Exploring Business

Brief Contents
Contents
About the Author
Acknowledgments
Dedication
Preface
Chapter 1: The Foundations of Business
	1.1: Why Is Apple Successful?
	1.2: Introduction
	1.3: Getting Down to Business
		Business Participants and Activities
			Participants
		Functional Areas of Business
			Management
			Operations
			Marketing
			Accounting
			Finance
		External Forces that Influence Business Activities
	1.4: What Is Economics?
		Resources: Inputs and Outputs
		Input and Output Markets
		The Questions Economists Ask
		Economic Systems
			Planned Systems
			Free Market System
			How Economic Systems Compare
			Mixed Market Economy
			The U.S. Economic System
	1.5: Perfect Competition and Supply and Demand
		Perfect Competition
		The Basics of Supply and Demand
			Demand and the Demand Curve
			Supply and the Supply Curve
			Equilibrium Price
	1.6: Monopolistic Competition, Oligopoly, and Monopoly
		Monopolistic Competition
		Oligopoly
		Monopoly
	1.7: Measuring the Health of the Economy
		Economic Goals
			Economic Growth
			The Business Cycle
			Full Employment
			The Unemployment Rate
			Price Stability
			The Consumer Price Index
		Economic Forecasting
			Economic Indicators
			Lagging and Leading Indicators
			Consumer Confidence Index
	1.8: Government’s Role in Managing the Economy
		Monetary Policy
		Fiscal Policy
		The National Debt
		Macroeconomics and Microeconomics
	1.9: Cases and Problems
	1.10: Nike Case
	Endnotes
Chapter 2: Entrepreneurship
	2.1: Build a Better Baby and They Will Come
	2.2: What Is an Entrepreneur?
		The Nature of Entrepreneurship
		A Few Things to Know about Going into Business for Yourself
			Why Start Your Own Business?
			Distinguishing Entrepreneurs from Small Business Owners
	2.3: The Importance of Small Business to the U.S. Economy
		What Is a “Small Business”?
		Why Are Small Businesses Important?
			Job Creation
			Innovation
			Opportunities for Women and Minorities
			What Small Businesses Do for Big Businesses
	2.4: What Industries Are Small Businesses In?
		Industries by Sector
			Goods-Producing Sector
			Service-Producing Sector
	2.5: Advantages and Disadvantages of Business Ownership
		Advantages of Small Business Ownership
		Disadvantages of Small Business Ownership
	2.6: Starting a Business
		Questions to Ask Before You Start a Business
		The Business Idea
		Ownership Options
			Starting from Scratch
			Buying an Existing Business
			Getting a Franchise
	2.7: The Business Plan
		Purpose of a Business Plan
		Sections of the Business Plan
			Executive Summary
			Description of Proposed Business
			Industry Analysis
			Mission Statement and Core Values
			Management Plan
			A. Legal Form of Organization
			B. Qualifications of Management Team and Compensation Package
			C. Organizational Structure
			Goods, Services, and the Production Process
			Marketing
			Global Issues
			Financial Plan
			Appendices
	2.8: How to Succeed in Managing a Business
		Why Do Businesses Succeed?
		Why Do Businesses Fail?
		Help from the SBA
	2.9: Cases and Problems
	2.10: Business Plan Project
	2.11: Nike Case
	Endnotes
Chapter 3: Selecting a Form of Business Ownership
	3.1: The Ice Cream Men
	3.2: Factors to Consider
	3.3: Sole Proprietorship
		Advantages and Disadvantages of Sole Proprietorships
	3.4: Partnership
		The Partnership Agreement
		Unlimited Liability and the Partnership
		Limited Partnerships
		Advantages and Disadvantages of Partnerships
	3.5: Corporation
		Ownership and Stock
		Benefits of Incorporation
			Limited Liability
			Financial Resources
			Specialized Management
			Continuity and Transferability
		Drawbacks to Incorporation
	3.6: Other Types of Business Ownership
		Hybrids: S-Corporations and Limited-Liability Companies
			Attractive and Unattractive Features of Corporations
			Attractive and Unattractive Features of Sole Proprietorships and Partnerships
			The Hybrids
		S-Corporation
		Limited-Liability Company
		Cooperatives
		Not-for-Profit Corporations
	3.7: Mergers and Acquisitions
		Mergers and Acquisitions
		Motives behind Mergers and Acquisitions
			Attain New Markets or Distribution Channels
			Realize More Efficient Economies of Scale
		Hostile Takeover
	3.8: Cases and Problems
	3.9: Business Plan Project
	3.10: Nike Case
	Endnotes
Chapter 4: Business Ethics and Social Responsibility
	4.1: “Mommy, Why Do You Have to Go to Jail?”
