Business Essentials

by Ebert, Ronald J.; Griffin, Ricky W.

• ISBN13: 9780132287852
• ISBN10: 0132287854
• Edition: 6th
• Format: Paperback
• Copyright: 2009-01-01
• Publisher: Prentice Hall

Summary

Thisbest-selling bookcontinues to present abrief "no-nonsense "approach to the fundamentals of business that spans the range of all functional areas management, marketing, operations, accounting, information systems, finance, and legal studies.Topics comprehensively covered include: the contemporary business environment; the business of managing; principles of marketing; managing information; people in organizations; and financial issues.An excellent reference resource for business managers and executives; also appropriate for entrepreneurs and others involved in business relations.

Table of Contents

Preface	xix
Prologue	xxxiv
PART 1 THE CONTEMPORARY BUSINESS WORLD
The U.S. Business Environment	2	(34)
Chapter Opening Case
What Goes Up . . . Can Go Even Higher!	2	(2)
What's in It for Me?	4	(1)
The Concept of Business and the Concept of Profit	5	(1)
The External Environments of Business	6	(2)
Domestic Business Environment	7	(1)
Global Business Environment	7	(1)
Technological Environment	7	(1)
Political-Legal Environment	7	(1)
Sociocultural Environment	8	(1)
Economic Environment	8	(1)
Economic Systems	8	(5)
Factors of Production	8	(3)
Types of Economic Systems	11	(2)
The Economics of Market Systems	13	(5)
Demand and Supply in a Market Economy	13	(2)
Private Enterprise and Competition in a Market Economy	15	(3)
Economic Indicators	18	(11)
Economic Growth, Aggregate Output, and Standard of Living	18	(5)
Economic Stability	23	(3)
Managing the U.S. Economy	26	(3)
End-of-Chapter Features
Summary of Learning Objectives	29	(1)
Key Terms	30	(1)
Questions and Exercises	31	(1)
Building Your Business Skills: Paying the Price of Doing E-Business	32	(1)
Exercising Your Ethics: Individual Exercise: Prescribing a Dose of Competitive Medicine	33	(1)
Exercising Your Ethics: Team Exercise: Making the Right Decision	34	(1)
Video Exercise: Helping Businesses Do Business: U.S. Department of Commerce	35	(1)
Business Ethics and Social Responsibility	36	(36)
High Seas Dumping	36	(2)
What's in It for Me?	38	(1)
Ethics in the Workplace	38	(8)
Individual Ethics	39	(1)
Business and Managerial Ethics	40	(1)
Assessing Ethical Behavior	41	(2)
Company Practices and Business Ethics	43	(3)
Social Responsibility	46	(5)
The Stakeholder Model of Responsibility	46	(4)
Contemporary Social Consciousness	50	(1)
Areas of Social Responsibility	51	(8)
Responsibility Toward the Environment	51	(3)
Responsibility Toward Customers	54	(3)
Responsibility Toward Employees	57	(1)
Responsibility Toward Investors	58	(1)
Implementing Social Responsibility Programs	59	(3)
Approaches to Social Responsibility	60	(2)
Managing Social Responsibility Programs	62	(1)
Social Responsibility and the Small Business	62	(3)
End-of-Chapter Features
Summary of Learning Objectives	65	(1)
Key Terms	66	(1)
Questions and Exercises	66	(1)
Building Your Business Skills: To Lie or Not to Lie: That Is the Question	67	(1)
Exercising Your Ethics: Individual Exercise: Taking a Stance	68	(1)
Exercising Your Ethics: Team Exercise: Finding the Balance	69	(1)
Video Exercise: Doing the Right Thing: American Red Cross	70	(2)
Entrepreneurship, New Ventures, and Business Ownership	72	(34)
