Business 12th edition by pride hughes kapoor

Letter from the AUthorS Dear Business Students: How you define success? For some, success is a high-paying job, promotions, and financial security For others, success is finding a rewarding balance between work and personal time Regardless of how you define success or what your personal goals are, we wrote this text with one purpose: to help you succeed in today’s competitive business world As authors, we believe that success is measured not only by the grade you receive at the end of the semester, but also by how you use the information and concepts in this text to build a foundation for a better life It is important to begin reading this text with one thing in mind This business course doesn’t have to be difficult In fact, learning about business and how you can become successful can be fun To help you succeed, this edition of Business is packed with updated content and information that can help you not only get a better grade, but also help you reach your personal goals and enjoy a successful life We worked hard to make sure there is something in every chapter to help you understand the world of business and become a better employee, a more informed consumer, and, if it is your dream—a successful business owner All new boxed features help reinforce the success theme, including Career Success, Ethical Success or Failure, Entrepreneurial Success, and Going for Success You can also use the chapter summary, review and discussion questions, and case problems to reinforce important concepts And the activities in the Building Skills for Career Success section will help to improve the skills you need for success We are especially proud of the CourseMate Web site that accompanies the text The Web site contains more student learning activities and an eBook—all designed to help you experience success For those who want even more state-of-the-art technology, there are other online solutions that accompany this text, including MindTap and CengageNOW A number of learning activities—all designed to help you to experience success—are available at CengageBrain.com There you will find: • • • • • • Make the Grade with CourseMate Engaging Trackable Affordable CourseMate features: Interactive Learning Tools: Interactive quizzes Student PowerPoint slides Links to videos Chapter audio reviews Games and crossword puzzles Interactive flashcards • Quizzes • Flashcards • Videos Interactive eBook: • Take notes, highlight, search, and interact with embedded media specific to your book • Use it as a supplement to the printed text, or as a substitute — the choice is yours We invite you to examine the visual guide that follows to see how Pride/Hughes/Kapoor can help you learn about business and enjoy success in not only your career, but also your life Sincerely Bill Pride w-pride@tamu.edu The more you study, the better the results Make the most of your study time by accessing everything you need to succeed in one place Read your textbook, take notes, review flashcards, watch videos, and take practice quizzes—online with CourseMate Bob Hughes bhughes@dcccd.edu Jack Kapoor kapoorj@cod.edu To purchase access, visit www.cengagebrain.com Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it BUSINESS T wel f t h E d iti o n William M Pride Texas A&M University Robert J Hughes Dallas County Community Colleges Jack R Kapoor College of DuPage Australia • Brazil • Japan • Korea • Mexico • Singapore • Spain • United Kingdom • United States Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Business, Twelfth Edition William M Pride, Robert J Hughes, Jack R. Kapoor Senior Vice President, LRS/Acquisitions & Solutions Planning: Jack W Calhoun Editorial Director, Business & Economics: Erin Joyner © 2014, 2012 South-Western, Cengage Learning ALL RIGHTS RESERVED No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means graphic, ­electronic, or mechanical, including but not limited to photocopying, recording, ­scanning, digitizing, taping, web distribution, information networks, or information ­storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the publisher Acquisitions Editor: Jason Fremder Managing Developmental Editor: Joanne Dauksewicz Editorial Assistant: Megan Fischer Brand Manager: Robin Lefevre Market Development Manager: Jonathan Monahan Sr Content Project Manager: Emily Nesheim, Holly Henjum Supervising Media Editor: Scott Fidler Manufacturing Planner: Ron Montgomery Production Service: Integra Software Services, LLC Sr Art Director: Stacy Jenkins Shirley Cover and Internal Designer: Joe Devine/ Red Hangar Design For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706 For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions Further permissions questions can be emailed to permissionrequest@cengage.com ExamView® is a registered trademark of eInstruction Corp Windows is a registered trademark of the Microsoft Corporation used herein under license Macintosh and Power Macintosh are registered trademarks of Apple Computer, Inc used herein under license © 2008 Cengage Learning All Rights Reserved Library of Congress Control Number: 2012947815 Cover Image: © Jorg Greuel/Getty Images ISBN-13: 978-1-133-59585-4 ISBN-10: 1-133-59585-5 Rights Acquisitions Specialist: Deanna Ettinger Looseleaf Version ISBN 13: 978-1-133-93667-1 Looseleaf Version ISBN 10: 1-133-93667-9 South-Western 5191 Natorp Boulevard Mason, OH 45040 USA Cengage Learning is a leading provider of customized learning solutions with office l­ocations around the globe, including Singapore, the United Kingdom, Australia, Mexico, Brazil, and Japan Locate your local office at: www.cengage.com/global Cengage Learning products are represented in Canada by Nelson Education, Ltd For your course and learning solutions, visit www.cengage.com Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com Printed in the United States of America 16 15 14 13 12 Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it This is an electronic version of the print textbook Due to electronic rights restrictions, some third party content may be suppressed Editorial review has deemed that any suppressed content does not materially affect the overall learning experience The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it To Nancy, Allen, Mike, Ashley, and Charlie Pride To my wife Peggy and to my mother Barbara Hughes To my wife Theresa; my children Karen, Kathryn, and Dave; and in memory of my parents Ram and Sheela Kapoor Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Brief CONtents The Environment of Business Exploring the World of Business and Economics Being Ethical and Socially Responsible Exploring Global Business 35 69 Business Ownership and Entrepreneurship 103 Choosing a Form of Business Ownership Small Business, Entrepreneurship, and Franchises 104 133 Management and Organization 163 Understanding the Management Process Creating a Flexible Organization Producing Quality Goods and Services 164 188 211 Human Resources 243 Attracting and Retaining the Best Employees 10 Motivating and Satisfying Employees and Teams 11 Enhancing Union–Management Relations 244 273 302 Marketing 329 12 Building Customer Relationships Through Effective Marketing 13 Creating and Pricing Products That Satisfy Customers 14 Wholesaling, Retailing, and Physical Distribution 15 Developing Integrated Marketing Communications 330 357 394 423 Social Media, e-Business, and Accounting 455 16 Exploring Social Media and e-Business 17 Using Management and Accounting Information 456 486 Finance and Investment 519 18 Understanding Money, Banking, and Credit 19 Mastering Financial Management 20 Understanding Personal Finances and Investments 520 550 579 Glossary Name Index Subject Index 615 627 634 The following appendixes appear on the companion site www.cengage.brain.com Appendix A: Careers in Business Appendix B: Risk Management and Insurance Appendix C: Business Law, Regulation, and Taxation v Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it CONtents The Environment of Business  Chapter 1: Exploring the World of Business and Economics  Inside Business:  Zynga Zooms into Business  Your Future in the Changing World of Business  Why Study Business?, Career Success: Show Off Your Skills with Digital Merit Badges  Special Note to Business Students, Business: A Definition  10 The Organized Effort of Individuals, 10 • Satisfying Needs, 10 • Business Profit, 11 Chapter 2: Being Ethical and Socially Responsible  35 Inside Business:  Panera Cares About Its Communities  36 Business Ethics Defined  37 Ethical Issues  37 Fairness and Honesty, 38 • Organizational Relationships, 38 • Conflict of Interest, 39 • Communications, 39 Factors Affecting Ethical Behavior  39 Individual Factors Affecting Ethics, 40 • Social Factors Affecting Ethics, 40 • “Opportunity” as a Factor Affecting Ethics, 40 Sustaining the Planet: Honda: Not Just Another Automobile Manufacturer  12 Types of Economic Systems  12 Encouraging Ethical Behavior  41 Entrepreneurial Success: Building a Million-Dollar App Business  13 Social Responsibility  44 The Evolution of Social Responsibility in Business  47 Capitalism, 14 • Capitalism in the United States, 15 • Command Economies, 16 Measuring Economic Performance  17 The Importance of Productivity in the Global Marketplace, 18 • The Nation’s Gross Domestic Product, 18 • Important Economic Indicators that Measure a Nation’s Economy, 19 The Business Cycle  20 Types of Competition  21 Perfect Competition, 22 • Monopolistic Competition, 23 • Oligopoly, 24 • Monopoly, 24 American Business Today  24 Early Business Development, 25 • Business Development in the 1900s, 25  • A New Century: 2000 and Beyond, 26 • The Current Business Environment, 26 • The Challenges Ahead, 27 Return to Inside Business:  Zynga  28 Summary  29 Key Terms  30 Review Questions  30 Discussion Questions  31 Video Case 1.1: Entertainment Means Profits for Nederlander Concerts  31 Case 1.2: The Walt Disney Company Entertains the World  32 Building Skills for Career Success  32 Endnotes  33 Government’s Role in Encouraging Ethics, 41 • Trade Associations’ Role in Encouraging Ethics, 41 • Individual Companies’ Role in Encouraging Ethics, 41 Historical Evolution of Business Social Responsibility, 47 Two Views of Social Responsibility  49 The Economic Model, 49 • The Socioeconomic Model, 49 • The Pros and Cons of Social Responsibility, 49 Consumerism  51 The Six Basic Rights of Consumers, 51 • Major Consumerism Forces, 52 Ethical Success or Failure?: Is Personal Data Really Private?  53 Employment Practices  55 Affirmative Action Programs, 55 • Training Programs for the Hard-Core Unemployed, 56 Concern for the Environment  57 Effects of Environmental Legislation, 57 Sustaining the Planet: Social Responsibility at Xerox  59 Entrepreneurial Success: Social Entrepreneurs of Tomorrow  61 Who Should Pay for a Clean Environment?, 61 Implementing a Program of Social Responsibility  61 Developing a Program of Social Responsibility, 61 • Funding the Program, 62 Return to Inside Business:  Panera Cares  63 Summary  63 Key Terms  64 Review Questions  64 Discussion Questions  65 vi Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Sustaining the Planet: 2degrees: A Global Community  85 Methods of Entering International Business  85 Video Case 2.1: Scholfield Honda—Going Green with Honda  65 Case 2.2: Unilever’s Plan for Green and Clean Growth  66 Building Skills for Career Success  66 Endnotes  67 Going for Success: Services Team Up to Enter India  88 Chapter 3: Exploring Global Business  69 Sources of Export Assistance  90 Financing International Business  91 Inside Business:  Volkswagen Speeds Along on Global Sales  70 The Basis for International Business  71 Absolute and Comparative Advantage, 71 • Exporting and Importing, 72 Career Success:  Want to Work Overseas? Get Ready Now!  74 Restrictions to International Business  74 Types of Trade Restrictions, 75 • Reasons for Trade Restrictions, 76 • Reasons Against Trade Restrictions, 77 The Extent of International Business  78 The World Economic Outlook for Trade, 78 International Trade Agreements  81 The General Agreement on Tariffs and Trade and the World Trade Organization, 81 • World Trade and the Global Economic Crisis, 82 • International Economic Organizations Working to Foster Trade, 83 Licensing, 85 • Exporting, 86 • Joint Ventures, 87 • Totally Owned Facilities, 87 Strategic Alliances, 88 • Trading Companies, 89 • Countertrade, 89 • Multinational Firms, 89 The Export-Import Bank of the United States, 91 • Multilateral Development Banks, 92 • The International Monetary Fund, 93 • The Challenges Ahead, 93 Return to Inside Business:  Volkswagen  94 Summary  94 Key Terms  95 Review Questions  95 Discussion Questions  96 Video Case 3.1: Keeping Brazil’s Economy Hot  96 Case 3.2: Global Profits Are a Menu Mainstay at McDonald’s  97 Building Skills for Career Success  98 Running a Business: Part 1: Graeter’s  99 Building a Business Plan: Part 1  100 Endnotes  102 Business Ownership and Entrepreneurship  103 Chapter 4: Choosing a Form of Business Ownership  104 Inside Business:  Kimpton Hotel & Restaurant Group Strives for Perfection!  