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ipptchap001.pptxPart 1
Business in a Changing World
© 2015 McGraw-Hill Education.
Part 1 of your textbook is: Business in a Changing World.
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| CHAPTER 1 | The Dynamics of Business and Economics |
| CHAPTER 2 | Business Ethics and Social Responsibility |
| CHAPTER 2 APPENDIX | The Legal and Regulatory Environment |
| CHAPTER 3 | Business in a Borderless World |
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In our first chapter, The Dynamics of Business and Economics, we begin our study of business by examining the fundamentals of business and economics. We will introduce the nature of business, the basics of economics, and the framework for studying business. Be sure to keep these concepts in mind as we begin our first chapter.
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Learning Objectives
LO 1-1 Define basic concepts such as business, product, and profit.
LO 1-2 Identify the main participants and activities of business and explain why studying business is important.
LO 1-3 Define economics and compare the four types of economic systems.
LO 1-4 Describe the role of supply, demand, and competition in a free enterprise system.
LO 1-5 Specify why and how the health of the economy is measured.
LO 1-6 Trace the evolution of the American economy and discuss the role of the entrepreneur in the economy.
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Those are the broader concepts, but more specifically, after reading this chapter, you will be able to:
Define basic concepts such as business, product, and profit.
Identify the main participants and activities of business and explain why studying business is important.
Define economics and compare the four types of economic systems.
Describe the role of supply, demand, and competition in a free enterprise system.
Specify why and how the health of the economy is measured.
Trace the evolution of the American economy and discuss the role of the entrepreneur in the economy.
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The Nature of Business
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A business is defined as individuals or organizations who try to earn a profit by providing products that satisfy people’s needs.
The outcome of their efforts are products. A product, as used in this text, is a good or a service with tangible and intangible characteristics that provide satisfaction and benefits for those who purchase and use them. When you purchase a Subway sandwich, you may be satisfying your hunger.
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Business
Individuals or organizations trying to earn a profit by providing products that satisfy people’s needs
Products
Goods or services with tangible and intangible characteristics that provide satisfaction and benefits
A Product Can Be…
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Examples of tangible goods include an automobile, a computer, a phone, a coat, and so on.
However, a product can also be a service, which occurs when people or machines provide or process something of value to customers.
Examples of services include dry cleaning, having a physical with your doctor, the performance by a basketball player, and a musical concert.
A product can also be an idea. Accountants and attorneys, for example, generate ideas for solving problems.
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Tangible Goods
Automobile
Computer
Services
Dry cleaning
Doctor’s checkup
Ideas
Professionals generate ideas for solving problems
Phone
Coat
Basketball game
Concert
The Goal of Business
The goal of business is to earn a profit
The difference between what it costs to make and sell a product and what a customer pays for it
$10 sale – $8 to make = $2 profit
Earning profits contributes to society by providing employment, which in turn provides money that is reinvested in the economy
Profits must be earned in a responsible manner
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The primary goal of all businesses is to earn a profit. The concept of profit is central to all business activity. Keep this very important concept in mind throughout our text.
We define profit quite simply as the difference between what it costs to make and sell a product and what a customer pays for it. Thus, the goal is to produce and sell a product at a price that a consumer will pay that is above your costs of making and selling it.
So if a product costs eight dollars to produce and is sold for ten dollars, two dollars is profit.
Earning profits contributes to society by providing employment, which in turn provides money that is reinvested in the economy. In addition, profits must be earned in a responsible manner.
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To Earn a Profit
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To earn a profit, a person or organization needs management skills to plan, organize, and control the activities of the business and to find and develop employees so that it can make products consumers will buy.
A business also needs marketing expertise to learn what products consumers need and want
and to develop, manufacture, price, promote, and distribute those products.
Additionally, a business needs financial resources and skills to fund, maintain, and expand its operations.
A needed product and the staff to produce that product is also important.
Other challenges for businesspeople include abiding by laws and government regulations; acting in an ethical and socially responsible manner; and adapting to economic, technological, political, and social changes.
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Profit
Management Skills
Marketing Expertise
Financial Resources
Product and Staff
Abiding by the Law
Adapting to Change
Acting Ethically
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Not all organizations exist to make a profit. Nonprofit organizations provide goods and services but do not have the fundamental purpose of earning profits.
Like businesses, nonprofit organizations engage in management, marketing, and finance activities to reach their goals. Examples of nonprofit organizations include the Red Cross and Special Olympics. Can you name any nonprofit organizations?
