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businessessentialsA01 EBER8391 12 SE FM.indd 104/10/17 11:07 am
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businessessentialsTWELFTH EDITIONRonald J. EbertRicky W. GriffinNew York, NYA01 EBER8391 12 SE FM.indd 304/10/17 11:07 am
Vice President, Business, Economics, and UK Courseware:Donna BattistaDirector of Portfolio Management: Stephanie WallPortfolio Manager: Nicole SamEditorial Assistant: Courtney PaganelliVice President, Product Marketing: Roxanne McCarleyProduct Marketer: Kaylee ClaymoreProduct Marketing Assistant: Marianela SilvestriManager of Field Marketing, Business Publishing: AdamGoldsteinField Marketing Manager: Nicole PriceVice President, Production and Digital Studio, Arts andBusiness: Etain O’DeaDirector of Production, Business: Jeff HolcombManaging Producer, Business: Melissa FeimerContent Producer: Michelle ZengOperations Specialist: Carol MelvilleDesign Lead: Kathryn FootManager, Learning Tools: Brian SuretteContent Developer, Learning Tools: Sarah PetersonManaging Producer, Digital Studio and GLP, MediaProduction and Development: Ashley SantoraManaging Producer, Digital Studio: Diane LombardoDigital Studio Producer: Monique LawrenceDigital Studio Producer: Alana ColesProject Management: Thistle Hill Publishing ServicesComposition: Cenveo Publisher ServicesInterior Design: Cenveo Publisher ServicesCover Design: Cenveo Publisher ServicesCover Art: Cenveo Publisher ServicesPrinter/Binder: LSC Communications, Inc.Cover Printer: Phoenix Color/HagerstownMicrosoft and/or its respective suppliers make no representations about the suitability of the information contained in the documents andrelated graphics published as part of the services for any purpose. All such documents and related graphics are provided “as is” withoutwarranty of any kind. Microsoft and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all warranties and conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose,title and non-infringement. In no event shall Microsoft and/or its respective suppliers be liable for any special, indirect or consequentialdamages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortiousaction, arising out of or in connection with the use or performance of information available from the services.The documents and related graphics contained herein could include technical inaccuracies or typographical errors. Changes are periodicallyadded to the information herein. Microsoft and/or its respective suppliers may make improvements and/or changes in the product(s)and/or the program(s) described herein at any time. Partial screen shots may be viewed in full within the software version specified.Microsoft and Windows are registered trademarks of the Microsoft Corporation in the U.S.A. and other countries. This book is notsponsored or endorsed by or affiliated with the Microsoft Corporation.Copyright 2019, 2016, 2013 by Pearson Education, Inc. or its affiliates. All Rights Reserved. Manufactured in the United States ofAmerica. This publication is protected by copyright, and permission should be obtained from the publisher prior to any prohibitedreproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise. For information regarding permissions, request forms, and the appropriate contacts within the Pearson EducationGlobal Rights and Permissions department, please visit www.pearsoned.com/permissions/.Acknowledgments of third-party content appear on the appropriate page within the text.PEARSON, ALWAYS LEARNING, and MYLAB are exclusive trademarks owned by Pearson Education, Inc. or its affiliates in the U.S.and/or other countries.Unless otherwise indicated herein, any third-party trademarks, logos, or icons that may appear in this work are the property of theirrespective owners, and any references to third-party trademarks, logos, icons, or other trade dress are for demonstrative or descriptivepurposes only. Such references are not intended to imply any sponsorship, endorsement, authorization, or promotion of Pearson’sproducts by the owners of such marks, or any relationship between the owner and Pearson Education, Inc., or its affiliates, authors,licensees, or distributors.Library of Congress Cataloging-in-Publication DataNames: Ebert, Ronald J., author. Griffin, Ricky W., author.Title: Business essentials/Ronald J. Ebert, Ricky W. Griffin.Description: Twelfth Edition. New York, NY : Pearson, [2019] Revisededition of the authors’ Business essentials, 2015. Includesbibliographical references and index.Identifiers: LCCN 2017045717 ISBN 9780134728391 (hardcover) ISBN0134728394 (hardcover)Subjects: LCSH: Industrial management—United States. Businessenterprises—United States.Classification: LCC HD70.U5 E2 2019 DDC 658—dc23LC record available at https://lccn.loc.gov/2017045717117ISBN 10: 0-13-472839-4ISBN 13: 978-0-13-472839-1A01 EBER8391 12 SE FM.indd 404/10/17 12:41 pm