105 Sole Proprietorships  106 Advantages of Sole Proprietorships, 107 • Disadvantages of Sole Proprietorships, 108 Entrepreneurial Success: Why Sell a Small Business to a Big Business?  109 Beyond the Sole Proprietorship, 109 Partnerships  110 Types of Partners, 110 • The Partnership Agreement, 111 Advantages and Disadvantages of Partnerships  111 Advantages of Partnerships, 111 • Disadvantages of Partnerships, 113 • Beyond the Partnership, 114 Corporations  114 Corporate Ownership, 115 • Forming a Corporation, 115 • Corporate Structure, 117 Ethical Success or Failure?: Do We Need More Women in the Board Room?  118 Advantages and Disadvantages of Corporations  118 Advantages of Corporations, 119 • Disadvantages of Corporations, 119 Social Media: Going Social with Score  120 Special Types of Business Ownership  121 S-Corporations, 121 • Limited-Liability Companies, 121 • Not-for-Profit Corporations, 122 Cooperatives, Joint Ventures, and Syndicates  123 Cooperatives, 123 • Joint Ventures, 123 • Syndicates, 123 Corporate Growth  124 Growth from Within, 124 • Growth Through Mergers and Acquisitions, 124 • Merger and Acquisition Trends for the Future, 126 Return to Inside Business:  Kimpton Hotel & Restaurant Group  127 Summary  127 Key Terms  128 Review Questions  129 Discussion Questions  129 Video Case 4.1: AT&T and T-Mobile: What Went Wrong with Their Merger?  129 Case 4.2: The Conglomerate Success of Berkshire Hathaway  130 Building Skills for Career Success  131 Endnotes  132 Chapter 5: Small Business, Entrepreneurship, and Franchises  133 Inside Business:  Locker Lookz Looks for Higher Sales  134 Small Business: A Profile  135 The Small-Business Sector, 135 • Industries That Attract Small Businesses, 136 The People in Small Businesses: The Entrepreneurs  137 Characteristics of Entrepreneurs, 137 • Other Personal Factors, 137 • Motivation, 138 • Women as Small-Business Owners, 138 Contents Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it vii QuickBooks accounting software, 514 Quicken Loans, 275 Qwest, 40 R RadioShack, 154, 407 Rahim, Ahmed and Reem, 207 Raitt, Bonnie, 575 Raleigh, 352–353 Raymond James, 603 Razor Gator, 372 Reagan, Ronald, 84 “Real Good Chair,” 390 Reason Public Policy Institute, 290 Red Cross, Red Hat, 175 Red Lobster restaurants, 576 REI (Recreational Equipment Inc.), 274, 275, 289, 292, 296 Reid, Harry, 554 Reliance Broadcast Networks, 88 Rembrandt, 366 Restoration Hardware, 471 Richland Community College, 229 Rigas, John J., 37 Rigas, Timothy J., 37 Rihanna, 430 Ripa, Kelly, 433 Rite Aid Corp, 42, 515 Ritz-Carlton Hotels, 229 R.J Reynolds, 37, 51 Rockwell Automation, 222 Rodarte, 337 Rodas, Mary, 139 Roebuck, Alvah, 119 Rolex watches, 378 Rolls-Royce, 337 Romanias, Chris, 155 Rometty, Virginia, 165, 182 Ronald McDonald House, 97 Roosevelt, Franklin D., 25, 48 Rosen, Alan, 107 Rosen, Harry, 107 Rosenfeld, Irene, 189 Roundy’s Supermarkets, 223 Rousseff, Dilma, 96–97 Rovio Entertainment, 457, 462, 479 Rowland Coffee Roasters, 551 Royal Crown Companies, Inc., 152 Royal Dutch Shell, 89, 116 Rubik’s Cube, 361 Ruiz, Manny, 118 Rykä, 433 S Safety and Environmental Assurance Center, 212 Safeway, 207, 406 SAIC, 70 Sail, 429 Sample Society, 440 Sam’s Club, 56, 406 Samsung, 220, 221, 435 San Francisco Giants, 380 SAP Developer Network, 291 Sara Lee, 10, 551 Sarah Coventry, 408 632 Sarbanes, Paul S, 41 SAS, 275 Save the Children, SaveLocal, 440 S.C Johnson & Son, 42, 44 Schering GmbH and Company, 219 Schnatter, John, 118 Schoemaker, Paul J.H., 220 Scholfield, Roger, 65 Scholfield Honda, 65 Schultz, Howard, 176 Schwebke, Jason, 61 SCORE (Service Corps of Retired Executives), 120, 148 ScotchGard, 60 Scott Natural, 349 Scottrade, 605 Sea World, 122 Sears, Richard, 119 Sears, Roebuck and Co., 116, 119, 142, 196, 336, 370, 395, 403, 404, 414 Sears Holdings Corporation, 116, 434 Seasons 52, 576 Securities and Exchange Commission (SEC), 42, 498, 594, 606 Securities Investor Protection Corporation, 606 See’s Candies, 130 Service Corps of Retired Executives (SCORE), 120, 148 ServiceMaster, 142 Seton Hall University, 38 7-Eleven, 166, 406 Shaich, Ron, 36 Shake Weight, 408 Shanghai Disney Resort, 32 Shaw Industries, 130 Shell, Richard, 149 Shutterfly, 372 Signs By Tomorrow, 153 Silicon Motion Technology, 585 Simply Orange, 358 Singer Sewing Company, 153 Sinopec Group, 89 Six Sigma, 231 Skida, 145 Skype, 254 Slanket, 409 Slater, Samuel, 25 SlideShare, 565 Small Business Administration (SBA) See U.S Small Business Administration (SBA) Small Business Training Network (SBTN), 148 “Smart Fridge,” 220 Smart Money, 598, 602 Smartfood, 106 Smith, Adam, 14–15, 17, 192 Smith, Gary, 110 Smith, Janet, 110 Smithsonian, Smokey Bones Barbecue & Grill, 576 Smucker, Jerome Monroe, 551 Snuggie, 408 Sodexho, 250 Softchoice, 245 Sony Corporation, 4, 10, 88, 115, 116, 373 Southern Living, 442 Southwest Airlines, 166, 172, 217, 261, 460 Sparks and Honey, 332 Speaker, Joe, 42 Spiegel, 408 Spinback, 109 Springsteen, Bruce, 575 Sprinkles bakery, 410 Sprint Nextel Corp., 129, 434, 473 St Louis Cardinals, 380 St Luke’s Hospital, 255 Standard & Poor’s, 475, 509, 590, 599 Stanley Black & Decker, 555 Stanley Home Products, 408 Staples, Inc., 150 Star Furniture, 130 Starbucks, 49, 167, 168, 176, 289, 372, 375, 395, 466 Stars and Stripes Clothing, 557, 558 StartUpPc, 139 State Grid, 89 Stav, Julie, Steinlauf, Avi, 496 Sterling, Christi, 134, 156 Strand, Cheryl, 138 SUBWAY, 152, 155, 537 Summify, 126 Summly, 13 SunCoke Energy, 564 Sunoco, 564 Super Targets, 406 Susan G Komen for the Cure, 463 Sutarik, Mike, 61 T Tacoma General Hospital, 324 TAP Pharmaceutical Products, Inc., 37 Target Corp., 283, 337, 398, 404, 405, 434 Taylor, Frederick W., 275–276 Taylor, James, 575 Taza Chocolate, 419–420 TCBY Enterprises, Inc., 153 TD Ameritrade, 605 Teamsters Union, 306 Telephone Pioneers of America, 47 TelePresence, 291 Temple University Hospital, 324 Tennisopolis, 443 Texas Instruments (TI), 42, 43 Thinkfinity.org, 46 Thomas, Michelle, 609 Thomas, Trevor, 609–610 Thomasville, 23 Thomsen, Linda Chatman, 42 Thornton, Beth, 149 Thorp, Lauren, 333 Thorpe, Liz, 158 3Com, 208 3M Company, 60, 219, 369, 556 Thulasidas, V., 88 Tickle Me Elmo doll, 362 Time magazine, 346, 429, 602 Time Warner, 434 Tindell, Kip, 299 Tire Rack, 372 T.J Maxx, 407 T-Mobile, 125, 129, 130, 365 Toluna, 344 Tommy Hilfiger, 370 TopCoder, Name Index Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it Touchstone Pictures, 32 Toyoda, Akio, 450 Toyota Motor Corp., 18, 24, 88, 89, 181, 213, 227, 230, 234, 340, 434, 450 Toyota Way, 230 Toys”R”Us, 407 Trammel, Angela, 153 Trammel, Ernest, 153 Trans-Pacific Partnership (TPP), 85 TransUnion, 543 Travel Channel, 452 Tree City, 145 Trimit (application), 13 Trism (application), Tropicana, 358 TTK Group, 88 Tumblr, 482 Tupperware, 408 Turner, Jane, 42–43 Turner Broadcasting System, 347 TweetMyJobs, 252 Twitter, 6, 27, 99, 120, 126, 159, 180, 261, 332, 336, 353, 372, 419, 420, 424, 432, 443, 449, 459, 462, 463, 464, 465, 469, 476, 479, 482, 499, 517, 531, 543, 565, 566, 567, 598 Tyco International, Ltd,, 38 U UAW, 309 U.K Department of Work and Pensions, 283 Ulukaya, Hamdi, 395 Umba Box, 333 Umpqua Bank, 521, 543 Unilever, 27, 66, 99, 212, 235, 424, 435, 509 Unilever Sustainable Living Plan, 66 Union Carbide, 88 Union Pacific Corporation, 571 Unite Here Locals 34 and 35, 308 United Airlines, 463 United American Nurses, 324 United Auto Workers (UAW), 306 United Farm Workers Union, 319 United Parcel Service (UPS), 99, 289, 414, 415, 563, 564 United Steelworkers (USW), 306 United Way, 45 U.S Census Bureau, 344 U.S Commercial Service, 156 U.S Comptroller of the Currency, 532 U.S Department of Commerce, 75 U.S Department of Labor, 203, 308, 311, 499, 533 U.S Department of Veterans Affairs, U.S Environmental Protection Agency (EPA), 27, 57, 59, 60 U.S Government Printing Office, 149 U.S Navy, 179 U.S News & World Report, 602 U.S Patent and Trademark Office, 369–370 U.S Postal Service, 248, 415 U.S Small Business Administration (SBA), 135, 139, 141, 147–157, 405 U.S Treasury, 531, 589 U.S West, 347 V Value Line, 599 Vanguard 500 Index mutual fund, 599, 602 Vanguard Group, 580, 607 Vanguard Mutual Funds, 498 VB Solutions, Inc., 139 Verizon Communications, 39, 129, 384, 434 Verizon Foundation, 46 Verizon Volunteers, 46 Vermont’s Green Mountain Coffee Roasters, 331 Vernon, Tony, 189 Via, 435 Vibram Five Fingers shoes, 377 Vimeo, 482 Virgin Group, 173, 174 Visa, 537, 546, 563, 564 VisionSpring, 159 Vitaminwater, 375 Volkswagen, 70, 76, 94, 96, 116 VPI Pet Insurance, 373 Vroom, Victor, 283 Wesco Financial Corporation, 126 Western Electric Company, 276 Wexler, David, 514 Wexler, Evie, 514 Whataburger, 224 Whirlpool Corporation, 96, 269, 370 White Hen Pantry, 406 Whitehurst, Jim, 175–176 Whole Foods Market, 207, 226, 391, 452 Wieden+Kennedy ad agency, 424 Wikipedia, 462 Wildfish Seafood Grill restaurant chain, 576 Williams, Serena, 391 Wilson, Julian, 366 Winfrey, Oprah, 99, 452 Winn-Dixie, 406 Withey, Annie, 106 Woolworths, 417 World Bank, 92, 589 World Community Grid, 45 The World Is Flat (Friedman), 71 World Trade Organization, 75, 82, 93 WorldCom, 40, 42, 515 Wrike, 290 Writers Guild East, 323 Writers Guild of America (WGA), 323 Writers Guild West, 323 X Xerox, 59, 141, 292, 373 W Wachovia, 126 Walgreen, 405 Wall Street Journal, 493, 599, 601, 602 Walmart, 10, 11, 44, 89, 106, 123, 124, 337, 384, 395, 396, 404, 405, 407, 414, 420, 434, 463, 555 Walmart Superstores, 11, 406, 538 Walt Disney Company, 32, 434 Walton, Sam, 11, 124 Warby Parker, 159 Washington Mutual, 527, 546 Washington State Nursing Association, 324 Watkins, Sherron S., 42 WD-40, 364 The Wealth of Nations (Smith), 14, 192 WebEx, 291 Wegmans Food Markets, 259, 275 Weight Watchers, 358 Welburn, Craig, 153 Wells Fargo, 126, 531 Wendy’s International, 153, 155, 342–343, 368 Y Yachting, 429 Yahoo! 