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Nonprofit Organizations
Provide goods and services
Do not share the purpose of earning profits
Engage in management, marketing and finance to reach goals
Stakeholders
Groups that have a stake in the success and outcome of a business
Customers, employees, investors, government regulators, community, and society
To achieve and maintain profitability, businesses must produce quality products, operate efficiently, and be socially responsible and ethical in dealing with stakeholders
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Stakeholders are groups that have a stake in the success and outcomes of a business.
To achieve and maintain profitability, businesses have found that they must produce quality products, operate efficiently, and be socially responsible and ethical in dealing with customers, employees, investors, government regulators, the community, and society.
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People and Activities of Business
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Here you see the Figure 1.1 from your text. This figure represents an overview of the business world.
Note that owners, employees, and customers are the main stakeholders and are located in the center of our figure. As you move outward, you will see the functions of the business organization, such as finance, marketing and management; then the external environment in which the business operates.
That external environment consists of competition, the economy, information technology, legal and political forces and social responsibility. All of these factors have an impact on the daily operations of the business.
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People and Activities of Business
Management is concerned with:
Acquiring
Developing
Using
resources (including people) effectively and efficiently
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As you saw in the previous figure, management and employees are in the same segment of the circle. This is because management involves coordinating employees’ actions to achieve the firm’s goals, organizing people to work efficiently, and motivating them to achieve the business’s goals.
Production and manufacturing is another element of management. Managers plan, organize, staff, and control the tasks required to carry out the work of the company. These responsibilities are carried out by management in both for profit and nonprofit organizations.
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Managers
Plan
Organize
Staff
Control Tasks
People and Activities of Business
The focus of all marketing activities is satisfying customers
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Marketing is a very important function in business and is focused on satisfying customers.
Marketers gather information and conduct research to determine what customers want. Using information gathered from marketing research, marketers plan and develop products and make decisions about how much to charge for their products and when and where to make them available.
Marketers use promotion—advertising, personal selling, sales promotion (coupons, games, sweepstakes, movie tie-ins), and publicity—to communicate the benefits and advantages of their products to consumers and increase sales.
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Determine customer needs
Plan and develop product
Determine distribution
Determine place
Determine promotion
Determine price
People and Activities of Business
The owner is primarily responsible for obtaining financial resources for the operation of the business, including:
Obtaining money
Using money effectively
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Finance refers to all activities concerned with obtaining money and using it effectively. People who work as accountants, stockbrokers, investment advisors, or bankers are all part of the financial world. Owners sometimes have to borrow money to get started or attract additional owners who become partners or stockholders.
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Why Study Business?
Business career opportunities:
Marketing
Human resources management
Information technology
Finance
Production and operations
Wholesaling and retailing
And more
Develop skills for career success
Become a well-informed consumer and member of society
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We have seen the various functions and aspects of business. It is important to ask why we study business.
The field of business offers a variety of challenging and interesting opportunities for your careers throughout the world, such as marketing, human resources management, information technology, finance, production and operations, wholesaling and retailing, and many more.
Studying business can help you develop skills and acquire knowledge to prepare for your future career, regardless of whether you plan to work for a multinational Fortune 500 firm, start your own business, work for a government agency, or manage or volunteer at a nonprofit organization.
Studying business can help you become a well-informed consumer and member of society.
Business activities help generate the profits that are essential not only to individual businesses and local economies but also to the health of the global economy.
Understanding how our free-enterprise economic system allocates resources and provides incentives for industry and the workplace is important to everyone.
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Economic Foundations of Business
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Previously we discussed the nature of business. We now turn our attention to the economic foundations of business. We define economics as the study of how resources are distributed for the production of goods and services within a social system.
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Economics
The study of how resources are distributed for the production of goods and services within a social system
Economic Foundations of Business
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We use the term resources to refer to natural resources, human resources, financial resources and intangible resources.
Natural resources are land, forest, minerals, water and other things not made by people
Human resources are the physical and mental abilities people use to produce goods and services; also called labor.
Financial resources are the funds used to acquire the natural and human resources needed to provide products; also called capital.
The firm can also have intangible resources such as a good reputation for quality products or being socially responsible.
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Natural Resources
Human Resources – also called Labor
The physical and mental abilities people use to produce goods and services
Land, forests, mineral, water, and other things not made by people
Financial Resources – also called Capital
The funds used to acquire the natural and human resources needed to provide products
Intangible Resources
Such as a good reputation for quality products or being socially responsible
Economic Systems
All economic systems must address these 3 important issues:
What goods and services, and how much of each, will satisfy consumers’ needs?
