[SOLVED] Business and Finance BAM 105 assignment help – Business Finance

same as before on study help.BAM 105
Introduction to Business
925 North Spurgeon Street, Santa Ana, CA 92701
Phone: 714-547-9625 Fax: 714-547-5777
www.calcoast.edu
12/14
Tracking Your Academic Activities
Verifying an accurate course completion time is essential for accreditation. To meet both
accreditation requirements and award academic credit, educational institutions must document the
total number of hours students spend completing designated academic activities related to their
coursework.
The total hours are then translated into academic credit based on a prescribed method of measuring
educational attainment known as the Carnegie Unit. 90 hours of student preparation time and 45
hours of student engagement time are required for a 3 credit hour course.
Using the attached form as an example, keep track of the time you spend on each lesson, pre-test,
self-test, unit test, writing assignment, reading assignment, outside reading, final examination, etc.
You will not be required to turn in the worksheet; however, at the end of the course you will receive
a Student Course Survey and the final question will ask how long it took you to complete the course.
Your assistance in completing this requirement and providing the university with this valuable data is
greatly appreciated.
As you fill out the worksheet, please keep in mind that your Academic Engagement Activities should
total approximately 45 hours. Some examples of this type of activity may include:
Lesson Review Exercises
Unit Examinations
Key Term Reviews
Proctored Final Examination
Analysis
Course Academic Online Discussions
Study Guide Review
Student/Instructor Interaction
Writing Assignments
Documents/Student Resources
Review Grading Rubric
As you fill out the Academic Preparation Activities, please keep in mind that these should total
approximately 90 hours. Some samples of this type of activity may include:
iii
Pre-Test
Review Grading Rubric
Reading Assignments
Study Lesson Review Exercises
Key Term Reviews
Internet/Web Research
Studying for Examinations
Reading Websites
Writing Assignments
Suggested Outside Reading
Sample Worksheet for Tracking Your Academic Activities
Upon completion of this course, you will be asked to complete a survey.  The last question on the survey
will ask you the number of hours it took to complete the course.  The total hours are then translated into
academic credit based on a prescribed method of measuring educational attainment known as the Carnegie
Unit.  90 hours of student preparation time and 45 hours of student engagement time (135 hours) are
required for a 3 credit hour course.  
This worksheet was developed as a tool to help track your time.   You are not required to turn it in.
length of
time to
complete
Unit 1
 
 
 
 
 
 
 
 
 
 
 
 
length of
time to
complete
Unit 2
 
 
 
 
 
 
 
 
 
 
 
 
length of
time to
complete
Unit 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Academic Engagement Activities
Lesson Review Exercises
Key Term Review Exercises
Study Guide Review
Documents/Student Resources
Writing Assignments
Review Grading Rubric
Unit Examinations
Proctored Final Examination
Case Studies/Critical Analysis
Course Academic Online Discussions
Student/Instructor Interactions
Total Academic Engagement required for a
3 unit course = 45 hours
Academic Preparation Activities
Pre-Test
Reading Assignments
Analyze Case Studies/Critical Analysis
Key Term Review Exercises
Study for Examinations
Suggested Outside Readings
Web Research
Writing Assignments
Review Grading Rubric
Reading Websites
Study Lesson Review Exercises
Total Academic Preparation required for a
3 unit course = 90 hours
Grand total of hours of various learning
activities in completing this course
length of
time to
complete
Unit 4
Totals
Pre-test Instructions
Thank you for taking the time to complete the required pre-test. The purpose of the pre-test is to measure
your knowledge of the subject matter at the beginning of each course.
Please be assured, your score on the pre-test will not be part of your course grade. We do not want you to
try to study for it or be worried about doing well on the pre-test. It is simply a measure of your “starting
place,” that will be used for improving course content and to meet accreditation requirements.
If you receive your course materials online:
• Please log-in to your Coast Connection student portal to complete your pre-test.
If you receive your course materials by mail:
• You will receive your answer sheets for the pre-test by mail.
• Once you have completed your pre-test, please mail or fax your answer sheet to the
University at:
California Coast University
925 N. Spurgeon Street
Santa Ana, CA 92701
Fax: 714-547-1451
If you have any questions, please feel free to contact the Student Services Department. Thank you for your
cooperation.
vii
BAM 105 Introduction to Business
Pre-test
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. The _____________ is the pattern of short-term ups and downs in an economy.
a. standard of living
b. business cycle
c. aggregate output
d. balance of payments
2. A _____________ is a period during which aggregate output declines.
a. recession
b. depression
c. favorable balance of trade
d. decade
3. Which statement is false?
a. Fewer and fewer companies are adopting codes of ethics.
b. Some ethical responses can be learned through experience.
c. Social responsibility involves providing quality products and pricing products fairly.
d. More and more companies are adopting codes of ethics.
4. Responding to increased demand with overly steep, and often unwarranted, price increases is
called _____________.
a. price matching
b. unit pricing
c. price gouging
d. price fixing
5. For loans under $35,000, the SBA offers the _____________ program.
a. SNDC
b. local development company
c. micro-loan
d. advisory
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BAM 105 Introduction to Business
Pre-test
6. A _____________ invests all of the funds needed for a business but plays no role in its
management.
a. silent partner
b. general partner
c. sole proprietor
d. principal
7. Which country dominates the Pacific Asia region economically?
a. Taiwan
b. South Korea
c. Japan
d. China
8. The ABC Paint Company in the United States has joined forces with the 1-2-3 Plastics
Company in Italy to create a non-pealing, plastics-based paint. Both companies intend to
share the research costs and any profits. This is an example of _____________.
a. a strategic alliance
b. foreign direct investment
c. viral marketing
d. a licensing arrangement
9. Statements of how organizations will achieve their purposes in the environments in which
they conduct their business are called _____________.
a. intermediate goals
b. long-term goals
c. mission statements
d. short-term goals
10. Which of the following are directly responsible for getting products from producers to
consumers?
a. information managers
b. marketing managers
c. operations managers
d. production managers
x
BAM 105 Introduction to Business
Pre-test
11. _____________ is the obligation employees have to their manager for the successful
completion of an assigned task.
a. Authority
b. Accountability
c. Centralization
d. Span of control
12. In a _____________ organization, decision-making authority is delegated to levels of
management at various points below the top.
a. decentralized
b. point-of-sale
c. centralized
d. geographic
13. _____________ is the evaluation of all work activities, materials flows and paperwork to
determine the value that they add for customers.
a. Quality management
b. Groupware
c. Value-added analysis
d. Benchmarking
14. _____________ is the positive behaviors that do not directly contribute to the bottom line.
a. Counterproductive behavior
b. Organizational citizenship
c. Performance behavior
d. Employee behavior
15. Status and job titles can meet the _____________ needs level in the hierarchy of needs
model.
a. esteem
b. self-actualization
c. social
d. physiological
xi
BAM 105 Introduction to Business
Pre-test
16. In referring to cross-cultural leadership, culture refers to _____________.
a. international differences
b. neither international differences nor diversity-based differences within one culture
c. international differences and diversity-based differences within one culture
d. diversity-based differences within one culture
17. Which of the following best defines decision making?
a. reducing risk
b. choosing one alternative from among several
c. avoiding escalation of commitment
d. analyzing the environment
18. Some incentive programs apply to all employees in a firm. Paying workers to learn new skills
and to become proficient at different jobs is called a ____________ plan.
a. profit-sharing
b. pay-for-knowledge
c. gainsharing
d. None of the above.
19. Which of the following emphasizes lasting relationships with customers and suppliers?
a. advertising
b. relationship marketing
c. industrial marketing
d. personal selling
20. The marketing mix element of communicating information about products is referred to as
______________.
a. promotion
b. place
c. product
d. price
21. A salesperson communicates one-to-one with potential customers to identify their needs and
to line them up with the seller’s product through _____________.
a. word-of-mouth
b. personal selling
c. personal endorsement advertising
d. sales promotion
xii
BAM 105 Introduction to Business
Pre-test
22. _____________ is crucial for high-priced consumer products such as homes and cars.
a. Interactive marketing
b. Missionary selling
c. Order processing
d. Creative selling
23. A(n) _____________ system is an interactive system that creates virtual business models and
tests them with different data to see how they respond.
a. decision support
b. application
c. expert
d. management information
24. The management of the nation’s economic growth by managing money supply and interest
rates is called a _____________ policy.
a. monetary
b. supply/demand
c. fiscal
d. growth
25. _____________ is a financial institution that specializes in issuing and reselling new
securities.
a. The New York Stock Exchange
b. The secondary securities market
c. A commercial bank
d. An investment bank
xiii
BAM 105
Introduction to Business
Text:
Business Essentials
ISBN-13: 9780137053490
Author(s):
Ronald J. Ebert and Ricky W. Griffin
Publisher:
Pearson/Prentice Hall
925 North Spurgeon Street, Santa Ana, CA 92701
Phone: 714-547-9625 Fax: 714-547-5777
www.calcoast.edu
12/14
Study Guide
Eighth edition, 2011
BAM 105 Introduction to Business
Message From
the President
W
elcome to California Coast University. I hope you will find this course
interesting and useful throughout your career.
This course was designed to meet the unique needs of students like you who are
both highly motivated and capable of completing a degree program through
distance learning.
Our faculty and administration have been involved in distance learning for over
forty years and understand the characteristics common to successful
students in this unique educational environment.
This course was prepared by CCU faculty members who are not only outstanding
educators but who have real world experience. They have prepared these
guidelines to help you successfully complete your educational goals and to get the
most from your distance learning experience.
Again, we hope that you will find this course both helpful and motivating. We send
our best wishes as you work toward the completion of your program.
Sincerely,
Thomas M. Neal
President
All rights reserved. No part of this book may be reproduced or transmitted
in any form or by any means, electronic or mechanical, including photocopying,
recording or by any information storage and retrieval system without written
permission from the publisher, except for the inclusion of brief quotation
in review.
