company has limited life.
The advantages and disadvantages of a general partnership are similar to the sole proprietorship. Partnerships are generally easy and inexpensive to set up and operate administratively. Partnership operating agreements are critical. Like sole proprietorships, profit allocated to the partners is based upon their share in the business.
Managerial control resides with the partners. This feature can be an advantage or disadvantage depending on how well the partners work together and the level of trust in each other. Control by any one partner is naturally diluted as the number of partners increases. Partnerships are separate legal entities that can contract in their own name and hold title to assets
The challenge to partnerships extends beyond possible conflicts with the partners. Divorce and other disputes may threaten the survival of the partnership when a claimant to a portion of the business’s assets demands his/her equity.
Unlimited liability remains a strong disadvantage for a general partnership. All partners are liable for the debts of the firm. Due to this unlimited liability, the risks of the business may be spread according to the owners’ equity rather than according to their interests in the business. This risk becomes an actual obligation whenever the partners are unable to satisfy their shares of the business’s obligations.
Increasing the number of partners can increase the amount of capital that can be accessed by the firm. More partners tends to mean more financial resources and this can be an advantage of a partnership compared to a sole proprietorship. Still, it is generally difficult for partnerships to raise large amounts of capital—particularly when liability is not limited.
Ownership transfer and limited life continues to be a problem in partnerships; however, it may be possible to build provisions into the partnership that will allow it to continue operating if one partner leaves or dies. In some cases, parent-child partnerships can ease the difficulties of ownership transfer.
A limited partnership is another way businesses can organize. Limited partnerships have some partners (limited partners) who possess limited liability; limited partners do not participate in management of the firm. There must be at least one general partner (manager) who has unlimited liability. Because of the limited liability feature for limited partners, this type of business organization makes it easier to raise capital by adding limited partners. These limited partners are investors and make no management decisions in the firm.
One difficulty occurs if the limited partners wish to remove their equity from the firm. In this instance, they must find someone who is willing to buy their share of the partnership. In some cases, this may be difficult to do. Another difficulty is that the Internal Revenue Service (IRS) may tax the limited partnership as a corporation if it believes the characteristics of the business organization are more consistent with the corporate form of business organization.
In production agriculture, family limited partnerships serve a number of objectives. For example, parents contemplating retirement may wish to maintain their investment in a farm business but limit their liability and be free of management concerns. To reduce their liability exposure and be free of managerial responsibilities, parents can be limited partners in a business where younger family members are the general partner.
The joint venture is another variation of the partnership, usually more narrow in function and duration than a partnership. The law of partnership applies to joint ventures. The primary purpose of this form or organization is to share the risks and profits of a specific business undertaking.
Corporations
A corporation is a legal entity separate from the owners and managers of the firm. Three fundamental characteristics distinguish corporations from proprietorships and partnerships: (1) the way they are owned and managed, (2) their perpetual life, and (3) their legal status separate from their owners and managers.
A corporation can own property, sue and be sued, contract to buy and sell, and be fined—all in its own name. The owners usually cannot be made to pay any debts of the corporation. Their liability is limited to the amount of money they have paid or promised to pay into the corporation.
Ownership in the corporation is represented by small claims (shares) on the equity and profit stream of the firm.
The two most common types of claims on the equity of the firm are common and preferred stock. The claims of preferred stockholders takes preference over equity claims of common stockholders in the event of the corporation’s bankruptcy. Preferred stockholders must also receive dividends before other equity claims. The preferred stockholders’ dividends are usually fixed amounts paid at regular intervals that rarely change. In most cases, preferred stock has an accumulated preferred feature. This means that if the firm fails to pay a dividend on preferred stock, at some point in time the corporation must make up the payment to its preferred stockholders holders before it can make payments to other equity claims.
Common stock equity claims are the last ones satisfied in the event of the corporation’s bankruptcy. These are residual claims on the firm’s earnings and assets after all other creditors and equity holders have been satisfied. Although it appears that common stock holders always get the “leftovers,” the good news is that the leftovers can be substantial in some cases because of the nature of the fixed payments to creditors and other equity holders.
Large corporations are usually organized as Subchapter C corporations.
The advantages of a C corporation include:
- There is limited liability;
- The corporation has unlimited life;
- Ownership is easily transferred; and
- It may be possible to raise large amounts of capital.
The disadvantages of a C corporation include:
- There is double taxation; and
- It is expensive and complicated to begin operations and to administer.
Earnings from the corporation are taxed using a corporate tax rate. When earnings are distributed to the shareholders in the form of dividends, the earnings are taxed again as ordinary income to the shareholder. For example, suppose a corporation, whose ownership is divided among its 3000 shareholders, earns $1,000,000 in taxable profits for the year and is in a flat 40-percent tax bracket. Profits per share equal $1,000,000/3000—or $333.33. The corporation pays 40% of $1,000,000—or $400,000—in taxes to the government. Taxes per share equal $400,000/3000—or $133.33.
Now suppose the corporation distributes its after-tax profits to its 3,000 shares in the form of dividends. Each shareholder would receive a dividend check of $600,000/3,000 = $200. The $200 dividend income received by each shareholder would then be taxed as ordinary personal income. If all the shareholders were in the 30-percent tax bracket, then each would pay 30% of $200 or $60 in taxes, leaving each shareholder with $140 in after-tax dividend income.