How will goods and services be produced, who will produce them, and with what resources will they be produced?
How are the goods and services to be distributed to consumers?
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An economic system describes how a particular society distributes its resources to produce goods and services.
A central issue of economics is how to fulfill an unlimited demand for goods and services in a world with a limited supply of resources.
Although economic systems handle the distribution of resources in different ways, all economic systems must address three important issues:
What goods and services, and how much of each, will satisfy consumers’ needs?
How will goods and services be produced, who will produce them, and with what resources will they be produced?
How are the goods and services to be distributed to consumers?
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Economic System
A description of how a particular society distributes its resources to produce goods and services
Economic Systems
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Communism was first described by Karl Marx as a society in which the people, without regard to class, own all of the nation’s resources. Today, there are a few countries that are considered to be communistic but no true communist economy exists today that satisfies Marx’s ideal.
On paper, communism appears to be efficient and equitable, producing less of a gap between rich and poor. In practice, however, communist economies have been marked by low standards of living, critical shortages of consumer goods, high prices, corruption, and little freedom. These are China, North Korea, and Cuba.
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Communism
First described by Karl Marx as a society in which the people, without regard to class, own all the nation’s resources
On paper it appears efficient, but in practice, these economies suffer from:
low standards of living
critical shortages of consumer goods
high prices
corruption and little freedom
Economic Systems
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Socialism is an economic system in which the government owns and operates the basic industries in the society (postal service, telephone, utilities, transportation, health care, banking, and some manufacturing). However, individuals own most businesses.
Most socialist nations are democratic and recognize basic individual freedoms. Socialist economies profess egalitarianism—equal distribution of income and social services. They believe their economies are more stable than those of other nations. Although this may be true, taxes and unemployment are generally higher in socialist countries. Examples of socialistic societies include Sweden, Israel, and India.
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Socialism
An economic system in which the government owns and operates basic industries but individuals own most businesses
The socialist system may allow a higher standard of living and is more stable; but taxes and unemployment are generally higher in socialist countries
Most socialist countries are democratic and recognize individual freedoms
Economic Systems
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Capitalism, or free enterprise, is an economic system in which individuals own and operate the majority of businesses that provide goods and services. Competition, supply, and demand determine which goods and services are produced, how they are produced, and how they are distributed. Examples include Australia, the United States, Canada, and Japan.
There are two forms of capitalism: pure capitalism and modified capitalism.
Pure capitalism is called a free-market system. It is a system where all economic decisions are made without government intervention. It was first described by Adam Smith, the father of capitalism, who said the “invisible hand of competition” best regulates the economy in his famous treatise The Wealth of Nations. Smith’s system is also called laissez-faire (“let it be”) capitalism because the government does not interfere in business.
Modified capitalism differs from pure capitalism in that the government intervenes and regulates business to some extent. One of the ways in which the United States and Canadian governments regulate business is through laws.
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Capitalism, or Free Enterprise
An economic system in which individuals own and operate the majority of businesses that provide goods and services
Pure capitalism or free-market system happens when all economic decisions are made without government intervention; also called laissez-faire capitalism
Modified capitalism differs from pure capitalism as the government intervenes and regulates business to some extent
Economic Systems
No country practices pure capitalism, socialism, or communism
China and Russia have used state capitalism to advance the economy, integrating the powers of the state with the advantages of capitalism
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No country practices a pure form of communism, socialism, or capitalism, although most tend to favor one system over the others. Most nations operate as mixed economies, which have elements from more than one economic system.
In socialist Sweden, most businesses are owned and operated by private individuals. In capitalist United States, an independent federal agency operates the postal service.
Countries such as China and Russia have used state capitalism to advance the economy. State capitalism tries to integrate the powers of the state with the advantages of capitalism. It is led by the government but uses capitalistic tools such as listing state-owned companies on the stock market and embracing globalization.
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Mixed Economies
Economies made up of elements from more than one economic system
No country practices a pure form of any economic system, although most favor one system over others
Free-Enterprise System
Many large economies are free-enterprise – including the U.S., Canada and Japan
Many communist and socialist countries apply free-enterprise principles – including China and Russia
Free enterprise allows a company to succeed or fail on the basis of market demand
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Many economies – including those in the United States, Canada and Japan – are based on free enterprise, and many communist and socialist countries, such as China and Russia, are applying more principles of free enterprise to their own economic systems.