Copyright © 2014 by California Coast University
BAM 105 Introduction to Business
Syllabus
Course Number
BAM 105
Course Title
Introduction to Business
Course Description
This course introduces the business world and the contemporary
environment in which it operates. How business operations are
managed and organized will be explored and the basic ideas of
marketing processes and consumer behavior will be discussed.
Additionally, students will become aware of the changing face of
business, with its current technological and management information
system advances.
Units of Credit
3 Units of Credit
Course Objectives
Upon successful completion of this course, students will be able to:
Learning Resources
•
Describe the contemporary business environment.
•
Explain how businesses and business operations are managed
and organized.
•
Describe the importance of people within organizations.
•
Relate the principles of marketing, including marketing processes
and consumer behavior.
•
Understand the importance of managing information systems and
electronic commerce; understand principles of accounting.
•
Explain the financial issues facing business today, including
money, banking, securities and investments.
Textbook:
Business Essentials
Eighth edition, 2011
Ronald J. Ebert and Ricky W. Griffin,
Pearson/Prentice Hall
ISBN-13: 9780137053490
All course examinations are based on the contents of the textbook
required for this course. To successfully complete the examinations,
you will need the textbook. You may rent the textbook from the CCU
rental library or you may purchase the textbook from another source.
Although this study guide is developed by California Coast University,
it may contain materials provided by the publisher of the textbook.
The Study Guide
The study guide was designed to help you further understand the
material in the textbook and master the course content. Each study
guide chapter corresponds to a chapter in the textbook.
xxi
BAM 105 Introduction to Business
Syllabus
Additional Readings and Online Resources
To help you further understand this subject material, additional
readings and/or online resources related to this course are listed in
this syllabus.
The Library Information and Resources Network, Inc. (LIRN)
Students are provided access to the Library and Information
Resources Network, Inc. (LIRN). LIRN provides a centralized
management of electronic information resources that allow students
to access multiple research databases through one portal. Detailed
information on the Library and Information Resources Network, Inc.
is available on the California Coast University website under the
Resources Tab. For additional information on using the network,
LIRN provides a User Guide to help students search for the needed
information. This helpful resource is available on the LIRN website.
For information on accessing LIRN, please contact California Coast
University – library@calcoast.edu or (714) 547-9625.
Supplementary Materials
Unit Examination Answer Sheets*
Final Examination Scheduling Form
*Master of Education and Doctor of Education students will not
receive unit exam answer sheets. These programs require written
responses only.
Your Course Grade
Your grades on course examinations are determined by the percentage
of correct answers. The university uses the following grading system:
A
B
C
D
F
=
=
=
=
=
90% – 100% correct
80% – 89% correct
70% – 79% correct
60% – 69% correct
59% and below correct
Your grade in this course will be based on the number of points you
earn. Grades are based on the percentage of points you earned out of
a total of 500 points:
Four Unit Examinations
100 points each
400 points total
80% of your grade
100 points total
20% of your grade
Final Examination
100 points
xxii
BAM 105 Introduction to Business
Syllabus
Mastering the Course Content
In order to successfully complete this course, we recommend that
you do the following before beginning:
• Be sure that you have the correct edition of the course
textbook. Check the ISBN number of your textbook with the
ISBN number listed on the cover page of this study guide.
•
Review the table of contents at the end of this syllabus.
You will only be responsible for the chapters in the textbook
that are listed in the table of contents.
Each study guide contains several components selected and
developed by the faculty to help you master the content of the
course. Each chapter in the study guide corresponds to a chapter in
the textbook. Study guides vary depending on the course, but most
will include:
Learning Objectives
Overviews
Self Tests
Summaries
Key Terms
Critical Analysis Questions (graduate and doctoral
students only)
The most efficient way to complete this course is to read the
materials in both the study guide and textbook in the sequence in
which it appears, generally from beginning to end.
Read the Overviews and Summaries
Before reading a chapter of your textbook, review the corresponding
learning objectives, overview, key terms and summary sections in
the study guide. These were prepared to give you an overview of the
content to be learned.
Review the Self Test
After you have reviewed the study guide summaries, look at the items
on the self test. As you identify your areas of relative strength and
weakness, you will become more aware of the material you will need
to learn in greater depth.
Review the Critical Analysis and/or Case Study Questions
(Graduate and Doctoral Students Only)
The critical analysis questions are designed to help you gain a deeper
understanding and appreciation for the course subject matter. This
section will encourage you to give additional thought to the topics
discussed in the chapter by presenting vignettes or cases with real
world relevance.
xxiii
BAM 105 Introduction to Business
Syllabus
Read and Review the Chapter
Once you have the scope and organization of the chapter in mind,
turn to the corresponding chapter in the textbook and read the
material carefully. Keep the learning objectives, self test, critical
analysis questions and/or case study questions in mind as you read.
Highlight important concepts and information in your study guide and
write notes in the study guide as you read the textbook. These notes
will help you study for the unit and final examinations.
Check Your Mastery of Each Chapter
When you feel that you have mastered the concepts presented in the
chapter, complete the study guide self test and critical analysis
questions and/or case study questions without referring to the
textbook or your notes. Correct your responses using the answer key
and solutions guide provided in the study guide. Your results will help
you identify any areas you need to review.
Unit Examinations
Each course contains four unit examinations and a final
examination. Unit examinations usually consist of 25 objective
(multiple choice or true/false) test questions. For Master of
Education and Doctor of Education students, unit examinations
consist of writing assignments only.
Unit examinations may be found approximately every four to six
chapters throughout your study guide. Unit examinations are
open-book, do not require a proctor and are not timed. This will allow
you to proceed at your own pace.
It is recommended that you check your answers against the material
in your textbook for accuracy.
Writing Assignments
Each unit examination includes a written component. This
assignment may be in the form of written questions or case study
problems. The writing assignment affords the student an opportunity
to demonstrate a level of subject mastery beyond the objective unit
examinations, which reflects his/her ability to analyze, synthesize,
evaluate and apply his/her knowledge. The writing assignment
materials are found immediately following each unit examination.
xxiv
Writing assignments are judged on the quality of the response in
regard to the question. Word count is NOT one of the criteria that is
used in assigning points to writing assignments. However, students
who are successful in earning the maximum number of points tend to
submit writing assignments that fall in the following ranges:
BAM 105 Introduction to Business
Syllabus
•
Undergraduate courses: 350 – 500 words or 1 – 2 pages.
•
Graduate courses: 500 – 750 words or 2 – 3 pages.
•
Doctoral courses: 750 – 1000 words or 4 – 5 pages.
Plagiarism
All work must be free of any form of plagiarism. Put written answers
into your own words. Do not simply cut and paste your answers from
the Internet and do not copy your answers from the textbook.
Plagiarism consists of taking and using the ideas, writings or
inventions of another, without giving credit to that person and
presenting it as one’s own. This is an offense that the university takes
very seriously. An example of a correctly prepared written response
may be found by visiting the Coast Connection student portal.
Citation Styles
The majority of your response should be your own original writing
based on what you have learned from the textbook. However, students
may also use outside materials if applicable. Be sure to provide a
reference (or citation) for any materials used, including the required
textbook. The following points are designed to help you understand
how to provide proper references for your work:
•
References are listed in two places.
•
The first reference is briefly listed within your answer. This
includes identifying information that directs the reader to
your list of references at the end of your writing
assignment.
•
The second reference is at the end of your work in the list of
references section.
•
All references cited should provide enough identifying
information so that the reader can access the original
material.
For more detailed information on the proper use of citations, please
refer to the CCU Student Handbook located on the Coast Connection
student portal.
Submitting Your Unit Examinations and Writing Assignments via the Internet
Students may access the online testing features via the Coast
Connection student portal. Multiple choice unit examinations may be
completed and submitted online.
xxv
BAM 105 Introduction to Business
Syllabus
Go to the California Coast University homepage at www.calcoast.edu
and click on the student login icon at the upper right hand corner.
After logging into your account, click on My Academic Plan and
select the course you are working on to complete the unit
examination. Remember to keep a copy of your answers for your own
personal records.
Writing assignments may be submitted online as well. After logging
into the student portal, click on My Academic Plan and select the
course you are working on to complete the writing assignment. Here,
you will find further information and instructions on how to submit
writing assignments through the student portal. Remember to keep a
copy of your writing assignments for your own personal records.
Alternatively, if you experience diffulty submitting your writing
assignments through the student portal, then you may email your
assignments as a Word document attachment to
essays@calcoast.edu. When doing so, please adhere to the following
guidelines:
•
Always submit your name, student number, course number,
course title and unit number with your writing assignment.
•
Begin each writing assignment by identifying the question
number you are answering followed by the actual question
itself (in bold type).
•
Use a standard essay format for responses to all questions
(i.e., an introduction, middle paragraphs and conclusion).
•
All responses must be typed double-spaced, using a
standard font (i.e. Times New Roman) and 12 point type
size for ease of reading and grading.
Submitting Your Unit Examinations by Mail
Send your completed unit examination along with any writing
assignments to the following mailing address:
California Coast University
Testing Department
925 N. Spurgeon Street
Santa Ana, CA 92701
Requests to retake a unit examination will only be honored if the
final exam has NOT been sent.
xxvi
BAM 105 Introduction to Business
Syllabus
Students may retake one unit examination per course, free of charge.
The cost for each additional, repeated exam will be $90. Payment
must be paid in full to the accounting department prior to repeating
unit exams.
Please contact Student Services for a repeat unit examination form.
You may resubmit your unit examination once the original grade has
been cleared from your online degree plan.
Final Examination
Scheduling a Final Examination
Final examination requests can be submitted via U.S. mail, online
through the Coast Connection student portal, or by calling the Testing
Department at (714) 547-9625.