The Competitor from Out of the Blue	72	(2)
What's in It for Me?	74	(1)
What Is a ``Small'' Business?	74	(5)
The Importance of Small Business in the U.S. Economy	75	(1)
Popular Areas of Small Business Enterprise	76	(3)
Entrepreneurship	79	(1)
Entrepreneurial Characteristics	79	(1)
Starting and Operating a New Business	80	(4)
Crafting A Business Plan	80	(1)
Starting the Small Business	81	(2)
Financing the Small Business	83	(1)
Trends, Successes, and Failures in New Ventures	84	(4)
Trends in Small-Business Start-Ups	85	(2)
Reasons for Failure	87	(1)
Reasons for Success	88	(1)
Noncorporate Business Ownership	88	(4)
Sole Proprietorships	90	(1)
Partnerships	90	(1)
Cooperatives	91	(1)
Corporations	92	(7)
The Corporate Entity	92	(1)
Types of Corporations	93	(1)
Managing a Corporation	94	(2)
Special Issues in Corporate Ownership	96	(3)
End-of-Chapter Features
Summary of Learning Objectives	99	(2)
Key Terms	101	(1)
Questions and Exercises	101	(1)
Building Your Business Skills: Working the Internet	102	(1)
Exercising Your Ethics: Individual Exercise: Breaking Up Is Hard to Do	103	(1)
Exercising Your Ethics: Team Exercise: Public or Private? That Is the Question	103	(2)
Video Exercise: Doing Business Privately: Amy's Ice Cream	105	(1)
The Global Context of Business	106	(34)
Where Does Management Stand on Beer Breaks?	106	(2)
What's in It for Me?	108	(1)
The Contemporary Global Economy	108	(13)
The Major World Marketplaces	109	(3)
Trade Agreements and Alliances	112	(3)
Import-Export Balances	115	(4)
Exchange Rates	119	(1)
Forms of Competitive Advantage	120	(1)
International Business Management	121	(6)
Going International	121	(3)
Levels of International Involvement	124	(1)
International Organization Structures	125	(2)
Barriers to International Trade	127	(5)
Social and Cultural Differences	127	(1)
Economic Differences	128	(1)
Legal and Political Differences	128	(4)
End-of-Chapter Features
Summary of Learning Objectives	132	(1)
Key Terms	133	(1)
Questions and Exercises	133	(1)
Building Your Business Skills: Finding Your Place	134	(1)
Exercising Your Ethics: Individual Exercise: Paying Heed to Foreign Practices	135	(1)
Exercising Your Ethics: Team Exercise: Weighing the Tradeoffs	135	(2)
Crafting A Business Plan: Part 1: The Contemporary Business Environment	137	(2)
Video Exercise: Globalizing the Long Arm of the Law: Printrak	139	(1)
PART 2 THE BUSINESS OF MANAGING
Business Management	140	(32)
The Business of Bagging Customers	140	(2)
What's in It for Me?	142	(1)
Who Are Managers?	142	(2)
The Management Process	144	(3)
Planning	144	(1)
Organizing	145	(1)
Leading	145	(1)
Controlling	146	(1)
Types of Managers	147	(3)
Levels of Management	147	(1)
Areas of Management	148	(2)
Basic Management Skills	150	(3)
Technical Skills	150	(1)
Human Relations Skills	150	(1)
Conceptual Skills	151	(1)
Decision-Making Skills	151	(1)
Time Management Skills	151	(1)
Management Skills for the Twenty-First Century	152	(1)
Strategic Management: Setting Goals and Formulating Strategy	153	(6)
Setting Business Goals	155	(1)
Types of Stategy	156	(1)
Formulating Strategy	157	(2)
A Hierarchy of Plans	159	(1)
Contingency Planning and Crisis Management	159	(2)
Contingency Planning	160	(1)
Crisis Management	160	(1)
Management and the Corporate Culture	161	(5)
Communicating the Culture and Managing Change	162	(4)
End-of-Chapter Features