431, 531, 598 Yahoo! Finance, 598, 601 Yale University, 308 Yankee Candle, 449 Yelp, 461 Yoplait yogurt, 85 Young Eagles, 44–45 YouTube, 120, 261, 332, 336, 342, 353, 372, 391, 424, 443, 449, 461, 462, 463, 464, 469, 499, 517, 565, 566, 598 Yummy’s Restaurant Group, 547 Z Zappos, 180, 259, 468 Zipcar, 466 Zoom Box, 61 Zuckerberg, Mark, 141, 483 Zurita, Ivan, 96 Zynga, 3, 4, 28, 567 Name Index Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 633 Subject INDEX A A shares, 594 absolute advantage, 71 acceptability, of prices, 377 accessibility, of a transportation mode, 415 accessory equipment, 360 account executive, 604 accountability, creating, 195 accounting careers in, 499 defined, 497 types of, 498–499 accounting equation, 500 accounts payable, 503 accounts receivable, 507 factoring, 562 of a firm, 502 pledged for short-term financing, 561 accumulated depreciation, 503 accuracy, of data, 492 acid rain, 59 acquisition, 124 of people, 246 trends for the future, 126 activities, involved in a project, 228 ad hoc committee, 204 adaptations, 366 adjourning stage, of team development, 294 administered VMS, 400 administrative managers, 175, 491 adversarial relationship, 308 advertising, 427–435 defined, 426 false and misleading, 39 nation’s top 20 spenders, 433, 434 as promotion, 424 types of, 427–428 advertising agencies, 435 advertising campaign, 432–435 advertising e-business model, 475 advertising effectiveness, evaluating, 435 advertising media, 428–432 advertising message, creating, 433–434 advertising money, shifting to digital marketing, 464 advertising objectives, defining, 433 advertising platform, creating, 433 advisory authority, 198–199 advisory positions, 191 aesthetic modifications, of existing products, 364 affirmative action, 55–56, 266 Affordable Care Act (2010), 151, 265 age, your, 587–588 Age Discrimination in Employment Act (1967–1986), 265–266 agency shop, 317 agents, 403 air pollution, 59–60 aircraft emissions, 59 airplanes, 415, 416 alien corporation, 116 allocator, price serving function of, 376 allowance, 386 for doubtful accounts, 502 alternatives, 179–180 “Amazon Trusted,” partners as, 372 American banking industry, 530–533 American Recovery and Reinvestment Act (2009), 58, 151 Americans with Disabilities Act (ADA) (1990), 265, 266–267 analytic skills, of managers, 7, 176 analytical process, in operations management, 215 anational company, 90 animation, 32 annual meetings, 565 annual reports, 500, 565 anti-tracking software, 53 app business, building a million-dollar, 13 Appendix A: Careers in Business, viewing, applicants, hiring most appropriate, 253 applied research, 219 appraisal errors, avoiding, 263 arbitration, 320 of a grievance, 318 Armenia, economic growth, 79 articles of incorporation, 116 articles of partnership, 111, 112 ASEAN-5 countries, 78 Asian countries, economic growth, 78–99 assembly line, 223 assessment centers, 256 asset allocation, 587 assets, 500, 501–503 proceeds from the sale of, 558–559 Association of Southeast Asian Nations, 84 associations, linked to a brand, 371–372 at-cost investing, 580 attrition, cutbacks through, 248 audit, 497 authority decentralization of, 195–196 delegation of, 194–195 granting, 195 within an organization, 177 authors, e-mail addresses of, 10 autocratic leadership, 177 automated clearinghouse (ACH), 538 automatic teller machines (ATMs), 538 automatic vending, 410 automation, 233–234 Azerbaijan, economic growth, 79 B B shares, 594 B2B firms, types of, 474 “Badges for Lifelong Learning” program, balance of payments, 74, 76 balance of trade, 20, 73 balance sheet, 500–501, 507 bank accounts, 588 banker’s acceptance, 539 banking functions, organizations performing, 532 banking industry, 533, 536 banking services, innovative, 536–539 banks review of, 527 services provided by, 534 seven largest U.S., 531 banner ads, 431, 449 bar chart, example, 495 bargaining unit, defining, 312 barter, 25 barter system, 522 basic research, 219 basis, for segmentation, 339 behavior modification, 288 benchmarking, 181, 230 benchmarks, setting, 470 benefit packages, to part-time employees, 289 benefits, 246, 315 benefits-to-the-community component, of a business plan, 102 Big Apple Barbeque Block Party, 442 bilingual skills, from cultural diversity, 249 bill of lading, 86 billboard advertising, 430 binding arbitration, 315, 320 “Blast! Then Refine,” 179 blogs, 460–461, 469 blue-chip stock, 585 board of directors, 117–118 Boeing Ethics Line, 62 bond funds, 595 bond indenture, 571 bonds purchasing, 604–605 types of, 570 “book and hold,” 515 boycotts, 319 634 Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it brainstorming, 179 brake-override system, 450 branches, of an exporting firm, 87 brand awareness, 371 brand equity, 371 brand extensions, 373 brand insistence, 371 brand loyalty, 371, 372 brand mark, 369 brand names, 369, 372 brand preference, 371 brand recognition, 371 branding, 370–372, 373, 391 brands, 369 choosing and protecting, 372–373 top ten most valuable, 371 types of, 370 Brazil, 78, 96 breakeven quantity, 379, 380 bribes, as unethical, 39 broad or narrow product mix, 363 broader discussion, 317, 318 brokerage e-business model, 475 brokerage firms, 532, 602 brokers, 403 budget, 557 budgeting, approaches to, 557–558 bundle pricing, 384 Bureau of Labor Statistics, on unemployment, 19 business activities of, 10–12 changing world of, 4–10 considerations for organizing, 192 credit information concerning, 541 defined, 10, 470 filing for bankruptcy, 552, 553 in a mixed economy, 16 reasons to study, 5–8 selecting type of, 100 starting your own, start-ups, closures, and bankruptcies in the U.S from 2005, 140 today in the U.S., 24–28 business analysis, of new products, 368 business buying behavior, 348, 349 business communications, presenting ethical questions, 39 business credit cards, 546 business cycle, 20–21 business development, 25–26 business environment, current, 26–27 business ethics, defined, 37 business loans, SBA’s, 150 business markets, discounts listed for, 386 business model, 473 business ownership, special types of, 121–123 business periodicals, 602 business plan components of, 100, 145–147 defined, 100 purposes of, 144–145 steps in creating, 101 business products channels for, 397 classifications, 359–360 pricing, 385–386 business profits, 11–12, 16 business reports, 494 business service, 360 business skills and knowledge, of partners, 113 business software, 165 business-to-business (B2B) model, 474 business-to-business markets, 336 business-to-business products, 359 business-to-consumer (B2C) model, 475 buying allowances, 441 buying behavior, 348–349 buying long, 596 C C shares, 594 CAFTA-DR, 84 Canada, 78 Canadian Free Trade Agreement, 84 capacity defined, 224 exceeding market demand, 225 of a production facility, 221 capital, 13 available to partnerships, 112 ease or raising for corporations, 119 limited ability to raise, 144 main ingredient in growth, 124 sources for entrepreneurs, 144 capital budget, 558 capital gain, 591 capital-intensive technology, 222 capital investments, ordinary expenses as, 515 capitalism, 14–16 captioned photograph, 442 captive pricing, 384 carbon dioxide, primary aircraft emission, 59 careers in accounting, 499 in the banking industry, 533 choosing, 5–6 in finance, 553–554 in operations management, 215 securities industry, 603 carrier, 414 cash budget, 557 cash deficit, 505 cash discounts, 386 cash flow, 555 cash rewards, for “going green,” 290 cash surplus, 505 catalog marketing, 408 catalog showroom, 404 category killers, 407 category management, 399 caveat emptor, 48 C-corporation, 115 Central American Free Trade Agreement (CAFTA), 84 Central European Free Trade Association, 79 centralized government planning, 16–17 centralized organization, 196 certificate of deposit (CD), 534, 588 certification, as a CPA, 499 Certified Financial Planner (CFP), 583 certified public accountant (CPA), 499 chain of command, 191 chain retailer, 404 Challenger space shuttle disaster, 42 change, ability to adapt to in a small business, 143 channel of distribution, 396 characteristics, of entrepreneurs, 137–138 charitable causes, donating money and food to, 36 Chartered Financial Consultant (ChFC), 583 checking accounts, 533–534 checks clearing, 529 defined, 533–534 Cheese U boot camp, 158 chief diversity officer (CDO), 250 chief executive officer (CEO), 173 chief financial officer (CFO), 553 chief operating officer (COO), 173 Children’s Online Privacy Protection Act (2000), 54 China automakers in, 70 economic growth, 78–79 growth potential in, 32 partnering strategy in, 167 steel products imported from, 75 Volkswagen joint ventures in, 94 chococycle, 419 Cigarette Labeling Act (1965), 54 circular flow, in a mixed economy, 15 Civil Rights Act (1964), 55 Civil Rights Act (1991), 265 classification, of products, 359–360 classroom teaching and lectures, 261 Clayton Antitrust Act (1914), 48 Clean Air Act, 59 Clean Air Act Amendments, 58 clean environment, paying for, 61 Clean Water Act, 57 cleaning up, short-term loans, 561 climate change, combating, 168 closed corporation, 115 closed shops, 317, 323 closed-end funds, 593, 605 cloud computing, 477 cobranded ads, 431 code of ethics, 41–42 coffee, market for single-serve, 350 cohesiveness, of teams, 295 collaborative work, at L.L.Bean, 184–185 collateral, defined, 535, 559 collective bargaining, 313–314 Columbus, Ohio, popular test marketing location, 368 command economies, 16–17 commercial banks, 531 commercial databases, 346 commercial paper, 526, 561, 563 commercialization, of new products, 368–369 commission merchants, 403 commissions, 258, 605 committees, 204 common carrier, 414 Common Market, 83 Common Market of the Southern Cone (MERCOSUR), 85 common stock, 116, 566, 572, 591 Commonwealth of Independent States, 79, 85 communal culture, 202 communication skills, of managers, 176–177 communications, presenting ethical questions, 39 communism, 17 communist countries, former, 17 communities, building in social media, 462–463 Subject Index Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 635 community involvement, as being a good corporate citizen, 99 community shopping centers, 411 companies, role in encouraging ethics, 41–44 comparable worth, 257–258 comparative advantage, 71–72 comparative advertising, 427 comparison discounting, 385 comparison other, 282 compensating balance, 561 compensation, 246 decisions, 256–257 deferred compensation, 315 defined, 256 direct, 315 types of, 258–259 competition encouraging, 52 small businesses providing, 142 types of, 21–24 competition-based pricing, 381 competitive environment, effects on business, 26 competitive forces, in the marketing environment, 342 competitors concerns of, 37 researching, 169 complaints, as opportunities for improvement, 348 component part, 360 compromises, 295 computer manufacturing systems, 233–234 computer technology, challenges for, 477–478 computer virus, 477 computer-aided design (CAD), 233 computer-aided manufacturing (CAM), 233–234 computer-integrated manufacturing (CIM), 234 concentrated market segmentation, 338, 339 concept testing, of new products, 368 conceptual skills, of managers, 7, 175–176 concert industry, U.S., 31 conferences and seminars, 261 confidentiality, threats to, 476 conflict, between two or more team members, 295 conflict of interest, 39 conglomerate merger, 126 consensus basis, for decisions, 240 consensus leaders, 177 constant dollars, 18 consultative leaders, 177 consumer advocates, 52 consumer behavior, 358 Consumer Bill of Rights, 51 consumer buying behavior, 348–349 consumer confidence index, 20 consumer convenience, packaging offering, 374 consumer credit bureaus, 543 Consumer Credit Reporting Reform Act (1997), 54 consumer demand, for safe products, 51 consumer education, 52, 53 Consumer Financial Protection Bureau, 529–530 consumer markets, 336 consumer price index (CPI), 19, 523 Consumer Product Safety Commission Act (1972), 54 consumer products, 16, 32, 359, 396–397 consumer sales promotion method, 439 consumerism, 51–54 consumers becoming better informed, buying behavior, 348–349 household members as, 16 636 protecting the rights of, 51 protection for, 543 restriction of choices, 77 consumer-to-consumer model, 475 containers, 415 contingency plan, 171 contingent deferred sales fee, 594 continual collection, of marketing data, 344 continual reinforcement, 282 continuity, lack of, 108, 114 continuous improvement, 230 continuous process, 234 continuous quality improvement, 181 contract carrier, 414 contract deadline, 314 contractual VMS, 400 control function, 172, 184 controlling, ongoing activities, 172 convenience product, 359 convenience stores, 405–406 conversion process, 215–217 convertible bond, 570–571 convertible corporate bonds, 591 convertible preferred stock, 593 cookie, 476 Cool Farm