A final exam scheduling form is located on the last page of this
study guide. Please fill out ALL required fields and mail it to the
university.
If you would like to request a final exam online, log into the Coast
Connection student portal and click on My Academic Plan. Select the
course you are working on and submit the Final Exam Request form
located at the bottom of the page. ALL INFORMATION MUST BE
FILLED IN.
Submitting Your Final Examination
Final Examinations can be submitted by mail, fax or online through
the Coast Connection student portal.
After you have completed your exam, you or your proctor can fax it to
the Grading Department at (714) 547-1451 or mail it to the
university. When faxing exams, please do not resize your fax.
For online submissions, once you have logged into the student portal,
click on My Academic Plan and select the course you are working on
to complete the final examination. You must input the unique
password that was sent to your proctor in order to unlock your final
examination questions. Remember to keep a copy of your answers for
your own personal records.
Proctors
The university requires that all final examinations be completed under
the supervision of a proctor.
A proctor can be anyone EXCEPT an immediate family member,
someone who resides with you or a current/former CCU student.
xxvii
BAM 105 Introduction to Business
Syllabus
The purpose of the proctored final examination is to verify that you
are, in fact, the person who is enrolled in the course of study. It is
also to verify that you are completing the final examination without
the aid of any outside assistance.
During the proctored final examination, you may use your textbook
and any notes you have taken during the completion of your unit
examinations. Your designated proctor will verify your identity and
that you have completed the final examination without any outside
assistance.
Your Overall Grade Point Average (G.P.A.)
In addition to receiving a passing grade for each course, all students
must maintain a required overall G.P.A. in order to graduate.
Undergraduate students need an overall G.P.A. of 2.0 (C) on a 4.0
scale. Graduate and doctoral students need an overall G.P.A. of 3.0
(B) on a 4.0 scale.
A = 4 grade points
B = 3 grade points
C = 2 grade points
D = 1 grade point
F = 0 grade points
Students who do not meet the overall G.P.A. requirement by the end
of their program must pay the current cost of tuition to repeat courses
until they improve their overall G.P.A.
Overall course grades of “F” will be displayed on your degree plan
and count as 0 units completed. You must pay to retake these
courses.
Doctoral students must repeat any courses in which the overall course
grade is a “D” or “F”.
Be sure to keep a copy of all work you submit to the university.
xxviii
BAM 105 Introduction to Business
Syllabus
If you have any questions about how to proceed through the course or regarding any California Coast
University policies and procedures, the easiest way to get help is to send us a message through the
student portal, via email, or phone the university.
University office hours are Monday through Friday from 8:30 a.m. to 4:00 p.m., Pacific Standard Time.
California Coast University
925 N. Spurgeon Street, Santa Ana, California 92701
Phone: (714) 547-9625 Fax: (714) 547-5777
Test Answer Sheet Fax Line: (714) 547-1451
Email: testing@calcoast.edu
1
Don’t forget: You are not alone! We are here to help you achieve your dream!
M
BA
xxix
05
BAM 105 Introduction to Business
Syllabus
Learning Objectives
The learning objectives for this course are listed below:
Chapter 1: The U.S. Business Environment
1. Define the nature of U.S. business and identify its main goals and functions.
2. Describe the external environments of business and discuss how these environments affect the
success or failure of any organization.
3. Describe the different types of global economic systems according to the means by which they
control the factors of production.
4. Show how markets, demand and supply affect resource distribution in the United States.
5. Identify the elements of private enterprise and explain the various degrees of competition in
the U.S. economic system.
6. Explain the importance of the economic environment to business and identify the factors used
to evaluate the performance of an economic system.
Chapter 2: Business Ethics and Social Responsibility
1. Explain how individuals develop their personal codes of ethics and why ethics are important in
the workplace.
2. Distinguish social responsibility from ethics, identify organizational stakeholders and
characterize social consciousness today.
3. Show how the concept of social responsibility applies both to environmental issues and to a
firm’s relationship with customers, employees and investors.
4. Identify four general approaches to social responsibility and describe the four steps that a firm
must take to implement a social responsibility program.
5. Explain how issues of social responsibility and ethics affect small business.
Chapter 3: Entrepreneurship, New Ventures and Business Ownership
1. Define small business, discuss its importance to the U.S. economy and explain popular areas
of small business.
2. Explain entrepreneurship and describe some key characteristics of entrepreneurial
personalities and activities.
3. Describe the business plan and start-up decisions made by small businesses and identify
sources of financial aid available to such enterprises.
4. Discuss the trends in small business start-ups and identify the main reasons for success and
failure among small businesses.
5. Explain sole proprietorships, partnerships and cooperatives, and discuss the advantages and
disadvantages of each.
6. Describe corporations, discuss their advantages and disadvantages and identify different kinds
of corporations.
7. Explain the basic issues involved in managing a corporation and discuss special issues related
to corporate ownership.
xxx
BAM 105 Introduction to Business
Syllabus
Chapter 4: The Global Context of Business
1. Discuss the rise of international business and describe the major world marketplaces, trade
agreements and alliances.
2. Explain how differences in import-export balances, exchange rates, and foreign competition
determine the ways in which countries and businesses respond to the international
environment.
3. Discuss the factors involved in deciding to do business internationally and in selecting the
appropriate levels of international involvement and international organizational structure.
4. Describe some of the ways in which social, cultural, economic, legal and political differences
among nations affect international business.
Chapter 5: Business Management
1. Describe the nature of management and identify the four basic functions that constitute the
management process.
2. Identify different types of managers likely to be found in an organization by level and area.
3. Describe the basic skills required of managers.
4. Explain the importance of strategic management and effective goal setting in organizational
success.
5. Discuss contingency planning and crisis management in today’s business world.
6. Describe the development and explain the importance of corporate culture.
Chapter 6: Organizing the Business
1. Discuss the factors that influence a firm’s organizational structure.
2. Explain specialization and departmentalization as two of the building blocks of organizational
structure.
3. Describe centralization, decentralization, delegation and authority as the key ingredients in
establishing the decision-making hierarchy.
4. Explain the differences among functional, divisional, matrix and international organizational
structures and describe the most popular new forms of organizational design.
5. Describe the informal organization and discuss intrapreneuring.
Chapter 7: Operations Management and Quality
1. Explain the meaning of the term production or operations.
2. Describe the three kinds of utility that operations processes provide for adding customer value.
3. Explain how companies with different business strategies are best served by having different
operations capabilities.
4. Identify the major factors that are considered in operations planning and in operations control.
5. Discuss the information contained in four kinds of operations schedules—the master
production schedule, detailed schedule, staff schedule and project schedule.
6. Identify the activities and underlying objectives involved in total quality management.
7. Explain how a supply chain strategy differs from traditional strategies for coordinating
operations among firms.
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BAM 105 Introduction to Business
Syllabus
Chapter 8: Employee Behavior and Motivation
1. Identify and discuss the basic forms of behaviors that employees exhibit in organizations.
2. Describe the nature and importance of individual differences among employees.
3. Explain the meaning and importance of psychological contracts and the person-job fit in the
workplace.
4. Identify and summarize the most important models and concepts of employee motivation.
5. Describe some of the strategies and techniques used by organizations to improve employee
motivation.
Chapter 9: Leadership and Decision Making
1.
2.
3.
4.
5.
6.
7.
8.
Define leadership and distinguish it from management.
Summarize early approaches to the study of leadership.
Discuss the concept of situational approaches to leadership.
Describe transformational and charismatic perspectives on leadership.
Identify and discuss leadership substitutes and neutralizers.
Discuss leaders as coaches and examine gender and cross-cultural issues in leadership.
Describe strategic leadership, ethical leadership and virtual leadership.
Relate leadership to decision making and discuss both rational and behavioral perspectives on
decision making.
Chapter 10: Human Resource Management and Labor Relations
1. Define human resource management and explain how managers plan for their organization’s
human resource needs.
2. Identify the tasks in staffing a company and discuss ways in which organizations select,
develop and appraise employee performance.
3. Describe the main components of a compensation system and some of the key legal issues
involved in hiring, compensating and managing workers in today’s workplace.
4. Discuss workforce diversity, the management of knowledge workers and the use of a contingent
workforce as important changes in the contemporary workplace.
5. Explain why workers organize into labor unions and describe the collective bargaining process.
Chapter 11: Marketing Processes and Consumer Behavior
1. Explain the concept of marketing and identify the five forces that constitute the external
marketing environment.
2. Explain market segmentation and how it is used in target marketing.
3. Describe the key factors that influence the consumer buying process.
4. Discuss the three categories of organizational markets.
5. Explain the definition of a product as a value package and classify goods and services.
6. Describe the key considerations in the new product development process and explain the
importance of branding and packaging.
7. Discuss the challenges that arise in adopting an international marketing mix.
xxxii
BAM 105 Introduction to Business
Syllabus
Chapter 12: Pricing, Distributing and Promoting Products
1. Identify the various pricing objectives that govern pricing decisions and describe the
price-setting tools used in making these decisions.
2. Discuss pricing strategies that can be used for different competitive situations and identify the
pricing tactics that can be used for setting prices.
3. Explain the meaning of distribution mix, identify the different channels of distribution and
describe the major activities in the physical distribution process.
4. Describe the role of wholesalers and explain the different types of retailing.
5. Describe how online shopping agents and online retailers add value for advertisers and
consumers on the Internet.
6. Identify the important objectives of promotion, discuss the considerations in selecting a
promotional mix and discuss advertising promotions.
7. Outline the tasks involved in personal selling, describe the various types of sales promotions
and distinguish between publicity and public relations.
Chapter 13: Information Technology for Business
1. Discuss the impacts information technology has had on the business world.
2. Identify the IT resources businesses have at their disposal and how these resources are used.
3. Describe the role of information systems, the different types of information systems and how
businesses use such systems.