	4.2: Misgoverning Corporations: An Overview
		The Idea of Business Ethics
			What Is Ethics?
		What Is Social Responsibility?
		How Can You Recognize an Ethical Organization?
		Why Study Ethics?
	4.3: The Individual Approach to Ethics
		Addressing Ethical Dilemmas
		Making Ethical Decisions
			Revisiting Johnson & Johnson
			What to Do When the Light Turns Yellow
	4.4: Identifying Ethical Issues
		Bribes versus Gifts
		Conflicts of Interest
		Conflicts of Loyalty
		Issues of Honesty and Integrity
		Whistle-Blowing
		Refusing to Rationalize
	4.5: The Organizational Approach to Ethics
		Ethical Leadership
		Exercising Ethical Leadership
		Tightening the Rules
			Codes of Conduct
	4.6: Corporate Social Responsibility
		Owners
			Fiduciary Responsibilities
			Employees
			Safety and Health
			Freedom from Sexual Harassment
			Equal Opportunity and Diversity
			Equal Pay and the Wage Gap
			Building Diverse Workforces
			Wages and Benefits
		Customers
		Communities
			Financial Contributions
			Volunteerism
			Supporting Social Causes
	4.7: Environmentalism
		Land Pollution
		Air Pollution
		Water Pollution
		Sustainability
	4.8: Stages of Corporate Responsibility
		The Five Faces of Corporate Responsibility
		Here’s Your Salad—How About Fries?
			The Defensive Stage
			The Compliant Stage
			The Managerial Stage
			The Strategic Stage
			The Civil Stage
	4.9: Cases and Problems
	4.10: Business Plan Project
	4.11: Nike Case
	Endnotes
Chapter 5: Managing for Business Success
	5.1: Noteworthy Management
	5.2: What Do Managers Do?
		Functions of Management
	5.3: Planning
		Developing a Strategic Plan
		Mission Statement
		Core Values
		Conduct a SWOT Analysis
		Set Goals and Objectives
		Develop Tactical and Operational Plans
			Tactical Plans
			Operational Plans
		Plan for Contingencies and Crises
			Contingency Planning
			Crisis Management
	5.4: Organizing
		Levels of Management: How Managers Are Organized
			Top Managers
			Middle Managers
			First-Line Managers
		Organizational Structure: How Companies Get the Job Done
			Specialization
			Departmentalization
			Functional Organization
			Divisional Organization
			Product Division
			Customer Division
			Process Division
			Geographical Division
		The Organization Chart
			Reporting Relationships
			Lines of Authority
			Chain of Command
			Span of Control
			Delegating Authority
			Responsibility and Authority
			Centralization and Decentralization
	5.5: Directing
		Leadership Styles
			Transformational Leadership
	5.6: Controlling
		A Five-Step Control Process
	5.7: Managerial Skills
		Technical Skills
		Interpersonal Skills
		Conceptual Skills
		Communication Skills
		Time-Management Skills
		Decision-Making Skills
		A Six-Step Approach to Problem Solving
		Applying Your Skills at Notes-4-You
	5.8: Cases and Problems
	5.9: Business Plan Project
	5.10: Nike Case
	Endnotes
Chapter 6: Recruiting, Motivating, and Keeping Quality Employees
	6.1: The Grounds of a Great Work Environment
	6.2: Human Resource Management
		Human Resource Planning
			Job Analysis
			HR Supply and Demand Forecasting
		Recruiting Qualified Employees
		Where to Find Candidates
			Internal versus External Recruiting
		How to Find Candidates
		The Selection Process
			Application
			Employment Tests
			Interview
			Physical Exam and Reference Checks
			Final Decision
		Contingent Workers
			The Positives and Negatives of Temporary Work and Side Gigs
	6.3: Developing Employees
		New-Employee Orientation
		Training and Development
		Diversity in the Workplace
	6.4: Motivating Employees
		Hierarchy-of-Needs Theory
			Needs Theory and the Workplace
		Two-Factor Theory
			Two-Factor Theory and the Workplace
		Expectancy Theory
			Expectancy Theory and the Workplace
		Equity Theory
	6.5: What Makes a Great Place to Work?