Tool, 66 cooperative advertising, 441 cooperatives, 123 core time, 288 corporate bonds, 569–571, 572, 576, 588–591 corporate charter, 116 corporate culture, 201–203 Corporate Gifting and Rewards Program, at Apple, 288 corporate growth, 124–126 corporate officers, appointed by board of directors, 118 corporate profits, 20 corporate raider, 124–125 corporate reports, 603 Corporate Service Corps, 45 corporate structure, 117–118 corporate VMS, 400 corporations, 114–120 advantages and disadvantages of, 118–120 as artificial persons, 115 conflict within, 120 forming, 115–117 performing as good citizens, 49 restating earnings, 515 rights of, 115 corrective actions expense of, 51 taking, 172 cost accounting, 499 cost comparisons, 562–563, 571–572 cost of goods sold, 506 cost savings, from hiring people with knowledge of various cultures, 249 cost-based pricing, 379, 381 cost-of-living clause, 316 Council on Foreign Relations, 27 counterfeiting, difficulty of, 524 countertrade, 89 coupons, 440 co-workers, affecting ethics, 40 craft union, 304 creative selling, 436 creativity, from cultural diversity, 249 credit available to partnerships, 112 defined, 540 credit application form, example, 542 Credit Card Accountability, Responsibility, and Disclosure Act (2009), 54 Credit Card Act of 2009, 543 credit card debt, managing, 582 Credit Card Liability Act (1970), 54 credit cards, 536 credit controls, selective, 529–530 credit information, checking, 541–543 credit management effective, 540–543 five C’s of, 541 credit reports, obtaining free, 543 credit risks, wholesalers assuming, 402 credit unions, 532 creditors, concerns of, 37 crisis management, 463 critical path, 229 cross-functional teams, 200–201, 293 cross-training, for workers, 193 crowd voting, 465–466 crowdsourcing, 465 Cuba, 17 cultural barriers, 76 cultural diversity advantages of, 249 in human resources, 249–250 cultural norms, affecting ethics, 40 cultural (workplace) diversity, 6–7 culture, of trust, 203 cumulative preferred stocks, 593 Cup Summit, 375 currency, 522, 529 currency devaluation, 76 current assets, 501–502 current liabilities, 503 current-customer sales, 436 customary pricing, 384 customer lifetime value (CLV), 333 customer needs, long-term, 185 customer orientation, adopting, 335 customer relationship management (CRM), 332–333 customer relationships, managing, 332–333 customer satisfaction, improving, 181 customer satisfaction scores, 470 customer service, personalized, 127 customer-driven production, 234 customers concerns of, 37 departmentalization by, 193–194 firing, 333 more involved in obtaining services, 218 satisfying needs of, 10–11 targeting, 463 Cuyahoga River, Cleveland’s, 58 Cyber Monday, 409 D data collecting, 492–493 compared to information, 489 defined, 489 external sources of, 493 internal sources of, 492–493 Subject Index Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it processing, 493–494 storing, 493 updating, 493 data mining, 476–477 data processing, 493–494 database, 346, 490, 492 debenture bond, 570 debit card, 536 debt capital, 551, 558 debt financing, sources of short-term, 559–563 decentralized organization, 195 decision making, 179 decision on where to incorporate, 115–116 decision-support system (DSS), 496 decline stage, of the product life-cycle, 362–363 Deepwater Horizon explosion of, 58 oil leak, 426 deferred compensation, 315 deflation, adjusting for, 18 deforestation, preventing, 168 delegation, 194 of authority, 194–195 barriers to, 195 steps in, 195, 196 deleting, products, 365 “Dell Hell,” series of rants called, 460 demand defined, 22 matching personnel supply with, 248 for a product, 376 demand curve, 376 demand deposit, 524 demand-based pricing, 379–381 democratic leaders, 177 Democrats, preferring smaller more affordable cars, 345 dense smog, geographic conditions for creating, 59 department stores, 404 departmentalization, 193–194 dependability, of transportation, 415 deposit expansion, 527 depreciation, 503 depression, defined, 21 depth, of product mix, 363 derivatives, new rules for, 181 design planning, 220 desired behavior, reward for, 288 determinants, regarding benefits, 316 devaluation, increasing cost of foreign goods, 76 development and implementation, 219 Dewmocracy campaign, 353 differential pricing, 382–383 differentiated market segmentation, 338, 339 difficulty of counterfeiting, 524 digital marketing, areas of, 465 digital media, higher use among teenagers and young adults, 353 digital merit badges, digital native, 458 digital wallet, 537 direct channel, 396, 397 direct compensation, 315 direct investment, 87–88 direct marketing, 408 direct selling, 407–408 directing, 171 direct-mail advertising, 429 direct-response marketing, 408–409 discount, 386 discount broker, 604 discount rate, 528, 529 discount stores, 404 discounting, in business pricing, 386 discretionary income, 349 disposable income, 349 dissatisfaction, of employees, 278–279 dissatisfiers, 279 distribution, of Chobani yogurt, 395 distribution fee, 594 distribution industries, 136–137 distribution ingredients, of the marketing mix, 340–341 distributors, 362, 402 “Diverse by Design” teams, 250 diversification, of a mutual fund, 593 Diversity and Inclusion Advisory Board, 250 diversity training programs, 250 dividend payments, 591 dividends, 117, 564 divisibility, of money, 524 Do Not Call Implementation Act (2003), 54 Dodd-Frank Wall Street Reform and Consumer Protection Act (2010), 54, 530, 553 Doha Round (2001), 82 dollar value, increase in, 591–592 domestic corporation, 116 domestic jobs, protecting, 77 domestic system, 25 do-not-call registries, 409 door-to-door selling, 407 double taxation, of corporations, 120 double-entry bookkeeping system, 500 Dow Jones Industrial Average (DJIA), 546, 584, 603 draft, from a bank, 86 dual role, by leader of a team, 294 dual-branded franchises, 153 dumping, 75 durability, of money, 524 E early retirement, 248 earnings statement, 504 e-business, 25–26 challenges for, 477–478 creating profit, 472–473 defined, 470 fundamental models of, 473–475 organizing resources, 470–471 satisfying new needs, 471 e-commerce, 470 economic benefits, of higher education, economic community, 83 economic crisis (2007), 3–4 economic crisis (2009), 584 Federal Reserve Board response and, 526–527 financial reform after, 553 getting money from a bank or lender after, 540–541 economic environment, 27 economic forces, in the marketing environment, 342 economic indicators, measuring a nation’s economy, 19–20 economic model, of social responsibility, 49, 50 economic performance, measuring, 17–20 economic systems differences in, 13 key issues challenging, 28 types of, 12–17 economics, defined, 12 economies, economic indicators measuring, 19–20 economy, 13 effect of productivity growth, 18 methods used to control, 529 efficiency, provided by an intermediary, 400 e-learning, Internet-based, 260 electronic business, defined, 470 electronic check conversion (ECC), 538 electronic communities, 462 Electronic Funds Transfer Act (1978), 538 electronic funds transfer (EFT) system, 537–538 electronic transfers, 529 embargo, 75 emergency fund, 583 emissions, cutting, 414 employee benefits, 259 employee empowerment, 291 employee ownership, 291–292 employee participation, 181, 230–231 employee pay, central to union-management relations, 315–316 employee relations, 246 employee stock ownership plans (ESOPs), 291–292 employee training, 260 employees being successful, 6–7 characteristics of, concerns of, 37 difficulty in hiring by sole proprietors, 109 joining unions, 311 recruiting, 466 resolving customer problems, 298 employer-sponsored retirement programs, 584 employment, small businesses providing, 141–142 employment applications, 253, 254 employment practices, 55–57 Employment Retirement Income Security Act (1974), 265, 266 employment tests, administered to job candidates, 253 empowerment, 291 enforcement, of company policies, procedures, and ethical codes, 41 enterprise resource planning (ERP), 227 entertainment empire, 32 entrepreneurial leadership, 178 entrepreneurs, 14, 137–140 accounting for first-time, 507 average age of, 138 selling a small business to a big business, 109 entrepreneurship self-tests, 139 environment, concern for, 57–61 environmental impact, minimizing, 235 environmental laws, summary of major, 58 environmental legislation, effects of, 57–60 environmental responsibility, in developing packages, 374 environments, affecting business, 26–27 Equal Credit Opportunity Act (1974), 54 Equal Pay Act (1963), 258, 264, 265 equilibrium (market) price, 22–23 equilibrium price, 377 equity, defined, 282 Subject Index Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 637 equity capital, 551, 558 equity financing, 563–567 equity theory, 282–283 esteem needs, 278 ethical behavior encouraging, 41–44 factors affecting, 39–41 ethical issues, recognizing and resolving, 37–39 ethics defined, 37 on the Internet, 476–477 ethics policies, company, 38 euro, 84 Eurofactories, 88 European Economic Community, 83 European Union (EU), 83–84 evaluation, in the MBO process, 285 evaluation techniques, for appraising employee performance, 262–263 event sponsorship, 442 everyday low prices (EDLPs), 384 exchange functions, of marketing, 332 exchange-traded fund (ETF), 593–594, 605, 607 exclusive distribution, 398 executive information system (EIS), 496 executives, commitment of top, 62 expectancy theory, 283–284 expense ratio, 594 expenses, reducing, 473 expert system, 496 export assistance, sources of, 90–91 export-import agent, 87 export-import merchant, 86 exporting, 72, 86–87 exports, U.S., 80 express warranty, 375 extension, of products, 219–220 external environment, influencing decentralization, 196 external environmental forces, affecting an e-business, 478 external recruiting, 252–253 external sources of data, 493 marketing data from, 344 extinction, managers relying on, 282 F facilitating functions, of marketing, 332 facilities planning, 222–223 factoring, 563 factors, 13–14, 562 factory system, of manufacturing, 25 Fair and Accurate Credit Transactions Act, 543 Fair Credit Billing Act (1974), 54 Fair Credit Reporting Act (1971), 54, 543 Fair Debt Collection Practices Act (1977), 54 Fair Labor Standards Act (1938), 264, 265, 309–310 Fair Packaging and Labeling Act (1966), 54 fairness, in business, 38 Family and Medical Leave Act (1993), 265 family branding, 373 family of funds, 595 family packaging, 374 family time, increased demand for, 289 feature article, 442 federal deficit, 21 638 federal funds rate, 528–529 Federal Hazardous Substances Labeling Act (1960), 54 federal regulations, specifying information for labeling, 375 Federal Reserve Board, 525, 526–527 Federal Trade Commission Act (1914), 48 feedback, more frequent and less formal, 287 finance, careers in, 553–554 finance companies, 532 financial accounting, 498–499 Financial Accounting Standards Board (FASB), 497 financial aid, wholesalers providing to retailers, 401 financial assistance, SBA’s, 150 financial benefits, of TQM programs, 181 financial coverage, of securities transactions, 599 financial data, 500, 508–510 financial information, sources of, 598–603 financial institutions, 527, 533–536 financial leverage, 568 financial management, 552–553 financial managers, 173–174, 491 financial markets, supporting, 526 financial needs, budgeting for, 557 financial performance, monitoring and evaluating, 559 financial plan, 556–559 financial planner, 583 financial ratios, 510–511 financial resources, 10, 166, 471 financial security, need for, 275 Financial Stability Oversight Council, 530 financial statements, evaluating, 508–511 financing, need for, 554–556 financing activities, cash flows from, 507–508 finished-goods inventory, 226 firing, unnecessary employees, 248 firms, information requirements, 490–491 first-line managers, 173, 176 fiscal policy, 21 five C’s of credit (character, capacity, capital, collateral, conditions), 541 fixed