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business
understanding business ethics
Questions and Answers of
Understanding Business Ethics
Describe how the Federal Reserve can use its authority to attempt to stimulate the economy.
Develop your own story about the causes of the banking crisis. Talk to others in the class and compare stories. What organizations share the blame for the crisis?
How many search items have appeared covering this issue? What does the number of articles tell you about the importance of this issue?
Do an Internet search to find the latest articles on the global financial crisis.What has happened to banking in the United States and around the world since 2009? What role has the Fed played in
Write a one-page paper on the role of the World Bank and the International Monetary Fund in providing loans to countries. Is it important for U.S. citizens to lend money to people in other countries
Form several smaller groups and discuss the recent banking crisis. How has it affected the people in the class? What has happened to banks and the economy in general since the start of the banking
One role of the Federal Reserve is to help process your checks. In small groups discuss when and where you use checks, credit cards, debit cards, and cash. Do you often write checks for small
Poll the class to see who uses a bank and who uses a credit union. Have class members compare the services at each (interest rates on savings accounts, services available, loan rates). If anyone uses
In a small group, discuss the following: What services do you use from banks and S&Ls? Does anyone use online banking? What seem to be its pluses and minuses?Use this opportunity to go online to
Do you keep your savings in a bank, an S&L, a credit union, or some combination?Have you compared the benefits you could receive from each? Where would you expect to find the best loan values?
If the value of the dollar declines relative to the euro, what will happen to the price of French wine sold in U.S. stores? Will people in France be more or less likely to buy a U.S.-made car? Why?
How much cash do you usually carry with you? What other means do you use to pay for items at the store or on the Internet? What trends do you see in such payments?How might those trends make your
If you were chairperson of the Federal Reserve, what economic figures might you use to determine how well you were doing? What role did Ben Bernanke, the previous head of the Fed, play in the recent
What is the IMF and what does it do?
What is the World Bank and what does it do?
How does a debit card differ from a credit card?
What is the role of the FDIC?
What are some of the causes for the banking crisis that began in 2008?
What is a consumer finance company?
What are the differences among banks, savings and loan associations, and credit unions?
Why did the United States need a Federal Reserve Bank?
What are the major functions of the Federal Reserve? What other functions does it perform?
How does the Federal Reserve control the money supply?
What is the money supply, and why is it important?
What are “Bitcoins”?
What are the five characteristics of useful money?
What is money?
Describe the process that Matt Hulett employed to turn around Rosetta Stone. Do you think a similar management strategy would work at other companies?
Why is it important for managers to keep their employees motivated and satisfied with their work?
Did it surprise you that, until recently, a company would still be distributing content solely on CDs instead of online? Why do you think it took Rosetta Stone so long to move its language learning
Because of the illegal and unethical behavior of a few managers, managers are often under suspicion for being greedy and dishonest. Discuss the fairness of such charges, and suggest what could be
Allocate time to do some career planning with a SWOT analysis of your present situation. Choose one career you are interested in and answer the following questions:What does the marketplace for your
Analyze Nike’s opportunities and threats. What additional opportunities can you suggest? What additional threats can you identify?
Analyze Nike’s weaknesses. How do you think the company’s strengths might be used to overcome some of its weaknesses?
What are Nike’s strengths, weaknesses, opportunities, and threats?
Can someone who’s trained to give direction and orders (like a military sergeant) be retrained to be a participative leader? How? What problems may emerge?
What kind of leader would you be? Do you have evidence to support your choice?
Would you like to work for a large firm or a small business? Private or public company?In an office or out in the field? Give your reasons for each answer.
What qualities must standards possess to measure performance results?
What are the five steps of the control function?
What does empowerment mean?
Which leadership style is best?
What’s the difference between a manager and a leader?
Are these skills equally important at all management levels?
What skills do managers need?
What are the three levels of management in the corporate hierarchy?
What are the steps involved in decision making?
What are the four types of planning, and how are they related to the organization’s goals and objectives?
What is a SWOT analysis?
How do you define each of these functions?
What are the primary functions of management?
What reasons can you give to account for changes in management?
What does management look like today?
Determine whether the decision was a good one, and follow up.
Do what is indicated (begin implementation).
Decide which alternative is best.
Develop alternatives.
Describe and collect needed information.
Define the situation.
Summarize the five steps of the control function of management.
Explain the differences between leaders and managers, and describe the various leadership styles.
Describe the organizing function of management.
Relate the planning process and decision making to the accomplishment of company goals.
Describe the four functions of management.
Describe the changes occurring today in the management function.
What are the key reasons that firms do ratio analysis?
What’s the difference between assets and liabilities?Which of the key financial statements features these categories prominently?2 Identify the six steps in the accounting cycle.
The acid-test ratio subtracts the value of the firm’s inventory from its total current assets. Because inventory is often difficult to sell, this ratio is considered an even more reliable measure
Calculate the current ratio for each company. Which company is more likely to get the loan? Why?
Obtain a recent annual report for a company of your choice (see the hints in exercise 4) and try your hand at computing financial ratios. Compute the current ratio, debt to owners’ equity ratio,
Obtain a recent annual report for a company of your choice. (Hints: The Wall Street Journal has a free annual reports service, and virtually all major companies post their annual reports on their
Suppose you are a new board member for an emerging not-for-profit organization hoping to attract new donors. Contributors want to know how efficiently not-forprofit organizations use their donations.
Go to the websites of the American Institute of Certified Public Accountants(www.aicpa.org) and the Institute of Management Accountants (www.imanet.org). Browse the sites and find the requirements
Contact a CPA at a firm in your area, or talk with a CPA in your college’s business department. Ask what challenges, changes, and opportunities he or she foresees in the accounting profession in
Why is it important to remember financial ratios can differ from industry to industry?
What value do financial ratios offer investors in reviewing the financial performance of a firm?
Why must accounting reports be prepared according to specific procedures(GAAP)? Should we allow businesses some flexibility or creativity in preparing financial statements? Why or why not?
As a potential investor in a firm or perhaps the buyer of a particular business, would it be advisable for you to evaluate the company’s financial statements?Why or why not? What key information
What are the four main categories of financial ratios?
What is the primary purpose of performing ratio analysis using the firm’s financial statements?
Why is the statement of cash flows important in evaluating a firm’s operations?
What’s the difference between revenue and income on the income statement?
What are the key steps in preparing an income statement?
What is owners’ equity, and how is it determined?
What’s the difference between long-term and short-term liabilities on the balance sheet?
What does it mean to list assets according to liquidity?
What do we call the formula for the balance sheet? What three accounts does it include?
How has computer software helped businesses in maintaining and compiling accounting information?
Why does a bookkeeper prepare a trial balance?
What’s the purpose of accounting journals and of a ledger?
How is the job of the bookkeeper different from that of an accountant?
What is the job of an auditor? What’s an independent audit?
How is the job of a private accountant different from that of a public accountant?
What is the key difference between managerial and financial accounting?
On which of the four elements of the promotion mix does SXSW rely most?
Identify the four elements of the promotion mix.
What are the critical differences between publicity and advertising?
Compare shopping on the Internet to shopping in stores. What are the advantages and disadvantages of each? Which has the best total product offer?
Write down some of the prices you find on the Internet and then go to a local store, such as Walmart or Target, and compare prices. Does either source (online or brick-and-mortar) consistently offer
Which shopbot is easiest to use? The hardest? Why?
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