Question: How do tariffs and quotas protect a

> What are the key reasons for most small-business failures?

> What are the advantages and disadvantages of owning a franchise?

> What are the advantages of buying a business rather than starting one from scratch?

> What are three essential functions of a business plan?

> Concept Integration. Pick a local small business or franchise that you visit frequently and discuss whether that business competes on price, speed, innovation, convenience, quality, or any combination of those factors. Be sure to provide some examples.

> Concept Integration. Entrepreneurs are one of the five factors of production discussed. Review that material and explain why entrepreneurs are an important factor for economic success.

> You’re thinking about starting your own chain of upscale, drive-through espresso stands. You have several ideal sites in mind, and you’ve analyzed the industry and all the important statistics. You have financial backing, and you really understand the c

> What is the difference between a general and a limited partnership?

> How will your experiences as an employee affect the leadership style you adopt when you become a manager?

> What factors should you consider before selecting financing alternatives for a new business?

> Could writing a conventional business plan every cause more harm than good? Explain your answer?

> Do you expect the number of entrepreneurs in the United States will grow in the next 10 years? Why or why not?

> Why is it advisable for partners to enter into a formal partnership arrangement?

> What is the role of a company’s board of directors?

> What is a closely held corporation, and why do some companies choose this form of ownership?

> How does unlimited liability put a business owner at risk?

> What are the three basic forms of business ownership?

> Concept Integration. You’ve developed considerable expertise in setting up new manufacturing plants, and now you’d like to strike out on your own as a consultant who advises other companies. However, you recognize that manufacturing activity tends to exp

> How does the quality of business management affect society as a whole?

> Suppose you and some friends want to start a business to take tourists on wilderness backpacking expeditions. None of you has much extra money, so your plan is to start small. However, if you are successful, you would like to expand into other types of o

> Why might two companies choose to form a strategic alliance rather than pursue a merger or an acquisition?

> How might a company benefit from having a diverse board of directors that includes representatives of several industries, countries, and cultures?

> To what extent do shareholders control the activities of a corporation?

> Why can’t legal considerations resolve every ethical question?

> What is identity theft, and what responsibility do businesses have to prevent it?

> How are businesses responding to the environmental issues facing society?

> What is the difference between defensive and proactive CSR?

> What is a conflict of interest?

> How does ethics differ from corporate social responsibility?

> Is “I don’t like having a boss tell me what to do” a good reason to start your own company? Explain your answer.

> Concept Integration. Is it ethical for state and city governments to entice businesses to relocate their operations to that state or city by offering them special tax breaks that are not extended to other businesses operating in that area?

> If an employee leaves a company to work for a competitor, what types of knowledge would be ethical for the employee to share with the new employer and what types would be unethical to share?

> Based on what you’ve learned about corporate social responsibility, what effect will CSR considerations have on your job search?

> Would it be ethical for U.S. companies to boycott products made in exploitive, low-wage overseas factories if the employees in those factories are grateful to have their jobs? Why or why not?

> What effects have social media had on CSR?

> Why is it important for a company to balance its social responsibility efforts with its need to generate profits?

> How do individuals employ philosophical principles in making ethical business decisions?

> Why would a company choose to work through intermediaries when selling products in a foreign country?

> What is a floating exchange rate?

> What is protectionism?

> Given the risks involved in starting any company, should an aspiring entrepreneur investigate all possible failure scenarios and develop action plans to avoid these potential outcomes? Explain your answer.

> Discuss the five major environments in which every business operates. (1) Is it wise for cities and states to compete with each other to be more business friendly, specifically with regard to lower tax rates on businesses? Why or why not? (2) Even though

> What is the balance of trade, and how is it related to the balance of payments?

> What two fundamental product strategies do companies choose between when selling their products in the global marketplace?

> How can a company use a licensing agreement to enter world markets?

> Would a major shopping mall developer with experience all across Europe be a good strategic alliance partner for your fast-food chain’s first overseas expansion effort? Why or why not?