assets, 502–503 fixed cost, 379 fixed-position layout, 223 flat organization, 197 flexibility, from cultural diversity, 249 flexible benefit plans, 259–260 flexible manufacturing system (FMS), 234 flextime, 288–289 flotation costs, 564 FOB destination, 386 FOB origin pricing, 386 focus, of a conversion process, 216 following-up, after sales, 438 follow-up, monitoring schedules, 228 Food Quality Protection Act (1996), 58 foreign corporation, 116 foreign-exchange control, 76 form utility, 215, 333, 334 formal election, of a union, 312 formal leadership, 177 formation, difficulty and expense for corporations, 119–120 forming stage, of team development, 294 forums, 462 fragmented culture, 202 France, quotas for women directors, 118 franchise, defined, 151 franchise agreement, typical, 151, 152 franchisee, 151 advantages to, 154 obligations, 152 rights, 152 franchising, 151–152 advantages and disadvantages of, 154–155 growth of, 153–155 types of, 151–152 franchisor, 151, 154 free credit reports, obtaining, 543 free enterprise, free trade, 71 free-market economy, 15 freight forwarders, 414–415 “French pot” manufacturing method, at Graeter’s, 99 frequency, of a transportation mode, 415 frequent-flyer programs, 441 frequent-user incentive, 441 full disclosure, 606 full-scale discussion, 317–318 full-service broker, 604 full-service wholesaler, 402 function, departmentalization by, 193 functional authority, 198–199 functional middlemen, 396, 403 functional modifications, of existing products, 364 funds, identifying sources of, 558–559 G GAAPs, making comparisons possible, 497, 509 gain sharing, 258 games, on Facebook, gamification of motivation, 283 of social media, 461 Gantt chart, 228 GDP (gross domestic product) comparisons of, 18 U.S economy, 79–80 GE Foundation Developing Futures in Education program, 46 General Agreement on Tariffs and Trade (GATT), 81–85 general expenses, 506 general partners, 110 unlimited liability of, 113 generally accepted accounting principles (GAAPs), 497, 509 general-merchandise wholesaler, 402–403 generic brand, 370 generic product, 370 generic terms, 372–373 geographic pricing strategies, 386 Get Your Share (Stav), global business, 97 global economic crisis, world trade and, 82 global economic growth, 79 global environment, 26–27 global marketplace, 213–214 global perspectives, in small business, 155–156 globalization Apple as an example of, 94 expanding business opportunities, 155 reality of our time, 78 representing a huge opportunity for all countries, 80 winners and losers from, 27 Subject Index Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it goal, defined, 168 goal-setting theory, 284 going price, accepting, 22 “Going the Extra Mile” award, at REI, 296 gold, investing in, 597 goods, 358 government role in a mixed economy, 16 role in capitalism, 15 role in encouraging ethics, 41 government accounting, 499 government bank, Federal Reserve serving as, 529 government bonds, 588–591 government export assistance programs, U.S., 91 government involvement, increasing, 48 government regulation, of corporations, 120 governmental markets, 336 grapevine, 204–205 graph, example, 495 Great Depression, 25, 48 green, saving natural resources, 13 “green” audits, 487 green bonds, investing in, 589 green IT, 478 green marketing, signs of, 65 Greensburg, Kansas, 65 GreenStreet Lending program, at Umpqua, 521 gRide program, 290 grievance procedure, 317–318 gross domestic product (GDP), 18, 79–80 gross profit, 506 gross sales, 505–506 growth from within, 124 of business, 124–126 of investments, 585 plans for financing, 612–613 through mergers and acquisitions, 124–126 using structure to support, 208 growth stage, of the product life-cycle, 361–362 “Guppy Love” program, 105 H hard-core unemployed, training programs for, 56–57 Hawthorne Studies, 276–277 Haymarket riot of 1886, 304 health of citizens, protecting with trade restrictions, 77 health-care benefits, working full- or part-time, 274 higher prices, from imposition of tariffs, 77 Himalayan herders, 366–367 holding costs, 226, 412–413 honesty, in business, 38 Horatio Alger Award, horizontal merger, 125 hostile takeover, 124 hourly wage, 258 households, in a mixed economy, 16 HRM See human resources management (HRM) human factors, responsible for experiment results, 277 Human Proteome Folding Project, 45 human relations movement, in management, 277 human resource managers, 491 human resources, 10, 166, 222–223, 470 cultural diversity in, 249 importance of an organization’s, 171 maintaining, 246 human resources demand, forecasting, 247 human resources management (HRM) legal environment of, 264–267 phases of, 246 responsibility for, 246–247 human resources managers, 174–175 human resources planning, 246, 247–248 human resources supply, forecasting, 248 The Human Side of Enterprise (McGregor), 279 Hurricanes Katrina and Rita, small businesses affected by, 150 hygiene factors, 279 I idea generation, 366–367 identity theft, 477, 536 imitations, 366 immediate-response advertising, 427 import and export transactions, paying for, 539 import duty, 75 import quota, 75 importing, 72 inbound marketing, 464 incentive payments, 258 income, types of, 349 income and wealth, inequality of, 20 income levels, for whites, blacks, Hispanics, and Asians, 55 income statement, 504–506, 507 incorporation process, beginning by consulting a lawyer, 115, 116 independence, in a small business, 143 independent retailer, 404 index funds, 595 India, 78, 88 individual branding, 373 individual factors, affecting ethics, 40 individual knowledge, affecting ethics, 40 individual wages, 257 industrial markets, 336 industrial products, 359, 445 industrial union, 305 industries attracting small businesses, 136–137 protecting new or weak with trade restrictions, 77 inflation, 18, 523 inflation rate, 20 infomercial, 430 informal groups, 204 informal leadership, 177 informal organization, 204 information, 10, 166 defined, 489, 500 described, 487–488 presenting, 494–495 providing in a promotion, 444 risk and, 488 rules, 489 information technology system (IT system), 490 informational resources, 471 infringement, on an existing brand, 372 initial public offering (IPO), 563–564 injunction, 310 innovations, 12, 141, 214, 366 inputs, contributed to the organization, 282 input-to-outcome ratio, 282 inside order-takers, 436 insider trading, 606 insourcing, 214 inspection, of work-in-process, 230 institutional advertising, 427–428 institutional markets, 336 in-store retailers, classes of, 404–407 insurance companies, 532 insurance packages, 259 intangible assets, 503 integrated marketing communications, 425 intensive distribution, 398 Intergovernmental Panel on Climate Change, 59 intermediaries, 374, 395 intermittent process, 234 internal environmental forces, in an e-business, 478 internal recruiting, 253 internal sources of data, 492–493 marketing data from, 344 International Accounting Standards Board, 497 international banking services, 538–539 international business basis for, 71–74 extent of, 78–80 financing, 91–94 methods of entering, 85–90 restrictions to, 74–77 international economic organizations, working to foster trade, 83–85 International Financial Reporting Standards (IFRS), 497 International Franchise Association, 155 international markets exporting to, 86–87 steps in entering, 90 international resources, misallocation of, 77 international trade, 70, 73 international trade agreements, 81–85 International Trade Loan program, SBA’s, 156 Internet advertising on, 431 affecting ethics, 40 conducting job searches on, 252 creating new customer needs, 471 crime, 477 ethics on, 476–477 financial information on, 598 growth potential, 476 as a major force in economy, 25 making marketing information easily accessible, 347 marketing on, 372 relationship marketing and, 332 selling merchandise on, 472 social responsibility on, 476–477 Internet business, starting a new, 473 internships, unpaid, 203 interpersonal skills, of managers, 7, 176 Interstate Commerce Act (1887), 48 interstitial ads, 431 interview questions, difficult to answer, 255 interviews, 254–256 intranets, 347 introduction component, of a business plan, 100, 102 introduction stage, of the product life-cycle, 361 inventories, 226, 561, 562 inventory control, 226–227 inventory costs, wholesalers reducing, 402 inventory management, 412–413 inventory turnover, 510–511 Subject Index Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 639 investing activities, cash flows from, 507 investment alternatives, conservative, 588–591 investment banking firms, 532, 564 investment decisions, factors improving, 586–588 investment goals, 582–583 investment growth, 585–586 investment income, 585 investment liquidity, 586 investment process, your role in, 588 investment program, monitoring the value of, 584 investment techniques, most speculative, 596–597 investments alternatives, 586 buying and selling, 603–606 frozen in a partnership, 114 more speculative, 591–597 return on, 378 investor relations, in social media era, 565 investors, 8, 37 invisible hand, 14 Iran, embargoes against, 75 Iron Man 3, with a Chinese plot twist, 32 Isenberg Entrepreneur Test, 139 ISO 9000, 231 ISO 14000, 231 issue resolution rate, 470 J Japan, projected growth, 78 job analysis, 246, 251–252 job applicants, attracting qualified, 252 job description, 251 job design, 192–193 job enlargement, 287 job enrichment, 287–288 job evaluation, 257 job posting, 253 job redesign, 288 job rotation, 192–193 job security, 316 job sharing, 289–290 job specialization, 192–193 job specification, 251–252 jobbers, 402 jobs, loss of from trade restrictions, 77 joint ownership, 539 joint ventures, 87, 123 judgmental appraisal methods, 263 jurisdiction, of a union, 313 just-in-time (JIT) approach, 413 just-in-time (JIT) inventory system, 227 K Kefauver-Harris Drug Amendments (1962), 54 Kennedy Round (1964–1967), 81–82 key performance indicators (KPIs), 469–470 keywords, purchasing on search engines, 431 Kimpton EarthCare plan, 127 Kindle, inventing, 185 kiosks, opened by Dell, 420 “Know Your Enemy” internal site, 169 knowledge management (KM), 489–490 L label, 375 labeling, 375 640 labor, 13 labor contract, 303, 313–314 labor organizations, evolution of contemporary, 305–306 labor relations, 303 labor unions, 48, 303 labor-intensive technology, 222 labor-management legislation, 309–311 Labor-Management Relations Act, 264 Labor-Management Relations Act (1947), 265, 310 laissez faire capitalism, 14, 15 land and natural resources, 13 land pollution, 60 Landrum-Griffin Act, 310–311 Latin America, projected growth rates, 78 laughter yoga classes, 259 lawsuits, product liability, 51 leadership, 177–178 leadership succession plan, 180 leading, 171 lean manufacturing, 232 legal and regulatory forces, in the marketing environment, 342 legal monopoly, 24 letter of credit, 86, 538–539 liabilities, 500, 503–504 licensing, 85–86 lifestyle shopping centers, 411 limit order, 605 limited liability of corporations, 119 for malpractice of other partners, 113 limited monopoly, 24 limited partners, 110–111, 113 limited partnerships, 110, 113 of unions and management, 308 limited potential, of small businesses, 144 limited-liability company (LLC), 105, 121–122 advantages and disadvantages of, 122 taxed like a partnership, 120 limited-liability partnership (LLP), 113 limited-line retailers, 406 limited-line wholesaler, 403 limited-service wholesaler, 403 line authority, 198 line extensions, 364–365, 373 line managers, 198 line of credit, 535 line-and-staff structure, 198 liquidity of an asset, 501 providing, 526 load charge, for mutual funds, 594 load flexibility, 415 load funds, 594, 605 loans basics of getting, 569 secured by inventory, 562 secured by receivables, 562 short- and long-term, 534–535 local time, on a single TV station, 430 location, departmentalization by, 193 lockouts, 320 logo, redesigning, 452 “long” product line, 221 long-range strategic partnerships, 308 