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business
contemporary business

Questions and Answers of Contemporary business

What are the most common industries for small businesses? What opportunities do home-based companies and the Internet provide for small business?How do small businesses contribute to a nation’s
What is meant by the term small business? What business sectors are most and least likely to be dominated by small firms?
Use the most recent edition of “The Fortune Global 500,” which is published in Fortune magazine normally in late July or early August, or go to Fortune’s online version at
Describe briefly the EU and its goals. What are the pros and cons of the EU? Do you predict that the European alliance will hold up over the next 20 years? Why or why not?
The IMF makes short-term loans to developing countries that may not be able to repay them. Do you agree that the IMF should forgive these debts in some cases? Why or why not?
The WTO monitors GATT agreements, mediates disputes, and continues the effort to reduce trade barriers throughout the world. However, widespread concerns have been expressed that the WTO’s focus on
When Britain transferred Hong Kong to China in 1997, China agreed to grant Hong Kong a high degree of autonomy as a capitalist economy for 50 years. Do you think this agreement is holding up? Why or
How has the EU helped trade among European businesses?
Can a nation have a favorable balance of trade and an unfavorable balance of payments? Why or why not?
Why are developing countries such as China and India becoming important international markets?
On your own or with a classmate, go online to research the economies of one of the following countries. Learn what you can about the type of economy the country has, its major industries, and its
Some businesses automatically experience seasonal unemployment. Increasingly however, owners of these businesses are making efforts to increase demand—and employment— during the off-season.
Go online to research one of the following agencies—its responsibilities, its budget, and the like. Then make the case for privatizing it:a. U.S. Army Corps of Engineersb. U.S. Postal Servicec.
Choose one of the following products and describe the different factors that you think might affect its supply and demand.a. Crocs sandalsb. iPhonec. Chase Freedom credit cardd. Glaceau Smartwatere.
Describe a situation in which you have had to make an economic choice in an attempt to balance your wants with limited means. What factors influenced your decision?
What does a nation’s unemployment rate indicate?Describe what type of unemployment you think each of the following illustrates:a. recent college graduate interviewing for a jobb. flight attendants
What are the effects of inflation on an economy? What is deflation? How does the Consumer Price Index work?
Describe the four different types of competition in the private enterprise system. In which type of competition would each of the following businesses be likely to engage?a. small manufacturer of ice
Draw supply and demand graphs that estimate what will happen to demand, supply, and the equilibrium price of pizza if these events occur:a. A widely reported medical report suggests that eating
As a consumer, you have come to expect a certain level of responsibility toward you on the part of companies that are marketing their goods and services to you.Describe a situation in which you felt
On your own or with a classmate, go online, flip through a magazine, or surf television channels to identify a firm that is engaged in green marketing. If you see a commercial on television, go to
Now take the company you studied for question 2 (or choose another one) and conduct a social audit on your firm. Do your findings match with the firm’s culture of ethics? If there are any
On your own or with a classmate, visit the Web site of one of the following firms, or choose another that interests you. Based on what you can learn about the company from the site, construct a chart
Write your own personal code of ethics. Create standards for your behavior at school, in personal relationships, and on the job. Then assess how well you meet your own standards.
How does a company demonstrate its responsibility to investors and the financial community?
Identify which Equal Opportunity law (or laws)protects workers in the following categories:a. parents who are adopting a child and need time offb. a National Guard member who is returning from
What are the five major areas in which companies have responsibilities to their employees? What types of changes in society are now affecting these responsibilities?
Identify and describe the four basic rights that consumerism tries to protect. How has consumerism improved the contemporary business environment? What challenges has it created for businesses?
What are the four major areas in which businesses have responsibilities to the general public? In what ways can meeting these responsibilities give a firm a competitive edge?
In what ways do firms demonstrate their social responsibility?
How do organizational goals affect ethical behavior?Give an example.
What type of ethical dilemma does each of the following illustrate? (A situation might involve more than one dilemma.)a. An attorney agrees to represent both husband and wife in their divorce
In what ways do individuals make a difference in a firm’s commitment to ethics? Describe the three stages in which an individual develops ethical standards.
This chapter describes how the nature of the workforce is changing: the population is aging, the labor pool is shrinking, the workforce is becoming more diverse, the nature of work is changing, the
More and more businesses are forming strategic alliances to become more competitive. Sometimes, businesses pair up with not-for-profit organizations in a relationship that is beneficial to both.
