Type:
Solution Manual
Resource:
Better Business
Edition:
2nd Edition
Author(s):
Michael R. Solomon Mary Anne Poatsy Kendall Martin
CHAPTER 1: BUSINESS BASICS QUICK REFERENCE GUIDE IN-CLASS ACTIVITIES Activity
Description
Supplemental In-Class Activity: Ice Breaker: What Do You Know About Business? Team Time: The Competitive Edge Ethics and Corporate Social Responsibility: Cultural Awareness: Unwritten Laws
This activity helps students assess their level of knowledge about business and set their own learning goals for the class.
20 min.
Students divide into groups to establish businesses and respond to consumer demands. Students research cultural practices, customs and values of different countries and create business scenarios that might be affected by cultural differences. Students read a supplemental case study and discuss how it applies to chapter concepts.
25 min.
P4, P26
25 min.
P10, P27
30 min.
P5, P27
Video Run Time: 12:30 Question Time: 30 min. 10–15 min.
P10, P27
30 min.
P10
Web Case: Focus on GE: The Imagination of a Successful Business Video Case: Liquid Lab
Supplemental In-Class Activity: Structuring Businesses by Industry Business Handout Discussion: The Geography of Jobs
.
Students watch and discuss the chapter video.
Teams of students discuss which legal structures are most appropriate for businesses in different industries. Students read an article about outsourcing and then discuss whether it is a detriment to social responsibility.
Time Limit
AIE Page Reference P3
P19
1-1
HOMEWORK ASSIGNMENTS Activity
Description
Deliverable
Web Exercise: Are You Savvy to Society?
Answers to the discussion questions in the activity.
Web Exercise: Languages of the Global Marketplace
Students use information from: http://www.census.gov/ to see how demographics might impact a business. Students use information from: http://www.Babelfish.com/ and http://www.LanguageLine.com/.
Web Exercise: Business Technology On the-Go
Students use information from: http://www.mobilebehavior.com/ to learn about trends in using mobile devices.
Web Exercise: Budget Planning at Your Fingertips
Students use information from a Google search to create both personal and business budget plans.
Web Exercise: Comparing Companies
Students examine two Top 10 companies. After researching state laws, students analyze the legal challenges facing the companies and how difficult state laws made it to establish each company. Students interview a business owner or senior manager, finding out how demand and supply affect the business.
Supplemental Homework Exercise: Interview a Manager
.
At-Home Completion Time 30 minutes
AIE Page Reference
Summarize findings on online resources for automated translation tools.
30 minutes
P10, P27
A brief paper summarizing one new trend appearing in modern advertising campaigns because of the prevalence of mobile devices. Business and personal budget plans.
1 hour
P11, P27
1 to 3 hours, depending on budget depth
P20, P27
A brief paper summarizing the legal issues that impact companies in different states.
1 hour
P19, P 27
A brief paper detailing the outcome of the interview.
1 to 2 hours
P14
P8, P27
1-2
CHAPTER OPENER Many students come to an introduction to business class not quite sure about what’s in it for them. In fact, the course has something for everyone, from those who have been in the business world a while to those new to the idea. As the book unfolds, you’ll develop an understanding of the foundations of business, and you’ll be able to apply what you already know about business to many parts of the course. This first chapter dives right into the world of business: • explaining the differences between businesses and non-profit organizations. • differentiating between goods and services. • outlining factors of production. Next, the chapter covers the ways in which competition, social environment, globalization and technological growth challenge and provide opportunities to business owners. The final parts of the chapter introduce students to the different types and formats that businesses can take.
DETAILED LECTURE OUTLINE I.
The Business Landscape A. What is a business? 1. Businesses—entities that offer goods and services to their customers in order to earn a profit. 2. Profits (p. 3) are earned when a company’s revenue (p. 3) exceed its expenses (p. 3). They are the driving force behind business growth. 3. A nonprofit organization (p. 4) is a business that does not pursue profits, but instead seeks to service its community through social, educational, or political means. B. What are the factors of production? 1. The factors of production (p. 4) are the resources used to create goods and services. These five factors of production include labor (p.4); natural resources (p.4); capital, both real and financial (p. 4); entrepreneurial talent (p.4); and technology (p. 4). II. Common Business Challenges and Opportunities A. How do competition, social environment, globalization, and technological growth both challenge and provide opportunities to business owners? 1. Competition (p. 5) arises when two or more businesses contend to attract customers and gain an advantage over one another. 2. Social environment (p. 7) encompasses demographic factors such as race, ethnicity, gender, age, income distribution, sexual orientation, and other factors, such as the green movement. 3. Globalization (p. 10) involves the merging of economies around the world as technology, goods and services, labor, and capital move back and forth across international borders. 4. Technology items and services such as smartphones, computer software, and digital broadcasting make businesses more efficient and productive. E-commerce, document management, workflow technologies, and identification management software all provide these opportunities. III. Types of Businesses A. What are the four types of businesses? 1. A local business (p. 14) is usually unique and relies on local consumers to generate business. 2. Regional businesses (p. 14) are companies that serve a wider area than local businesses, but do not serve national or international markets. 3. A national business (p. 15) has several outlets throughout the country, but it does not serve an international market. It provides goods or services to all U.S. residents, no matter where in the country they live.
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1-3
4.
Multinational (International) businesses (p. 10) are companies that operate production or serve markets in more than one country. They are businesses that have expanded to provide goods or services to international consumers. IV. Types of Business Ownership A. How do sole proprietorships, partnerships, corporations, and limited liability companies (LLCs) differ from one another as business formats? 1. A sole proprietorship (p. 17) is a business that is owned by one person; it is not registered with the state, and it is not legally separated from the owner. 2. A partnership (p. 18) is a business owned by two or more people that is not registered with the state as a corporation or a limited liability company (LLC). 3. A corporation (p. 18) is a business that is a legal entity separate from the owner or owners. 4. Limited liability companies (LLCs) (p. 19) are companies in which the owners have limited personal liability for debts and actions of the company, but also provide owners with tax advantages and management flexibility inherent in sole proprietorship and partnerships. B. Who are the players in business ownership? 1. A stakeholder (p. 19) is someone who is affected by a company’s actions or who has an interest in what the company does. Corporate stakeholders include employees, shareholders, investors, suppliers, and society at large. V. Taking Business Personally A. How is your life like a business? 1. You are either a sole proprietorship or a partnership (p. 20). 2. You receive funding and have expenses (p. 20). 3. You are affected by the social environment (p. 20). 4. You are impacted by globalization and technology (p. 20). 5. You use e-commerce (p. 21). 6. You have concerns with security (p. 21). 7. You have goals that you want to reach (p. 21). NOTE: End the lecture by asking students to write down the muddiest points or main points of the lecture. This will allow you to know what might need to be reviewed during the next lecture.
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1-4