long-term business loans, 535 long-term debt financing, sources of, 568–572 long-term financing, 554, 556 long-term liabilities, 503 long-term loans, 568–569, 572 loss, 11, 505 lower-level managers, abilities of, 196 lump-sum salary increases, 258 Lupron cancer drug, 37 M M1 supply of money, 524–525 M2 supply of money, 524–525 macroeconomics, 13 “Made in America,” 76, 214 “Made in the United States” label, 27 magazines, advertising in, 429 magnitude of a conversion process, 216–217 of pay, 315–316 Magnuson-Moss Warranty-Federal Trade Commission Act (1975), 54 MainStreet Lending program, at Umpqua, 521 maintenance shop, 317 major equipment, 359–360 major events, shaping nation’s economy from 1940 to 2000, 25 Malcolm Baldrige National Quality Award, 229 male and female workers, relative earnings of, 56 malware, 477 managed funds, versus indexed funds, 594–595 management areas of, 490 defined, 165 functions, 166, 167–172 levels of, 172–173 resources of, 166 rights retained by, 317 span of, 196–198 Management Assistance Program, SBA’s, 147–148 management by objectives (MBO), 285 management courses, offered by SBA, 148 management development, 260 management disagreement, in partnerships, 113–114 management functions, management information system (MIS), 490–491 employees using, 492–496 size and complexity of, 491 management process, functions of, 167 management skills improving, 7–8 limited for sole proprietors, 109 management specialization, areas of, 173–175 managerial accounting, 498 managerial decision making, 179–181 managers coordinated effort of all three levels of, 173 formal training program for, 127 key skills of successful, 175–177 kinds of, 172–175 skills of, managing, total quality, 181–182 manufacturer (producer) brand, 370 manufacturers U.S., 213–214 wholesalers’ services to, 401–402 manufacturer’s agents, 403 manufacturer’s sales branch, 403 manufacturer’s sales office, 403 manufacturing businesses, 10 manufacturing facilities, 59 Subject Index Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it margin, 530 margin call, 597 margin requirement, 597 market coverage, level of, 397–398 market demand comparing with capacity, 223–224 estimating, 223 exceeding capacity, 225 market economy, 15 market information, wholesalers and, 401, 402 market order, 604–605 market price, 23 market segment, 339 market segmentation, 339, 340 market segmentation approach, 338, 339 market segments, measuring sales potential of, 343 market value, 591 marketable securities, 501 marketing, defined, 331 marketing channel, 396 marketing concept, 334–336 marketing edge, from cultural diversity, 249 marketing environment, forces in the external, 342 marketing information, 344–348 marketing information system, 344 marketing intermediaries, 10, 396 retailers, 403–410 wholesalers, 400–402 marketing managers, 174, 491 marketing mix, 337, 340–341 marketing plan components of, 343 defined, 342 developing, 342–343 marketing process, functions in, 331, 332 marketing research, 344–346 marketing strategies, developing, 337 marketing-communications mix, 424 markets, 336 market-share goals, pricing and, 378 markup, 379 Maslow’s hierarchy of needs, 277 mass production, 215 Massachusetts Export Center, 156 mass-media advertising, used less today, 425 master limited partnership (MLP), 111 material resources, 10, 166, 470–471 materialism, promotion encouraging, 446 materials handling, 414 materials requirements planning (MRP), 227 matrix structure, 199–201 maturity date, 570 maturity stage, of the product life-cycle, 362 m-commerce, 474 measure of value, 522 measuring actual performance, 172 Meat Inspection Act (1906), 48 media, 32 media plan, developing, 433 media sharing sites, 461 mediation, 320 medium of exchange, 522 mercenary culture, 202 merchandise inventory, 502 merchant, 396 merchant middleman, 396 merchant wholesalers, 402–403 merger, 124, 125 trends for the future, 126 merit pay, 258 messenger market, for bicycles, 353 Mexico, projected growth rates, 78 Mickelson ExxonMobil Teachers Academy, 46 microeconomics, 13 microloans, 535 middle managers, 173 middleman, 396 millennials, 463–464 minimum wage, federal, 309 Minority Business Development Agency, 148 minority groups, 55 minority-owned small businesses, 148–149 Mint.com Web site, 582 mission statement, 114, 167 General Motors, 168 missionary salesperson, 436 mixed economy, 15 mixed interview, for employee performance, 264 mobile banking, via text message or apps, 537 Moldova, economic growth, 79 monetary policies, 21 monetary policy, 527 money characteristics of, 524 defined, 522 functions of, 522–523 supply of, 524–525 money management, steps for effective, 581–582 money supply, 528, 529 monopolistic competition, 23–24 monopoly, 24 monthly salary, 258 morale, defined, 275 mortgage bond, 570 mortgage payable, 503 most-favored-nation status (MFN), 81 motivating, 171 motivation contemporary views on, 282–284 defined, 275 high level of employee, 274 historical perspectives on, 275–282 key techniques, 285–292 no-cost/low-cost techniques, 286 to start a business, 138 motivation factors, 279 motivation-hygiene theory, 279 motivations, different, 171 motive, 275 Motor Vehicle Safety Act (1966), 54 motor vehicles, carbon monoxide and hydrocarbon emitted by, 59 multilateral development bank (MDB), 92 multimedia content, uploading, 461 multinational corporations, recruiting, 245 multinational enterprise, 89–90 multiple channels, for consumer products, 396–397 multiple-unit packaging, 374 multiple-unit pricing, 383 municipal bond (muni), 589 music videos, venue for product placement, 430 mutual funds basics, 593–594 purchasing, 605–606 selling shares in, 580 types of, 593 mutual savings banks, 532 mutual-fund investments, types of, 595 My Product Placement, 430 N narrow span of management, 197 National Association of Publicly Traded Partnerships Web site, 111 national banks, 531 national debt, 20, 21 national do-not-call registry, 409 National Environmental Policy Act (1970), 58 National Export Initiative (NEI), 90–91 National Franchise Mediation Program, 155 national goals, for production, 17 national income, 20 National Labor Relations Act (1935), 264, 265, 309 National Math and Science Initiative, 46 national security, protecting with trade restrictions, 77 nations economic health of, 17 economic systems of, 12–17 natural monopoly, 24 natural resources, 13 needs businesses satisfying, 10–11 hierarchy of, 277 satisfaction of on the job, 275 satisfying online, 471–472 negative balance of trade, 73 negative profit, 11 negative reinforcement, 281 negotiated pricing, 383 negotiating tools, union and management, 318–320 neighborhood shopping centers, 411 net asset value (NAV), 594 net income, 506 net loss, 506 net sales, 506 net worth, 501, 581 network structure, 201 network time, buying on television, 430 networked culture, 202 neuroscience, using for marketing research, 346 new housing starts, 20 new products pricing strategies, 382 process of developing, 366, 367 top ten since 2000, 365 new-business sales, 436 news releases, 442, 443 newspapers, advertising in, 428 NLRB certification, of a union, 312 Noise Control Act (1972), 58, 60 noise pollution, 60 no-load fund, 594, 605 non-disparagement clause, 324 nonparticipant role, on a team, 294 non-price competition, 377 nonstore retailing, kinds of, 407–410 nontariff barriers, 75 norming stage, of team development, 294 Norris-LaGuardia Act (1932), 309 North American Free Trade Agreement (NAFTA), 84 North Korea, 17, 75 Norway, 118 notes payable, 503 notes receivable, 502 not-for-profit accounting, 499 Subject Index Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 641 not-for-profit corporation, 122–123 NOW (negotiable order of withdrawal) accounts, 534 nurses’ unions, banding together, 324 Nutrition Labeling and Education Act (1990), 54 Nuts about Southwest blog, 261, 460 O objections, answering, 438 objective appraisal methods, 262 objectives, defined, 557 Occupational Outlook Handbook, 533 Occupational Safety and Health Act (1970), 265, 266 Occupy Wall Street protestors, 20 odd-number pricing, 383 Office of the U.S Trade Representative, 84 off-price retailers, 407 Ohio, limiting collective bargaining by public-sector unions, 310 Oil Pollution Act (1990), 58 oligopoly, 24 ongoing costs, 564 online applications, 253 online banking, 537 online games, as big business, 28 online information services, 346–347 online marketing, areas of, 465 online networking, online presence, building for an existing business, 473 online retailing, 409 online tests, pre-employment, 255 online videos, adding vitality to marketing mix, 342 onshoring, 214 on-the-job training methods, 261 OPEC (Organization of Petroleum Exporting Countries), 85 open corporation, 115 open-end funds, 593, 605 open-market operations, 528 operating activities, cash flows from, 507 operating expenses, 506 operational plan, 171 operational planning, 223–225 operations control, 225–231 operations management, 212, 213, 215 operations managers, 174, 213, 491 opportunities as factors affecting ethics, 40–41 identifying, 179 listening for on social media, 467 in a SWOT analysis, 168–169 optimization, of conflicting goals, 168 opt-out mechanism, 409 oral communication skills, 176 order processing, 413 order-getters, 436 order-takers, 436 organization, defined, 190 organization charts, developing, 190–192 Organization of Petroleum Exporting Countries (OPEC), 85 organizational goals and objectives, establishing, 557 organizational height, 197–198 organizational meeting, to form a corporation, 117 organizational relationships, creating ethical problems, 38 organizational structure, forms of, 198–201 642 organized effort of individuals, in a business, 10 organizing, 171 organizing campaign, for a union, 311 orientation, of new employees, 246, 256 original grievance, 317, 318 outcomes, rewards from the organization, 282 out-of-home advertising, 430 output per hour, nations with largest increase in, 232 output quota, 276 outside (field) order-takers, 436 outsourcing, 471 over-the-counter (OTC) market, 565 overtime, negotiating, 316 owners, risk of not being paid, 12 owners’ equity, 500, 501, 503–504 ownership ease of transfer of for a corporation, 119 of factors of production, 13 of products, 396 sole proprietor’s pride in, 107 P package design, considerations, 374–375 packaging, 373–375 parcel post delivery, 415 parks and resorts, 32 participative decision making, emphasis on, 281 participative leadership, 177, 178 partners, types of, 110–111 partnership agreement, 111, 112 partnerships, 110–114, 120 part-time work, 289 “party plan,” direct selling through, 407–408 passbook savings accounts, 534 pass-through taxation, for an LLC, 121 patent, as an asset, 503 pay, magnitude of, 315–316 pay determinants, 316 pay for time not worked, 259 pay-per-view e-business model, 475 peak period (prosperity), 20 penetration pricing, 382 pension and retirement programs, 259 pension funds, 532 People’s Republic of China, 75 Pepsi Refresh Project, 463 perfect (pure) competition, 22–23 performance, factors affecting a corporation’s, 514–515 performance appraisal, 261–264 performance feedback, 263–264 performing stage, of team development, 294 periodic discounting, 383 perpetual life, of a corporation, 119 personal balance sheet, 581 personal budget defined, 505 developing, 581–582 personal finances, managing, 581–584 personal goals, affecting ethics, 40 personal income, 349 personal income statement, 581 personal investment, 582, 584–586 personal investment program, 583–584 personal relationships, with customers and employees, 143 personal selling, 426, 436–438 personal values, affecting ethics, 40 personnel management, 246 PERT (Program Evaluation and Review Technique), 228–229 photo sharing, by companies, 461 physical distribution, 332, 412–416 physiological needs, 277 picketing, 319, 323 pie chart, example, 495 piece-rate system, 276 piggyback, 416 pink slips, 20 pipelines, 415, 416 