So what is the total tax rate paid on corporate earnings? Dividing the taxes paid by the corporation and the shareholder by the profit per share, the total tax rate is ($133.33+$60)/$333.33 = 58%, a higher rate than would be paid on personal income of the same amount.
One of the primary strengths of the corporate form of business organization is that the most the owners of the firm (shareholders) can lose is what they have invested in the firm. This limited liability feature means that as a shareholder, one’s personal assets beyond the investment in the corporation can’t be taken to satisfy the corporation’s debts or obligations.
Ownership can easily be transferred by selling shares in the corporation. Likewise, the corporation has an unlimited life because when an owner dies, the ownership shares are passed to his/her heirs. The common separation of ownership and management in large corporations helps to ease the ownership transfer as the firm management process never ceases.
The easy transfer of ownership, separation of management and ownership, and limited liability features of a corporation combine to create a business structure that is designed to raise large sums of equity capital. Investors in large corporations don’t have to become involved in management of the firm. Their risk is limited to the amount of funds invested in the firm, and their ownership interest can be transferred by selling their shares in the firm.
Corporations are more expensive and complicated to set up and administer than sole proprietorships or partnerships. Corporations require a charter, must be governed by a board of directors, pay legal fees, and meet certain accounting requirements. Despite the relatively high setup cost, the primary disadvantage of the corporate form of business is that income generated by the corporation is subject to double taxation.
However, there is a limit on corporate earnings that are double-taxed. The corporation may pay reasonable salaries, and these are deducted from the corporation’s profits. Therefore, salaries paid to corporate workers and operators are not taxed at the corporate level. In some cases, the corporation’s entire net profit may be offset by salaries to the owners so that no corporate income tax is due. On the other hand, if the corporation pays dividends to the shareholders, those payments are subject to corporate-level income tax. However, the individual does not have to pay self-employment tax on the dividends. And, qualifying dividends (and most United States Corporation dividends can fit into this definition) are taxed at capital gains rates and not the individual’s top marginal tax rate. Finally, dividends paid to a shareholder that actively participates in the business are not subject to either the 0.9 percent Medicare surtax on earnings or the 3.8 percent tax on net investment income that are levied on higher-income taxpayers.
Another disadvantage of corporations has to do with the fact that the managers do not own the firm. Managers, who control the resources of the firm, may use them for their own benefit. For example, top management may build extravagantly large headquarters and buy fleets of jets and limousines for transportation. If less were spent on perquisites, then the income of the corporation would be higher. Higher income allows higher dividends to be paid to the owners (shareholder).
The (potential) self-serving behavior by management running contrary to the interests of stockholders is an example of a principal-agent problem. Methods of dealing with the principal-agent exist. One way is to hire auditors to monitor the use of firm resources. Further, a corporation has a board of directors responsible for hiring, evaluating, and removing top management. Boards are often ineffective because they meet infrequently and may not have access to the information necessary to fulfill their responsibilities. Additional problems exist if management personnel also sit on the board of directors.
Another way to deal with the principal-agent problem in corporations is to align the interests of management with those of shareholders. This is accomplished by basing the compensation of management on the value of the firm’s stock. A chief executive officer could receive stock options as a part of his/her compensation package. If the stock price rises, the value of the options increase, which benefits the manager financially. The shareholders also benefit when the stock price increases. Such an arrangement may reduce the principal-agent problem. However, very high executive compensation can often trigger criticism from external groups such as consumer or labor activists.
Limitations of linking management’s compensation to the value of its stock have been illustrated by Enron and Tyco corporations. These corporations inflated the value of their stocks and eventually bankrupted themselves and lost the investments of their employees. It seems there is still a lot to be learned about aligning the interests of corporate managers and shareholders.
Many small businesses, including farms, use the C corporation structure and operate much like partnership. This is frequently done for reasons of expensing and intergenerational transfer.
The corporation will need to be “capitalized” by some level of equity funds from the shareholders. It is common practice among lenders to require personal guarantees by the owners of small corporations before providing funds to the business. This essentially eliminates the limited liability features for those shareholders. As one might expect, due to these difficulties, many small corporations are not able to generate large amounts of capital by simply selling ownership shares. As a result, many small corporations do not really receive the full benefits of corporate organization but are still subject to the disadvantages, namely double taxation.
C corporations and S corporations. Any corporation is first formed under the laws of a particular state. From the standpoint of state business law, a corporation is a corporation. However, there are two types of for-profit corporations for federal tax law purposes:
- C corporations: What we normally consider “regular” corporations that are subject to the corporate income tax
- S corporations: Corporations that have filed a special election with the IRS. They are not subject to corporate income tax. Instead, they are treated similarly (but not identically) to partnerships for tax purposes.
There is an alternative form of corporate business organization that is often more desirable from a small business perspective. Subchapter S Corporations have limited liability protection, but the income for the business is only taxed once as ordinary income to the individual (Wolters Kluwer. n.d.).
There are restrictions on what type of firms can be organized as Subchapter S corporations. To do so, it must meet several requirements: (1) cannot have more than 100 shareholders; (2) may have only one class of stock; (3) cannot have partnerships or other corporations as stockholders; and (4) may not receive more than 20 percent of its gross receipts from interest, dividends, rents, royalties, annuities, and gains from sales or exchange of securities. In agriculture, these restrictions usually mean that only family or closely-held farm businesses can achieve Subchapter S status.
