Understanding Business

Cover: Online 
Title: Understanding Business
Copyright
About the Authors: Bill Nickels, Jim McHugh, Susan McHugh 
Preface
Brief Contents
Contents (direct linking)
PROLOGUE: Getting Ready for This Course and Your Career
	Learning the Skills You Need to Succeed Today and Tomorrow
	Using This Course to Prepare for Your Career
	Assessing Your Skills and Personality
	Using Professional Business Strategies Right Now
	Learning to Behave Like a Professional
	Doing Your Best in College
		Study Hints
		Test-Taking Hints
		Time Management Hints
	Making the Most of the Resources for This Course
		Getting the Most from This Text
	Notes
PART 1 : Business Trends: Cultivating a Business in Diverse, Global Environments [1-4]
	1. Taking Risks and Making Profits within the Dynamic Business Environment
		Business and Wealth Building
			Revenues, Profits, and Losses
			Matching Risk with Profit
			Standard of Living and Quality of Life
			Responding to the Various Business Stakeholders
			Using Business Principles in Nonprofit Organizations
		The Importance of Entrepreneurs to the Creation of Wealth
			The Five Factors of Production
		The Business Environment
			The Economic and Legal Environment
			The Technological Environment
			The Competitive Environment
			The Social Environment
			The Global Environment
		The Evolution of U.S. Business
			Progress in the Agricultural and Manufacturing Industries
			Progress in Service Industries
			Your Future in Business
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Grubhub and the Dynamic Business Environment
			Notes
		GETTING TO KNOW Ann-Marie Campbell of Home Depot
		ADAPTING TO CHANGE Up, Up, and Away
		REACHING BEYOND OUR BORDERS Hollywood Climbs the Great Wall
		ADAPTING TO CHANGE Services Expand the Circular Economy
	2. Understanding Economics and How It Affects Business
		How Economic Conditions Affect Businesses
			What Is Economics?
			The Secret to Creating a Wealthy Economy
			Adam Smith and the Creation of Wealth
			How Businesses Benefit the Community
		Understanding Free-Market Capitalism
			How Free Markets Work
			How Prices Are Determined
			The Economic Concept of Supply
			The Economic Concept of Demand
			The Equilibrium Point, or Market Price
			Competition within Free Markets
			Benefits and Limitations of Free Markets
		Understanding Socialism
			The Benefits of Socialism
			The Negative Consequences of Socialism
		Understanding Communism
		The Trend Toward Mixed Economies
		Understanding the U.s. Economic System
			Key Economic Indicators
			Productivity in the United States
			Productivity in the Service Sector
			The Business Cycle
			Stabilizing the Economy through Fiscal Policy
			Using Monetary Policy to Keep the Economy Growing
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Opportunity International: Giving the Poor a Working Chance
			Notes
		GETTING TO KNOW Thomas Piketty, Economist
		ADAPTING TO
CHANGE World Population Is Popping
		MAKING ETHICAL
DECISIONS Bad Medicine for Consumers?
		REACHING BEYOND OUR BORDERS Inflation at the Speed of Sound
	3. Doing Business in Global Markets
		The Dynamic Global Market
		Why Trade with Other Nations?