Summary of Learning Objectives	166	(1)
Key Terms	167	(1)
Questions and Exercises	167	(1)
Building Your Business Skills: Speaking with Power	168	(1)
Exercising Your Ethics: Individual Exercise: Making Room for Alternative Actions	169	(1)
Exercising Your Ethics: Team Exercise: Clean Up Now, or Clean Up Later?	169	(2)
Video Exercise: Imaginative Management: Creative Age Publications	171	(1)
Organizing the Business	172	(30)
Cooking Up a New Structure	172	(2)
What's in It for Me?	174	(1)
What Is Organizational Structure?	174	(2)
Organizational Charts	174	(1)
Determinants of Organizational Structure	175	(1)
The Building Blocks of Organizational Structure	176	(4)
Specialization	176	(1)
Departmentalization	177	(3)
Establishing the Decision-Making Hierarchy	180	(5)
Distributing Authority: Centralization and Decentralization	180	(3)
The Delegation Process	183	(1)
Three Forms of Authority	183	(2)
Basic Forms of Organizational Structure	185	(7)
Functional Structure	185	(1)
Divisional Structure	186	(2)
Matrix Structure	188	(1)
International Structure	188	(3)
Organizational Design for the Twenty-First Century	191	(1)
Informal Organization	192	(3)
Informal Groups	193	(1)
Organizational Grapevine	193	(1)
Intrapreneuring	193	(2)
End-of-Chapter Features
Summary of Learning Objectives	195	(1)
Key Terms	196	(1)
Questions and Exercises	196	(1)
Building Your Business Skills: Getting with the Program	197	(1)
Exercising Your Ethics: Individual Exercise: Minding Your Own Business	198	(1)
Exercising Your Ethics: Team Exercise: To Poach, or Not to Poach . . .	199	(1)
Video Exercise: Juicing Up the Organization: Nantucket Nectars	200	(2)
Operations Management and Quality	202	(34)
Keeping Track of German Engineering	202	(2)
What's in It for Me?	204	(1)
What Does Operations Mean Today?	204	(1)
Creating Value Through Operations	205	(4)
Differences Between Service and Goods Manufacturing Operations	206	(1)
Operations Processes	207	(2)
Business Strategy as the Driver of Operations	209	(2)
The Many Faces of Production Operations	209	(2)
Operations Planning	211	(5)
Capacity Planning	212	(1)
Location Planning	213	(1)
Layout Planning	213	(1)
Quality Planning	214	(1)
Methods Planning	214	(2)
Operations Scheduling	216	(3)
The Master Production Schedule	216	(1)
Detailed Schedules	216	(1)
Staff Schedules and Computer-Based Scheduling	217	(1)
Project Scheduling with PERT	217	(2)
Operations Control	219	(2)
Materials Management	219	(1)
Quality Control	220	(1)
Quality Improvement and Total Quality Management	221	(3)
Managing for Quality	221	(1)
Tools for Total Quality Management	222	(2)
Adding Value Through Supply Chains	224	(4)
The Supply Chain Strategy	224	(1)
Outsourcing and Global Supply Chains	225	(3)
End-of-Chapter Features
Summary of Learning Objectives	228	(2)
Key Terms	230	(1)
Questions and Exercises	230	(1)
Building Your Business Skills: The One-on-One Entrepreneur	231	(1)
Exercising Your Ethics: Team Exercise: Promises, Promises	232	(1)
Exercising Your Ethics: Calculating the Cost of Conscience	233	(1)
Crafting A Business Plan: Part 2: The Business of Managing	234	(1)
Video Exercise: Managing Global Production: Body Glove	235	(1)
PART 3 PEOPLE IN ORGANIZATIONS
Employee Behavior and Motivation	236	(28)
What's the Deal About Work?	236	(2)
What's in It for Me?	238	(1)
Forms of Employee Behavior	238	(2)
Performance Behaviors	239	(1)