Federal income tax rules for Subchapter S corporations are similar to regulations governing partnerships and sole proprietors. However, corporations may provide certain employee benefits that are tax deductible. Accident and health insurance, group life insurance, and certain expenditures for recreation facilities all qualify. However, these benefits may be taxable to the employees and subsequently to the shareholders.
There is greater continuity for businesses organized under Subchapter S than for sole proprietorships or partnerships. Upon the death of shareholders, their shares of the corporations are transferred to the heirs and the Subchapter S election is maintained. Surveys suggest that the major reason farms incorporate is for estate planning. The corporate form allows for the transfer of shares of stock either by sale or gift. This is much easier than transferring assets by deed.
Limited Liability Company
The Limited Liability Company (LLC) is a relatively new form of business organization. An LLC is a separate entity, like a corporation, that can legally conduct business and own assets. The LLC must have an operating agreement which regulates its business activities and the relationship among its owners (referred to as members). There are no restrictions on the number of members or the members’ identities. LLCs are subject to disclosure, record keeping, and reporting requirements that are similar to a corporation.
The attractive feature of the LLC is that all members obtain limited liability, but the entity is taxed as a general partnership. The LLC is similar in most respects to the Subchapter S corporation. The primary differences are: 1) the LLC has less restrictive membership requirements; and 2) the LLC is dissolved in the event of transfer of interest or death unless members vote to continue the LLC.  Generally, cooperatives are thought to operate at cost, with all profits going to member patrons. The profits are usually redistributed over time in the form of patronage refunds. Cooperatives often appear to operate as profit making organizations much the same as other forms of business organization. Agricultural cooperatives do not face the same anti-trust restrictions as non-cooperative businesses, and they enjoy a different federal income tax status. In most instances, the concepts and analysis techniques covered in this course will be relevant to financial management in cooperatives.
Trusts
A trust transfers legal title of designated assets to a trustee, who is then responsible for managing the assets on the beneficiaries’ behalf. The management objectives can be spelled out in the trust agreement. Beneficiaries retain the right to possess and control the assets of the trust and to receive the income generated by the properties owned by the trust. Beneficiaries hold the trust and personal property, rather than title to the assets. The legal status of certain types of land trusts are unclear in some states.
Farm Business Organization Types in US Agriculture
The USDA defines a farm as a place that generates at least $1,000 value of agricultural products per year. In 2007, farms generating between $1,000 and $10,000 of agricultural products made up 60% of the 2.2 million U.S. farms. Farms producing $500,000 or more in 2007 dollars generated 96% of the value of U.S. agricultural production.
Table 2.2 shows the percentage of farms by organizational type and their share of aggregate agriculture product sales according to the 2007 Census of Agriculture. Sole proprietorships are the dominant form of business organization measured by farm count (86.5%) but have only 49.6% of the value of agricultural production. Partnerships and family corporations make up 20.8% of farms but have 43% of the value of agricultural production. Non-family corporations, part of the “other organization” category, accounted for 0.4% of farms and 6.5% of the value of agricultural production.
| Business Type | % of Farms | % of Cash Receipts |
|---|---|---|
| Sole Proprietorships | 86.5% | 49.6% |
| Partnerships | 7.9% | 20.9% |
| Family Corporations [1] | 3.95 | 22.9% |
| Other [2] | 1.2% | 7.3% |
More generally, about 80 percent of all businesses (agriculture and non-agriculture) are organized as sole proprietorships while only around 10 percent of businesses are organized as corporations. Conversely, about 80 percent of business sales come from corporations while sole proprietorships account for only about 10 percent of business sales.
So what have we learned? We learned that firms organize differently depending on the size, ability to manage, the need for internal versus external funding, and tax implications. Indeed, the need for different business organizations can be compared to the need for different kinds of transportation—it depends on where you are going.
Summary and Conclusions
Recognizing that we can offer financial management tools that meet a limited set of business organizations, we purposely focus in this text on small to medium-size businesses. As a result, we focus on firms that depend on internal capital and exercise the maximum control of the firm.
Questions
- Discuss the advantages and disadvantages of organizing a business as a sole proprietorship versus a C corporation.
- Limited partnerships, limited liability companies, and Subchapter S corporations are also alternative forms of business organization. Discuss the advantages and/or disadvantages these organizations offer relative to sole proprietorships, general partnerships and C corporations.
- Approximately 85% of all farm businesses in the US are organized as sole proprietorships. Explain why the organization form of farm businesses in the U.S. is dominated by sole proprietorships.
- Pick an agricultural commodity or product that is produced in the food industry. Describe the different production, processing and marketing steps for the commodity or product and how they are typically coordinated.
- Can you explain in Table 2.2 why corporations tend to control more land than partnerships and sole proprietorships?
- What are the advantages or disadvantages of a family corporation compared to a regular corporation?


1.21: The Future of a Relationship
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Learning Objectives
- Express that relationships can change through time and what that signifies about any given time in the relationship.
Watch this video or scan the QR code to see how love can change.