		Job Redesign
			Job Rotation
			Job Enlargement
			Job Enrichment
		Work/Life Quality
			Alternative Work Arrangements
			Flextime
			Compressed Workweeks
			Part-Time Work
			Job Sharing
			Telecommuting
		Family-Friendly Programs
			Dependent Care
			Paid Parental Leave
			Caring for Yourself
		Unmarried without Children
		Compensation and Benefits
		Wages and Salaries
			Piecework and Commissions
		Incentive Programs
			Bonus Plans
			Profit-Sharing Plans
			Stock-Option Plans
		Benefits
	6.6: Performance Appraisal
		The Basic Three-Step Process
		360-Degree and Upward Feedback
		Retaining Valuable Employees
			Creating a Positive Work Environment €
			The Employee-Friendly Workplace
			Recognizing Employee Contributions
			Involving Employees in Decision Making
		Why People Quit
		Involuntary Termination
			Employment at Will
	6.7: Labor Unions
		Union Structure
		Collective Bargaining
			The Negotiation Process
			Mediation and Arbitration
			Grievance Procedures
		When Negotiations Break Down
			Union Tactics
			Management Tactics
		The Future of Unions
	6.8: Cases and Problems
	6.9: Business Plan Project
	6.10: Nike Case
	Endnotes
Chapter 7: Product Design and Development
	7.1: Riding the Crest of Innovation
	7.2: What Is a Product?
		Types of Product Developments
			New-to-the-Market Products
			Entrepreneurial Start-Ups
			How to Take a Calculated Risk
	7.3: Where Do Product Ideas Come From?
		Purple Cow Ideas
	7.4: Identifying Business Opportunities
		Utility
	7.5: Understand Your Industry
		Evaluating Your Industry
		Segmenting Your Market
		Assessing Your Competition
	7.6: Forecasting Demand
		People in Similar Businesses
		Potential Customers
		Published Industry Data
	7.7: Breakeven Analysis
	7.8: Product Development
		Product Development Is a Risky Proposition
		The Product Development Process
			Evaluate Opportunities and Select the Best Product Idea
			Get Feedback to Refine the Product Concept
			Make Sure the Product Performs and Appeals to Consumers
			Design with Manufacturing in Mind
			Build and Test Prototypes
			Ramp Up Production and Run Market Tests
			Launch the Product
	7.9: Protecting Your Idea
	7.10: Cases and Problems
	7.11: Business Plan Project
	7.12: Nike Case
	Endnotes
Chapter 8: Operations Management in Manufacturing and Service Industries
	8.1: The Challenge: Producing Quality Jetboards
	8.2: Operations Management in Manufacturing
		Operations Management in Manufacturing
		Planning the Production Process
			Production-Method Decisions
			Make-to-Order
			Mass Production
			Mass Customization
			Facilities Decisions
			Site Selection
			Capacity Planning
	8.3: Facility Layouts
	8.4: Managing the Production Process in a Manufacturing Company
		Purchasing and Supplier Selection
			E-Purchasing (or e-procurement)
		Inventory Control
			Just-in-Time Production
			Material Requirements Planning
		Work Scheduling
	8.5: Graphical Tools: Gantt and PERT Charts
		Gantt Charts
		PERT Charts
	8.6: The Technology of Goods Production
		Computer-Aided Design
		Computer-Aided Manufacturing
		Computer-Integrated Manufacturing
		Flexible Manufacturing Systems
	8.7: Operations Management for Service Providers
		Operations Planning
			Operations Processes
			Facilities
			Site Selection
			Size and Layout
			Capacity Planning
		Managing Operations
			Scheduling
			Inventory Control
	8.8: Producing for Quality
		Quality Management
			Customer Satisfaction
			Employee Involvement
			Continuous Improvement
			Statistical Process Control
			Benchmarking
		International Quality Standards
			ISO 9000 and ISO 14000
		Outsourcing
			Outsourcing in the Goods-Producing Sector
			Outsourcing in the Service Sector
	8.9: Cases and Problems
	8.10: Business Plan Project
	8.11: Nike Case
	Endnotes
Chapter 9: Business in a Global Environment
	9.1: It’s a Small World
	9.2: The Globalization of Business
		Why Do Nations Trade?
		Absolute and Comparative Advantage
			Absolute Advantage
			Comparative Advantage
		How Do We Measure Trade between Nations?