Free enterprise allows a company to succeed or fail on the basis of market demand. Companies that can efficiently manufacture and sell products consumers desire will probably succeed, those companies that do not, will most likely fail.
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Free-Enterprise System
Basic individual and business rights which must exist in order to motivate companies to succeed
Right to own property
Right to earn profits and use them as one wishes
Right to determine business operations
Right to choose
Career to pursue
Where to live or where to locate a business
What goods/services to purchase and more
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A number of basic individual and business rights must exist for free enterprise to work.
These include:
- The right to own property
- The right to earn profits and use them as one wishes (within constraints of law)
- The right to make business decisions, and
The right to choose
For individuals, this means choosing your life path, where to live, what you purchase, etc.
For businesses, this means choosing what you produce, where to locate, the resources you use, etc.
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Forces of Supply and Demand
Supply
Demand
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The forces of supply and demand operate in the United States and other free enterprise systems. Supply and demand determines the distribution of resources and products.
Demand is the number of goods and services that consumers are willing to buy at different prices at a specific time. And, supply is the number of products –goods and services- that businesses are willing to sell at different prices at a specific time.
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The number of products businesses are willing to sell at different prices at a specific time
The number of products consumers are willing to buy at different prices at a specific time
Equilibrium Price
Equilibrium price is the price at which the number of products supplied equals the amount of products consumers are willing to buy at a specific time
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From your own experience, you probably recognize that consumers are usually willing to buy more of an item as its price falls because they want to save money.
Consider handmade rugs, for example. Consumers may be willing to buy six rugs at $350 each, four at $500 each, but only two at $650 each. The relationship between the price and the number of rugs consumers are willing to buy can be shown graphically, with a demand curve (shown here and as Figure 1.2 in your textbook).
A company that sells rugs may be willing to sell six at $650 each, four at $500 each, but just two at $350 each. The relationship between the price of rugs and the quantity the company is willing to supply can be shown graphically with a supply curve.
The supply and demand curves intersect at the point where supply and demand are equal. The price at which the number of products that businesses are willing to supply equals the amount of products that consumers are willing to buy at a specific point in time is the equilibrium price .
In our rug example, the company is willing to supply four rugs at $500 each, and consumers are willing to buy four rugs at $500 each.
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The Nature of Competition
Competition is the rivalry among businesses for consumer’s dollars
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Competition represents the rivalry among businesses for consumers’ dollars. This concept is a vital element in the free enterprise system. Just as we saw with mixed economies, competition also has variations.
Pure competition is the market structure that exists when there are many small businesses selling one standardized product.
Monopolistic competition is the market structure that exists when there are fewer businesses than in a pure competition environment and the differences among the goods they sell are small.
An oligopoly is the market structure that exists when there are very few businesses selling a product.
A monopoly is the market structure that exists when there is only one business providing a product in a given market.
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Pure Competition
The market structure that exists when there are many small businesses selling one standardized product
Monopolistic Competition
Fewer businesses than in a pure competition and the differences among the goods they sell are small
Oligopoly
The market structure that exists when there are very few businesses selling a product
Monopoly
The market structure that exists when there is only one business providing a product in a given market
Economic Cycles and Productivity
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May lead to inflation – a continuing rise
in prices
May lead to recession – a decline in production, employment and income
Economies do not stand still. They are not stagnant. They expand and they contract.
Economic expansion occurs then an economy is growing and people are spending more money; their purchases stimulate the production of goods and services, which in turn stimulates employment.
The standard of living rises because more people are employed and have money to spend. Rapid expansions of the economy, however, may result in inflation, a continuing rise in prices. This can be harmful if people’s incomes do not increase at the same pace.
Economic contraction is a slowdown of the economy characterized by a decline in spending and during which businesses cut back on production and lay off workers. Contractions of the economy lead to recession – a decline in production, employment and income.
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Economic contraction is a slowdown of the economy characterized by a decline in spending and during which businesses cut back on production and lay off workers
Economic expansion occurs then an economy is growing and people are spending more money; their purchases stimulate the production of goods and services, which in turn stimulates employment
Economic Cycles and Productivity
Recessions are often characterized by rising levels of
Unemployment – the condition in which a percentage of the population wants to work but is unable to find jobs
Deflation occurs when rising unemployment stifles demand, forcing prices down
Severe recession may turn into a
Depression – a condition of the economy in which unemployment is very high, consumer spending is low, and business output is sharply reduced
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Recessions are often characterized by rising levels of unemployment, which is measured as the percentage of the population that wants to work but is unable to find jobs.