In most of this book, I consider the amount of value, joy, and attraction in a relationship at some particular time. But you can also use these dimensions to think about and analyze likely future trends in a relationship. One can, even in the midst of a powerful attraction, realize that that attraction may (soon) fade or change its form. One may realize that present satisfaction is due only to temporary circumstances and that when those circumstances change, so probably will the joy the relationship brings. One may fairly well predict in what ways a relationship will get better or worse.
As people mature and acquire knowledge about how they respond to various kinds of situations and conditions, they become better able to predict how their tastes and feelings will likely change even though they do not “feel” at the time that they will change. This is in all areas, not just relationships.  Wisdom lets you know past strong romantic passions have tended to cloud your reason before and let you get hurt when you rushed into some areas just on the basis of those feelings, so you tend to pursue your feelings with caution and awareness rather than in just blind faith. Those who learn from experience and from their former mistakes can attain a measure of wisdom; unfortunately learning from mistakes requires making them first.
But there are other ways to learn, sometimes films and literature dramatize in powerful and meaningful ways the mistakes others have made or that anyone could make. Sometimes we see people who set negative examples, and something in us tells us not to emulate them but instead to avoid becoming like them, to avoid making the kinds of mistakes and choices they seem to have made in their lives. Bad examples are often as instructive as good ones; sometimes, more instructive. Sometimes people’s own stories will be so vivid that we will learn from them as much as if we had had the experience of our self. Sometimes we can extrapolate knowledge gleaned from our own limited experiences to those we have not yet had. For example, if you have ever kissed someone, not because you really liked them or really wanted to kiss them, but because you were experimenting to see what it was like, and if you found that kissing with just that motivation was quite dissatisfying and not anywhere near as pleasant as kissing someone you really like or really want to kiss, you will probably be less likely to experiment, just for the sake of experimenting, with more involved physically or sexually intimate behavior.
It is very important for people to know that they might be affected by changes in their circumstances so that they can minimize those changes or the undesirable consequences of those changes as much as possible. For example, two teenagers who love each other (make each other happy, are good for each other now, and who are attracted to each other) may realize that many people whose marriages did not long survive were once in the exact same situation as they are now. They may realize that their love may not survive taking on family, financial, and employment obligations they have never really had before. This may give them serious concern about having a child right away, even though they may want to. They may want to marry but to wait until later to have a child. Others may want to postpone marriage altogether until their lives have taken on more familiar and predictable patterns in a more stable environment, or at least until they know they are flexible and capable enough to be likely to handle negative surprises in positive ways. This will not, of course, guaranty success, but it gives it a more reasonable chance.
It is also important for people to realize that since relationships often change through time, particularly through changing environment and changing needs, changing desires and half- desires, changing feelings, etc. that they may someday not love each other the way they do now, if at all; but that growing “out” of love or losing love for each other does not then mean there never was any love. People seem to think that real love lasts forever so that whatever does not last forever must not have been real love. But I think this is not true. There are too many cases where one can see objectively how circumstances changed in such a way that it would be very unlikely for a relationship to remain satisfying or good — a company relocation to an area where a spouse may be most lonely, unhappy, and unable to cope, particularly if the mate transferred has been promoted to a job that requires an inordinate amount of work away from home; important career changes that take spouses away from each other for too long periods of time; educational growth of one or both spouses that make their interests so divergent it is difficult for them to become very involved in areas of (particular) importance to each other; drastic personality changes in one person due to alcoholism, financial loss, war experiences, business experiences, the influence of new friends, or whatever changes that are unable to be resolved. There are all kinds of forces at work that can weaken or destroy an otherwise flawless relationship, particularly when the people involved have no idea those forces are acting upon them. And there are too many similar situations where the same kinds of forces help destroy the same kinds of relationships for it to be just accident or an indication that there was no love, or insufficient love, in the first place.
Therefore, though people whose relationships fail may be hurt or angry, they should not necessarily also think the whole relationship has been a sham, a farce, or a lie, or that their partner has never loved them. Because a relationship does not retain sufficient attraction, joy, or good for it to remain an active or viable partnership, that does not mean that it never had enough to be one and that it never, in fact, was one.
And similarly, just because adults may have every reason to believe that teenage love will not weather enough external changes to last as their children go to college, take on jobs, move to new environments and make new friends, that is no reason to hold the teenagers do not now love each other. They may be quite suited to each other now — quite attracted, quite satisfying, and quite good for each other — in their environment, at their level of maturity, and with their particular present interests and abilities. Parents need to understand it would most likely be unproductive, ill-advised, and misunderstood (and I think incorrect) to tell a child he or she is not really in love or that he or she should not be so serious yet or for this person. Rather they should realize how satisfying, good, and emotionally strong the relationship may be and only seek to help their children realize it is likely or possible to change as the partners mature and their circumstances, environment, abilities, and responsibilities change. Further, they want to try to ensure that behavior is appropriate to the stage of the relationship and the maturity level of the partners by at least making certain the children understand what is appropriate and why, and by making certain the children understand feelings for each other alone are not what determine the correctness of their behavior toward each other. This is, of course, in regard to sex that risks pregnancy and future heartbreak, but it is also in regard to things like sacrificing college (where college is more appropriate) in order to support the partner through law school or some such.