For Griffin Grace, Sutton Sloane, and Andrew Preston—I do this for them.—R. W. G.A01 EBER8391 12 SE FM.indd 504/10/17 11:07 am
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brief contentsPart 1 The Contemporary Business World1 The U.S. Business Environment 22 Understanding Business Ethics and Social Responsibility3 Entrepreneurship, New Ventures, and Business Ownership4 Understanding the Global Context of Business 106Part 2 Managing the Business5 Managing the Business 1406 Organizing the Business 1727 Operations Management and Quality3672202Part 3 People in Organizations8 Employee Behavior and Motivation 2429 Leadership and Decision Making 27610 Human Resource Management and Labor Relations306Part 4 Principles of Marketing: Building Relationships withCustomers for Competitive Advantage11 Marketing Processes and Consumer Behavior 34212 Developing and Pricing Products 37813 Distributing and Promoting Products 410Part 5 Managing Information for Better Business Decisions14 Information Technology (IT) for Business 44215 The Role of Accountants and Accounting Information 476Part 6 The Financial System and Issues in Financial Management16 Understanding Money and the Role of Banking 51017 Managing Business Finances 544AppendicesAppendixAppendixAppendixAppendixI: Risk Management 585II: The Legal Context of Business 589III: Managing Your Personal Finances 595IV: Unions and Labor Management 607Glossary 623Index 641viiA01 EBER8391 12 SE FM.indd 704/10/17 11:07 am
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contentsAbout the Authors xviiPreface xixAcknowledgments xxvAssessing Ethical Behavior 42Company Practices and Business EthicsSocial Responsibilityentrepreneurship and new ventures: Social CapitalIs Making the World a Better Place 47Contemporary Social ConsciousnessAreas of Social Responsibility4849Responsibility Toward the EnvironmentThe U.S. Business EnvironmentChapter Opening Case: Doing Business in theGlobal Marketplace 5Business, Profit, and the External EnvironmentBusiness and Profitfinding a better way: The B TeamEconomic SystemsResponsibility Toward Customers7Responsibility Toward Investors56Social Responsibility and the Small Business 579The Government and Social Responsibility 58How Business Influences Government 6013Managing Social Responsibility61Informal Organizational Dimensions16managing in turbulent times: Shredding theElectronic Paper Trail 6320summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases endnotesEconomic Growth, Aggregate Output, and Standard ofLiving 2125managing in turbulent times: Financial Turmoil—Isthe Worst Behind Us? 262728summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases endnotes61Evaluating Social Responsibility 62Private Enterprise and Competition in a Market Economy 18Developing Skills in Your Career60Formal Organizational Dimensions16Demand and Supply in a Market EconomyManaging the U.S. Economy56How Governments Influence Business 59The Economics of Market SystemsEconomic Stability5455Approaches to Social Responsibility8entrepreneurship and new ventures: The LucrativeBusiness of App Development 14Economic Indicators50Implementing Social Responsibility Programs11Types of Economic Systems4952Responsibility Toward Employees11Factors of Productionfinding a better way: Mission Zero27The External Environments of Business246The Stakeholder Model of Responsibility 47Part 1 The Contemporary BusinessWorld1433Entrepreneurship, New Ventures,and Business Ownership 72Chapter Opening Case: It All Started With a LateFee 75What Is a Small Business? 76The Importance of Small Business in the U.S. Economy 77Understanding Business Ethicsand Social Responsibility 36Chapter Opening Case: Simply DivineEthics in the Workplace 40Individual Ethics40The Law and the Real World40Individual Values and Morals41Business and Managerial EthicsA01 EBER8391 12 SE FM.indd 939Popular Areas of Small Business Enterprisefinding a better way: The Rise of ServicesEntrepreneurship8081Entrepreneurship Goals 81Entrepreneurial Characteristics81Starting and Operating a New BusinessUnderstanding Distinctive Competencies41788282Crafting a Business Plan 83ix04/10/17 11:07 am