			Managing the National Credit Card
			Balance of Payments
	9.3: Opportunities in International Business
		Importing and Exporting
		Licensing and Franchising
		Contract Manufacturing and Outsourcing
		Strategic Alliances and Joint Ventures
		Foreign Direct Investment and Subsidiaries
		Multinational Corporations
			Criticism of MNC Culture
			In Defense of MNC Culture
	9.4: The Global Business Environment
		The Cultural Environment
			Language
			Time and Sociability
			High- and Low-Context Cultures
			Intercultural Communication
		The Economic Environment
			Economic Development
			Currency Valuations and Exchange Rates
		The Legal and Regulatory Environment
			Foreign Corrupt Practices Act
	9.5: Trade Controls
		Tariffs
		Quotas
		Dumping
		The Pros and Cons of Trade Controls
	9.6: Reducing International Trade Barriers
		Trade Agreements and Organizations
			General Agreement on Tariffs and Trade
			World Trade Organization
		Financial Support for Troubled Economies
			The International Monetary Fund
			The World Bank
			Criticism of the IMF and the World Bank
		Trading Blocs
			North American Free Trade Association
			The European Union
			The Euro
			Other Trading Blocs
	9.7: Preparing for a Career in International Business
		Plan Your Undergraduate Education
		Get Some Direct Experience
		Interact with People from Other Cultures
	9.8: Cases and Problems
	9.9: Business Plan Project
	9.10: Nike Case
	Endnotes
Chapter 10: Marketing: Providing Value to Customers
	10.1: A Robot with Attitude
	10.2: What Is Marketing?
		The Marketing Concept
		Marketing Strategy
		Selecting a Target Market
			Identifying Your Market
			Segmenting the Market
			Demographic Segmentation
			Geographic Segmentation
			Behavioral Segmentation
			Psychographic Segmentation
			Clustering Segments
	10.3: The Marketing Mix
		Developing a Product
		Conducting Marketing Research
		Branding
			Branding Strategies
			Building Brand Equity
		Packaging and Labeling
	10.4: Pricing a Product
		New Product Pricing Strategies
			Skimming and Penetration Pricing
		Other Pricing Strategies
			Cost-Based Pricing
			Demand-Based Pricing
			Target Costing
			Prestige Pricing
			Odd-Even Pricing
	10.5: Placing a Product
		Distribution Channels
			Selling Directly to Customers
			Selling through Retailers
			Selling through Wholesalers
		Physical Distribution
			Warehousing
			Materials Handling
			Automation
			Just-in-Time Production
		Transportation
		Creating an Effective Distribution Network: The Supply Chain
			Supply Chain Management
			The Value Chain
			The Customer Value Triad
	10.6: Promoting a Product
		Promotional Tools
			Advertising
			Personal Selling
			Publicity and Public Relations
		Marketing Robosapien
	10.7: Interacting with Your Customers
		Customer-Relationship Management
			Permission versus Interruption Marketing
		Social Media Marketing
			PepsiCo (Mountain Dew)
			Starbucks
			Free Coffee on Tax Day (via Twitter’s Promoted Tweets)
			Free Pastry Day (Promoted through Twitter and Facebook)
			Social Media Marketing Challenges
	10.8: The Product Life Cycle
		Life Cycle and the Changing Marketing Mix
			Introduction
			Growth
			Maturity
			Decline
	10.9: The Marketing Environment
		The Political and Regulatory Environment
		The Economic Environment
		The Competitive Environment
		The Technological Environment
		The Social and Cultural Environment
			Generation Gaps
			Baby Boomers
			Generation X
			Millennials
		Consumer Behavior
		The Buying Process
		Influences on Buying Behavior
			Psychological Influences
			Social Influences
	10.10: Careers in Marketing
		Advertising
		Brand and Product Management
		Marketing Research
		Supply Chain and Logistics Management
		Retailing
		Sales
	10.11: Cases and Problems
	10.12: Business Plan Project
	10.13: Nike Case
	Endnotes
Chapter 11: Operating in a Digital Marketing and Social Networking Environment
	11.1: Two Talented Technology Geniuses Merge
	11.2: Product
		Technology-Based Products
		Digital Applications
		A Piece of the Puzzle
	11.3: Pricing
		Pricing a Beetle
		Pricing the Oculus Rift
		Dynamic Pricing
			Revenue Optimization System
	11.4: Placement
		Online Stores
		Supply Chain
		Delivery Options
	11.5: Promotion
		Advantages of Digital Ads
		Internet-Based Retailers
		Content Marketing
		Content Marketing and Starbucks
			Help Facilitate Human Connections
			Connections with Customers
			Pumpkin Spice Latte
			Customer Feedback
			Make the World a Little Better
			A Year of Good
			Meet Me at Starbucks
			Upstanders
			Why Is Starbucks So Successful at Content Marketing?