Organizational Citizenship	239	(1)
Counterproductive Behaviors	240	(1)
Individual Differences Among Employees	240	(3)
Personality at Work	240	(2)
Attitudes at Work	242	(1)
Matching People and Jobs	243	(2)
Psychological Contracts	243	(1)
The Person-Job Fit	244	(1)
Basic Motivation Concepts and Theories	245	(6)
Classical Theory	245	(1)
Early Behavioral Theory	245	(3)
Contemporary Motivation Theory	248	(3)
Strategies and Techniques for Enhancing Motivation	251	(8)
Reinforcement/Behavior Modification	251	(1)
Using Goals to Motivate Behavior	252	(1)
Participative Management and Empowerment	253	(1)
Team Management	254	(1)
Job Enrichment and Job Redesign	254	(1)
Modified Work Schedules	255	(4)
End-of-Chapter Features
Summary of Learning Objectives	259	(1)
Key Terms	260	(1)
Questions and Exercises	260	(1)
Building Your Business Skills: Too Much of a Good Thing	261	(1)
Exercising Your Ethics: Individual Exercise: Practicing Controlled Behavior	262	(1)
Exercising Your Ethics: Team Exercise: Taking One for the Team	262	(1)
Video Exercise: Computing Family Values: Kingston Technology	263	(1)
Leadership and Decision Making	264	(28)
Bringing the Bounty Back to P&G	264	(2)
What's in It for Me?	266	(1)
The Nature of Leadership	266	(2)
Early Approaches to Leadership	268	(2)
Trait Approaches to Leadership	268	(1)
Behavioral Approaches to Leadership	269	(1)
The Situational Approach to Leadership	270	(1)
Leadership Through the Eyes of Followers	271	(2)
Transformational Leadership	271	(1)
Charismatic Leadership	272	(1)
Special Issues in Leadership	273	(2)
Leadership Substitutes	274	(1)
Leadership Neutralizers	274	(1)
The Changing Nature of Leadership	275	(2)
Leaders as Coaches	275	(1)
Gender and Leadership	276	(1)
Cross-Cultural Leadership	277	(1)
Emerging Issues in Leadership	277	(3)
Strategic Leadership	277	(1)
Ethical Leadership	278	(1)
Virtual Leadership	278	(2)
Leadership, Management, and Decision Making	280	(6)
Rational Decision Making	280	(3)
Behavioral Aspects of Decision Making	283	(3)
End-of-Chapter Features
Summary of Learning Objectives	286	(1)
Key Terms	287	(1)
Questions and Exercises	287	(1)
Building Your Business Skills: Learning to Lead	288	(1)
Exercising Your Ethics: Individual Exercise: Exercising Charisma	289	(1)
Exercising Your Ethics: Team Exercise: Forcing the Hand	290	(1)
Video Exercise: What Is Business Leadership?	291	(1)
Human Resource Management and Labor Relations	292	(34)
Las Vegas Gambles Online	292	(2)
What's in It for Me?	294	(1)
The Foundations of Human Resource Management	294	(3)
The Strategic Importance of HRM	294	(1)
HR Planning	295	(2)
Staffing the Organization	297	(3)
Recruiting Human Resources	297	(1)
Selecting Human Resources	297	(3)
Developing the Workforce	300	(1)
Training	300	(1)
Performance Appraisal	300	(1)
Compensation and Benefits	301	(3)
Wages and Salaries	301	(1)
Incentive Programs	302	(2)
Benefits Programs	304	(1)
The Legal Context of HRM	304	(4)
Equal Employment Opportunity	305	(1)
Contemporary Legal Issues in HRM	306	(2)
New Challenges in the Changing Workplace	308	(3)
Managing Workforce Diversity	308	(1)
Managing Knowledge Workers	309	(2)
Contingent and Temporary Workers	311	(1)
Dealing with Organized Labor	311	(2)
Unionism Today	312	(1)
Collective Bargaining	313	(6)
Reaching Agreement on Contract Terms	313	(1)
Contract Issues	314	(1)
When Bargaining Fails	315	(4)