			The Theories of Comparative and Absolute Advantage
		Getting Involved in Global Trade
			Importing Goods and Services
			Exporting Goods and Services
			Measuring Global Trade
		Strategies for Reaching Global Markets
			Licensing
			Exporting
			Franchising
			Contract Manufacturing
			International Joint Ventures and Strategic Alliances
			Foreign Direct Investment
		Forces Affecting Trading in Global Markets
			Sociocultural Forces
			Economic and Financial Forces
			Legal and Regulatory Forces
			Physical and Environmental Forces
		Trade Protectionism
			The World Trade Organization
			Common Markets
			The North American and Central American Free Trade Agreements
		The Future of Global Trade
			The Challenge of Offshore Outsourcing
			Globalization and Your Future
		Summary
			Key Terms
			Critical Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Electra Bicycle Company
			Notes
		GETTING TO KNOW Indra Krishnamurthy Nooyi, CEO of Pepsico
		CONNECTING THROUGH SOCIAL MEDIA My Home Is Your Home
		ADAPTING TO CHANGE Many Flags Fly over the Golden Arches
		MAKING ETHICAL DECISIONS Exporting Your Problems Away
	4. Demanding Ethical and Socially Responsible Behavior
		Ethics Is More Than Legality
			Ethical Standards Are Fundamental
		Ethics Begins with Each of Us
		Managing Businesses Ethically and Responsibly
		Setting Corporate Ethical Standards
		Corporate Social Responsibility
			Responsibility to Customers
			Responsibility to Investors
			Responsibility to Employees
			Responsibility to Society and the Environment
			Social Auditing
		International Ethics and Social Responsibility
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Warby Parker/VisionSpring
			Notes
		GETTING TO KNOW Aaron and Evan Steed, Co-founder of Meathead Movers
		MAKING ETHICAL DECISIONS Ethics Begins with You
		REACHING BEYOND OUR BORDERS Ethical Culture Clash
PART 2 : Business Ownership: Starting a Small Business [5-6]
	5. How to Form a Business
		Basic Forms of Business Ownership
		Sole Proprietorships
			Advantages of Sole Proprietorships
			Disadvantages of Sole Proprietorships
		Partnerships
			Advantages of Partnerships
			Disadvantages of Partnerships
		Corporations
			Advantages of Corporations
			Disadvantages of Corporations
			Individuals Can Incorporate
			S Corporations
			Limited Liability Companies
		Corporate Expansion: Mergers and Acquisitions
		Franchises
			Advantages of Franchises
			Disadvantages of Franchises
			Diversity in Franchising
			Home-Based Franchises
			E-Commerce in Franchising
			Using Technology in Franchising
			Franchising in Global Markets
		Cooperatives
		Which Form of Ownership Is for You?
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Domino’s Still Rolling in the Dough
			Notes
		GETTING TO KNOW Peter Cancro, Founder of Jersey Mike’s Subs
		MAKING ETHICAL DECISIONS Good Business, Bad Karma?
		ADAPTING TO CHANGE Kickstarting a Benefit Corporation
		SPOTLIGHT ON SMALL BUSINESS Unlocking a Growing Franchise
	6. Entrepreneurship and Starting a Small Business
		The Job-Creating Power of Entrepreneurs in the United States
		Why People Take the Entrepreneurial Challenge
			What Does It Take to Be an Entrepreneur?
			Turning Your Passions and Problems into Opportunities
			Entrepreneurial Teams
			Entrepreneurship within Firms
			Micropreneurs and Home-Based Businesses
			Online Businesses
			Encouraging Entrepreneurship: What Government Can Do
		Getting Started in Small Business
			Small versus Big Business
			Importance of Small Businesses
			Small-Business Success and Failure
		Learning About Small-Business Operations
			Learn from Others
			Get Some Experience
			Take Over a Successful Firm
		Managing a Small Business
			Planning Your Business
			Financing Your Small Business
			Knowing Your Customers
			Managing Your Employees
			Keeping Records
			Looking for Help
		Going Global: Small-Business Prospects
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Launching a Business: Jcf Health and Fitness
			Notes
		GETTING TO KNOW Tristan Walker, Founder of Walker and Company
		SPOTLIGHT ON
SMALL BUSINESS Student Start-ups
		MAKING
ETHICAL DECISIONS Should You Stay or Should You Go?
PART 3 : Business Management: Empowering Employees to Satisfy Customers [7-9]
	7. Management and Leadership
		Managers’ Roles Are Evolving
		The Four Functions of Management
		Planning and Decision Making
			Decision Making: Finding the Best Alternative
		Organizing: Creating a Unified System
			Tasks and Skills at Different Levels of Management
			Staffing: Getting and Keeping the Right People
		Leading: Providing Continuous Vision and Values
			Leadership Styles
			Empowering Workers
			Managing Knowledge
		Controlling: Making Sure It Works
			A Key Criterion for Measurement: Customer Satisfaction
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Zappos’s Team Approach
			Notes
		GETTING TO KNOW Kevin Plank, Founder of Under Armour
		ADAPTING
TO CHANGE Will Strategy Robots Replace Managers?