Now knowledge about the future can affect the present, and in different ways. One person expecting to face a severe crisis may be unperturbed by otherwise intruding minor annoyances; another may find those intrusions to be tremendous additional aggravations. Nothing else in the morning may bother a person sentenced to the gallows for that afternoon; but, on the other hand, few people would be able to enjoy the freefall from a plane if they had no parachute or knew their chute would not open. Knowing or believing a relationship likely to be impermanent may make it more important and enjoyable at the time or may spoil or ruin it altogether. Impending disaster can spoil the present or make its pleasures that much more intense and more valuable.
Also, some publicized prophecies (like “bank Z will fail”, or “the rate of inflation will increase”) are self- fulfilling; others (like predicting overcrowded dorms next year, before people have chosen their colleges or residences), are self- defeating; and still others (such as horse race predictions) have no effect on the outcome at all. Predicting or thinking about the future of a relationship may or may not alter how that relationship will actually turn out, but I suspect that more often than not foresight, preparation, precaution, and planning would make more people much happier and better off than reflex reaction to circumstance, feelings, and unexpected accident. Though in some cases dire predictions are self-fulfilling, in many cases they may make possible sufficient preparation and response to render them false.
In some cases, it seems to me it is not too much information or too much understanding of the probability of the future, but the uncertainty or unpredictability of the future, that makes life’s decisions more difficult. One might justifiably delay gratification that has some personal risk to one’s future, whereas if one knew there was not going to be much future for them, one probably would justifiably not delay such gratification. Sometimes a relationship that is known by both people about to end — say one person is moving away or dying — may be more intense, less superficial, more loving than one which seems to have no near end. With relationships, as with life in general, there would probably be fewer difficult problems and decisions if we knew whether there would be no tomorrow or infinite tomorrows, or if we knew just exactly how many tomorrows there would be. Fortunately or unfortunately, however, we have to both plan for the future and plan for the possibility of there being no or little future.
That is sometimes difficult, for how we would and should act if there were no or little future is often quite different from how we should act if there were an assured long future. And it is particularly difficult, I think, for children and teenagers, because without the self-knowledge that can come with experience they sometimes have too little patience (feeling like the future may never arrive or that it takes too long to arrive) and sometimes have too much patience (for procrastination) because they feel there will always be time to do the things they need to do.
Key Takeaways
- Changes through time which decrease or end love, do not mean it did not exist at the time it was perceived. Oppositely, but not as problematic or perhaps even interesting, the flowering of a relationship into love does not mean love existed from the beginning. The general framework of love as attraction, satisfaction, and goodness (and their opposites) helps make understanding the nature of changes over time easier and can put them into perspective, both in regard to past actual changes and future potential ones.
Key Terms
- One may realize that present satisfaction is due only to temporary circumstances and that when those circumstances change, so to, may the joy the relationship brings.
Review Questions
- Question: Do relationships change as people mature and acquire knowledge about how they respond to various kinds of situations and conditions?
- Question : Does predicting or thinking about the future of a relationship affect how that relationship will actually turn out?


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2: Static Equilibrium in Concurrent Force Systems
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2.0: Chapter 2 Video Introduction
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Video introduction to the topics to be covered in this chapter: static equilibrium, equilibrium analysis of concurrent force systems, finding and calculating forces.
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2.1: Static Equilibrium
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Definition of static equilibrium, and its relation to force and acceleration, in terms of both linear and angular acceleration.
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2.2: Point Forces as Vectors
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Approximating surface forces as point forces. The line of action of forces. Representation of forces as vectors, magnitude-angle and component notations of vectors. Includes several worked example problems.
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2.3: Principle of Transmissibility
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The principle of transmissibility, and the situations where it can be applied to analysis of a rigid body vs. those where it cannot.
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2.4: Concurrent Forces
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The connection between lines of action and the concurrence of a set of point forces. Particle behavior of a body experiencing only concurrent forces.
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2.5: Equilibrium Analysis for Concurrent Force Systems
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How to solve problems involving analysis of concurrent forces on a body at static equilibrium. Includes several worked example problems.
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2.6: Chapter 2 Homework Problems
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2.3: Body Cavities
Body Cavities
The body maintains its internal organization by membranes and other structures that separate compartments. The dorsal (posterior) cavity and the ventral (anterior) cavity are the largest compartments of the body, as shown in Figure 2.3. [1] The dorsal (posterior) cavity includes the cranial and spinal (vertebral) cavities. The ventral (anterior) cavity includes the thoracic and abdominopelvic cavities.
In the dorsal cavity, the cranial cavity houses the brain. The brain is protected by the bones of the skulls and the cerebrospinal fluid. The spinal cavity (vertebral cavity) encloses the spinal cord. It is protected by the vertebral column and cerebrospinal fluid. In the ventral cavity, the thoracic cavity is superior in position to the abdominopelvic cavity, and it is enclosed by the rib cage. The thoracic cavity contains the lungs and the heart. The diaphragm forms the floor of the thoracic cavity and separates it from the abdominopelvic cavity. The abdominopelvic cavity is the largest cavity in the body. The abdominopelvic cavity houses the digestive organs, the pelvic cavity, and the reproductive organs. The ventral cavity also allows for significant changes in the size and shape of the organs as they perform their functions. For example, the lungs, heart, stomach, and intestines can expand and contract without distorting other tissues or disrupting the activity of nearby organs.
