Encyclopedia of business and finance vol 1

ENCYCLOPEDIA OF BUSINE$$ FINANCE AND Editorial Board EDITOR-IN-CHIEF Burton S Kaliski New Hampshire College ASSOCIATE EDITORS Roger Luft Eastern Illinois University Dorothy Maxwell Sacopee Valley High School Jim Maxwell San Jose State University (retired) Mary Ellen Oliverio Pace University Allen Truell Ball State University ii ENCYCLOPEDIA OF BUSINE$$ FINANCE AND VOLUME BURTON S KALISKI, Editor-in-Chief Encyclopedia of Business and Finance Copyright © 2001 Macmillan Reference USA All rights reserved No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the Publisher Macmillan Reference USA An imprint of the Gale Group 27500 Drake Rd Farmington Hills, MI 48331-3535 Macmillan Reference USA An imprint of the Gale Group 1633 Broadway New York, NY 10019 Library of Congress Catalog Card No.: 00-107932 Printing number 10 ISBN 0-02-865065-4 (set).—ISBN 0-02-865066-2 (v 1).—ISBN 0-02-865067-0 (v 2) Printed in the United States of America by the Gale Group Gale Group and Design is a trademark used herein under license Contents Preface Acknowledgments List of Articles List of Contributors vii ix xii xvii Encyclopedia of Business and Finance Index 899 v Editorial and Production Staff PROJECT EDITORS IMAGING COORDINATOR Allison McClintic Marion Pamela A Reed Brian Rabold CONTRIBUTING PROJECT EDITOR Nancy Matuszak SENIOR IMAGING SPECIALIST Robert Duncan PRODUCT DESIGN MANAGER Kenn Zorn MANAGER, COMPOSITION AND ELECTRONIC PREPRESS ART DIRECTOR Mary Beth Trimper Cynthia Baldwin ASSISTANT MANAGER, COMPOSITION PURCHASING AND ELECTRONIC PREPRESS DESIGNER Mark Berger Evi Seoud INDEXER BUYER Stacy Melson vi Sylvia Coates MACMILLAN REFERENCE USA IMAGE DATABASE SUPERVISOR PUBLISHER Randy A Bassett Elly Dickason Preface Business is the backbone of American society and is one of the keys to making our system work as well as it has for more than two hundred years Yet as a body of knowledge, business is much younger There has been, to this point, no organized work that has attempted to present the discipline of business in a single place The major purpose of the Encyclopedia of Business and Finance is to summarize the body of knowledge that we know as business in a single place and in language accessible to the layperson This two-volume collection of more than three hundred entries presents a wealth of information about the major functional areas of business: accounting, economics, finance, information systems, law, management, and marketing The articles vary in length and in depth, in bibliographic support, and in writing style Thus, the reader will encounter a variety of approaches and discern a number of perspectives about business Some articles are quantitative, since some aspects of business are numerically based Other articles tend more toward the qualitative, to accommodate the more descriptive aspects of business Some of the articles present a historical perspective, incorporating long-proven knowledge, while others focus more on current concepts and newer data All entries have the same goal: to provide useful knowledge about the business and financial world Because of their importance, we have given special treatment to two topics: careers and ethics In each case, a lead entry is followed by an article about that topic in each of the functional areas of business Thus, there are articles about careers in accounting, economics, finance, information systems, law, management, and marketing, as well as a similar series of articles for ethics There is also a strong emphasis on organizations in the field of business and government Wherever an organization is discussed, the article provides a Web site for further information Relevant federal legislation is also featured in this work All acts that have had a major impact on business are included in the Encyclopedia The entries are arranged in the usual alphabetical order, with extensive cross-referencing of three types First, there are “See” references, referring the reader to an entry by another name For example, under Bait and Switch Advertising one finds the line “See Advertising.” The second type of cross-referencing is the “See Also” reference At the conclusion of the article on Insurance, for example, one reads “See Also Personal Financial Planning.” The third type of cross-referencing is the Related Articles listing At the conclusion of most articles, there is a list of other articles that may shed more light on the topic just discussed Is the knowledge contained in this work the definitive and final word on each topic? The answer is “most certainly not.” In this day and age of dynamic and rapidly growing knowledge, a positive answer would be quite inappropriate However, this is not necessarily a negative The vii PREFACE information contained in this Encyclopedia is valid and reliable and enables readers to further research by going easily accessible sources Today’s technological environment thus offers a unique opportunity that was not available to previous generations: to extend one’s knowledge on every topic presented This work was designed for different types of users The middle school student may be looking for a starting point for a paper on careers The high school student may be seeking background on a major research topic, such as