	11.6: Big Data and Privacy
		What Is Done with Big Data?
		Privacy and Ethics
	11.7: Cases and Problems
	11.8: Business Plan Project
	11.9: Nike Case
	Endnotes
Chapter 12: The Role of Accounting in Business
	12.1: Rent a Room or a House€
	12.2: The Role of Accounting
		The Language of Business
			Fields of Accounting
			Management Accounting
			Financial Accounting
		Who Uses Financial Accounting Information?
			Owners and Managers
			Investors and Creditors
			Government Agencies
			Other Users
	12.3: Understanding Financial Statements
		The Function of Financial Statements
			Toying with a Business Idea
		The Income Statement
			Did You Make Any Money?
			What If You Want to Make More Money?
			“What If” Number One—Four Toys Instead of Five
			“What If” Number Two—Reduce Operating Costs
			“What If” Number Three—Increase Sales
			Breakeven Analysis
		The Balance Sheet
			The Accounting Equation
		The Statement of Owner’s Equity
		How Do Financial Statements Relate to One Another?
	12.4: Accrual Accounting
		What Is Accrual Accounting?
		Going to School on a New Business Idea
		Accrual-Basis Financial Statements
			Beginning Balance Sheet
			Types of Assets
			Types of Liabilities
			Liabilities and Owner’s Equity
			Assets
			Income Statement
			A Few Additional Expenses
			Statement of Owner’s Equity
			End-of-First-Year Balance Sheet
			Statement of Cash Flows
	12.5: Financial Statement Analysis
		The Comparative Income Statement
			Vertical Percentage Analysis
			Asking the Right Questions
		Ratio Analysis
			Profit Margin Ratios
			Net Profit Margin
			Management Efficiency Ratios
			Management Effectiveness Ratios
			Financial Condition Ratios
			Current Ratio
			Debt-to-Equity Ratio
		What Have the Ratios Told Us?
	12.6: The Profession: Ethics and Opportunities
		Accountant, Audit Thyself?
			Accounting “Strategy,” Ethics, and the Law
			Who Can You Trust?
			Are You Ethical?
			Sarbanes-Oxley Act (SOX)
			The Profession’s Code of Ethics
		Careers in Accounting
			Job Descriptions
			The Job and Its Prospects
			The Job Market Today
	12.7: Cases and Problems
	12.8: Business Plan Project
	12.9: Nike Case
	Endnotes
Chapter 13: Managing Financial Resources
	13.1: How to Keep from Going Under
	13.2: The Functions of Money
		Medium of Exchange
		Measure of Value
		Store of Value
		The Money Supply
			M-1 and M-2
			What, Exactly, Is “Plastic Money”?
	13.3: Financial Institutions
		Depository and Nondepository Institutions
			Commercial Banks
			Savings Banks
			Credit Unions
			Finance Companies
			Insurance Companies
			Brokerage Firms
		Financial Services
		Bank Regulation
		Crisis in the Financial Industry (and the Economy)
		How Banks Expand the Money Supply
			The Money Multiplier
	13.4: The Federal Reserve System
		The Tools of the Fed
			Reserve Requirements
			The Discount Rate
			Open Market Operations
			The Federal Funds Rate
		The Banker’s Bank and the Government’s Banker
	13.5: The Role of the Financial Manager
		Financing a New Company
		Developing a Financial Plan
			Estimating Sales
		Getting the Money
			Personal Assets
			Loans from Family and Friends
			Bank Loans
			Maturity
			Security
			Interest
		Making the Financing Decision
		Crowdfunding
			Equity Crowdfunding
			Rewards-Based Funding
		Financing the Business During the Growth Stage
			Managing Cash
			Managing Accounts Receivable
			Managing Accounts Payable
			Budgeting
		Seeking Out Private Investors
			Angels and Venture Capitalists
		Going Public
	13.6: Understanding Securities Markets
		Primary and Secondary Markets and Stock Exchanges
			Organized Exchanges
			OTC Markets
		Regulating Securities Markets: The SEC
		Measuring Market Performance: Market Indexes
			The Dow
			The NASDAQ Composite and the S&P 500
		How to Read a Stock Listing
	13.7: Financing the Going Concern
		Stock
		The Risk/Reward Trade-Off
			Common Stock
			Preferred Stock
			Cumulative and Convertible Preferred Stock
		Bonds
			Treasuries and Munis
		Choosing Your Financing Method
	13.8: Careers in Finance
		Positions in Commercial Banking
		Positions in Corporate Finance
		Positions in the Investment Industry
		Graduate Education and Certification
	13.9: Cases and Problems
	13.10: Business Plan Project
	13.11: Nike Case
	Endnotes
Chapter 14: Teamwork and Communications€
	14.1: The Team with the RAZR’S Edge
	14.2: The Team and the Organization
		What Is a Team? How Does Teamwork Work?