x CONTENTSStarting the Small BusinessBarriers to International Trade84Financing the Small Business85Economic DifferencesTrends, Successes, and Failures in NewVentures 87Trends in Small Business Start-UpsLegal and Political Differences8789Reasons for Success90Noncorporate Business OwnershipSole ProprietorshipsPartnershipsCorporationsPart 2 Managing the Business9091591Cooperatives129summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases crafting a business plan endnotesmanaging in turbulent times: The Wide World ofRisk 89Reasons for Failure1291299394Types of CorporationsBasic Management Functions94Special Issues in Corporate Ownership146Becoming a Manager 147Types of Managers96143144The Science and the Art of Managemententrepreneurship and new ventures: More ThanJust a Burger and Fries 96Managing a Corporation140Chapter Opening Case: Alphabet SoupThe Management Process 14493The Corporate EntityManaging the Business149Levels of Management 14997summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases endnotesAreas of Management 150entrepreneurship and new ventures: Innovations inManagement 151Management Roles and Skills152Managerial Roles 1524Understanding the Global Contextof Business 106Chapter Opening Case: The Door OpensThe Contemporary Global Economy 110The Major World MarketplacesBasic Management Skills 154Strategic Management: Setting Goals andFormulating Strategy 156Setting Business Goals 156109Types of Strategyfinding a better way: Standing Firm on SocialConsciousness 159111finding a better way: Too Much of a Good Thing?China’s Success Creates More Jobs in Mexico 113Trade Agreements and AlliancesInternational TradeContingency Planning and Crisis Managementmanaging in turbulent times: When DisasterStrikes 163118119Crisis Management 163119managing in turbulent times: The Ups and Downs ofGlobalization 120Management and the Corporate CultureBuilding and Communicating CultureChanging CultureInternational Business Management 121121Levels of International InvolvementInternational Organization Structures123124Understanding the Cultural EnvironmentValues, Symbols, Beliefs, and LanguageEmployee Behavior Across Cultures127126126164164165summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases endnotesentrepreneurship and new ventures: A BetterCoconut Water 123A01 EBER8391 12 SE FM.indd 10162Contingency Planning 162Forms of Competitive AdvantageGoing International160A Hierarchy of Plans 161116Balance of PaymentsExchange RatesFormulating Strategy113115Balance of Trade1586Organizing the Business172Chapter Opening Case: Organizing forSuccess 17504/10/17 11:07 am
CONTENTS xiWhat Is Organizational Structure?Organization Charts176Quality Planning 217Methods Planning 218176Determinants of Organizational StructureOperations Scheduling177entrepreneurship and new ventures: Organizing forGrowth 178Staff Schedules and Computer-Based Scheduling179DepartmentalizationOperations Controlfinding a better way: Blending the Old with the New 181Establishing the Decision-Making HierarchyQuality ControlThe Quality-Productivity Connection185Managing for Quality 226Basic Forms of Organizational StructureThe Supply Chain Strategy189Informal Groupsfinding a better way: Too Good to Waste191193194summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases endnotesOperations Management andQuality 202Chapter Opening Case: Dessert Is Always a GreatIdea 205What Does Operations Mean Today? 206Growth in the Services and Goods SectorsCreating Value Through Operations207208Differences between Service and Goods ManufacturingOperations 210Operations Processes211214Location Planning215212entrepreneurship and new ventures: Nothing Like aHome-Cooked Meal 215A01 EBER8391 12 SE FM.indd 118Employee Behavior andMotivation 242Chapter Opening Case: A Living WageForms of Employee Behavior 246245Performance Behaviors 246Organizational Citizenship247Counterproductive Behaviors248managing in turbulent times: Not Just on thePlayground 248Individual Differences Among EmployeesPersonality at WorkAttitudes at Work249249252Psychological ContractsOperations Planning 214Capacity PlanningPart 3 People in OrganizationsMatching People and JobsBusiness Strategy as the Driver ofOperations 212The Many Faces of Production Operations231summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases crafting a business plan endnotes192192216229229Outsourcing and Global Supply Chains 230189Organizational GrapevineLayout Planning227Adding Value Through Supply ChainsNew Forms of Organizational Structure7Tools for Total Quality Management188International StructureIntrapreneuring187187Informal Organization225managing in turbulent times: Leaner OperationsRestore Balance in the Airline Industry 226Three Forms of Authority 186Matrix Structure224Quality Improvement and Total QualityManagement 225managing in turbulent times: Keeping theOrganizational Tools Sharp 184The Delegation Process222Materials Management 223183Distributing Authority: Centralization andDecentralization 183Divisional Structure221Project Scheduling 221180Functional Structure219Detailed Schedules 220The Building Blocks of Organizational Structure 179Job Specialization219The Master Operations Schedule254254The Person-Job Fit 256Basic Motivation Concepts and TheoriesClassical Theory256256Early Behavioral Theory257entrepreneurship and new ventures: TheOpportunity to Begin Again 260Contemporary Motivation Theory26104/10/17 11:07 am