View a supplementary YouTube video [2] on body cavities and membranes:
- “ Dorsal_Ventral_Body_Cavities.jpg ” by OpenStax is licensed under CC BY 4.0. Access for free at https://openstax.org/books/anatomy-and-physiology-2e/pages/1-introduction ↵
- RegisteredNurseRN. (2019, June 12). Body cavities and membranes (Dorsal, Ventral) - Anatomy and physiology [Video]. All rights reserved. Reused with permission. https://www.youtube.com/watch?v=4GLMjSj4k9U ↵


4.8: Exponential Relationships (6 of 6)
Learning Objectives
- Use an exponential model (when appropriate) to describe the relationship between two quantitative variables. Interpret the model in context.
Now we apply what we have learned about exponential decay to find a model for a set of data. We use a simulation to find appropriate values for C and b .
Here are the data we will investigate.
This table shows the data values, where
x
is the feet below the surface of the water and
y
is the predicted light intensity measured in lumens in a lake. We can see in the data that the amount of light transmitted through water decreases with depth. There is less light at greater depths.
Here are the data graphed in the scatterplot in the simulation. Notice that the light intensity has a fairly strong negative exponential form. Use the sliders in the simulation to adjust the values of C and b to find a reasonable exponential model that fits this data.
Click here to open this simulation in its own window.
Contributors and Attributions
- Concepts in Statistics. Provided by : Open Learning Initiative. Located at : http://oli.cmu.edu . License : CC BY: Attribution


7: Voting Systems
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- 7.1: Voting Methods
- Every couple of years or so, voters go to the polls to cast ballots for their choices for mayor, governor, senator, president, etc. Then the election officials count the ballots and declare a winner. But how do the election officials determine who the winner is. If there are only two candidates, then there is no problem figuring out the winner. The candidate with more than 50% of the votes wins. This is known as the majority. So the candidate with the majority of the votes is the winner.
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- 7.2: Weighted Voting
- There are some types of elections where the voters do not all have the same amount of power. This happens often in the business world where the power that a voter possesses may be based on how many shares of stock he/she owns. In this situation, one voter may control the equivalent of 100 votes where other voters only control 15 or 10 or fewer votes. Therefore, the amount of power that each voter possesses is different.
Thumbnail: pixabay.com/photos/survey-op...-fill-1594962/


2.6: Inventory Models for Certain Demand- Economic Order Quanitity (EOQ) Model
Economic Order Quantity (EOQ) Model
The Economic Order Quantity (EOQ) model is a fundamental inventory management model used when the following assumptions hold:
Assumptions
- The item is ordered from an external supplier (no internal production)
- Demand is fixed or steady over time (known with certainty)
- Lead time (the duration between order placement and receipt) is constant
- A fixed order quantity is placed each time
- The ordering cost is fixed per order, regardless of order size
Inventory Control Cycles
Each order placement initiates an inventory control cycle or order cycle. Upon receiving an order, the inventory level increases, and as demand is satisfied, the inventory level decreases over time. When the inventory level reaches a predetermined reorder point, a new order is placed, and the cycle repeats.
The inventory level fluctuates, as shown in the following diagram:
At point 1, an order of quantity Q is received, increasing the inventory level from zero to Q units. As time progresses, the inventory level decreases due to demand. When the inventory level reaches the reorder point R , a new order is placed to ensure that the order is received just as the inventory level reaches zero, preventing stock-outs.
Objective and Cost Components
The objective of the EOQ model is to determine the optimal order quantity (Q*) that minimizes the total relevant costs, which include:
- Total Ordering Costs
- Total Inventory Holding (Carrying) Costs
Other costs, such as total acquisition (purchasing) costs and shortage costs, are excluded from the model due to the assumptions of fixed demand and no stock-outs.
Notation and Calculations
Let:
D = demand (units/year)
Q = order quantity
S = order cost ($/order)
H = carrying cost ($/item/year)
I avg = Average inventory
N = number of orders per year
TC = Total Cost
Total Cost = Ordering cost + Carrying cost
TC = ( S × N ) + (H × I avg )
TC(Q) = ( S × D ÷ Q ) + ( H × Q ÷ 2 )
The number of orders per year (N) can be calculated as N = D÷Q.
The average inventory level is Q÷2, assuming a constant demand rate.
The total relevant cost function, TC(Q) , is given by:
TC(Q)=(D÷Q)×S+(Q÷2)×HTC(Q)=(D÷Q)×S+(Q÷2)×H
By setting the derivative of TC(Q) with respect to Q equal to zero and solving for Q , the optimal order quantity Q* is obtained:
Q∗=√2DS/H
This optimal order quantity minimizes the total relevant costs for the given demand, ordering cost, and holding cost parameters.
The EOQ model provides a straightforward approach to determining the optimal order quantity when demand is certain, and other assumptions are met, enabling organizations to optimize their inventory management strategies and minimize associated costs.
The * on top of Q shows that it is a special value of the Q , which, in this case, is the optimal value. Let’s have a look at some examples.
Video: “ Inventory Management: Economic Order Quantity (EOQ) Model Video 1 ” by Excel@Analytics – Dr. Canbolat [15:25] is licensed under the Standard YouTube License . Transcript and closed captions available on YouTube.