			Teams versus Groups
			Some Key Characteristics of Teams
		Why Organizations Build Teams
			The Effect of Teams on Performance
		Types of Teams
			Manager-Led Teams
			Self-Managing Teams
			Cross-Functional Teams
			Virtual Teams
	14.3: Why Teamwork Works
		Factors in Effective Teamwork
			Group Cohesiveness
			What Makes a Team Cohesive?
			Groupthink
		Why Teams Fail
			Motivation and Frustration
	14.4: The Team and Its Members
		“Life Is All about Group Work”
		Will You Make a Good Team Member?
			What Skills Does the Team Need?
			What Roles Do Team Members Play?
			Task-Facilitating Roles
			Relationship-Building Roles
			Blocking Roles
		Class Team Projects
		What Does It Take to Lead a Team?
			Influence Team Members and Gain their Trust
	14.5: The Business of Communication
		Communication by Design
		What Is Communication?
		Your Ticket In (or Out)
			Why Are Communication Skills Important?
			What Skills Are Important?
	14.6: Communication Channels
		What Is Organizational Communication?
		Communication Flows
			Advantages of Communication Flows
			Disadvantages of Communication Flows
		Channels of Communication
			The Formal Communication Network
			The Informal Communication Network
			Problems with the Flow of Information through Informal Channels
			What to Do about Informal Information Flows
		Overcoming Barriers to Communication
			What Are Barriers to Communication?
		Two Types of Barriers
			Cultural Barriers
			Functional Barriers
	14.7: Forms of Communication
		How to Write a Formal Business E-Mail
			Tips for Writing Business E-Mails
			How to Write an Effective Memo
			Planning, Preparing, Practicing, and Presenting
			Plan
			Prepare
			Practice
			Present
			Visual Aids
			Nonverbal Communication
	14.8: Cases and Problems
	14.9: Business Plan Project
	Endnotes
Chapter 15: Personal Finances€
	15.1: Where Does Your Money Go?
		Building a Good Credit Rating
		Understand the Cost of Borrowing
		A Few More Words about Debt
		Why You Owe It to Yourself to Manage Your Debts
	15.2: Financial Planning
		The Financial Planning Life Cycle
			Choosing a Career
		Financing a College Education
		Find a Great Job
			Getting a Job Offer
			Evaluating Job Offers
	15.3: Time Is Money
		Compound Interest
		Time Value of Money
	15.4: The Financial Planning Process
		Step 1: Evaluating Your Current Financial Situation
			Preparing Your Net-Worth Statement
			Assets
			Liabilities
			Preparing Your Cash-Flow Statement
		Step 2: Set Short-Term, Intermediate-Term, and Long-Term Financial Goals
		Step 3: Develop a Budget and Use It to Evaluate Financial Performance
			Figuring the Variance
		Setting Mature Goals
			Levels of Mature Goals
			Present and Future Consumption Goals
		A Few Words about Saving
			Paying Yourself First
	15.5: A House Is Not a Piggy Bank: A Few Lessons from the Subprime Crisis
		Disposing of Savings
			Subprime Rates and Adjustable Rate Mortgages
		The Meltdown
			Subprime Directives: A Few Lessons from the Subprime Crisis
	15.6: Cases and Problems
	Endnotes
Chapter 16: Managing Information and Technology€
	16.1: A Winning Hand for Caesars
	16.2: Data Versus Information
		Information Systems
			Differences in Information Needs
			The Need to Share Information
			Enterprise Systems
			What If You Don’t Have ERP?
			What If You Do Have ERP?