xii CONTENTSStrategies and Techniques for EnhancingMotivation 263Reinforcement/Behavior ModificationUsing Goals to Motivate Behavior10 Human Resource Managementand Labor Relations263263finding a better way: More Than Just a Paycheck 264Participative Management and EmpowermentWork Teams and Team Structures265265Job Enrichment and Job Redesign265summary of learning objectives key terms questions &exercises building a business: continuing team exercise team exercise exercising your ethics cases endnotes9Chapter Opening Case: Authentic LeadershipThe Nature of Leadership 280Leadership and Power279Benefits Programs283Leadership Neutralizers289Developing the Workforce288Strategic Leadership291Virtual Leadership292290291291managing in turbulent times: The Changing Faces ofLeadership 292Leadership, Management, and Decision Making 293The Nature of Decision MakingRational Decision Making293295Behavioral Aspects of Decision Making297summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases endnotesA01 EBER8391 12 SE FM.indd 12326Managing Knowledge Workers326Unionism Today291Ethical LeadershipManaging Workforce DiversityDealing with Organized Labor290Cross-Cultural LeadershipNew Challenges in the Changing Workplace326327managing in turbulent times: The Talent Gap289finding a better way: Women Leading the WayEmerging Issues in Leadership323entrepreneurship and new ventures: Time to Go 325Contingent and Temporary Workers289Gender and Leadership322Training and Development 322Performance AppraisalThe Changing Nature of LeadershipLeaders as Coaches319319finding a better way: Holding True at Nucor Steel 320entrepreneurship and new ventures: “SuccessUnshared Is Failure” 287288316Recruiting Employees 317Incentive Programs283286Leadership SubstitutesStaffing the OrganizationWages and Salaries 318282286Special Issues in LeadershipCompensation and Benefits 314Selecting Employees 317The Situational Approach to Leadership 284Leadership Through the Eyes of Followers 285Charismatic Leadership313Compensation and Benefits 318Behavioral Approaches to LeadershipTransformational Leadership313Equal Employment OpportunityOther Legal Issues 315281Trait Approaches to LeadershipThe Legal Context of HRMHealth and Safety 315281Early Approaches to Leadership310HR Planning 311Labor Relations 315Leadership and DecisionMaking 276Leadership and ManagementChapter Opening Case: A Unique Partnership DrivesWegmans 309The Foundations of Human ResourceManagement 310The Strategic Importance of HRMModified Work Schedules and Alternative Workplaces 266306328329329Collective Bargaining330summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases crafting a business plan endnotesPart 4 Principles of Marketing: BuildingRelationships with Customersfor Competitive Advantage11 Marketing Processes andConsumer Behavior342Chapter Opening Case: Building a Brand WithSocial Media 34504/10/17 11:07 am
CONTENTS xiiiWhat Is Marketing?Delivering Value346Classifying Goods and Services384The Product Mix 385346Goods, Services, and IdeasDeveloping New Products347386Relationship Marketing and Customer RelationshipManagement 348entrepreneurship and new venturesThe Marketing EnvironmentProduct Mortality RatesThe New Product Development Process349Developing the Marketing Plan351Marketing Strategy: Planning the Marketing Mix353Marketing Strategy: Target Marketing and MarketSegmentation 357Identifying Market SegmentsGeographic Segmentation357Demographic SegmentationPsychographic SegmentationBehavioral SegmentationMarketing Research358Pricing StrategiesPricing TacticsInfluences on Consumer BehaviorThe Consumer Buying Process363365365365Social Media and Marketing366The International Marketing Mix367entrepreneurship and new ventures: Farming YourNiche 369Small Business and the Marketing Mix369369Small-Business Promotion370378A01 EBER8391 12 SE FM.indd 13Products410Chapter Opening Case: The Changing Landscape ofCommerce 413The Distribution Mix 414Intermediaries and Distribution Channels 414Distribution Strategies416Channel Conflict and Channel Leadership416417The E-Intermediary417418entrepreneurship and new ventures: DispensingHope 418Retailing419Types of Brick-and-Mortar Retail Outlets419finding a better way: The Evolving Way We Pay420Nonstore Retailing 421Online Retailing 421Chapter Opening Case: The Price of FreeCollege 381What Is a Product? 