4. Identify the threats and risks information technology poses on businesses.
5. Describe the ways in which businesses protect themselves from the threats and risks
information technology poses.
Chapter 14: The Role of Accountants and Accounting Information
1. Explain the role of accountants and distinguish between the kinds of work done by public
accountants, private accountants, management accountants and forensic accountants.
2. Explain how the accounting equation is used.
3. Describe the three basic financial statements and show how they reflect the activity and
financial condition of a business.
4. Explain the key standards and principles for reporting financial statements.
5. Describe how computing financial ratios can help users get more information from financial
statements to determine the financial strengths of a business.
6. Discuss the role of ethics in accounting.
Chapter 15: Money and Banking
1. Define money and identify the different forms that it takes in the nation’s money supply.
2. Describe the different kinds of financial institutions that comprise the U.S. financial system
and explain the services they offer.
3. Explain how financial institutions create money and describe the means by which they are
regulated.
4. Discuss the functions of the Federal Reserve System and describe the tools that it uses to
control the money supply.
5. Identify three important ways in which the money and banking system is changing.
6. Discuss some of the institutions and activities in international banking and finance.
xxxiii
BAM 105 Introduction to Business
Syllabus
Chapter 16: Managing Finances
1. Explain the concept of the time value of money and the principle of compound growth.
2. Identify the investment opportunities offered by mutual funds and exchange-traded funds.
3. Describe the role of securities markets and identify the major stock exchanges and stock
markets.
4. Explain how securities markets are regulated and tracked.
5. Describe the risk-return relationship and discuss the use of diversification and asset allocation
for investments.
6. Describe the various ways that firms raise capital and identify the pros and cons of each
method.
7. Identify the reasons a company might make an initial public offering of its stock and explain
how stock value is determined.
xxxiv
BAM 105 Introduction to Business
Syllabus
Suggested Readings
Best, Roger J. Market-Based Management: Strategies for Growing Customer Value and
Profitability. Prentice Hall. New Jersey. 2001.
Case, Karl E. and Ray C. Fair. Principles of Economics. Prentice Hall. New Jersey. 2002.
Chopra, Sunil and Peter Meindl. Supply Chain Management: Strategy, Planning and
Operation. Prentice Hall. New Jersey. 2001.
Daniels, John D. and Lee H. Radebaugh. International Business: Environments and
Operations. Prentice Hall. New Jersey. 2001.
Hoover’s Handbook of World Business. Hoover’s Business Press. Austin, TX. 2001.
Jones, Kumen H. Introduction to Accounting: A User Perspective. Prentice Hall. New Jersey.
2000.
Moorhead, Gregory and Ricky W. Griffin. Organizational Behavior. Houghton Mifflin.
Boston. 2001.
O’Sullivan, Arthur and Steven M. Sheffrin. Economics: Principles and Tools. Prentice Hall.
New Jersey. 2001.
Scarborough, Norman M. and Thomas W. Zimmerer. Effective Small Business Management:
An Entrepreneurial Approach. Prentice Hall. New Jersey. 2000.
Wheelan, Thomas L. and J. David Hunger. Strategic Management and Business Policy.
Prentice Hall. New Jersey. 2000.
Whetten, David A. and Kim S. Cameron. Developing Management skills. Prentice Hall. New
Jersey. 2002.
xxxv
BAM 105 Introduction to Business
Syllabus
Suggested Online Readings
Fortune 500 companies
http://www.fortune.com
Business Week list of The Best and Worst Corporate Boards
http://www.businessweek.com
Forbes magazine
http://www.forbes.com
Small Business Administration
http://www.sbaonline.sba.gov
Wired magazine
http://www.wired.com
American Institute of Certified Public Accountants
http://www.aicpa.org
U.S. Mint
http://www.usmint.gov
U.S. Treasury
http://www.ustreas.gov
U.S. Federal Reserve
http://www.federalreserve.gov
NASDAQ
http://www.nasdaq.com
xxxvi
BAM 105 Introduction to Business
Table of Contents
Syllabus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
xv – xxx
Unit One
Chapter 1: The U.S. Business Environment . . . . . . . . . . . . . . . . . . . . . .
1
Chapter 2: Business Ethics and Social Responsibility . . . . . . . . . . . . . . .
10
Chapter 3: Entrepreneurship, New Ventures, and Business Ownership . . .
19
Chapter 4: The Global Context of Business . . . . . . . . . . . . . . . . . . . . . .
29
Unit 1 Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38
Unit 1 Examination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39
Unit 1 Writing Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
Unit Two
Chapter 5: Business Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46
Chapter 6: Organizing the Business . . . . . . . . . . . . . . . . . . . . . . . . . . .
55
Chapter 7: Operations Management and Quality . . . . . . . . . . . . . . . . . .
64
Chapter 8: Employee Behavior and Motivation . . . . . . . . . . . . . . . . . . . .
74
Unit 2 Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
83
Unit 2 Examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
84
Unit 2 Writing Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
89
Unit Three
xxxvii
Chapter 9: Leadership and Decision Making . . . . . . . . . . . . . . . . . . . . .
91
Chapter 10: Human Resource Management and Labor Relations . . . . . . .
100
Chapter 11: Marketing Processes and Consumer Behavior . . . . . . . . . . . .
110
Chapter 12: Pricing, Distributing, and Promoting Products . . . . . . . . . . .
120
Unit 3 Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
129
Unit 3 Examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
130
Unit 3 Writing Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
135
BAM 105 Introduction to Business
Table of Contents
Unit Four
xxxviii
Chapter 13: Information Technology for Business . . . . . . . . . . . . . . . . . .
137
Chapter 14: The Role of Accountants and Accounting Information. . . . . .
146
Chapter 15: Money and Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
156
Chapter 16: Managing Finances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
165
Unit 4 Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
174
Unit 4 Examination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
175
Unit 4 Writing Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
180
Final Examination Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
182
Final Exam Scheduling Form . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
183
BAM 105 Introduction to Business
Objectives
Chapter One
The U.S. Business Environment
Learning Objectives
Upon successful completion of this chapter, you should be able to:
1.
Define the nature of U.S. business and identify its main
goals and functions.
2.
Describe the external environments of business and discuss
how these environments affect the success or failure of any
organization.
3.
Describe the different types of global economic systems
according to the means by which they control the factors of
production.
4.
Show how markets, demand and supply affect resource
distribution in the United States.
5.
Identify the elements of private enterprise and explain the
various degrees of competition in the U.S. economic system.
6.
Explain the importance of the economic environment to
business and identify the factors used to evaluate the
performance of an economic system.
Instructions to Students
• Read pages 1-19 of your textbook
• Reference: Business Essentials, by
Ebert and Griffin, 8th edition, 2011
1
BAM 105 Introduction to Business
Overview
Many students come to an introduction to business class not quite sure what it’s all about. The
course has something for everyone, from those who have been in the business world a while to
those just getting started. As the course unfolds, you’ll develop an understanding of the foundations of business and will be able to apply what you already know (or what you are starting to
learn) about business to many aspects of the course.
This first chapter dives right into the world of business, explaining what business is, what its main
goals and functions are and how the external environments of business affect the success and
failure of any organization. The chapter also does the following:
2
• describes global economic systems according to the means by which they control the
factors of production
• shows how markets, demand and supply affect resource distribution in the United
States.
• discusses the elements of private enterprise and the degrees of competition in the U.S.
economic system.
• explains the importance of the economic environment to business and identifies the
factors used to evaluate the performance of an economic system
BAM 105 Introduction to Business
Key Terms
The key terms listed below are terms with which you should be familiar.
Write your definition below each item. Check your answers at the end of this chapter.
External environment:
Economic system:
Capital:
Planned economy:
Capitalism:
Privatization:
Market price:
Perfect competition:
Oligopoly:
Monopoly:
Gross domestic product:
Fiscal policies:
Monetary policies:
3
BAM 105 Introduction to Business
Summary
A business is an organization that provides goods or services to earn profits. The prospect of
earning profits—the difference between a business’s revenues and expenses—encourages people
to open and expand businesses. Businesses produce most of the goods and services that
Americans consume and employ most working people. New forms of technology, service
businesses and international opportunities promise to keep production, consumption and
employment growing indefinitely. The external environment of business refers to everything outside
its boundaries that might affect it. Both the domestic and the global business environment affect
virtually all businesses. The technological, political-legal, sociocultural and economic
environments are also important.
Economic systems differ in the ways in which they manage the five factors of production: (1) labor
or human resources, (2) capital, (3) entrepreneurship, (4) physical resources and (5) information
resources. A planned economy relies on a centralized government to control factors of production
and make decisions. Under communism, the government owns and operates all sources of
production. In a market economy, individuals—producers and consumers—control production and
allocation decisions through supply and demand. A market is a mechanism for exchange between
the buyers and sellers of a particular product or service. Sellers can charge what they want and
customers can buy what they choose. The political basis of market processes is capitalism, which
fosters private ownership of the factors of production and encourages entrepreneurship by
offering profits as an incentive. Most countries rely on some form of mixed market economy—a
system featuring characteristics of both planned and market economies.
Decisions about what to buy and what to sell are determined by the forces of demand and supply.
Demand is the willingness and ability of buyers to purchase a product or service. Supply is the
willingness and ability of producers to offer a product or service for sale. A demand and supply
schedule reveals the relationships among different levels of demand and supply at different price
levels.
Market economies reflect the operation of a private enterprise system—a system that allows
individuals to pursue their own interests without government restriction. Private enterprise works
according to four principles: (1) private property rights, (2) freedom of choice, (3) profits and
(4) competition. Economists have identified four degrees of competition in a private enterprise
system: (1) perfect competition, (2) monopolistic competition, (3) oligopoly and (4) monopoly.