place utility, 333–334 “Plan to Win,” 180 planned shopping centers, 410–411 planning as basis of financial management, 556–559 by managers, 167–171 planning horizon, selecting, 223 planning skills, at L.L Bean, 184 plans defined, 170, 556 types of, 170 plant layout, 223 plastic packaging, not biodegradable, 374 podcasts, 461 point-of-purchase display, 441 point-of-sale (POS) terminals, 538 poison pills, 125 political forces, in the marketing environment, 342 pollution, 57 Pollution Control Board of Kerala in India, 57–58 Pollution Prevention Pays (3P) program, 60 porcupine provisions, 125 portability, of money, 524 portfolio management, 587 positioning, a product, 444 positive problem, 179 positive reinforcement, 281 possession utility, 334 “PowerPitch” contest, 487 pre-employment testing, 255 preferred stock, 116, 117, 566, 572, 592–593 premium pricing, 385 premiums, 441 prepaid expenses, 502 presentation of information, 494–495 making, 438 press conference, 442 price buyers’ perceptions of, 377 meaning and use of, 375–376 supply and demand affecting, 376–377 price competition, 377 in oligopoly, 24 price differentiation, 380 price floor, establishing, 378–379 price leaders, 385 price lining, 385 price-check app, from Amazon, 381 pricing business products, 385–386 cost-based, 379 demand-based, 379–381 Subject Index Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it methods, 378–381 products, 375–377 strategies, 381–385 pricing ingredient, of the marketing mix, 340, 341 pricing objectives, 378 pride of ownership, in a partnership, 112–113 primary boycott, 319 primary market, 564 primary-demand advertising, 427 prime interest rate, 20, 560 privacy, threats to, 476 privacy policies, 53 private accountant, 499 private brand, 370 private carrier, 414 private placement, 567 private warehouses, 414 problem, identifying, 179 problem solving, from cultural diversity, 249 problem-solving approach, 263 problem-solving teams, 292 process layout, for a plant, 223, 224 process material, 360 processing, data, 493–494 producer markets, 336 producer price index (PPI), 19 producer to agent middleman to business user channel, 397 producer to agent to wholesaler to retailer to consumer channel, 396 producer to business user channel, 397 producer to consumer channel, 396 producer to retailer to consumer channel, 396 producer to wholesaler to retailer to consumer channel, 396 product, departmentalization by, 193 product deletion, 365 product development phase, 368 product differentiation, 23, 24, 377, 387 product ideas, generating new, 465–466 product ingredient, of the marketing mix, 340, 341 product layout, 223 product life-cycle, 219, 360–363 product line, 220–221, 363 product mix, 363, 364–369 product modifications, 364 product placement, marketers employing, 430 product safety, reasons for concern about, 51 production, 213–215, 220–225 production capacity, required, 221 production industries, 137 production orientation, of business, 335 production processes, number of, 217 productivity defined, 18 improving, 18, 232–235 increases in, 214 trends, 232 productivity growth, improving, 232–233 product-liability lawsuits, 51 product-line pricing, 382, 384–385 products, 358 adjusting to meet demand, 224–225 classification of, 359–360 developing new, 365–369 extension and refinement, 219–220 failure of, 369 managing existing, 364–365 pricing, 375–377 professional advisory services, 599 profit, 11–12, 505 profit maximization, pricing for, 378 profits, retention, 107, 113 profit-sharing, 258–259 Project Glass, 366 project manager, 200 promissory note, 560, 563 promotion, 424 criticisms of, 445–446 deceptive, 446 to higher-level positions, 253 marketing objectives and, 444 role of, 425–426 by wholesalers, 401 promotion ingredient, of the marketing mix, 341 promotion mix, 424 developing, 444–445 overview, 426–427 promotional activities, effectiveness of, 426 promotional campaign, 443 promotional pricing, 382, 385 promotional resources, in an organization, 445 promotional role, of packages, 374 prospecting, 438 prospects approaching, 438 locating, 436 protection, for consumers, 543 protective tariffs, 75 proxy, voting by, 117 proxy fight, 124–125 psychological factors, buying process influenced by, 349 psychological pricing, 382, 383–384 public accountant, 499 public relations, 426, 442–443 public utilities, 24 public warehouses, 414 publications, SBA’s, 149 publicity, defined, 442 publicly traded partnership (PTP), 111 public-relations tools, types of, 442 public-sector unions, limitations on, 310 punishment, 282 purchasing, 225–226 purchasing power, effect of inflation on, 523 Pure Food and Drug Act (1906), 48 purpose statement, 114 Q QR (quick response) codes, 474 qualified individual, with a disability, 266 qualitative social media measurement, 470 quality buyers relating price to, 377 techniques to improve, 230 quality circles, 230 quality control, 229–231 quality modifications, of existing products, 364 quality services, planning, 217–218 quantitative measurements, for selected social media Web sites, 469 quantitative social media measurement, 469–470 quantity discounts, 386 quotas, as unconstitutional, 56 R radio, advertising on, 430–431 railroads, 415, 416 random discounting, 383 rate of return, 585 ratification, 314 rating scale, for employee appraisals, 263 raw materials, 10, 359 raw-materials inventory, 226 real (currency), appreciation of Brazil’s, 96 real estate, 595–596, 605–606 real GDP, measuring, 18 reasonable accommodation, 266–267 rebates, 439 receivables of a firm, 502 loans secured by, 562 recession, 20–21 recognition need for, 275 pay increased as a form of, 279 record keeping, simplified in a small business, 143 recovery (expansion), 21 recruiting, 252–253 employees, 466 for positions, 246 reference pricing, 383–384 references, furnished by job candidates, 256 refinement, of products, 219–220 “Refresh Everything” campaign, 463 Refresh Project, 353–354 regional shopping centers, 411 registered bond, 570 registered representative, 604 registered trademark symbol ®, 372–373 registration, protecting trademarks, 372 regular corporation, 115 reinforcement theory, 281–282 reinventing, a company, 165 reinvestment, of earnings, 566 relationship marketing, 332, 333 relevancy, of data, 492 reminder advertising, 427 replacement chart, for personnel, 248 reports, required for corporations, 120 Republicans, opting for larger, pricier cars, 345 reputation management, 463 research and development (R&D), 219 research projects, clear expectations for, 208 reseller markets, 336 reserve requirements, regulation of, 527–528 reshoring, 214 residuals, to scriptwriters, 323 resolution time, 470 Resource Conservation and Recovery Act (1984), 58 resource owners, members of households as, 16 Resource Recovery Act (1970), 58 resources kinds of, 10, 165–166 used by businesses, 471 responsibility, assigning, 195 restrictions, to international business, 74–77 résumés, submitting, 253 Subject Index Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 643 retail kiosks, opened by Dell, 420 retailers, 396, 403–410 top ten largest U.S., 405 using newspaper advertising extensively, 428 wholesalers services to, 401 retained earnings, 504, 566 return on investment (ROI), 378 return on sales (or profit margin), 510 revenue stream, 472 revenue tariffs, 75 revenues, 505–506, 507 reverse discrimination, 56 revolving credit agreement, 535, 576 right to be heard, 52 right to be informed, 51–52 right to choose, 52 right to safety, 51, 52 risk associated with investments, 585 of failure for small businesses, 143–144 information and, 488 risk-return ratio, 556 robotics, 233 role-playing, 261 roles, within a team, 294 routing, of materials, 227 S safety in an investment, 584–585 right to, 51, 52 Safety and Environmental Assurance Center, 212 safety needs, 277 salaries, 56, 258 salaries payable, 503 sale, closing, 438 sales, stabilizing with promotional efforts, 444 sales agents, 403 sales force, wholesalers providing, 401–402 sales forecast, 343–344 sales managers, responsibilities of, 438 sales offices, of an exporting firm, 87 sales promotion, 426, 439–441 sales revenue exchanged for additional resources, 16 increasing, 472 relationship with profit, 11 sales support personnel, 436 salespersons, kinds of, 436–437 salt, reducing in snacks, 353 samples, 440 SAP Developer Network, 291 Sarbanes-Oxley Act (2002), 41, 42, 497, 498, 515, 606 satisfaction, of employees, 278–279 “satisfice,” making decisions that, 180 satisfiers, 279 Saudi Arabia, 71 savings accounts, 534 savings and loans associations (S&Ls), 532 savings bonds, 590 scarcity, dealing with, 13 scheduling, materials and resources, 227–228 school lockers, personalizing, 134 scientific management, 275–276 S-corporations, 121–123 advantages and disadvantages of, 122 Graeter’s as, 161 644 taxed like a partnership, 120 screening, of new product ideas, 367–368 scriptwriters, compensation for, 323 search engines optimization, 465 on the Web, 598 seasonal discounts, 386 secondary boycott, 319 secondary information, sources of, 347 secondary market, 565 secondary-market pricing, 383 secrecy, lack of for open corporations, 120 secured loan, 563 Securities Act of 1933, 606 securities exchange, 565 Securities Exchange Act of 1934, 606 securities industry, careers in, 603 securities trading, regulation of, 606 securities transactions, margin requirements for, 530 security, 316–317 security averages, 603 security index, 603 segmentation bases, variety of, 339–340 selection, 246, 253–256 selective distribution, 398 selective-demand (brand) advertising, 427 self-actualization needs, 278 self-managed teams, 292–293 selling expenses, 506 selling short, 596–597 Semi-Automatic machine, 410 seniority, 316 sense of involvement, of workers, 277 sentiment analysis, 470 serial bonds, 571 service, right to, 52 service businesses, 10, 26 service economy, 26, 217 service industries, 137 services, 358 adjusting to meet demand, 224–225 consumed immediately, 218 evaluating the quality of a firm’s, 218 increasing importance of, 217–218 labor-intensive, 218 setting standards, 172 “Shared Planet” program, 168 shares of ownership, of a corporation, 115 shark repellents, 125 Sherman Antitrust Act (1890), 48, 309 shop steward, 317 shopping centers, planned, 410–411 shopping product, 359 “short” product line, 221 short-term business loans, 534 short-term financing, 554–555 comparison of methods, 563 sources of secured, 561–562 sources of unsecured, 559–561 sign advertising, 430 significant others, affecting ethics, 40 simulations, 261 single (or individual) ownership, 539 single-line retailers, 407 single-source data, 346 sinking fund, 571 site selection, 222–223 situational factors, buying process influenced by, 348, 349 skills inventory, 248 slowdowns, 319 Small Business Saturday, 405 Small Business Training Network (SBTN), 148 small businesses advantages of remaining small, 142–143 defined, 135 disadvantages of, 143–144 global perspectives, 155–156 importance in U.S economy, 135, 140–142 industries attracting, 136–137 minority-owned, 148–149 prone to failure, 140 providing capital to, 546 during the recession, 150–151 size standards, 135 solving unemployment problems, 142 small-business development centers (SBDCs), 149 small-business firms, failure of, small-business investment companies (SBICs), 150 small-business owners, teenagers as, 139 small-business sector, 135–136 smart decisions, making, 496 smoking-cessation program, 259 social acceptance, of a group, 277 social audit, 62 social content sites, 460 social customer, segmenting and targeting, 467–468 social entrepreneurs, 61 social factors, 40, 349 social games, 461–462 social media achieving business objectives through, 462–466 as an advertising medium, 432 building relationships with customers, 218 businesses using, 459–460 challenges for, 477–478 communities, 462–463 defined, 27 Dell use of, 420 described, 458–459 employee use of, 180 games, 