EOQ Model Examples
Example 1
Assume that Apple Canada has an annual demand of 250,000 for one of its tablets. A component has annual holding cost of $12 per unit, and ordering cost of $150. Calculate EOQ, total cost of ordering and inventory holding, number of orders per year and the order cycle time for this item. Assume 250 working days in a year.
Solution
H = $12 per unit
S = $150
D = 250,000 units
EOQ=Q∗=√2DS/H=√2×250,000×150/12=2500
TC(Q∗)=S×D/Q∗+H×Q∗/2=150×250,000/2500+12×2500/2=15000+15000=$30,000
Optimal number of orders per year =D/Q∗=250,000/2500=100
Length of order cycle time =250 days in a year/100 orders=2.5days
Example 2
Assume that it costs BestBuy $625 each time it places an order with a manufacturer for a specific model of laptop. The cost of carrying one laptop in inventory for a year is $130. The store manager estimates that total annual demand for the laptops will be 1500 units, with a constant demand rate throughout the year. The store policy is never to have stockouts of the laptops. The store is open for business every day of the year except Christmas Day.
Determine the following:
- Optimal order quantity per order
- Minimum total annual inventory costs
- The optimal number of orders per year
- The time between orders (in working days)
Solution
D = 1500
S = $625
H = $130
a. Q∗=√2DS/H=√2(1500)(625)/130=120.1
b. TC(Q)=SD/Q+HQ/2=625×1500/120.1+130×120.1/2=$15,612.49
c. D/Q=1500/120.1=12.49 orders
d. 364/12.49=29.14 days
Example 3
The Modern Furniture Company purchases upholstery material from textile supplier in Halifax, Canada. The company uses 45,000 yards of material per year to make sofas. The cost of ordering material from the textile company is $1500 per order. It costs Modern Furniture $0.70 per yard annually to hold a yard of material in inventory. Determine:
- The optimal number of yards of material Modern Furniture should order
- The minimum total inventory cost
- The optimal number of orders per year, and
- The optimal time between orders
Solution
D = 45,000
S = $1500
H = $0.70
a. Q∗=√2DS/H=√2(45000)(1500)/0.70=13,887.3 yd
b. TC(Q)=SD/Q+HQ/2=1500×45000/13887.3+0.7×13887.3/2=$9721.11
c. D/Q=45000/13887.3=3.24 orders per year
d. 365/3.24=112.6 days
Source
" 8.5 Inventory Models for Certain Demand: Economic Order Quantity (EOQ) Model " from Fundamentals of Operations Management Copyright © 2024 by Azim Abbas and Seyed Goosheh is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.


14.13: For Further Exploration
(RAINN) National Sexual Assault Hotline at 800.656.HOPE (4673) or chat online: online.rainn.org
https://www.loveisrespect.org/resources/what-is-sexual-coercion/
Marin County: https://centerfordomesticpeace.org/
YouTube
https://www.youtube.com/watch?v=Wi41cW6Dol4 Coercion, Consent and Sexual Violence | Dr. Felicia Kimbrough | TEDxSIUC
https://www.youtube.com/watch?v=imr5ZiAY_ao When "Yes" Means "No", the Truth about Consent | Joyce Short | TEDxYouth@UrsulineAcademy
https://www.youtube.com/watch?v=yJiKeWtTWA4 Why we need to change the way young men think about consent | Nathaniel Cole | TEDxLondonWomen
https://www.youtube.com/watch?v=m1ziz2y-2mk&t=27s Short commercial type on sending nudes.
https://www.youtube.com/watch?v=jJ9KRJXERlA The Widespread Effects of Sexual Assault | Tilly Musser | TEDxYouth@AnnArbor
Web
https://www.sscok.edu/ComSafetyPgs/Consent.html#:~:text=What%20does%20consent%20mean%20in,the%20option%20of%20saying%20no . Good overview of consent


5.14: Bulk Transport - Exocytosis
- Describe exocytosis and the processes used to release materials from the cell.
Exocytosis’ main purpose is to expel material from the cell into the extracellular fluid; this is the opposite of what occurs in endocytosis. In exocytosis, waste material is enveloped in a membrane and fuses with the interior of the plasma membrane. This fusion opens the membranous envelope on the exterior of the cell and the waste material is expelled into the extracellular space. Exocytosis is used continuously by plant and animal cells to excrete waste from the cells.
Exocytosis is composed of five main stages. The first stage is called vesicle trafficking. This involves the steps required to move, over a significant distance, the vesicle containing the material that is to be disposed. The next stage that occurs is vesicle tethering, which links the vesicle to the cell membrane by biological material at half the diameter of a vesicle. Next, the vesicle’s membrane and the cell membrane connect and are held together in the vesicle docking step. This stage of exocytosis is then followed by vesicle priming, which includes all of the molecular rearrangements and protein and lipid modifications that take place after initial docking. In some cells, there is no priming. The final stage, vesicle fusion, involves the merging of the vesicle membrane with the target membrane. This results in the release of the unwanted materials into the space outside the cell.
Some examples of cells releasing molecules via exocytosis include the secretion of proteins of the extracellular matrix and secretion of neurotransmitters into the synaptic cleft by synaptic vesicles. Some examples of cells using exocytosis include: the secretion of proteins like enzymes, peptide hormones and antibodies from different cells, the flipping of the plasma membrane, the placement of integral membrane proteins(IMPs) or proteins that are attached biologically to the cell, and the recycling of plasma membrane bound receptors (molecules on the cell membrane that intercept signals).
membrane that intercept signals).