End-of-Chapter Features
Summary of Learning Objectives	319	(1)
Key Terms	320	(1)
Questions and Exercises	320	(1)
Building Your Business Skills: A Little Collective Brainstorming	321	(1)
Exercising Your Ethics: Individual Exercise: Operating Tactically	322	(1)
Exercising Your Ethics: Team Exercise: Handling the Layoffs	323	(1)
Crafting A Business Plan: Part 3: People in Organizations	324	(1)
Video Exercise: Managing the Human Side of Business: Park Place Entertainment	325	(1)
PART 4 PRINCIPLES OF MARKETING
Marketing Processes and Consumer Behavior	326	(36)
Dell-ivering on Consumer Electronics	326	(2)
What's in It for Me?	328	(1)
What Is Marketing?	328	(7)
Providing Value and Satisfaction	328	(1)
Goods, Services, and Ideas	329	(1)
The Marketing Environment	330	(3)
Strategy: The Marketing Mix	333	(2)
Target Marketing and Market Segmentation	335	(2)
Identifying Market Segments	335	(2)
Understanding Consumer Behavior	337	(2)
Influences on Consumer Behavior	337	(1)
The Consumer Buying Process	338	(1)
Organizational Marketing and Buying Behavior	339	(1)
Organizational Markets	339	(1)
Organizational Buying Behavior	340	(1)
What Is a Product?	340	(3)
The Value Package	341	(1)
Classifying Goods and Services	342	(1)
The Product Mix	343	(1)
Developing New Products	343	(3)
The New Product Development Process	343	(2)
The Product Life Cycle	345	(1)
Identifying Products	346	(2)
Branding Products	346	(2)
Packaging Products	348	(1)
The International Marketing Mix	348	(2)
International Products	349	(1)
International Pricing	349	(1)
International Distribution	350	(1)
International Promotion	350	(1)
Small Business and the Marketing Mix	350	(4)
End-of-Chapter Features
Summary of Learning Objectives	354	(2)
Key Terms	356	(1)
Questions and Exercises	356	(1)
Building Your Business Skills: Dealing with Variables	357	(1)
Exercising Your Ethics: Individual Exercise: Driving a Legitimate Bargain	358	(1)
Exercising Your Ethics: Team Exercise: Cleaning Up in Sales	359	(1)
Video Exercise: Putting Yourself in the Consumer's Shoes: Skechers USA	360	(2)
Pricing, Distributing, and Promoting Products	362	(34)
The Nostalgia Merchants	362	(2)
What's in It for Me?	364	(1)
Determining Prices	364	(3)
Pricing to Meet Business Objectives	364	(2)
Price Setting Tools	366	(1)
Pricing Strategies and Tactics	367	(3)
Pricing Strategies	368	(1)
Pricing Tactics	369	(1)
The Distribution Mix	370	(2)
Intermediaries and Distribution Channels	370	(2)
Wholesaling	372	(1)
Retailing	372	(3)
Types of Retail Outlets	373	(1)
Nonstore Retailing	374	(1)
The Ascent of the E-Intermediary	375	(2)
Syndicated Sellers	375	(1)
Shopping Agents	375	(1)
Electronic Retailing	375	(2)
Physical Distribution	377	(3)
Warehousing Operations	377	(1)
Transportation Operations	377	(1)
Physical Distribution and E-Customer Satisfaction	378	(1)
Distribution as a Marketing Strategy	379	(1)
The Importance of Promotion	380	(8)
Promotional Objectives	380	(1)
The Promotional Mix	380	(1)
Advertising Promotions	381	(2)
Personal Selling	383	(1)
Sales Promotions	384	(1)
Publicity and Public Relations	385	(3)
End-of-Chapter Features
Summary of Learning Objectives	388	(2)
Key Terms	390	(1)
Questions and Exercises	390	(1)
Building Your Business Skills: Greeting Start-Up Decisions	391	(1)
Exercising Your Ethics: Individual Exercise: The Chain of Responsibility	392	(1)