Economic indicators are statistics that show whether an economic system is strengthening,
weakening or remaining stable. The overall health of the economic environment—the economic
system in which they operate—affects organizations. The two key goals of the U.S. system are
economic growth and economic stability. Growth is assessed by aggregate output. Among the
factors that can inhibit growth, two of the most important are balance of trade and the national
debt. Economic stability means that the amount of money available in an economic system and
the quantity of goods and services produced in it are growing at about the same rate. There are
two key threats to stability: inflation and unemployment. The government manages the economy
through two sets of policies: fiscal policies (such as tax increases) and monetary policies that focus
on controlling the size of the nation’s money supply.
4
BAM 105 Introduction to Business
Self Test
Multiple Choice Questions (Circle the correct answer)
1. The funds needed to create and operate a business enterprise are ____________.
a. physical resources
b. liabilities
c. capital
d. the money supply
2. A(n) ___________ is an individual who accepts the risks and opportunities entailed by creating
and operating a new business.
a. proprietor
b. officer
c. partner
d. entrepreneur
3. Tangible goods that organizations use in conducting their businesses are referred to as
____________.
a. information resources
b. physical resources
c. the money supply
d. capital
4. A ____________ economy has characteristics of both planned and market economies.
a. hybrid
b. mixed market
c. capitalist
d. privatized
5. The ____________ is a measure of the prices of typical products purchased by consumers living
in urban areas.
a. consumer price index
b. gross domestic product
c. gross national product
d. national debt
5
BAM 105 Introduction to Business
Self Test
6. What are profits?
a. increases in income from year to year
b. differences between revenues and expenses
c. increases in a corporation’s stock price
d. total money taken in by a corporation
7. The external environment of business consists of all of the following EXCEPT:
a. the technological environment.
b. corporate culture.
c. the global business environment.
d. the domestic business environment.
8. In a market economy, the factors of production are allocated by ____________.
a. producers and consumers
b. state commerce department
c. the federal government
d. All of the above.
9. Increased prices for products, decreased purchasing power and decreased profit margins are
likely to result from _____________.
a. low inflation
b. high unemployment
c. low unemployment
d. None of the above.
10. A(n) ____________ is a prolonged and deep recession.
a. contraction
b. expansion
c. negative trade balance
d. depression
6
BAM 105 Introduction to Business
Answer Keys
Key Term Definitions
External environment: Everything outside an organization’s boundaries that might affect it.
Economic system: Nation’s system for allocating its resources among its citizens.
Capital: Funds needed to create and operate a business enterprise.
Planned economy: Economy that relies on a centralized government to control all or most
factors of production and to make all or most production and allocation decisions.
Capitalism: System that sanctions the private ownership of the factors of production and
encourages entrepreneurship by offering profits as an incentive.
Privatization: The process of converting government enterprises into privately owned
companies.
Market price: Profit-maximizing price at which the quantity of goods demanded and the
quantity of goods supplied are equal.
Perfect competition: Market or industry characterized by numerous small firms producing an
identical product.
Oligopoly: Market or industry characterized by a handful of (generally large) sellers with the
power to influence the prices of their products.
Monopoly: Market or industry in which there is only one producer that can therefore set the
prices of its products.
Gross domestic product (GDP): Total value of all goods and services produced within a given
period by a national economy through domestic factors of production.
Fiscal policies: Policies that a government uses to direct how it collects and spends revenue.
Monetary policies: Policies that a government uses to control the size of its money supply.
7
BAM 105 Introduction to Business
Answer Keys
Answers to Self Test
1. c
2. d
3. b
4. b
5. a
6. b
7. b
8. a
9. c
10. d
8
BAM 105 Introduction to Business
Notes
9
BAM 105 Introduction to Business
Objectives
Chapter Two
Business Ethics and Social Responsibility
Learning Objectives
Upon successful completion of this chapter, you should be able to:
1.
Explain how individuals develop their personal codes of
ethics and why ethics are important in the workplace.
2.
Distinguish social responsibility from ethics, identify
organizational stakeholders and characterize social
consciousness today.
3.
Show how the concept of social responsibility applies both
to environmental issues and to a firm’s relationship with
customers, employees and investors.
4.
Identify four general approaches to social responsibility and
describe the four steps that a firm must take to implement a
social responsibility program.
5.
Explain how issues of social responsibility and ethics affect
small business.
Instructions to Students
• Read pages 20-35 of your textbook
• Reference: Business Essentials, by
Ebert and Griffin, 8th edition, 2011
10
BAM 105 Introduction to Business
Overview
There is not always a yes/no, right/wrong, black/white answer to everything. We all develop a
personal code of ethics that we carry over into our jobs. This chapter presents a discussion of
business ethics, the role of a formal code of ethics, as well as business approaches to social
responsibility. The chapter also discusses how the concept of social responsibility applies both to
environmental issues and to a firm’s relationships with customers, employees and investors and
how issues of social responsibility and ethics affect small business.
11
BAM 105 Introduction to Business
Key Terms
The key terms listed below are terms with which you should be familiar.
Write your definition below each item. Check your answers at the end of this chapter.
Ethics:
Business ethics:
Managerial ethics:
Social Responsibility:
Organizational stakeholders:
Greenwashing:
Consumerism:
Collusion:
Green marketing:
Whistle-blower:
Social audit:
12
BAM 105 Introduction to Business
Summary
Ethics are beliefs about what’s right and wrong or good and bad. Ethical behavior conforms to
individual beliefs and social norms about what’s right and good. Unethical behavior is behavior
that individual beliefs and social norms define as wrong and bad. Managerial ethics are standards
of behavior that guide managers. There are three broad categories of ways in which managerial
ethics can affect people’s work: (1) behavior toward employees, (2) behavior toward the
organization, and (3) behavior toward other economic agents.
One model for applying ethical judgments to business situations recommends the following three
steps: (1) gather relevant factual information, (2) analyze the facts to determine the most
appropriate moral values and (3) make an ethical judgment based on the rightness or wrongness of
the proposed activity or policy. Perhaps the single most effective step that a company can take is
to demonstrate top management support. In addition to promoting attitudes of honesty and
openness, firms can also take specific steps to formalize their commitment: (1) adopting written
codes and (2) instituting ethics programs.
Ethics affect individuals. Social responsibility refers to the way a firm attempts to balance its
commitments to organizational stakeholders—those groups, individuals and organizations that are
directly affected by the practices of an organization and, therefore, have a stake in its
performance. Many companies concentrate on five main groups: (1) customers, (2) employees,
(3) investors, (4) suppliers and (5) local communities.
Attitudes toward social responsibility have changed. The late nineteenth century, though
characterized by the entrepreneurial spirit and the laissez-faire philosophy, also featured labor
strife and predatory business practices. Concern about unbridled business activity was soon
translated into laws regulating business practices. Out of the economic turmoil of the 1930s, when
greed was blamed for business failures and the loss of jobs, came new laws protecting and
enhancing social well-being. During the 1960s and 1970s, activism prompted increased
government regulation in many areas of business. Today’s attitudes stress a greater social role for
business. This view, combined with the economic prosperity of the 1980s and 1990s, marked a
return to the laissez-faire philosophy, but the recent epidemic of corporate scandals threatens to
revive the 1930s call for more regulation and oversight.
A firm confronts four areas of concern: (1) responsibility toward the environment, (2) responsibility
toward customers, (3) responsibility toward employees and (4) responsibility toward investors.
Organizations and managers may be guilty of financial mismanagement: offenses that are
unethical but not necessarily illegal. Certain unethical practices are illegal such as using
confidential information to gain from a stock transaction in insider trading. Certain behavior
regarding financial representation is also unlawful.
A business can take one of four stances concerning its social obligations to society:
(1) obstructionist stance, (2) defensive stance, (3) accommodative stance or (4) proactive stance.
One model suggests a four-step approach to fostering a company-wide sense of social
responsibility: (1) social responsibility must start at the top and be included in strategic planning;
(2) top managers must develop a plan detailing the level of management support; (3) one
executive must be put in charge of the agenda; and (4) the organization must conduct occasional
social audits—analyses of its success in using funds earmarked for social responsibility goals.
For small business people, ethical issues are questions of individual ethics. But in questions of
social responsibility, they must ask themselves if they can afford a social agenda, such as
sponsoring Little League baseball teams or making donations to the United Way. They should also
realize that managers in all organizations face issues of ethics and social responsibility.
13
BAM 105 Introduction to Business
Self Test
Multiple Choice Questions (Circle the correct answer)
1. Ethical and unethical behaviors are determined by _____________.
a. the individual
b. social concepts
c. both the individual and social concepts
d. neither the individual nor the culture
2. Which of the following is NOT necessary to assess ethical behavior?
a. gather facts
b. listen to what is being said in the rumor mill
c. consider appropriate moral values
d. make a judgment based on the rightness or wrongness of the activity or policy
3. The way in which a business tries to balance its commitments to groups and individuals in its
social environment is called _____________.
a. social responsibility
b. business ethics
c. corporate responsibility
d. socialization
4. Social activism dedicated to protecting the rights of consumers in their dealings with businesses
is called _____________.
a. consumerism
b. whistle-blowing
c. collusion
d. conservation
5. In maintaining and reporting its financial status, every corporation must _____________.
a. support increased stock prices
b. purchase stocks on margin
c. conform to generally accepted accounting principles (GAAP)
d. use creative accounting practices
14
BAM 105 Introduction to Business
Self Test
6. Bob Crawford sold shares in XYZ Company after finding out from XYZ’s CEO that XYZ’s stock was
about to drop in price. Bob engaged in _____________.
a. insider trading
b. misrepresentation of finances
c. whistle-blowing
d. an accommodative stance to social responsibility
7. The Sarbanes-Oxley Act of 2002 requires that the chief financial officer _____________.
a. prevent insider trading
b. engage in strategic management
c. engage in creative accounting
d. guarantee the accuracy of financial reporting
8. With a(n) _____________ stance to social responsibility, a firm will hide wrongdoing.
a. defensive
b. proactive
c. accommodative
d. obstructionist
9. A(n) _____________ stance to social responsibility involves doing as little as possible and may
involve attempts to deny or cover up violations.
a. proactive
b. obstructionist
c. defensive
d. accommodative
10. A company that provides its employees with equal opportunities for advancement without
regard to race, sex or other relevant factors is meeting its _____________ responsibility.
a. social
b. legal
c. legal and social
d. affirmative
15
BAM 105 Introduction to Business
Answer Keys
Key Term Definitions
Ethics: Beliefs about what is right or wrong and good or bad in actions that affect others.