Contributions and Attributions
- OpenStax College, Biology. October 16, 2013. Provided by : OpenStax CNX. Located at : http://cnx.org/content/m44419/latest...ol11448/latest . License : CC BY: Attribution
- neutrophil. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/neutrophil . License : CC BY-SA: Attribution-ShareAlike
- endosome. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/endosome . License : CC BY-SA: Attribution-ShareAlike
- OpenStax College, Bulk Transport. October 16, 2013. Provided by : OpenStax CNX. Located at : http://cnx.org/content/m44419/latest...e_05_04_01.jpg . License : CC BY: Attribution
- OpenStax College, Bulk Transport. October 16, 2013. Provided by : OpenStax CNX. Located at : http://cnx.org/content/m44419/latest...e_05_04_02.jpg . License : CC BY: Attribution
- OpenStax College, Bulk Transport. October 16, 2013. Provided by : OpenStax CNX. Located at : http://cnx.org/content/m44419/latest...e_05_04_03.jpg . License : CC BY: Attribution
- OpenStax College, Biology. October 16, 2013. Provided by : OpenStax CNX. Located at : http://cnx.org/content/m44419/latest...ol11448/latest . License : CC BY: Attribution
- Exocytosis. Provided by : epiehonorsbiology Wikispace. Located at : http://epiehonorsbiology.wikispaces.com/Exocytosis . License : CC BY-SA: Attribution-ShareAlike
- secretion. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/secretion . License : CC BY-SA: Attribution-ShareAlike
- vesicle. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/vesicle . License : CC BY-SA: Attribution-ShareAlike
- OpenStax College, Bulk Transport. October 16, 2013. Provided by : OpenStax CNX. Located at : http://cnx.org/content/m44419/latest...e_05_04_01.jpg . License : CC BY: Attribution
- OpenStax College, Bulk Transport. October 16, 2013. Provided by : OpenStax CNX. Located at : http://cnx.org/content/m44419/latest...e_05_04_02.jpg . License : CC BY: Attribution
- OpenStax College, Bulk Transport. October 16, 2013. Provided by : OpenStax CNX. Located at : http://cnx.org/content/m44419/latest...e_05_04_03.jpg . License : CC BY: Attribution
- OpenStax College, Bulk Transport. October 16, 2013. Provided by : OpenStax CNX. Located at : http://cnx.org/content/m44419/latest...e_05_04_04.jpg . License : CC BY: Attribution
Key Points
- Exocytosis is the opposite of endocytosis as it involves releasing materials from the cell.
- Exocytosis has five stages, each leading up to the vesicle binding with the cell membrane.
- Many bodily functions include the use of exocytosis, such as the release of neurotransmitters into the synaptic cleft and the release of enzymes into the blood.
Key Terms
- secretion : The act of secreting (producing and discharging) a substance, especially from a gland.
- vesicle : A membrane-bound compartment found in a cell.


3.6: Career Connection
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Sanvi is a pre-nursing student who is having trouble between all the reading she is expected to complete, her general dislike of reading, and her need to comprehend both her reading assignments and her own notes to be successful in nursing school. She has spoken with several of her instructors and a tutor at the Student Success Center on campus, and their advice centers around Sanvi’s reluctance to read in general. She is working on how to manage her time so she has more dedicated time to read her assignments in between her classes and her work schedule.
That is helping some, but Sanvi is still worried because she knows one problem is that she doesn’t exactly know what types of reading or notetaking she would need to know how to do as a professional nurse. This confusion makes her doubt that the extra reading she is doing now is really beneficial. After some reflection on what was holding her back, Sanvi mentioned this aspect of her studying to one of her instructors who had been a hospital RN for years before coming to the college to teach. She recalled that the first time she read a patient chart in the hospital, she had to think quickly about how to get all the meaning out of the chart in the same way she would have read a complex textbook chapter.
Sanvi’s nursing instructor reminded her that all professions need their personnel to read. They may not all need to read books or articles, but all jobs involve reading to some extent. For example, consider this list of disciplines and the typical types of reading they do. You may be surprised that not all reading is in text form.
| Nurses/doctors | Patient charts, prescription side effects, medical articles |
| Teachers | Student work, lesson plans, educational best practices |
| Architects | Blueprints, construction contracts, permit manuals |
| Accountants | Financial spreadsheets, tax guidelines, invoices, trend diagrams |
| Beauticians | Client hair and facial features, best practices articles, product information |
| Civil engineers | Work site maps, government regulations, financial spreadsheets |
| Auto mechanics | Car engines, auto manuals, government regulations |
As this incomplete list shows, not every job you pursue will require you to read text-based documents, but all jobs require some reading.
- How could Sanvi and her instructor use this list to make more sense of how college reading will prepare Sanvi to be a stronger nurse?
- How would understanding the types of professional reading help you complete your reading assignments?
- If your chosen field of study is not listed above, can you think of what sort of reading those professionals would need to do?
Think about the questions that opened this chapter and what you have read. How do you feel about your reading and notetaking skills now that you have some more strategies?