382382finding a better way: Snow Wars401Agents and Brokers37012 Developing and PricingThe Value Package400400Merchant Wholesalers 417summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases endnotesProducts39839813 Distributing and PromotingWholesaling370Small-Business Distribution395396summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases endnotes363Organizational Marketing and Buying BehaviorSmall-Business Pricing395International PricingUnderstanding Consumer Behavior 363Small-Business Products392managing in turbulent times: Fair or Foul?359finding a better way: The Truth about Your OnlineCustomer Service 362B2B Buying BehaviorExtending Product Life: An Alternative to New Products 391Pricing Strategies and Tactics359Research Methods 361Business Marketing390Price-Setting Tools359The Research ProcessStages in the PLCPricing to Meet Business Objectives358388389Product Life Cycle 390Determining Prices358Geo-Demographic SegmentationVariations in the Process for ServicesIdentifying Products357387388The Seven-Step Development Processmanaging in turbulent times: An American Icon 352387383Physical Distribution423Warehousing OperationsTransportation Operations423423Distribution Through Supply Chains as a MarketingStrategy 42404/10/17 11:07 am
xiv CONTENTSThe Importance of Promotion425Promotional Objectives425managing in turbulent times: Better Care, LowerCosts 460Promotional Strategies426Types of Information SystemsThe Promotional MixAdvertisingIT Risks and Threats426Hackers426Personal Selling SituationsPersonal Selling Tasks463Intellectual Property Theft429464Computer Viruses, Worms, and Trojan Horses429Spywaremanaging in turbulent times: The Logic BehindLogistics 430The Personal Selling ProcessSales Promotions462463Identity TheftPersonal Selling 429460Spam464IT Protection Measures431431465Preventing Unauthorized Access: FirewallsDirect (or Interactive) MarketingPublicity and Public Relations433464464465Preventing Identity Theft 465433summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases crafting a business plan endnotesPreventing Infectious Intrusions: Anti-VirusSoftware 466Protecting Electronic Communications: EncryptionSoftware 466Avoiding Spam and Spyware466Ethical Concerns in IT 466Part 5 M anaging Information forBetter Business Decisionsfinding a better way: Gleaning Wisdom from the WorldWide Web 46714 Information Technology (IT) forBusiness442Chapter Opening Case: Think Before You ClickInformation Technology Impacts: A Driver ofChanges for Business 446445Enabling Better Service by Coordinating RemoteDeliveries 447Enabling Increased CollaborationEnabling Global ExchangeImproving the World and Our LivesForensic Accountants 484managing in turbulent times: Skimming Off theTop 485449450452The Internet and Other Communication ResourcesHardware and SoftwareFederal Restrictions on CPA Services and FinancialReporting: Sarbox 486451IT Building Blocks: Business ResourcesNetworks: System Architecture452454456entrepreneurship and new ventures: Speaking Loudand Clear: The Future of Voice Technology 457Information Systems: Harnessing the CompetitivePower of It 458Leveraging Information Resources: Data Warehousing andData Mining 459A01 EBER8391 12 SE FM.indd 14481Private Accountants and Management Accountants 483449Providing New Business OpportunitiesChapter Opening Case: CSI: Wall Street 479What Is Accounting, and Who Uses AccountingInformation? 480Certified Public Accountants449Providing Flexibility for Customization476Financial versus Managerial Accounting 481448448Improving Management Processes15 The Role of Accountants andAccounting InformationCreating Portable Offices: Providing Remote Access toInstant Information 447Creating Leaner, More Efficient Organizationssummary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases endnotesThe Accounting Equation 486Assets and Liabilities 487Owners’ Equity 487entrepreneurship and new ventures: Working Withthe Accounting Equation 488Financial Statements489Balance Sheets 489Income Statements490Statements of Cash Flows492The Budget: An Internal Financial Statement49304/10/17 11:07 am