		CONNECTING THROUGH SOCIAL MEDIA Want to Be a Social Media Manager?
		MAKING ETHICAL DECISIONS What Do You Tell the Team?
	8. Structuring Organizations for Today’s Challenges
		Organizing for Success
			Building an Organization from the Bottom Up
		The Changing Organization
			The Development of Organizational Design
			Turning Principles into Organizational Design
		Decisions to Make in Structuring Organizations
			Choosing Centralized or Decentralized Authority
			Choosing the Appropriate Span of Control
			Choosing between Tall and Flat Organizational Structures
			Weighing the Advantages and Disadvantages of Departmentalization
		Organizational Models
			Line Organizations
			Line-and-Staff Organizations
			Matrix-Style Organizations
			Cross-Functional Self-Managed Teams
			Going Beyond Organizational Boundaries
		Managing the Interactions among Firms
			Transparency and Virtual Organizations
		Adapting to Change
			Restructuring for Empowerment
			Creating a Change-Oriented Organizational Culture
			Managing the Informal Organization
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Freshii’s Winning Organization
			Notes
		GETTING TO KNOW Denise Morrison, CEO of Campbell Soup Company
		MAKING
ETHICAL DECISIONS Would You Sacrifice Safety for Profits?
		ADAPTING
TO CHANGE Going Bossless
		CONNECTING THROUGH SOCIAL MEDIA Breaking the Connection
	9. Production and Operations Management
		Manufacturing and Services in Perspective
			Manufacturers and Service Organizations Become More Competitive
		From Production to Operations Management
			Operations Management in the Service Sector
		Production Processes
			The Need to Improve Production Techniques and Cut Costs
			Computer-Aided Design and Manufacturing
			Flexible Manufacturing
			Lean Manufacturing
			Mass Customization
			Robotics
			3D Printing
			Using Sensing, Measurement, and Process Control
		Operations Management Planning
			Facility Location
			Facility Location for Manufacturers
			Interfirm Operations Management
			Facility Location in the Future
			Facility Layout
			Materials Requirement Planning
			Purchasing
			Just-in-Time Inventory Control
			Quality Control
			The Baldrige Awards
			ISO 9001 and ISO 14001 Standards
		Control Procedures: PERT and Gantt Charts
		Preparing for the Future
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Production in the 21st Century
			Notes
		GETTING TO KNOW Shahid Khan, CEO of Flex-N-Gate
		REACHING BEYOND OUR BORDERS Creating Skilled Workers with German-Style Apprenticeships
		ADAPTING TO CHANGE The Vast Possibilities of 3D Printing
		MAKING
ETHICAL DECISIONS Should We Stay or Should We Go?
PART 4 : Management of Human Resources: Motivating Employees to Produce Quality Goods and Services [10-12]
	10. Motivating Employees
		The Value of Motivation
			Frederick Taylor: The “Father” of Scientific Management
			Elton Mayo and the Hawthorne Studies
		Motivation and Maslow’s Hierarchy of Needs
		Herzberg’s Motivating Factors
		Mcgregor’s Theory X and Theory Y
			Theory X
			Theory Y
		Ouchi’s Theory Z
		Goal-Setting Theory and Management by Objectives
		Meeting Employee Expectations: Expectancy Theory
		Treating Employees Fairly: Equity Theory
		Putting Theory into Action
			Motivating through Job Enrichment
			Motivating through Open Communication
			Applying Open Communication in Self-Managed Teams
			Recognizing a Job Well Done
		Personalizing Motivation
			Motivating Employees across the Globe
			Motivating Employees across Generations
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Appletree Answers
			Notes
		GETTING TO KNOW Kim Jordan, CEO of New Belgium Brewing Company
		ADAPTING TO CHANGE Employee Engagement’s Mood Ring
		CONNECTING THROUGH SOCIAL MEDIA Three Cheers for Peers!