the corporate form of organization The businessperson may be seeking a summary of antitrust laws The business teacher may be preparing a lesson on the history of computers The interested layperson may simply want to learn about something new, such as government accounting standards or matrix organization The Encyclopedia of Business and Finance can serve as a survey document for the many aspects of business or as a guide to those aspects It can be the beginning point of lengthy secondary research, the background for primary research, or the ending point for research on a specific item covered within its pages It can be used to help ask questions or to find answers It can be used as a viii summary of existing knowledge or the basis for acquiring new knowledge A number of individuals deserve to be mentioned for their contributions to this project First, I must thank the five associate editors on this project: Roger Luft, Dorothy Maxwell, Jim Maxwell, Mary Ellen Oliverio, and Allen Truell Without their tireless efforts at securing contributors of quality, we would have a very small work Second, great appreciation goes to Elly Dickason, Publisher of Macmillan Reference USA, for her inspiration in conceiving of this project and getting it off the ground Third, I want to express my indebtedness to Allison Marion, Editor at the Gale Group, for her professional work in keeping this project running to its conclusion Fourth, I must thank all the contributors for the best efforts that each put forth Writing for an encyclopedia is not a financially rewarding activity; however, it is a contribution to posterity, so what each contributor has written is of great intangible value to knowledge and to future scholars Finally, I speak for all of the people involved in what has been a lengthy project when I thank our families for their encouragement and support BURTON S KALISKI ENCYCLOPEDIA OF BUSINESS AND FINANCE Acknowledgments The editors wish to thank the copyright holders of the excerpted criticism included in this volume and the permissions managers of many book and magazine publishing companies for assisting us in securing reproduction rights We are also grateful to the staffs of the Detroit Public Library, the Library of Congress, the University of Detroit Mercy Library, Wayne State University Purdy/ Kresge Library Complex, and the University of Michigan Libraries for making their resources available to us Following is a list of the copyright holders who have granted us permission to reproduce material in this volume of the Encyclopedia of Business and Finance Every effort has been made to trace copyright, but if omissions have been made, please let us know PHOTOGRAPHS AND ILLUSTRATIONS APPEARING IN THE ENCYCLOPEDIA OF BUSINESS AND FINANCE WERE RECEIVED FROM THE FOLLOWING SOURCES: 89th Annual Chicago Auto Show (workers put the final touches on displays), photograph Associated Press/AP Reproduced by permission.—Ace Hardware logo (displayed outside the St Louis Convention Center) photograph Associated Press/AP Reproduced by permission.—Al Lundberg (left), with Terry Brewer (center) and Al Anderson (right)(talking about the tents that will be used for temporary housing for migrant farm workers), photograph Associated Press/AP Reproduced by permis- sion.—Allen, Tim, photograph Associated Press/AP Reproduced by permission.—American Electric Power’s Muskingum River Plant, photograph Associated Press/AP Reproduced by permission.—Andreas, Michael (standing, arms at sides), Chicago, Illinois, 1998, photograph AP/Wide World Photos Reproduced by permission Associated Press/Ford Motor Company.— Berners-Lee, Tim, photograph Associated Press/AP Reproduced by permission.—Billboard displaying a Joe Camel advertisement(Vehicles passing by), photograph Associated Press/AP Reproduced by permission.—Billboards along the Palmetto expressway, photograph Associated Press/AP Reproduced by permission.—Bush, George (center) signing the Americans with Disabilities Act, Harold Wilke (rear left), Evan Kemp (left), Sandra Parrino, and Justin Dart (right), Jefferson Memorial in the background, photograph Associated Press/AP Reproduced by permission.—Bush, President George (standing, center), Mexican President Carlos Salinas Gortari (left), Canadian Prime Minister Brian Mulroney (right), Julie Puche (seated, left), Carla Hills (center), and Michael Wilson (right), photograph Bettmann/Corbis Reproduce—Businesswoman tele-commuting to her office (laptop on desk), photograph Michael Pole/Corbis Reproduced by permission.—Camdessus, Michel, photograph AFP/Corbis Reproduced by permission.— Carlson, Chester (standing with first Xerox copier), photograph Corbis-Bettmann Reproix ... ii ENCYCLOPEDIA OF BUSINE$$ FINANCE AND VOLUME BURTON S KALISKI, Editor-in-Chief Encyclopedia of Business and Finance Copyright © 20 01 Macmillan Reference USA All rights reserved No part of this... ETHICS IN ECONOMICS Patrick Highland Roger Luft DIVISION OF LABOR ETHICS IN FINANCE Donna McAlister Kizzier Anand Shetty ENCYCLOPEDIA OF BUSINESS AND FINANCE LIST OF ARTICLES ETHICS IN INFORMATION... FACTORS OF PRODUCTION Phyllis Bunn Delta State University CONSUMER PRODUCT SAFETY ACT OF 19 72 xix LIST OF CONTRIBUTORS FAIR PACKAGING AND LABELING ACT OF 19 66 FEDERAL TRADE COMMISSION ACT OF 19 14