CONTENTS xvReporting Standards and Practices494Revenue Recognition and Activity TimingFull DisclosureThe Changing Money and Banking System494494Analyzing Financial StatementsAnticrime and Antiterrorism Regulations495Solvency Ratios: Borrower’s Ability to Repay DebtProfitability Ratios: Earnings Power for Owners495496Activity Ratios: How Efficiently Is the Firm Using ItsResources? 496Bringing Ethics into the Accounting EquationAICPA’s Code of Professional Conduct496Internationalizing Accounting 499Why One Set of Global Practices?499499summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases crafting a business plan endnotes529530entrepreneurship and new ventures: RiskyBusiness 531532Currency Values and Exchange RatesThe International Payments ProcessInternational Bank Structure498finding a better way: Analytics and the Future ofAuditing 498International Accounting Standards BoardThe Impact of Electronic TechnologiesInternational Banking and Finance497Violations of Accounting Ethics and GAAP528Government Intervention for Stabilizing the U.S. FinancialSystem 528532534534summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases endnotes17 Managing Business FinancesChapter Opening Case: Fire On the GroundMaximizing Capital Growth 548544547The Time Value of Money and Compound Growth548Common Stock Investments 550Part 6 The Financial System andIssues in Financial Management16 Understanding Money and theRole of Banking510Chapter Opening Case: Where Did All the MoneyGo? 513What Is Money? 514The Characteristics of MoneyThe Functions of Money515Credit Cards and Debit Cards: Plastic Money?Financial Institutions517517517520managing in turbulent times: Getting Serious withCredit Standards 522How Financial Institutions Create Money and AreRegulated 523How Money Is Created523How Banks Are Regulated523The Federal Reserve System524finding a better way: Cultivating a Social Side forCommunity Banking 525The Structure of the Fed525The Functions of the Fed526The Tools of the FedA01 EBER8391 12 SE FM.indd 15527Exchange-Traded Funds552552entrepreneurship and new ventures: Find a Need,Fill a Need 553The Business of Trading Securities553Primary and Secondary Securities Markets554Stock Exchanges 554556Tracking the Market Using Stock Indexes557finding a better way: Finding a Way to Fund LifeAfter Work 558The Risk–Return Relationship 560519The Growth of Financial ServicesMost Mutual Funds Don’t Match the MarketIndividual Investor Trading516M-2: M-1 Plus the Convertible Money SupplyThe U.S. Financial System551Reasons for Investing 551Nonexchange Trading: Electronic CommunicationNetworks 556514M-1: The Spendable Money SupplyInvesting to Fulfill Financial ObjectivesInvestment Dividends (or Interest), Appreciation,and Total Return 561Fantasy Stock Markets562Managing Risk with Diversification and Asset Allocation 562Financing the Business FirmSecured Loans for Equipment563564Working Capital and Unsecured Loans from BanksAngel Investors and Venture CapitalSale of Corporate Bonds564565565Becoming a Public Corporation567Going Public Means Selling Part Ownership of theCompany 568managing in turbulent times: Winners and Losers 56804/10/17 11:07 am
xvi CONTENTSStock ValuationConserving Money by Controlling It569Market Capitalization570Choosing Equity versus Debt CapitalRegulating Securities Markets570Save Your Money: Lower Interest Rates and FasterPayments 600572The Securities and Exchange CommissionRegulations Against Insider Trading572Financial Commitments of Home Ownership 601572summary of learning objectives key terms questions& exercises building a business: continuingteam exercise team exercise exercising yourethics cases crafting a business plan endnotes585Coping with Risk 585The U.S. Legal and Judicial Systems604How Much Should I Buy? 605Why Consider Term Insurance?605607Early Unions 608590The Emergence of the Major Unions 608591Unionism Today591610Trends in Union Membership 610Trends in Union-Management Relations 611592Trends in Bargaining Perspectives593Commercial Law605Why Do Workers Unionize? 607The Evolution of Unionism in the United States589591Agency Law604Protecting Your Net WorthAppendix IV: Unions and LaborManagement 607589The U.S. Judicial SystemProperty Law604586Appendix II: The Legal Context ofBusiness 589Tort Law601How Much Does It Cost? 606Insurance as Risk ManagementContract LawThe IRA Tax BreakWhat Does Life Insurance Do?Appendix I: Risk ManagementBusiness LawHow Much House Can You Afford?Cashing Out from Tax Avoidance (Legally)Why Buy Life Insurance? 605AppendicesTypes of Law600Credit Cards: Keys to Satisfaction or FinancialHandcuffs? 600611The Future of Unions 611593Contemporary Union StructureBankruptcy Law 593The International Framework of Business Law594Locals612612Laws Governing Labor-Management Relations613The Major Labor Laws 613Appendix III: Managing YourPersonal Finances 595Building Your Financial PlanHow Unions Are Organized and CertifiedCollective Bargaining 617Reaching Agreement on Contract Terms595Assessing Your Current Financial ConditionDeveloping Your Financial GoalsPlanning for the “Golden Years”596598Time Value as a Financial-P
business essentials TWELFTH EDITION Ronald J. Ebert Ricky W. Griffin Ne