	11. Human Resource Management: Finding and Keeping the Best Employees
		Working with People Is Just the Beginning
			Developing the Ultimate Resource
			The Human Resource Challenge
		Laws Affecting Human Resource Management
			Laws Protecting Employees with Disabilities and Older Employees
			Effects of Legislation
		Determining a Firm’s Human Resource Needs
		Recruiting Employees From a Diverse Population
		Selecting Employees Who Will Be Productive
			Hiring Contingent Workers
		Training and Developing Employees for Optimum Performance
			Management Development
			Networking
			Diversity in Management Development
		Appraising Employee Performance to Get Optimum Results
		Compensating Employees: Attracting and Keeping the Best
			Pay Systems
			Compensating Teams
			Fringe Benefits
		Scheduling Employees to Meet Organizational and Employee Needs
			Flextime Plans
			Home-Based Work
			Job-Sharing Plans
		Moving Employees Up, Over, and Out
			Promoting and Reassigning Employees
			Terminating Employees
			Retiring Employees
			Losing Valued Employees
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Teach for America
			Notes
		GETTING TO KNOW Hamdi Ulukaya, Founder and CEO of Chobani
		CONNECTING THROUGH SOCIAL MEDIA Need a Job?
		CONNECTING THROUGH SOCIAL MEDIA Let’s Face It
		MAKING ETHICAL DECISIONS Intern or Indentured Servant?
		REACHING BEYOND OUR BORDERS Managing a Global Workforce
	12. Dealing with Employee–Management Issues
		Employee–Management Issues
		Labor Unions Yesterday and Today
			The History of Organized Labor
			Labor Legislation and Collective Bargaining
			Union Organizing Campaigns
			Objectives of Organized Labor over Time
			Resolving Labor–Management Disagreements
			Mediation and Arbitration
		Tactics Used in Labor–Management Conflicts
			Union Tactics
			Management Tactics
			The Future of Unions and Labor–Management Relations
		Controversial Employee–Management Issues
			Executive Compensation
			Pay Equity
			Sexual Harassment
			Child Care
			Elder Care
			Drug Abuse and Drug Testing
			Violence and Bullying in the Workplace
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Working with Unions at Freeman
			Notes
		GETTING TO KNOW Lily Eskelsen García, President of the NEA
		SPOTLIGHT ON
SMALL BUSINESS The Fire That Sparked the Labor Movement
		MAKING ETHICAL DECISIONS Walking a Fine Line
		ADAPTING TO CHANGE Paying for Underperforming
PART 5 : Marketing: Developing and Implementing Customer-Oriented Marketing Plans [13-16]
	13. Marketing: Helping Buyers Buy
		What Is Marketing?
			The Evolution of Marketing
			Nonprofit Organizations and Marketing
		The Marketing Mix
			Applying the Marketing Process
			Designing a Product to Meet Consumer Needs
			Setting an Appropriate Price
			Getting the Product to the Right Place
			Developing an Effective Promotional Strategy
		Providing Marketers with Information
			The Marketing Research Process
		The Marketing Environment
			Global Factors
			Technological Factors
			Sociocultural Factors
			Competitive Factors
			Economic Factors
		Two Different Markets: Consumer and Business-to-Business (B2b)
		The Consumer Market
			Segmenting the Consumer Market
			Reaching Smaller Market Segments
			Building Marketing Relationships
			The Consumer Decision-Making Process
		The Business-to-Business Market
		Your Prospects in Marketing
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Dunkin’ Donuts and the 4 Ps
			Notes
		GETTING TO KNOW MIchelle Phan, Founder of Ipsy
		CONNECTING THROUGH SOCIAL MEDIA Snapping Up a Customer Base
		SPOTLIGHT ON SMALL BUSINESS Creating Mass Appeal for a Custom Product
		ADAPTING TO CHANGE Building Relationships by Building Subscribers
	14. Developing and Pricing Goods and Services
		Product Development and the Total Product Offer
			Distributed Product Development
			Product Lines and the Product Mix
		Product Differentiation
			Marketing Different Classes of Consumer Goods and Services
			Marketing Industrial Goods and Services
		Packaging Changes the Product
			The Growing Importance of Packaging
		Branding and Brand Equity
			Brand Categories
			Generating Brand Equity and Loyalty
			Creating Brand Associations
			Brand Management
		The New-Product Development Process
			Generating New-Product Ideas
			Product Screening
			Product Analysis
			Product Development and Testing
			Commercialization
		The Product Life Cycle
			Example of the Product Life Cycle
			Using the Product Life Cycle
		Competitive Pricing
			Pricing Objectives
			Cost-Based Pricing
			Demand-Based Pricing
			Competition-Based Pricing
			Break-Even Analysis
			Other Pricing Strategies
			How Market Forces Affect Pricing
		Nonprice Competition
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Developing New Products at Domino’s
			Notes
		GETTING TO KNOW Anthony Katz, Founder of Hyperice
		CONNECTING THROUGH SOCIAL MEDIA Playing with the Social Gaming Stars
		MAKING ETHICAL DECISIONS Natural Goods: Really from Nature?