Exercising Your Ethics: Team Exercise: A Big Push for Publicity	393	(1)
Crafting A Business Plan: Part 4: Principles of Marketing	394	(1)
Video Exercise: Through the Grapevine: Clos du Bois Winery	395	(1)
PART 5 MANAGING INFORMATION
Information Technology for Business	396	(30)
Letting Technology Be Your Guide	396	(2)
What's in It for Me?	398	(1)
IT Impacts	398	(6)
Creating Portable Offices: Providing Remote Access to Instant Information	399	(1)
Enabling Better Service by Coordinating Remote Deliveries	400	(1)
Creating Leaner, More Efficient Organizations?	400	(1)
Enabling Increased Collaboration	400	(1)
Enabling Global Exchange	400	(1)
Improving Management Processes	401	(1)
Providing Flexibility for Customization	401	(1)
Providing New Business Opportunities	402	(1)
Improving the World and Our Lives	403	(1)
IT Building Blocks: Business Resources	404	(4)
The Internet and Other Communication Resources	404	(1)
Networks: System Architecture	405	(2)
Hardware and Software	407	(1)
Information Systems: Harnessing the Competitive Power of IT	408	(6)
Leveraging Information Resources: Data Warehousing and Data Mining	409	(2)
Types of Information Systems	411	(3)
IT Risks and Threats	414	(2)
Hackers	414	(1)
Identity Theft	414	(1)
Intellectual Property Theft	415	(1)
Computer Viruses, Worms, and Trojan Horses	415	(1)
Spyware	416	(1)
Spam	416	(1)
IT Protection Measures	416	(4)
Preventing Unauthorized Access: Firewalls	416	(1)
Preventing Identity Theft	417	(1)
Preventing Viruses: Anti-Virus Software	417	(1)
Protecting Electronic Communications: Encryption Software	418	(1)
Avoiding Spam and Spyware	418	(2)
End-of-Chapter Features
Summary of Learning Objectives	420	(1)
Key Terms	421	(1)
Questions and Exercises	421	(1)
Building Your Business Skills: The Art and Science of Point-and-Click Research	422	(1)
Exercising Your Ethics: Individual Exercise: Caught in a Cyber Bind	423	(1)
Exercising Your Ethics: Team Exercise: This Game Is Getting Serious	424	(1)
Video Exercise: Space-Age Information Systems: Boeing Satellite Systems	425	(1)
The Role of Accountants and Accounting Information	426	(34)
What Numbers Can Be Crunched Offshore?	426	(2)
What's in It for Me?	428	(1)
What Is Accounting and Who Uses Accounting Information?	428	(1)
Who Are Accountants and What Do They Do?	429	(6)
Financial versus Managerial Accounting	429	(1)
Certified Public Accountants	429	(2)
Private Accountants and Management Accountants	431	(1)
Forensic Accountants	432	(1)
Federal Restrictions on CPA Services and Financial Reporting: Sarbox	433	(1)
Sarbox Compliance Requirements	433	(2)
The Accounting Equation	435	(1)
Financial Statements	436	(6)
Balance Sheets	436	(2)
Income Statements	438	(2)
Statements of Cash Flows	440	(1)
The Budget: An Internal Financial Statement	441	(1)
Reporting Standards and Practices	442	(4)
Analyzing Financial Statements	443	(1)
Solvency Ratios: Borrower's Ability to Repay Debt	444	(1)
Profitability Ratios: Earnings Power for Owners	445	(1)
Activity Ratios: How Efficiently Is the Firm Using Its Resources?	446	(1)
Bringing Ethics into the Accounting Equation	446	(5)
Why Accounting Ethics?	447	(4)
End-of-Chapter Features
Summary of Learning Objectives	451	(2)
Key Terms	453	(1)
Questions and Exercises	453	(1)
Building Your Business Skills: Putting the Buzz in Billing	454	(1)
Exercising Your Ethics: Individual Exercise: Give and Take with Accounting Clients	455	(1)