Business ethics: Ethical or unethical behaviors by employees in the context of their jobs.
Managerial ethics: Standards of behavior that guide individual managers in their work.
Social Responsibility: Attempt of a business to balance its commitments to groups and
individuals in its environment including customers, other businesses, employees, investors
and local communities.
Organizational stakeholders: Groups, individuals and organizations that are directly affected
by the practices of an organization and who, therefore, have a stake in its performance.
Greenwashing: Using advertising to project a green image without adopting substantive
environmentally friendly changes.
Consumerism: Form of social activism dedicated to protecting the rights of consumers in their
dealings with businesses.
Collusion: Illegal agreement between two or more companies to commit a wrongful act.
Green marketing: Marketing of environmentally friendly goods.
Whistle-blower: Employee who detects and tries to put an end to a company’s unethical,
illegal or socially irresponsible actions by publicizing them.
Social audit: Systematic analysis of a firm’s success in using funds earmarked for meeting its
social responsibility goals.
16
BAM 105 Introduction to Business
Answer Keys
Answers to Self Test
1. c
2. b
3. a
4. a
5. c
6. a
7. d
8. d
9. b
10. c
17
BAM 105 Introduction to Business
Notes
18
BAM 105 Introduction to Business
Objectives
Chapter Three
Entrepreneurship, New Ventures and Business Ownership
Learning Objectives
Upon successful completion of this chapter, you should be able to:
1.
Define small business, discuss its importance to the U.S.
economy and explain popular areas of small business.
2.
Explain entrepreneurship and describe some key
characteristics of entrepreneurial personalities and
activities.
3.
Describe the business plan and start-up decisions made by
small businesses and identify sources of financial aid
available to such enterprises.
4.
Discuss the trends in small business start-ups and identify
the main reasons for success and failure among small
businesses.
5.
Explain sole proprietorships, partnerships and cooperatives,
and discuss the advantages and disadvantages of each.
6.
Describe corporations, discuss their advantages and
disadvantages and identify different kinds of corporations.
7.
Explain the basic issues involved in managing a corporation
and discuss special issues related to corporate ownership.
Instructions to Students
• Read pages 36-51 of your textbook
• Reference: Business Essentials, by
Ebert and Griffin, 8th edition, 2011
19
BAM 105 Introduction to Business
Overview
Although it’s not easy, starting your own business can be rewarding. The U.S. economic system
welcomes entrepreneurship and offers various forms of business ownership. This chapter discusses
small business, its importance to the U.S. economy and the popular areas of small business. It
looks at:
•
•
•
•
•
•
key characteristics of entrepreneurial personalities and activities
business plans
start-up decisions made by small businesses
sources of financial aid available
trends in small business start-ups
key reasons for success and failure among small businesses
Finally, the chapter discusses different forms of business ownership and the advantages and
disadvantages of each, as well as the basic issues involved in managing a corporation and special
issues related to corporate ownership.
20
BAM 105 Introduction to Business
Key Terms
The key terms listed below are terms with which you should be familiar.
Write your definition below each item. Check your answers at the end of this chapter.
Small business administration (SBA):
Small business:
Entrepreneur:
Business plan:
Franchise:
Venture capital company:
Sole proprietorship:
Limited partnership:
Cooperative:
Corporation:
Limited liability corporation (LLC):
Strategic alliance:
Divestiture:
21
BAM 105 Introduction to Business
Summary
A small business is independently owned and managed and has relatively little influence in its
market. The importance of small business includes (1) job creation, (2) innovation and
(3) contributions to big business. The major small-business industry groups are (1) services,
(2) retailing, (3) construction, (4) wholesaling, (5) finance and insurance, (6) transportation and
(7) manufacturing.
Entrepreneurs are people who assume the risk of business ownership. Entrepreneurship is the
process of seeking business opportunities under conditions of risk. Some entrepreneurs have a
goal of independence and financial security, while others want to launch a new venture that can
be grown into a large business. Most successful entrepreneurs are resourceful and concerned for
customer relations. They have a strong desire to be their own bosses and can handle ambiguity and
surprises. Today’s entrepreneur is often an open-minded leader who relies on networks, business
plans and consensus and is just as likely to be female as male. Finally, although successful
entrepreneurs understand the role of risk, they do not necessarily regard what they do as being
risky.
The starting point for virtually every new business is a business plan in which the entrepreneur
summarizes business strategy for the new venture and shows how it will be implemented.
Business plans are increasingly important because creditors and investors demand them as tools
for deciding whether to finance or invest. Entrepreneurs must also decide whether to buy an
existing business, operate a franchise or start from scratch.
Common funding sources include personal funds, family and friends, savings, lenders, investors
and governmental agencies. Venture capital companies are groups of small investors seeking to
make profits on companies with rapid growth potential. Most of these firms do not lend money but
rather invest it, supplying capital in return for partial ownership. Lending institutions are more
likely to finance an existing business than a new business because the risks are better understood.
The sole proprietorship is owned and usually operated by one person. There are tax benefits for
new businesses that are likely to suffer losses in the early stages. A major drawback is unlimited
liability. Another disadvantage is lack of continuity. Finally, a sole proprietorship depends on the
resources of a single individual. The general partnership is a sole proprietorship multiplied by the
number or partner-owners. The biggest advantage is its ability to grow by adding new talent and
money. A partnership is not a legal entity. It is just two or more people working together. Partners
are taxed as individuals and unlimited liability is a drawback. Partnerships may lack continuity
and transferring ownership may be hard. No partner may sell out without the consent of the other.
Cooperatives combine the freedom of sole proprietorships with the financial power of corporations.
All corporations share certain characteristics: legal status as separate entities, property rights and
obligations and indefinite life spans. They may sue and be sued; buy, hold and sell property; make
and sell products, and commit crimes and be tried and punished for them. The biggest advantage
of incorporation is limited liability: investor liability is limited to one’s personal investments in
the corporation. Another advantage is continuity. Finally, corporations have advantages in raising
money. By selling stock, they expand the number of investors and the amount of available funds.
Legal protections tend to make lenders more willing to grant loans.
One disadvantage is that a corporation can be taken over against the will of its managers. Another
disadvantage is start-up cost. Corporations are heavily regulated and must meet complex legal
requirements in the states in which they are chartered. The greatest potential drawback to
22
BAM 105 Introduction to Business
Summary
incorporation is double taxation. Different kinds of corporations help businesses take advantage of
incorporation without assuming all of the disadvantages.
Corporations sell shares (stock) to investors who then become stockholders and the real owners.
Profits are distributed among stockholders in the form of dividends and managers serve at their
discretion. The governing body of a corporation is its board of directors. Most board members do
not participate in day-to-day management but rather hire a team of managers. This team, called
officers, is usually headed by a chief executive officer (CEO) who is responsible for overall
performance. Several issues have grown in importance in the area of corporate ownership. In a
strategic alliance, two or more organizations collaborate on a project for mutual gain. When
partners share ownership of a new enterprise, the arrangement is called a joint venture. The
employee stock ownership plan (ESOP) allows employees to own a significant share of the
corporation through trusts established on their behalf. More stock is now being purchased by
institutional investors. A merger occurs when two firms combine to create a new company. In an
acquisition, one firm buys another outright. A divestiture occurs when a corporation sells a part of
its existing business operations or sets it up as a new and independent corporation. When a firm
sells part of itself to raise capital, the strategy is known as a spin-off.
23
BAM 105 Introduction to Business
Self Test
Multiple Choice Questions (Circle the correct answer)
1. A ___________ is independent and does not dominate its market.
a. small business
b. corporation
c. sole proprietorship
d. partnership
2. ___________ are people who assume the risk of business ownership.
a. Sole proprietors
b. Directors
c. General partners
d. Entrepreneurs
3. In a franchise agreement, the franchisee is ____________.
a. the local owner
b. any of a number of customers
c. the supplier
d. the parent company
4. Which of the following represents the most businesses in the United States?
a. corporations
b. sole proprietorships
c. cooperatives
d. partnerships
5. The owners of a corporation are the _____________.
a. officers
b. board of directors
c. top managers
d. stockholders
6. A locally owned and operated restaurant is typically a(n) _____________.
a. corporation
b. oligopoly
c. small business
d. monopoly
24
BAM 105 Introduction to Business
Self Test
7. ___________ is the process of seeking business opportunities under conditions of risk.
a. Wholesaling
b. Goal setting
c. Leverage
d. Entrepreneurship
8. Which of the following are groups of small investors seeking to make profits on companies with
rapid growth potential?
a. banks
b. venture capital companies
c. government securities dealers
d. equity managers
9. Which of the following are federally licensed to borrow money from the SBA to invest in or lend
to small businesses?
a. UNESCO
b. USDA
c. SBICs
d. SEC
10. Although cooperatives make up only a minor segment of the U.S. economy, their role is still
important in what area?
a. agriculture
b. construction
c. sanitation
d. All of the above.
25
BAM 105 Introduction to Business
Answer Keys
Key Term Definitions
Small business administration (SBA): Government agency charged with assisting small
businesses.
Small business: Independently owned business that has relatively little influence in its market.
Entrepreneur: Businessperson who accepts both the risks and the opportunities involved in
creating and operating a new business venture.