		REACHING BEYOND OUR BORDERS Playing the Name Game
		SPOTLIGHT ON SMALL BUSINESS Made by Mommy
	15. Distributing Products
		The Emergence of Marketing Intermediaries
			Why Marketing Needs Intermediaries
			How Intermediaries Create Exchange Efficiency
			The Value versus the Cost of Intermediaries
		The Utilities Created by Intermediaries
			Form Utility
			Time Utility
			Place Utility
			Possession Utility
			Information Utility
			Service Utility
		Wholesale Intermediaries
			Merchant Wholesalers
			Agents and Brokers
		Retail Intermediaries
			Retail Distribution Strategy
		Online Retailing and other Nonstore Retailing
			Online Retailing
			Telemarketing
			Vending Machines, Kiosks, Carts, and Pop-Ups
			Direct Selling
			Multilevel Marketing
			Direct Marketing
		Building Cooperation in Channel Systems
			Corporate Distribution Systems
			Contractual Distribution Systems
			Administered Distribution Systems
			Supply Chains
		Logistics: Getting Goods to Consumers Efficiently
			Trains Are Great for Large Shipments
			Trucks Are Good for Small Shipments to Remote Locations
			Water Transportation Is Inexpensive but Slow
			Pipelines Are Fast and Efficient
			Air Transportation Is Fast but Expensive
			Intermodal Shipping
			The Storage Function
			Tracking Goods
		What All This Means to Your Career
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: FedEx
			Notes
		GETTING TO KNOW Tony McGee, President and CEO of HNM Global Logistics
		SPOTLIGHT ON SMALL BUSINESS What Was Mine Is Now Yours
		CONNECTING THROUGH SOCIAL MEDIA I’m Lovin’ All-Day Egg McMuffins
		ADAPTING TO CHANGE Online Grocery Shopping
	16. Using Effective Promotions
		Promotion and the Promotion Mix
		Advertising: Informing, Persuading, and Reminding
			Television Advertising
			Product Placement
			Infomercials
			Online Advertising
			Social Media Advertising
			Global Advertising
		Personal Selling: Providing Personal Attention
			Steps in the Selling Process
			The Business-to-Consumer Sales Process
		Public Relations: Building Relationships
			Publicity: The Talking Arm of PR
		Sales Promotion: Giving Buyers Incentives
		Word of Mouth and Other Promotional Tools
			Social Networking
			Blogging
			Podcasting
			E-Mail Promotions
			Mobile Marketing
		Managing the Promotion Mix: Putting It all Together
			Promotional Strategies
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: SXSW
			Notes
		GETTING TO KNOW Michael Dubin, Cofounder and CEO of Dollar Shave Club
		CONNECTING THROUGH SOCIAL MEDIA How Social Media Move TV Ratings
		REACHING BEYOND OUR BORDERS Oreo: World’s Favorite Cookie?
		ADAPTING TO CHANGE Outdoor “Eyes” Are Pulling You In
PART 6 : Managing Financial Resources [17-20]
	17. Understanding Accounting and Financial Information
		The Role of Accounting Information
			What Is Accounting?