	16.3: Managing Data
		Data and Databases
			Warehousing and Mining Data
			Data Mining
			Data Mining and Customer Behavior
	16.4: Types of Information Systems
		Operations Support Systems
			Transaction Processing Systems
			Process Control Systems
			Design and Production Systems
		Management Support Systems
			Management Information Systems
			Decision Support Systems
			Executive Information Systems
			Artificial Intelligence
			Expert Systems
			Face-Recognition Technology
	16.5: Computer Networks and Cloud Computing
		Networks
		Cloud Computing
			Business Applications
			The As-A-Service Group
			Advantages and Disadvantages of Cloud Computing
			Advantages
			Disadvantages
			Go or No Go?
	16.6: Data Communications Networks
		The Internet and the World Wide Web
			The Technology of the Web
		Intranets and Extranets
		E-Commerce
			Why Business Uses the Internet
			The Virtual Company
	16.7: Security Issues in Electronic Communication
		Data Security
			Malicious Programs
			Viruses, Worms, and Trojan Horses
			Spoofing
		Revenue Theft
			Denial of Service
			Piracy
			Firewalls
		Risks to Customers
			Credit Card Theft
			Password Theft
			Invasion of Privacy
			How Do “Cookies” Work?
		Shoring Up Security and Building Trust
			Encryption
			Certificate Authorities
	16.8: Careers in Information Management
	16.9: Cases and Problems
	Endnotes
Chapter 17: The Legal and Regulatory Environment of Business
	17.1: Whatever Happened to…George McGovern?
	17.2: Law and the Legal System
		A System of Rules and Principles
			Flexibility
			Fairness
			Functions of Law
	17.3: Criminal Versus Civil Law
		Criminal Law
		Civil Law
			Tort Law
			Intentional Torts
	17.4: Negligence Torts
		Elements of a Negligence Claim
		Negligence and Employer Liability
			The Law of Contracts
			Employment Contracts
			Respondeat Superior
			Scope of Employment
	17.5: Product Liability
		Pursuing a Claim of Product Liability
			Grounds of Negligence
			Grounds of Strict Liability
			Strict Liability in the Distribution Chain
			Grounds of Breach of Warranty
			Types of Warranties
			Express Warranties
			Implied Warranties
			Product Liability and Agency Law
		Seeking Damages
			The Goals of Tort Law
			Compensatory Damages
			Punitive Damages
			The Goals of Contract Law
	17.6: Some Principles of Public Law
		Why Cigarette Littering Is against the Law
			Statutory Responses to Littering
		Why Cigarettes Cost So Much
			Excises and Externalities
		Government and the Economic Environment of Business
			Government Intervention in the Marketplace
			Market Failure: Theory versus Reality
			Law and Economic Decision Making
			Efficiency and the Law
			Contracting and the Law
			Ethics and the Law
		Why Businesses Ban Smoking in the Workplace
			Federal Statutory Law: OSHAct
			Federal Administrative Law: OSHA
			Administrative Rulemaking: OSHA’s General Duty Clause
			Administrative Law and Judicial Review
			Case Law
			Beyond OSHA: Public Law, Public Policy, and Environmental Tobacco Smoke
		Law and the “Public Interest”
	17.7: Cases and Problems
	Endnotes
Chapter 18: Appendix: Introducing Your Business Plan Project
	18.1: Choices and Tasks
	18.2: Standard Business Plan Format: Instructions
		Section Descriptions
Chapter 19: Appendix: Estimating Sales
	19.1: Approaches To Estimating Sales
		Calculating Percentage of the Total U.S. Market
		Calculating Percentage of a Geographical Market
		Using Competitors’ Financial Reports
			Identifying Competitors and Finding Income Statements
			Using Competitors’ Financial Reports
		Backing Into Your Sales Figure
		Business Plan Project
		A Few Words About First-Year Sales
Chapter 20: Appendix: Preparing Financial Reports with the Excel Template
	20.1: How To Use the Template
		Working Your Way through the Template
	20.2: Completing Each Section
		Business Type and Name
		Sales Plan
		HR Plan
		Financial Assumptions
	20.3: Review Your Income Statements
		Income (Loss) Ranges
	20.4: Preparing Your Financial Plan Group Report
		Cash Requirements
		The Final Tally: Total Cash Requirements
		Cash Sources
		Making Sense of Financial Reports
		The Teamwork Touchstone
	Endnotes
Index