28 importance of, 458–460 labor unions using, 307 making a good impression, 466 as a means of marketing research, 347–348 policy, 261 Raleigh active in, 353 reasons for using, 459 reviews and ratings on, 461 small businesses marketing on, 372 timeline of, 458 tools for business use, 460–462 types of individuals using, 467 social media marketing, 464–465 social media measurement, types of, 469–470 social media objectives, establishing, 467 social media plan developing, 467–470 implementing and integrating, 468–469 measuring and adapting, 469–470 steps to building, 467–469 social media sites advancing your career, for professionals, 245 Subject Index Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it social media tools, selecting, 468 social needs, 278 The Social Network (movie), 483 social networking sites, highlighting product-related problems, 450 social responsibility, 44–47 arguments for/against increased, 50 developing a program of, 61–62 evolution of in business, 47–48 funding the program, 62 historical evolution of business, 47–48 implementing a program of, 61–62 on the Internet, 476–477 pros and cons of, 49–50 views of, 49–50 social responsibility record, of a firm, 12 Social Security account, 259 socialism, 17 socialist nations, transitioning to a free-market economy, 17 society, impact of business decisions on, 49 sociocultural forces, in the marketing environment, 342 socioeconomic model, of social responsibility, 49, 50 socioemotional role, on a team, 294 solar panel, rotating, 61 soldiering, 275 sole proprietors, completely free to make decisions, 108 sole proprietorships, 106–109, 120 solutions, implementing and evaluating, 180–181 Spain, 118 span of control, 196–198 span of management, 196–198 special events, sponsoring, 442 special-event pricing, 385 specialization, 25, 192 specialized management, of corporations, 119 specialty product, 359 specialty-line wholesaler, 403 speculative production, 555 speed, of transportation, 415 sponsoring, an entire TV show, 430 sponsorship ads, 431 spot time, buying on television, 430 stability, of money, 524 staff managers, 198, 199 staff positions, 191 staffing, 246 stakeholders, 12, 298, 463 Standard & Poor’s 500 Stock Index, 587, 603 standard of living, 24 standardization, achieving through consensus agreement, 231 standing committee, 204 start-up, ease of for partnerships, 111–112 start-up and closure, of sole proprietorships, 107 state banks, 531 statement of cash flows, 507–508 statement of financial position, 500 statement of income and expenses, 504 states, top ten merchandise-exporting, 72 statistic, 494 statistical process control (SPC), 230 statistical quality control (SQC), 230 status, brands symbolizing, 371 status-quo pricing, 378 stock, 115 advantages of selling, 564 buying on the margin, 597 purchasing, 604–605 types of, 565–566 stock dividend, 591 stock funds, 595 stock options, 291 stock splits, 592 stock transaction, steps in, 604 stockbroker, 604 stockholders, 115 stockholders’ equity, 501, 503–504 stockholders’ rights, 116–117 stock-out costs, 226, 412–413 storage costs, 226 store (private) brand, 370 store of value, 522 storing, data, 493 storming stage, of team development, 294 strategic alliances, 88 strategic plan, 170 strategic planning process, 167–168 strategic union-management partnerships, 308 strengths, in a SWOT analysis, 168 stress tests, of major banks, 527 strike fund, 319 strike vote, 314 strikebreakers, 320 strikes, 304–305 rare during first contract negotiations, 314 by unions, 318–319 structured interview, 254, 256 studio entertainment, 32 subscription and pay-per-view e-business models, 475 success rate, for franchises, 153–154 SunSaluter, 61 Superfund, 60 supermarkets, 406 superstores, 406 Supplemental Terrorist Activity Relief program, 150 Supplier Diversity Program, 225 supplier partnerships, strengthening, 181 suppliers, selecting factors, 226 supply defined, 22 matching with demand for personnel, 248 of a product, 376 supply (business product), 360 supply curve, 376 supply of money, size of, 21 supply-chain management, partnering through, 399 survival, pricing products for, 378 sustainability, 234–235 concept of, 27 McDonald’s involvement in, 97 as part of corporate culture, 203 Sweden, 118 “Sweet Rewards” program, at Graeter’s, 452–453 swine flu, protecting nurses against, 323, 324 SWOT (strengths, weaknesses, opportunities, and threats) analysis, 168, 343 syndicates, 123–124 synthetic process, 215 T tables, 494–495 tablet computers, 496 tabular displays, 494–495 tactical plan, 170 Taft-Hartley Act, 310 Tajikistan, economic growth, 79 “Take the R for Tomorrow,” 203 “Talk to Chuck” promotional campaign, 566 tall organization, 197 target audience, identifying and analyzing, 432–433 target behavior, identification of, 288 tariffs, 75 task force, 204 task-specialist role, on a team, 294 tax accounting, 499 taxes collected by governments, 16 on partnerships, 113 payable, 503 on sole proprietorships, 107–108 team development, stages of, 294 teams, 292 benefits and limitations of, 295 cohesiveness of, 295 competition with other, 295 developing and using effective, 293–294 roles within, 294 types of, 292–293 technical innovation, provided by small businesses, 141 technical salesperson, 437 technical skills, of managers, 7, 176 technological displacement, 235 technological forces, in the marketing environment, 342 technology gathering and analyzing marketing information, 346–348 improving productivity with, 232–235 use of, 222 technology environment, for U.S businesses, 27 technology events, timeline of, 458 technology services, sale of, 165 teenagers, as small-business owners, 139 telecommuting, 290–291 telemarketing, 409 Telephone Consumer Protection Act (1991), 54 television, advertising rates, 430 television home shopping, 409 tell-and-listen approach, 263 tell-and-sell feedback interview, 263 tender offer, 124 term-loan agreements, 569 test marketing, of new products, 368 Thailand, 75 theme parks, 32 Theory X, 279, 280 Theory Y, 279, 280 Theory Z, 280–281 threats, in a SWOT analysis, 168–169 360-degree evaluation, 264 time deposit, 524 time factor, for investment, 587 time utility, 334 timing function, for production scheduling, 227–228 Title VII of the Civil Rights Act (1964), 265 tobacco companies, lawsuits against, 37 Tokyo Round (1973-1979), 81–82 “Top 100 Companies to Work For,” 275 Subject Index Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it 645 top management, commitment to a TQM program, 181 top managers, 62, 172–173 total cost, 379 total quality management (TQM), 181, 230 total revenue, 379 totally owned facilities, 87–88 toxic pollutants, effects of, 57 Toyota Way, 230 trade, world economic outlook for, 78–80 Trade Act of 2002, 71 trade associations, role in encouraging ethics, 41 trade credit, 560, 563 trade deficit, 73 trade discounts, 386 trade name, 370 trade restrictions reasons against, 77 reasons for, 76–77 types of, 75–76 trade sales promotion method, 439 trade salesperson, 437 trade shows, 441 trademark, 369–370 trading companies, 89 traditional channel, 396 traditional specialty stores, 406–407 training and development, 260–261 transfer pricing, 386 transferring, from one position to another, 253 Trans-Pacific Partnership (TPP), 85 transportation, 414–416 transportation modes, criteria for selecting, 415 treasury bill (T-bills), 590 treasury bonds, 590 treasury inflation-protected securities (TIPS), 590 treasury notes, 590 trial closing, 438 trough, of a recession or depression, 21 trucks, 415, 416 trust, creating a culture of, 203 trustee, 571 Truth in Lending Act (1968), 54, 530 Truth in Securities Act, 606 21st century, 26 24/7 health hotline, 259 type A firms, 281 type J firms, 280–281 type Z organizations, 281 U uncontrollable elements, in the marketing environment, 341 undifferentiated approach, 337, 338 unemployment insurance, 259 unemployment rates, 18, 19 unfavorable balance of trade, 73 Unilever Sustainable Living Plan, 66 646 union security, 317 union shop, 317 unionization process, 311–313 union-management contract issues, 314–318 union-management partnerships, 308–309 union-management relations, 303 unions becoming partners with management, 308 early history, 304–305 historical development of, 304–306 membership of, 306–308 steps in forming, 311–313 unit loading, 414 United Kingdom, projected growth rates, 78 United States, capitalism in, 15–16 Universal Product Code (UPC) symbol, 375 unlimited liability of partnerships, 113 of a sole proprietorship, 108 unsecured bank loans, 560–561, 563 unsecured financing, 559 updating, data, 493 up-front money, to scriptwriters, 323 Uruguay Round (1986-1993), 81–82 U.S economy, exports and, 79–80 U.S GDP, in 2011, 18 U.S Uniform Partnership Act, 110 utility, 215, 333 Uzbekistan, economic growth, 79 V variable cost, 379 vending machines, next generation of, 410 venture capital, 567 venture capital firms, 567 vertical channel integration, 399 vertical marketing systems (VMSs), 399–400 vertical mergers, 125–126 video conferencing software, for interviewing, 254 videos, business use of, 461 viral marketing, 425 virtual organization, 201 virtual teams, 293 visual displays, 494–495 W wage level, 257 wage survey, 257 Wagner Act, 309 warehouse clubs, 406 warehouse showroom, 405 warehousing, 413–414 water pollution, 57–59 Water Pollution Control Act Amendment (1972), 58 Water Quality Improvement Act (1970), 58 waterways, 415, 416 weaknesses, in a SWOT analysis, 168 wealth, defined, 12 The Wealth of Nations (Smith), 14, 192 Web sites on career development, social media, 469 “stickiest,” 459 for this text, weekly salary, 258 Western Europe, projected growth rates, 78 “whatever it is” campaign, for eBay, 434 Whistleblower Protection Act (1989), 43 whistle-blowing, 42, 44 wholesalers, 137, 395, 396 services still needed, 400 services to manufacturers, 401–402 services to retailers, 401 types of, 402–403 wide span of management, 197 width, of product mix, 363 wikis, 462 wildcat strike, 319 Wisconsin, 310 women on boards of Fortune 500 U.S corporations, 118 as small-business owners, 138 work sharing, 289 Worker Adjustment and Retraining Notification (WARN) Act (1988), 265 workers, relative earnings of male and female, 56 workers’ compensation insurance, 259 workforce, culturally diverse, 6–7 working, at home, 290 working hours, 316 working overseas, preparation for, 74 work-in-process inventory, 226 workplace diversity, 249 World Community Grid, 45 world economic outlook, for trade, 78–80 The World Is Flat (Friedman), 71 world quality standards, ISO 9000 and ISO 14000, 231 world trade, global economic crisis and, 82 World Trade Organization, 75, 82 writers, in the entertainment business, 323 written communication skills, 176 written notice, before withdrawal of money, 524 Y yak-wool clothing, pioneers of, 366 “Year of the Whistle-Blower” (2002), 42 yearly management fee, for mutual funds, 594 Yellow Pages advertising, 429 Young Eagles, 44–45 Z zero-based budgeting, 558 Zoom Box, 61 Subject Index Copyright 2012 Cengage Learning All Rights Reserved May not be copied, scanned, or duplicated, in whole or in part Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s) Editorial review has deemed that any suppressed content does not materially affect the overall learning experience Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it ... guide that follows to see how Pride/ Hughes/ Kapoor can help you learn about business and enjoy success in not only your career, but also your life Sincerely Bill Pride w -pride@ tamu.edu The more you... require it Business, Twelfth Edition William M Pride, Robert J Hughes, Jack R. Kapoor Senior Vice President, LRS/Acquisitions & Solutions Planning: Jack W Calhoun Editorial Director, Business &... Environment of Business Chapter 1: Exploring the World of Business and Economics  Inside Business:   Zynga Zooms into Business Your Future in the Changing World of Business Why Study Business? ,