Exercising Your Ethics: Team Exercise: Confidentially Yours	456	(1)
Crafting A Business Plan: Part 5: Managing Information	457	(1)
Video Exercise: Accounting for Billions of Burgers: McDonald's	458	(2)
PART 6 FINANCIAL ISSUES
Money and Banking	460	(30)
Going with the Currency	460	(2)
What's in It for Me?	462	(1)
What Is Money?	462	(5)
The Characteristics of Money	463	(1)
The Functions of Money	463	(1)
M-1: The Spendable Money Supply	464	(1)
M-2: M-1 Plus the Convertible Money Supply	464	(2)
M-3: M-2 Plus Less Liquid Deposits	466	(1)
Credit Cards: Plastic Money?	466	(1)
The U.S. Financial System	467	(6)
Financial Institutions	467	(2)
Special Financial Services	469	(2)
Financial Institutions as Creators of Money	471	(1)
Regulation of the Banking System	472	(1)
The Federal Reserve System	473	(5)
The Structure of the Fed	473	(1)
The Functions of the Fed	474	(2)
The Tools of the Fed	476	(2)
The Changing Money and Banking System	478	(2)
Anti-Terrorism Regulations: The Bank Secrecy Act (BSA) and USA Patriot Act	478	(1)
Interstate Banking	478	(1)
The Impact of Electronic Technologies	479	(1)
International Banking and Finance	480	(4)
The International Payments Process	480	(1)
International Bank Structure	481	(3)
End-of-Chapter Features
Summary of Learning Objectives	484	(1)
Key Terms	485	(13)
Questions and Exercises	498
Building Your Business Skills: Four Economists in a Room	485	(2)
Exercising Your Ethics: Individual Exercise: Telling the Ethical from the Strictly Legal	487	(1)
Exercising Your Ethics: Team Exercise: Banker's Predicament: National Security Versus Customer Privacy	488	(1)
Video Exercise: Funding the Business World: Coast Business Credit	489	(1)
Securities and Investments	490	(33)
Wanna Bet (on a Sure Thing)?	490	(2)
What's in It for Me?	492	(1)
Securities Markets	492	(1)
Primary and Secondary Securities Markets	492	(1)
Stocks	493	(8)
Common Stock	493	(2)
Preferred Stock	495	(1)
Investor Preferences	495	(1)
Stock Exchanges	496	(4)
Fantasy Stock Markets	500	(1)
Bonds	501	(2)
U.S. Government Bonds	502	(1)
Municipal Bonds	502	(1)
Corporate Bonds	502	(1)
Mutual Funds	503	(1)
Reasons for Investing	503	(1)
Diversification and Asset Allocation	504	(2)
The Risk-Return Relationship	504	(1)
Diversification	505	(1)
Asset Allocation	505	(1)
Buying and Selling Securities	506	(6)
Financial Information Services	506	(5)
Placing Orders	511	(1)
Financing Purchases	512	(1)
Securities Market Regulation	512	(4)
NASD and Securities Regulation	512	(1)
NYSE Self-Regulation	513	(1)
The Securities and Exchange Commission	513	(3)
End-of-Chapter Features
Summary of Learning Objectives	516	(1)
Key Terms	517	(1)
Questions and Exercises	517	(1)
Building Your Business Skills: Market Ups and Downs	518	(1)
Exercising Your Ethics: Individual Exercise: Are You Endowed with Good Judgment?	519	(1)
Exercising Your Ethics: Team Exercise: Serving Two Masters: Torn Between Company and Client	520	(1)
Crafting A Business Plan: Part 6: Financial Issues	521	(1)
Video Exercise: Information Pays Off: Motley Fool	522	(1)
Appendix I: Financial Risk And Risk Management	523	(12)
Appendix II: The Legal Context of Business	535	(10)
Appendix III: Managing Your Personal Finances	545	(18)
Answers to Self-Help Questions	563	(6)
Notes, Sources, and Credits	569	(10)
Glossary	579	(18)
Name and Company Index	597	(5)
Subject Index	602