Rising levels of unemployment tend to stifle demand, forcing prices down, a condition known as deflation.
A severe recession may turn into a depression, in which unemployment is very high, consumer spending is low, and business output is sharply reduced.
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Economic Cycles and Entrepreneurship
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Many companies begin in times of economic recession due to high unemployment and the tendency for people to become less risk averse
Hewlett Packard, Revlon, and IHOP are just a few examples of companies that began in suboptimal economic conditions and survived to become large, profitable, and long-lasting
The Great Recession of 2008 is no exception:
Groupon, founded in 2008, has since become publicly traded and valued at near $10 billion
Playdom, a social game developer, was founded in 2008 and sold for $500 million in 2010
SOURCES: Matt Rosoff “Born From the Ashes: Big Tech Companies Founded During Busts and Recessions”. http://www.businessinsider.com/great-tech-companies-that-started-in-terrible-economic-times-2011-8?op=1; gbravo. “Famous Companies Founded During an Economic Recession”. http://www.resourcenation.com/blog/famous-companies-that-were-founded-in-an-economic-recession/3265/. (accessed September 18, 2013).
Economic Cycles and Entrepreneurship – Many companies begin in times of economic recession due to high unemployment and the tendency for people to become less risk averse. Hewlett Packard, Revlon, and IHOP are just a few examples of companies that began in suboptimal economic conditions and survived to become large, profitable, and long-lasting. The Great Recession of 2008 is no exception: Groupon, founded in 2008, has since become publicly traded and valued at near $10 billion; and Playdom, a social game developer, was founded in 2008 and sold for $500 million in 2010.
(SOURCES: Matt Rosoff “Born From the Ashes: Big Tech Companies Founded During Busts and Recessions”. www.businessinsider.com. August 16, 2011. http://www.businessinsider.com/great-tech-companies-that-started-in-terrible-economic-times-2011-8?op=1. (accessed September 18, 2013); gbravo. “Famous Companies Founded During an Economic Recession”. www.resourcenation.com. April 16, 2009. http://www.resourcenation.com/blog/famous-companies-that-were-founded-in-an-economic-recession/3265/. (accessed September 18, 2013).
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Measuring the Economy
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Countries measure the state of their economies to determine whether they are expanding or contracting and whether corrective action is necessary to minimize the fluctuations.
One commonly used measure is gross domestic product (GDP) —the sum of all goods and services produced in a country during a year. It does not include profits from companies’ overseas operations; it does include profits earned by foreign companies within the country being measured.
Another important indicator of a nation’s economic health is the relationship between its spending and income (from taxes). When a nation spends more than it takes in from taxes, it has a budget deficit. In recent years, however, the budget deficit has reemerged and grown to record Levels. To reduce the debt to a manageable level, the government either has to increase its revenues (raise taxes) or reduce spending on social, defense, and legal programs, neither of which is politically popular.
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Gross Domestic Product (GDP)
The sum of all goods and services produced in a country during a year
Does not include profits from companies’ overseas operations
Budget Deficit
The condition in which a nation spends more than it takes in from taxes
U.S. budget deficit has recently grown to record levels; remedies include raising taxes or reduce spending
Gross Domestic Product (GDP)
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In 2008 the System of National Accounts (SNA), which is overseen by the United Nations (UN) and serves as a set of standards by which to measure economic activity in every country, broadened the definition of assets to include intellectual property (IP) such as patents
Over the last decade investments in research and development have spurred new products that have contributed to the GDP making them an important asset
While the calculations are still difficult, Canada and the United States have included IP in their GDP and other countries are expected to follow
(SOURCE: Free Exchange. “Boundary Problems”. The Economist. August 3, 2013. Page 64.)
Gross Domestic Product (GDP) – In 2008 the System of National Accounts (SNA), which is overseen by the United Nations (UN) and serves as a set of standards by which to measure economic activity in every country, broadened the definition of assets to include intellectual property (IP) such as patents. Over the last decade investments in research and development have spurred new products that have contributed to the GDP making them an important asset. While the calculations are still difficult, Canada and the United States have included IP in their GDP and other countries are expected to follow by 2014.
(SOURCE: Free Exchange. “Boundary Problems”. The Economist. August 3, 2013. Page 64.)
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Evaluating Our Economy
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See the U.S. Public Debit to the Penny
This table describes some of the other ways we evaluate our nation’s economy:
Trade balance: The difference between our exports and our imports. If the balance is negative, as it has been since the mid-1980s, it is called a trade deficit and is generally viewed as unhealthy for our economy.