		The Accounting Cycle
			Using Technology in Accounting
		Understanding Key Financial Statements
			The Fundamental Accounting Equation
			The Balance Sheet
			Classifying Assets
			Liabilities and Owners’ Equity Accounts
			The Income Statement
			Revenue
			Cost of Goods Sold
			Operating Expenses
			Net Profit or Loss
			The Statement of Cash Flows
			The Need for Cash Flow Analysis
		Analyzing Financial Performance Using Ratios
			Liquidity Ratios
			Leverage (Debt) Ratios
			Profitability (Performance) Ratios
			Activity Ratios
		Accounting Disciplines
			Financial Accounting
			Managerial Accounting
			Auditing
			Tax Accounting
			Government and Not-for-Profit Accounting
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: The Accounting Function at Goodwill Industries
			Notes
		GETTING TO KNOW Shelly Sun, CEO of BrightStar Care
		SPOTLIGHT ON SMALL BUSINESS Out with the Old; in with the New
		MAKING ETHICAL DECISIONS When You Are Judge and Jury!
		ADAPTING TO CHANGE Accounting: CSI
		REACHING BEYOND OUR BORDERS The Wide, Wide World of Accounting
	18. Financial Management
		The Role of Finance and Financial Managers
			The Value of Understanding Finance
			What Is Financial Management?
		Financial Planning
			Forecasting Financial Needs
			Working with the Budget Process
			Establishing Financial Controls
		The Need for Operating Funds
			Managing Day-by-Day Needs of the Business
			Controlling Credit Operations
			Acquiring Needed Inventory
			Making Capital Expenditures
			Alternative Sources of Funds
		Obtaining Short-Term Financing
			Trade Credit
			Family and Friends
			Commercial Banks
			Different Forms of Short-Term Loans
			Factoring Accounts Receivable
			Commercial Paper
			Credit Cards
		Obtaining Long-Term Financing
			Debt Financing
			Equity Financing
			Comparing Debt and Equity Financing
			Lessons Learned from the Financial Crisis and Great Recession
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Starting Up: Tom and Eddie’s
			Notes
		GETTING TO KNOW Kathy Waller, Executive Vice President and CFO of Coca-Cola
		MAKING
ETHICAL DECISIONS Not What the Doctor Ordered!
		ADAPTING
TO CHANGE Financing Just a Click Away
		SPOTLIGHT ON SMALL BUSINESS Looking for a Slam Dunk
	19. Using Securities Markets for Financing and Investing Opportunities
		The Function of Securities Markets
			The Role of Investment Bankers
		Stock Exchanges
			Securities Regulations and the Securities and Exchange Commission
			Foreign Stock Exchanges
		How Businesses Raise Capital by Selling Stock
			Advantages and Disadvantages of Issuing Stock
			Issuing Shares of Common Stock
			Issuing Shares of Preferred Stock
		How Businesses Raise Capital by Issuing Bonds
			Learning the Language of Bonds
			Advantages and Disadvantages of Issuing Bonds
			Different Classes of Bonds
			Special Bond Features
		How Investors Buy Securities
			Investing through Online Brokers
			Choosing the Right Investment Strategy
			Reducing Risk by Diversifying Investments
		Investing in Stocks
			Stock Splits
			Buying Stock on Margin
			Understanding Stock Quotations
		Investing in Bonds
			Investing in High-Risk (Junk) Bonds
		Investing in Mutual Funds and Exchange-Traded Funds
		Understanding Stock Market Indicators
			Riding the Market’s Roller Coaster
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: Where Did All My Money Go?
			Notes
		GETTING TO KNOW Jim Cramer, Host of CNBC’s Mad Money
		CONNECTING THROUGH SOCIAL MEDIA : JOBS Act Rules Crowdinvesting
		ADAPTING TO CHANGE R2-D2 to the Investor’s Rescue
		MAKING
ETHICAL DECISIONS Money Going up in Smoke
	20. Money, Financial Institutions, and the Federal Reserve
		Why Money Is Important
			What Is Money?