Brands distinguish one company’s goods or services from its competitors. Each company you purchase from hopes that you will become loyal to its brand. Some well-known brands are McDonald’s,
The entrepreneurial spirit fuels growth in the U.S.economy. Choose a company that interests you—one you have worked for or dealt with as a customer—and read about the company in the library or
How might a supermarket chain use technology to assist in its relationship management?
What is a private enterprise system? What are the four rights that are critical to the operation of capitalism?Why would capitalism have difficulty functioning in a society that does not assure these
In what ways are not-for-profit organizations a substantial part of the U.S. economy? What challenges do notfor-profits face?
As noted in the chapter, one of the most unfortunate mergers in corporate history involved Time Warner and America Online. Research this merger. Why did analysts expect it to be successful? Why did
Working in a small team, select three publicly traded companies.Visit each firm’s website. Most have a section devoted to information for investors. Review each firm’s dividend policy. Does the
Your new small business has really grown, but now it needs a substantial infusion of capital. A venture capital firm has agreed to invest the money you need. In return, the venture capital firm will
Working with a partner, assume that a firm needs $10 million in additional long-term capital. It currently has no debt and$40 million in equity. The options are issuing a ten-year bond(with an
Explain the concept of compounding and discuss why it makes sense to invest at an early age using examples.
Discuss investment strategies and asset allocation for someone in their 20s versus someone in their 40s. How does risk tolerance change with age? Discuss in pairs or small groups.
Collect current interest rates on the following types of bonds:U.S. Treasury bonds, AAA-rated municipal bonds, AAA-rated corporate bonds, and BBB-rated corporate bonds. Arrange the interest rates
Adapting the format of Figure 15.7, prepare on a sheet of paper your personal cash budget for next month. Keep in mind the following suggestions as you prepare your budget:a. Cash inflows. Your
Identify two public companies operating in different industries.Collect at least three years’ worth of financial statements for the firms. Calculate the financial ratios discussed in the chapter.
Suppose you work for a U.S. firm that has extensive European operations. You need to restate data from the various European currencies in U.S. dollars in order to prepare your firm’s financial
Using LinkedIn or your personal or professional network, make contact with someone who works as an accountant at a public accounting firm to set up an interview. Ask the individual what his or her
There are a number of tools available to combat spam, which is unsolicited commercial e-mail in the form of advertising.Some people view these spam-blocking tools as a threat to free expression and
Select a local company and contact the person in charge of its information system for a brief interview. Ask that individual to outline his or her company’s information system. Also, ask the person
A “freemium” pricing model like Pandora, Dropbox, or LinkedIn offers a basic service free of charge with the option to upgrade at a cost. It’s a common pricing strategy among web start-up
Some schools have received financial benefits by allowing companies to promote their goods and services to students.Others have decided against this practice, and some states have laws banning this
Evaluate the price of the product you selected in the preceding exercise. What appears to be the pricing strategy that its manufacturer used? Do you think the price is fair? Why or why not? Choose a
Choose a product that you purchased recently. Identify the various media that were used to promote the product and analyze the promotional mix. Do you agree with the company’s marketing strategy?
Product classification. Visit the website of Kraft Foods Group and click on the “products” link to see the vast variety of items the company produces. Review chapter content about product
Choose one of the following products and select a distribution intensity for the product. Describe specifically where and how your product would be sold. Then describe the reasons for your
Where do you do most of your shopping—in stores or online? Choose your favorite retailer and analyze why you like it. Outline your reasons for shopping there, then add two or three suggestions for
Choose one of the following products that is either in the maturity or decline stage of its life cycle (or select one of your own), and develop a marketing strategy for extending its life cycle.a.
On your own or with a classmate, choose one of the following goods or services. Decide whether you want to market it as a consumer product or a business product. Now create a brand name to convey the
Comarketing and cobranding are techniques that firms often use to market their own and each other’s products, such as Amazon’s Kindle with an Intel processor. On your own or with a classmate,
Think of two situations in which you have been a customer: one in which you were satisfied with the merchandise you received and one in which you were not. Make a list of the reasons you were
As a marketer, if you can find ways to classify your firm’s goods and services as both business and consumer products, most likely your company’s sales will increase as you build relationships
Celebrities like Angelina Jolie, Bono, and Selena Gomez are particularly visible campaigning for not-for-profit organizations—their own as well as others. Choose two other celebrities and discuss
On your own or with a classmate, choose one of the following products and create an advertisement that illustrates how your firm creates time, place, and form utility in its delivery of the product
Choose two firms for comparison (one firm should provide a good benchmarking opportunity for its production processes).Keep in mind that the benchmarking firm doesn’t necessarily have to be in the
Suppose you and your best friend decided to operate a coffee café. Draft a production plan for your business, including the following decisions: (a) make, buy, or lease; (b) suppliers; and(c)
On your own or with a classmate, select one of the following businesses and sketch or describe the layout that you think would be best for attracting and serving customers:a. Mexican restaurantb.