Consumer Price Index: Measures changes in prices of goods and services purchased for consumption by typical urban households.
Per capita income: Indicates the income level of “average” Americans. Useful in determining how much “average” consumers spend and how much money Americans are earning.
Unemployment rate: Indicates how many working age Americans are not working who otherwise want to work. (Americans who do not work in a traditional sense, such as househusbands/housewives, are not counted as unemployed.)
Inflation: Monitors price increases in consumer goods and services over specified periods of time. Used to determine if costs of goods and services are exceeding worker compensation over time.
Worker productivity: The amount of goods and services produced for each hour worked.
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The American Economy
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You should be familiar with the historical development of the U.S. economy. Your text provides an overview of that history beginning with the early economy where the country was primarily agricultural.
The industrial revolution brought the development of new technology and factories during the 19th century.
The U.S., because of its prosperity, became a manufacturing economy as major producer of goods for the world. Businesses became more
concerned with the needs of the consumer and entered the marketing economy. Companies conducted research to find out what products consumers needed and wanted. Advertising made consumers aware of products and important information about features, prices, and other competitive advantages.
Since World War II, Americans are increasingly paying others to do tasks they used to do at home, like cooking, laundry, landscaping, and child care. These trends have gradually changed the United States to a service economy —one devoted to the production of services that make life easier for busy consumers.
These trends continue with advanced technology contributing to new service products based on technology and digital media that provide smart phones, social networking, and virtual world. Today, we are in the new digital economy.
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Early Economy
Agricultural economy
Industrial Revolution
New technologies and factories
Manufacturing and Marketing Economies
Assembly line production and concern with customer needs
Service and Digital Economy
The U.S. is a service economy and technology is leading us into a new digital economy
People produced everything they needed at home
Factories combined material, machines and workers
The Role of the Entrepreneur
Entrepreneurship requires:
Risk
Innovation
Creativity
Reward
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Entrepreneurs are individuals who risk their wealth, time, and effort to develop an innovative product or way of doing something.
Entrepreneurship requires risk, innovation, creativity, and reward. Bill Gates and Warren Buffett are highly successful entrepreneurs. Can you think of others? Why are entrepreneurs important to the economy?
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Entrepreneur
An individual who risks his/her wealth, time and effort to develop for profit an innovative product or way of doing something.
Government in the American Economy
The U.S. economy is best described as modified capitalism because:
The government regulates industry to encourage competition and protect stakeholders like consumers, employees, or the environment
Laws force businesses to adhere to government standards
Government agencies like the U.S. Federal Reserve Board or the Department of Commerce occasionally intervene to regulate the economy and spur growth
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The American economic system is best described as modified capitalism because the government regulates business to preserve competition and protect consumers and employees.
Federal, state, and local governments intervene in the economy with laws and regulations designed to promote competition and to protect consumers, employees, and the environment.
In addition, government agencies such as the U.S. Department of Commerce measure the health of the economy, and, when necessary, take steps to minimize the disruptive effects of economic fluctuations and reduce unemployment.
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Ethics and Social Responsibility in Business
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Business ethics generally refers to the standards and principles used by society to define appropriate and inappropriate conduct in the workplace.
Society is increasingly demanding that businesspeople behave ethically and socially responsibly toward not only their customers but also their employees, investors, government regulators, communities, and the natural environment. This is particularly true given the number of scandals at well known corporations during the last few years. You remember Enron, Countrywide Financial, BP, and even leading banks such as Bank of America and Citigroup.
A company’s reputation depends on profit and ethics and social responsibility.
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Business ethics are standards set by society
Reputation depends on profit and ethics and social responsibility
Stakeholders demand ethical and socially responsible behavior
Can You Learn Business in a Classroom?
Absolutely!
To be successful in business, you need:
Knowledge
Skills
Experiences and
Good judgment
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Do you think you can learn about business in the classroom? Absolutely. Through study and discussion you will gain the knowledge, skills, experiences and develop good judgment which are critical for success in business.
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Discussion
Why is it important for the government to measure the economy?
What kinds of actions might it take to control the economy’s growth?
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Why is it important for the government to measure the economy?
It is important for the government to measure the economy to determine whether corrective action is necessary to minimize fluctuations.
What kinds of actions might it take to control the economy’s growth?
One way that the government might try to spur growth is by reducing its interest rates or increasing its own spending for goods and services. In periods of inflation, the government might try to lower growth by raising interest rates to discourage spending by businesses. Students will likely come up with additional answers.
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