Business plan: Document in which an entrepreneur summarizes her or his business strategy
for a proposed new venture and how that strategy will be implemented.
Franchise: Arrangement in which a buyer (franchisee) purchases the right to sell the good or
service of the seller (franchiser).
Venture capital company: Group of small investors who invest money in companies with rapid
growth potential.
Sole proprietorship: Business owned and usually operated by one person who is responsible for
all of its debts.
Limited partnership: Type of partnership consisting of limited partners and a general
(or active) partner.
Cooperative: Form of ownership in which a group of sole proprietorships and/or partnerships
agree to work together for common benefits.
Corporation: Business that is legally considered an entity separate from its owners and is liable
for its own debts; owners’ liabilities extend to the limits of their investments.
Limited liability corporation (LLC): Hybrid of a publicly held corporation and a partnership in
which owners are taxed as partners but enjoy the benefits of limited liability.
Strategic alliance: Strategy in which two or more organizations collaborate on a project for
mutual gain.
Divestiture: Strategy whereby a firm sells one or more of its business units.
26
BAM 105 Introduction to Business
Answer Keys
Answers to Self Test
1. a
2. d
3. a
4. b
5. d
6. c
7. d
8. b
9. c
10. a
27
BAM 105 Introduction to Business
Notes
28
BAM 105 Introduction to Business
Objectives
Chapter Four
The Global Context of Business
Learning Objectives
Upon successful completion of this chapter, you should be able to:
1.
Discuss the rise of international business and describe the
major world marketplaces, trade agreements and alliances.
2.
Explain how differences in import-export balances, exchange
rates, and foreign competition determine the ways in which
countries and businesses respond to the international
environment.
3.
Discuss the factors involved in deciding to do business
internationally and in selecting the appropriate levels of
international involvement and international organizational
structure.
4.
Describe some of the ways in which social, cultural,
economic, legal and political differences among nations
affect international business.
Instructions to Students
• Read pages 52-67 of your textbook
• Reference: Business Essentials, by
Ebert and Griffin, 8th edition, 2011
29
BAM 105 Introduction to Business
Overview
The global market has evolved into major world marketplaces held together by trade agreements
and alliances. A number of factors affect how countries and businesses respond to the
international environment. Further, managers and entrepreneurs find themselves challenged by a
number of factors that influence their international involvement.
This chapter discusses the overall dynamic nature of international business and how it is shaped
by social, cultural, economic, legal and political differences among nations. It examines the
following:
30
• the rise of international business and describes the major world marketplaces, trade
agreements and alliances
• how differences in import-export balances, exchange rates and foreign competition
determine the ways in which countries and businesses respond to the international
environment
• the factors involved in deciding to do business internationally and in selecting the
appropriate levels of international involvement and international organizational structure
BAM 105 Introduction to Business
Key Terms
The key terms listed below are terms with which you should be familiar.
Write your definition below each item. Check your answers at the end of this chapter.
Globalization:
Import:
Export:
North American Free Trade Agreement (NAFTA):
European Union (EU):
Association of Southeast Asian Nations (ASEAN):
World Trade Organization (WTO):
Balance of trade:
Exchange rate:
Euro:
Outsourcing:
Offshoring:
Multinational firm:
Strategic alliance:
Embargo:
Subsidy:
Protectionism:
Cartel:
31
BAM 105 Introduction to Business
Summary
Several forces combine to sustain globalization: (1) governments and businesses are more aware of
the benefits of globalization, (2) new technologies make international travel, communication and
commerce faster and cheaper, (3) competitive pressures sometimes force firms to expand into
foreign markets just to keep up with competitors and (4) treaties and trade agreements also play a
major role. The most important influences are (1) the North American Free Trade Agreement
(NAFTA), (2) the European Union (EU), (3) the General Agreement on Tariffs and Trade (GATT) and
the World Trade Organization (WTO). The contemporary world economy revolves around three major
marketplaces: North America, Europe and Asia.
A nation’s balance of trade is the total economic value of all products that it exports minus the
total economic value of all products that it imports. When a country’s imports exceed its exports
—when it has a negative balance of trade—it suffers a trade deficit; a positive balance of trade
occurs when exports exceed imports, resulting in a trade surplus. The balance of payments refers
to the flow of money into or out of a country. An exchange rate is the rate at which one nation’s
currency can be exchanged for that of another. Under floating exchange rates, the value of one currency relative to that of another varies with market conditions.
Countries export what they can produce better or less expensively than other countries and use the
proceeds to import what they can’t produce as effectively. Economists once focused on two forms
of advantage to explain international trade: absolute advantage and comparative advantage. Today,
the theory of national competitive advantage is a widely accepted model of why nations engage in
international trade.
Several factors enter into the decision to go international. One overriding factor is the business
climate in other nations. A company should also consider at least two other issues:
• Is there a demand for its products abroad?
• If so, must it adapt those products for international consumption?
After deciding to go international, a firm must decide on its level of involvement. Several levels are
possible: (1) exporters and importers, (2) international firms and (3) multinational firms. Different
levels of involvement require different kinds of organizational structure.
The spectrum of international organizational strategies includes the following: (1) independent
agents, (2) licensing arrangements, (3) branch offices, (4) strategic alliances (or joint ventures)
and (5) foreign direct investment (FDI).
Some social and cultural differences, like language, are obvious but a wide range of subtle value
differences can also affect operations. Economic differences can be fairly pronounced. Common
legal and political issues in international business include quotas, tariffs, subsidies, local content
laws and business practice laws.
32
BAM 105 Introduction to Business
Self Test
Multiple Choice Questions (Circle the correct answer)
1. All of the following are benefits to globalization EXCEPT:
a. decreased competition.
b. obtaining cheaper resources.
c. potential for higher standards of living.
d. improved business profitability.
2. The ____________ is the rate at which the currency of one nation can be exchanged for that of
another.
a. balance of payments
b. floating interest rate
c. trade surplus
d. exchange rate
3. An exchange rate ____________.
a. tends to be fixed between two countries
b. has little impact on balance of trade
c. tends to fluctuate a great deal on a daily basis
d. is the rate at which the currency of one nation can be exchanged for that of another
4. Ford purchased Volvo. What does this illustrate?
a. strategic alliance
b. foreign direct investment
c. social responsibility
d. licensing arrangement
5. Many countries require that products sold in a particular country be at least partly made there.
This practice is referred to as _____________.
a. business practice laws
b. subsidizing an industry
c. protectionism
d. local content laws
33
BAM 105 Introduction to Business
Self Test
6. Associations of producers that control supply and prices are called _____________.
a. cartels
b. independent agents
c. dumpers
d. business offices
7. The _____________ is an organization that encourages its 152 member nations to negotiate
trade agreements and resolve disputes about trade policies and practices.
a. League of Nations
b. World Trade Organization
c. United Nations
d. Import-Export Bank
8. A country has a(n) _____________ advantage in goods it can produce more efficiently than other
goods.
a. absolute
b. monopolistic
c. comparative
d. national competitive
9. The United States has current embargoes against ______________.
a. Iraq; Afghanistan
b. Cuba
c. England; France
d. North Korea
10. China and India require that when foreign firms enter into joint ventures with local firms, the
local partners must have the controlling ownership stake. What does this illustrate?
a. local content laws
b. social responsibility
c. tariffs
d. business ethics
34
BAM 105 Introduction to Business
Answer Keys
Key Term Definitions
Globalization: Process by which the world economy is becoming a single interdependent
system.
Import: Product made or grown abroad but sold domestically.
Export: Product made or grown domestically but shipped and sold abroad.
North American Free Trade Agreement (NAFTA): Agreement to gradually eliminate tariffs and
other trade barriers among the United States, Canada and Mexico.
European Union (EU): Organization for economic, social and security cooperation among
European nations.
Association of Southeast Asian Nations (ASEAN): Organization for economic, political, social
and cultural cooperation among Southeast Asian nations.
World Trade Organization (WTO): Organization through which member nations negotiate trading
agreements and resolve disputes about trade policies and practices.
Balance of trade: Economic value of all products a country exports minus the economic value
of all products it imports.
Exchange rate: Rate at which the currency of one nation can be exchanged for the currency of
another nation.
Euro: Common currency shared among most of the members of the European Union (excluding
Denmark, Sweden and the United Kingdom).
Outsourcing: Practice of paying suppliers and distributors to perform certain business
processes or to provide needed materials or services.
Offshoring: Practice of outsourcing to foreign countries.
Multinational firm: Firm that designs, produces and markets products in many nations.
Strategic alliance: Arrangement (also called joint venture) in which a company finds a foreign
partner to contribute approximately half of the resources needed to establish and operate a
new business in the partner’s country.
Embargo: Government order banning exportation and/or importation of a particular product or
all products from a particular country.
Subsidy: Government payment to help a domestic business compete with foreign firms.
Protectionism: Practice of protecting domestic businesses against foreign competition.
Cartel: Association of producers whose purpose is to control supply and prices.
35
BAM 105 Introduction to Business
Answer Keys
Answers to Self Test
1. a
2. d
3. d
4. b
5. d
6. a
7. b
8. c
9. b
10. a
36
BAM 105 Introduction to Business
Notes
37
BAM 105 Introduction to Business
Unit 1 Examination
Instructions
The Unit Examination
The unit examination contains 25 multiple choice questions, as well
as a writing assignment.
Your grade on the examination will be determined by the
percentage of correct answers. The university utilizes the following
grading system:
A
B
C
D
F
=
=
=
=
=
90% – 100% correct
80% – 89% correct
70% – 79% correct
60% – 69% correct
59% and below correct
4
3
2
1
0
grade
grade
grade
grade
grade
points
points
points
point
points
Completing Unit One Examination
Before beginning your examination, we recommend that you
thoroughly review the textbook chapters and other materials covered
in each unit and follow the suggestions in the mastering the course
content section of the syllabus.