			Managing Inflation and the Money Supply
			The Global Exchange of Money
		Control of the Money Supply
			Basics about the Federal Reserve
			The Reserve Requirement
			Open-Market Operations
			The Discount Rate
			The Federal Reserve’s Check-Clearing Role
		The History of Banking and the Need for the Fed
			Banking and the Great Depression
		The U.S. Banking System
			Commercial Banks
			Services Provided by Commercial Banks
			Services to Borrowers
			Savings and Loan Associations (S&Ls)
			Credit Unions
			Other Financial Institutions (Nonbanks)
		The Banking Crisis and How the Government Protects Your Money
			Protecting Your Funds
			The Federal Deposit Insurance Corporation (FDIC)
			The Savings Association Insurance Fund (SAIF)
			The National Credit Union Administration (NCUA)
		Using Technology to Make Banking More Efficient
			Online Banking
		International Banking and Banking Services
			Leaders in International Banking
			The World Bank and the International Monetary Fund
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Video Case: The Financial Crisis
			Notes
		GETTING TO KNOW Janet Yellen, Chair of the Federal Reserve
		ADAPTING TO CHANGE Saying Goodbye to Ben Franklin
		MAKING
ETHICAL DECISIONS An Open and Shut Option
		SPOTLIGHT ON SMALL BUSINESS Becoming Your Best Friend in Banking
		REACHING BEYOND OUR BORDERS New Day, New Issues across the Globe
BONUS CHAPTERS
	A: Working within the Legal Environment
		The Case for Laws
			Statutory and Common Law
			Administrative Agencies
		Tort Law
			Product Liability
		Legally Protecting Ideas: Patents, Copyrights, and Trademarks
		Sales Law: The Uniform Commercial Code
			Warranties
			Negotiable Instruments
		Contract Law
			Breach of Contract
		Promoting Fair and Competitive Business Practices
			The History of Antitrust Legislation
		Laws to Protect Consumers
		Tax Laws
		Bankruptcy Laws
		Deregulation versus Regulation
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Notes
		GETTING TO KNOW Alanna Rutherford, Attorney
	B: Using Technology to Manage Information
		The Role of Information Technology
			Evolution from Data Processing to Business Intelligence
			How Information Technology Changes Business
		Types of Information
			Managing Information
			Big Data and Data Analytics
			Using Information from Social Media
		The Heart of Knowledge Management: The Internet
			Intranets
			Extranets
			Virtual Private Networks
			Broadband Technology
			Social Media and Web 2.0
			Web 3.0
			Who’s the “Boss” of the Internet?
		Virtual Networking and Cloud Computing
		Effects of Information Technology on Management
			Human Resource Issues
			Security Issues
			Privacy Issues
			Stability Issues
		Technology and You
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Notes
		GETTING TO KNOW Ben Fried,  CIO of Google
	C: Managing Risk
		Understanding Business Risks
			How Rapid Change Affects Risk Management
		Managing Risk
			Reducing Risk
			Avoiding Risk
			Self-Insuring
			Buying Insurance to Cover Risk
			What Risks Are Uninsurable?
			What Risks Are Insurable?
		Understanding Insurance Policies
			Rule of Indemnity
			Types of Insurance Companies
		Insurance Coverage for Various Kinds of Risk
			Health Insurance
			Health Savings Accounts
			Disability Insurance
			Workers’ Compensation
			Liability Insurance
			Life Insurance for Businesses
			Insurance Coverage for Home-Based Businesses
			The Risk of Damaging the Environment
			Protection from Cyber Attacks
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Notes
		GETTING TO KNOW Olza “Tony” Nicely, CEO of  Geico
	D: Managing Personal Finances
		The Need for Personal Financial Planning
			Financial Planning Begins with Making Money
			Six Steps to Controlling Your Assets
		Building Your Financial Base
			Real Estate: Historically, a Relatively Secure Investment
			Tax Deductions and Home Ownership
			Where to Put Your Savings
			Learning to Manage Credit
		Protecting Your Financial Base: Buying Insurance
			Health Insurance
			Disability Insurance
			Homeowner’s or Renter’s Insurance
			Other Insurance
		Planning Your Retirement
			Social Security
			Individual Retirement Accounts (IRAs)
			Simple IRAs
			401(k) Plans
			Keogh Plans
			Financial Planners
			Estate Planning
		Summary
			Key Terms
			Career Exploration
			Critical Thinking
			Developing Career Skills
			Putting Principles to Work
			Notes
		GETTING TO KNOW Alexa von Tobel, Founder and CEO of Learnvest
EPILOGUE: Getting the Job You Want
Glossary
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Name Index
Organization Index
Subject Index
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