On your own or with a classmate, imagine that you’ve been hired to help a business group design a shopping mall. Taking into account the factors discussed in the chapter, come up with
Every day we hear news about companies in crisis. Either online or through media reports, find and research a recent event and how the company used external communication to address the crisis.
On your own or with a classmate, visit the college library, a mall, or anywhere else people gather. For about 10 or 15 minutes, observe the nonverbal cues that people give each other: Does the
Try this listening exercise with a partner. First, spend a few minutes writing a paragraph or two about the most important thing that happened to you this week. Second, read your paragraph out loud
Discuss the concepts of authority, accountability, and responsibility.Who has the authority in a school setting? In the classroom? What is the difference between accountability and responsibility as
Some employees might question the need for company policies related to workers’ appearances. As tattoos and piercings have become more mainstream, discuss the pros and cons of putting
Choose what you think would be your dream job five years from now. Then create a chart according to Maslow’s hierarchy of needs, and identify the ways in which you envision this job fulfilling each
Choose one of the following companies, or one that you think you might like to work for sometime in the future. Using the firm’s website and one of the job websites such as Monster.com(if
On your own or with a classmate, research consulting firms that provide management training programs, such as Glimmerglass Consulting Group, described in the chapter.Prepare a presentation about one
Research a firm whose goods or services you purchase or admire. Learn what you can about the organization’s culture.Do you think you would be an effective manager in this culture?Why or why not?
Identify someone who you think is a good leader—it can be someone you know personally or a public figure. Describe the traits that you think are most important in making this person an effective
Contingency planning requires a combination of foresight and adaptability. Josh James, founder of Omniture, the web analytics firm he sold to Adobe, recalls the importance of being able to adapt when
Imagine that you’ve been hired as a supervisor by a bakery shop called Clare’s Cakes that is beginning to grow. Clare—the founder—is looking for ways to increase production capacity, expand
Many entrepreneurs turn a hobby or area of interest into a business idea. Others get their ideas from situations or daily problems for which they believe they have a solution—or a better solution
Are entrepreneurs born? Or are they made? Evaluate yourself on the basis of the eight characteristics of successful entrepreneurs outlined in the chapter. Share your self-assessment with a classmate.
Identify a business and a not-for-profit organization that could form a joint venture beneficial to both. Draft a written proposal for this venture.
Identify an organization—such as AmeriCorps or the United States Postal Service—that is owned by a unit or agency of government. Discuss the pros and cons of whether the organization should
Think of your favorite small business—you know, the one where they know you by name. Maybe it’s your hair salon, coffee shop, or corner market. Interview the owner of the business and ask how the
Research a large firm to find out more about its beginnings as a start-up or small business. Who founded the company? What were the firm’s original offerings and how do they differ today?
Use the most recent edition of “The Fortune Global 500,”which usually is published in Fortune magazine in July, or go to Fortune’s online version at
Describe briefly the EU and its goals. What are the pros and cons of the EU? Do you predict that the European alliance will hold up over the next 20 years? Why or why not?
The WTO monitors GATT agreements, mediates disputes, and continues the effort to reduce trade barriers throughout the world. However, widespread concerns have been expressed that the WTO’s focus on
On your own or with a classmate, go online to research the economy of one of the following countries. You may use the World Factbook website (www.cia.gov) to learn about the type of economy the
Some businesses automatically experience seasonal unemployment.More and more, however, owners of these businesses are making efforts to increase demand—and employment—during the off season.
Go online to research one of the following government agencies—its responsibilities, its budget, and the like. Then make the case for privatizing it:a. Veterans Administrationb. Bureau of the
Choose one of the following products and describe the different factors that you think might affect its supply and demand.a. Nike running shoesb. e-Readerc. Miles by Discover credit cardd. newly
Describe a situation in which you have had to make an economic choice in an attempt to balance your wants with limited means. What factors influenced your decision?
On your own or with a classmate, go online or flip through a magazine to identify a firm that is engaged in green marketing.Next, go to the firm’s website to learn more about the product or process
Take the company you chose for question 2 (or choose another), and search for information about the company’s social and environmental responsibility practices—some companies publish annual
On your own or with a classmate, visit the website of one of the following firms, or choose another that interests you. On the basis of what you can learn about the company from the site, construct a

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