This unit examination consists of objective test questions as well as
a comprehensive writing assignment selected to reflect the learning
objectives identified in each chapter covered so far in your textbook.
Additional detailed information on completing the examination,
writing standards and how to submit your completed examination
may be found in the syllabus for this course.
38
BAM 105 Introduction to Business
Unit 1 Examination
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. The political-legal environment reflects the relationship between the business and ___________.
a. labor unions
b. government
c. foreign trade
d. industry
2. Tangible goods that organizations use in conducting their businesses are referred to as
_____________.
a. the money supply
b. information resources
c. capital
d. physical resources
3. A ____________ economy has characteristics of both planned and market economies.
a. hybrid
b. mixed market
c. capitalist
d. privatized
4. A(n) ____________ occurs when the quantity supplied exceeds the quantity demanded.
a. demand deficit
b. overage
c. surplus
d. shortage
5. _____________ occurs when two or more businesses vie for the same resources or customers.
a. Competition
b. Socialism
c. Differentiation
d. Conflict
6. _____________ exists when an industry has only a handful of sellers, most of which are large.
a. Monopolistic competition
b. Perfect competition
c. An oligopoly
d. A monopoly
39
BAM 105 Introduction to Business
Unit 1 Examination
7. Which of the following is NOT a factor of production?
a. labor
b. entrepreneurs
c. capital
d. government
8. In the market for breakfast cereals, only a few large producers dominate the market. This
situation best describes which of the following?
a. monopolistic competition
b. monopoly
c. pure competition
d. oligopoly
9. Which of the following is an example of a natural monopoly?
a. automobiles
b. motion pictures
c. electric companies
d. sporting goods
10. Economists refer to the pattern of short-term expansions and contractions in the economy as
the _____________.
a. business cycle
b. consumer price index
c. standard of living
d. aggregate output
11. ____________ refers to ethical or unethical behaviors by employees in the context of their jobs.
a. Business ethics
b. Social responsibility
c. Social ethics
d. Collusion
12. Bob Crawford sold shares in XYZ Company after finding out from XYZ’s CEO that XYZ’s stock
was about to drop in price. Bob engaged in _____________.
a. an accommodative stance to social responsibility
b. insider trading
c. whistle-blowing
d. misrepresentation of finances
40
BAM 105 Introduction to Business
Unit 1 Examination
13. A(n) _____________ stance to social responsibility involves doing as little as possible and may
involve attempts to deny or cover up violations.
a. proactive
b. defensive
c. accommodative
d. obstructionist
14. The systematic analysis of an organization’s success in using funds earmarked for its social
responsibility goals is called a _____________.
a. community activist approach
b. social audit
c. government initiative
d. governmental mandate
15. The ethical norm of _____________ considers if the decision is fair.
a. rights
b. justice
c. utility
d. caring
16. What is the most important source of money for new-business start-ups?
a. grants
b. personal resources
c. the SBA
d. banks
17. _____________ are groups of small investors seeking to make profits on companies with rapid
growth potential.
a. Venture capital companies
b. Business incubators
c. Investment clubs
d. Financial partnerships
18. Officers are _____________.
a. non-voting stockholders
b. members of the board
c. participate in day-to-day management
d. None of the above.
41
BAM 105 Introduction to Business
Unit 1 Examination
19. More than any other industry group, _____________ lends itself to big business.
a. wholesaling
b. retailing
c. manufacturing
d. agriculture
20. A sole proprietorship depends primarily on the resources of _____________.
a. the corporation
b. capital markets
c. a single individual
d. foreign investors
21. Developing countries are also called _____________.
a. viral marketers
b. geographic clusters
c. low-income countries
d. low middle-income countries
22. Which country dominates the Pacific Asia region economically?
a. Taiwan
b. Japan
c. China
d. South Korea
23. With a(n) _____________ exchange rate, the value of a country’s currency remains constant
relative to that of another country.
a. fixed
b. floating
c. adjusted
d. indexed
24. Ford purchased Volvo. What does this illustrate?
a. foreign direct investment
b. strategic alliance
c. social responsibility
d. licensing arrangement
42
BAM 105 Introduction to Business
Unit 1 Examination
25. Selling a product abroad for less than the cost of production is called ______________.
a. setting up a business office
b. dumping
c. direct foreign investment
d. imposing tariffs
43
BAM 105 Introduction to Business
Unit 1 Examination
Writing Assignment for Unit One
•
Include your name, student number, course number, course title and unit number on each page
of your writing assignment (this is for your protection in case your materials become separated).
•
Begin each writing assignment by identifying the question number you are answering followed by
the actual question itself (in bold type).
•
Use a standard essay format for responses to all questions (i.e., an introduction, middle
paragraphs and conclusion).
•
Responses must be submitted as a MS Word Document only, typed double-spaced, using a
standard font (i.e. Times New Roman) and 12 point type size.
Word count is NOT one of the criteria that is used in assigning points to writing assignments. However,
students who are successful in earning the maximum number of points tend to submit writing assignments
that fall in the following ranges:
Undergraduate courses: 350 – 500 words or 1 – 2 pages.
Graduate courses: 500 – 750 words or 2 – 3 pages.
Doctoral courses: 750 – 1000 words or 4 – 5 pages.
Plagiarism
All work must be free of any form of plagiarism. Put written answers into your own words. Do not simply cut
and paste your answers from the Internet and do not copy your answers from the textbook. Be sure to refer to
the course syllabus for more details on plagiarism and proper citation styles.
Please answer ONE of the following:
1. What are the factors of production? Is one factor more important than the others? If so,
which one? Why?
2. Why might a closely held corporation choose to remain private? Why might it choose to be
publicly traded?
3. What are the three possible levels of involvement in international business? Give examples of
each.
44
BAM 105 Introduction to Business
You Can Do It
You have just completed Unit 1 of this course.
You are off to a great start!
Keep up the good work!
45
BAM 105 Introduction to Business
Objectives
Chapter Five
Business Management
Learning Objectives
Upon successful completion of this chapter, you should be able to:
1.
Describe the nature of management and identify the four
basic functions that constitute the management process.
2.
Identify different types of managers likely to be found in an
organization by level and area.
3.
Describe the basic skills required of managers.
4.
Explain the importance of strategic management and
effective goal setting in organizational success.
5.
Discuss contingency planning and crisis management in
today’s business world.
6.
Describe the development and explain the importance of
corporate culture.
Instructions to Students
• Read pages 68-83 of your textbook
• Reference: Business Essentials, by
Ebert and Griffin, 8th edition, 2011
46
BAM 105 Introduction to Business
Overview
What makes a good manager? Think back to a favorite manager with whom you have worked. What
made that manager effective? Perhaps the manager assigned special roles in setting organizational
goals. Or perhaps he or she was an exceptional communicator, expressed empathy or was an
effective motivator.
Now think back to a “poor” manager you’ve worked with. What made that manager ineffective?
Maybe he or she was too controlling, lacked communication skills or showed favoritism toward
subordinates. Whatever the reason, many people’s future managerial roles will be affected by their
past experiences.
This chapter presents an introduction to the foundations of effective management. It describes
the nature of management and identifies the four basic functions that constitute the management
process and the different types of managers likely to be found in an organization. It discusses
the basic skills required of managers, the importance of strategic management and effective goal
setting in organizational success—as well as contingency planning and crisis management—and
the importance of corporate culture.
47
BAM 105 Introduction to Business
Key Terms
The key terms listed below are terms with which you should be familiar.
Write your definition below each item. Check your answers at the end of this chapter.
Management:
Top manager:
Middle manager:
First-line manager:
Conceptual skills:
Decision-making skills:
Strategic management:
Mission statement:
Functional strategy:
SWOT analysis:
Tactical plan:
Crisis management:
Corporate culture:
48
BAM 105 Introduction to Business
Summary
Management is the process of planning, organizing, leading and controlling all of a firm’s resources
to achieve its goals. Planning is determining what the organization needs to do and how best to get
it done. The process of arranging resources and activities into a coherent structure is called
organizing. When leading, a manager guides and motivates employees to meet the firm’s
objectives. Controlling is the process of monitoring performance to make sure that a firm is
meeting its goals.
There are three levels of management. The few executives who are responsible for the overall
performance of large companies are top managers. Just below top managers are middle managers
including plant, operations and division managers who implement strategies, policies and
decisions made by top managers. Supervisors and office managers are the first-line managers who
work with and supervise the employees who report to them.
In any large company, most managers work in one of five areas. Human resource managers hire and
train employees, assess performance and fix compensation. Operations managers are responsible
for production, inventory and quality control. Marketing managers are responsible for getting
products from producers to consumers. Information managers design and implement systems to
gather, organize and distribute information. Some firms have a top manager called a chief
information officer (CIO). Financial managers, including the chief financial officer (top), division
controllers (middle) and accounting supervisors (first-line), oversee accounting functions and
financial resources.
Effective managers must develop a number of important skills. Technical skills are skills needed to
perform specialized tasks. Human relations skills are skills in understanding and getting along with
other people. Conceptual skills refer to the ability to think abstractly as well as diagnose and
analyze different situations. Decision-making skills include the ability to define problems and
select the best courses of action. Time management skills refer to the productive use of time.
Global management skills include understanding foreign markets, cultural differences and the
motives and practices of foreign rivals. Technology management skills include the ability to
process, organize and interpret an ever-increasing amount of information.
Strategic management is the process of helping an organization maintain an effective alignment
with its environment. It starts with setting goals—objectives that a business hopes (and plans) to
achieve. Determined by the board and top management, strategies reflect decisions about resource
allocations, company priorities and plans. The three types of strategy that are usually considered
by a company are corporate strategy, business (or competitive) strategy and functional strategy.
Companies often develop alternative plans in case things go awry. There are two common
methods of dealing with the unforeseen, contingency planning and crisis ma…
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