> How has your current employer or any previous employer been affected by globalization? For instance, does your company compete with lower-cost imports? (If you don’t have any work experience, ask a friend or family member.)

> Suppose you own a small company that manufactures baseball equipment. You are aware that Russia is a large market, and you are considering exporting your products there. However, you know you need to learn more about Russian culture before making contact

> Ethical Considerations. Is it unethical for a U.S. company to choose export markets specifically for their less-stringent consumer protection standards? Why or why not?

> What types of situations might cause the U.S. government to implement protectionist measures?

> How do companies benefit from forming international joint ventures and strategic alliances?

> Is it ethical for special-interest groups to engage in shareholder activism? Explain your answer.

> Why do governments intervene in the free-market system?

> Why might a government agency seek to block a merger or acquisition?

> What is the difference between monetary policy and fiscal policy?

> Does the United States have a purely free-market economy or a mixed economy?

> How does macroeconomics differ from microeconomics?

> Why is the economic concept of scarcity a crucial concept for businesspeople to understand?

> Concept Integration. What effect might the technological environment, discussed in Chapter 1, have on the equilibrium point in a given market?

> If you wanted to increase demand for your restaurant but are unable to lower prices or increase advertising, what steps might you take?

> How would a decrease in Social Security benefits to retired persons affect the economy?

> How might government and education leaders work with business to minimize structural unemployment?

> Why are leveraged buyouts considered risky?

> Ethical Considerations. The risk of failure is an inherent part of free enterprise. Does society have an obligation to come to the aid of entrepreneurs who try but fail? Why or why not?

> Is it beneficial for the country as a whole for individual U.S. states to compete with one another to attract companies? (Offering tax breaks in exchange for building new facilities is a common tactic states use to attract commercial investment, for exam

> Are the fluctuations in the business cycle predictable?

> How do countries know if their economic systems are working?

> Identify three ways in which the principles of professionalism described in this chapter can make you a more successful student.

> Identify at least five ways in which your life would be different without digital technology. Would it be more or less enjoyable? More or less productive?

> What are some of the ways a company in the health-care industry could improve its long-term planning by studying population trends?

> How will you be able to apply your experience as a consumer of educational services to the challenges you’ll face in your career after graduation?

> How can business knowledge and skills help social entrepreneurs reach their goals?

> Ethical considerations. Is managing a business in ways that reflect society’s core values always ethical? Explain your answer.

> Why does a company need more than a code of ethics to be ethical?

> Why is mobile connectivity considered a disruptive technology?

> Does a downturn in the economy hurt all companies equally? Provide several examples to support your answers.

> What is professionalism?

> How does the money supply affect the cost and availability of credit?

> What does securitization of debt mean?

> What is a subprime mortgage?

> What is a bubble?

> How do commercial banks differ from investment banks?

> What are the primary responsibilities of the Federal Reserve System?

> In what ways did the housing bubble and subprime crisis violate the responsibilities suggested by the stakeholder model?

> What steps could a bookstore take to engage in strategic CSR?

> As a corporate financial manager, what steps could you take to protect your company from a liquidity crisis?

> If a consumer with a relatively low credit score applied for a loan from your bank, what other criteria might you consider before deciding to grant a loan?

> If you were in charge of monetary policy and wanted to lower the federal rate, would you buy or sell Treasury securities on the open market? Why?

> How did the decoupling of risk and reward contribute to the problems in the subprime mortgage industry?

> Why would a credit union work to make sure consumers know it is not a bank?

> What is the difference between a stock’s market value and its intrinsic value?

> How did the decline in lending standards contribute to the financial meltdown of 2008?

> Generally speaking, what effect did the repeal of the Glass-Steagall Act have on the banking industry?

> If an investor had enough money to diversify adequately through buying individual securities, why might he or she still consider buying mutual funds instead?

> How does buying a commodities future differ from buying a commodity outright?

> What is a p/e ratio, and what does it signify to an investor?

> How is the notion of free trade similar to the free-markets model discussed?

> What happens during a two-for-one stock split?

> What is the money market?

> Review the discussion of mission statements. Suppose you were thinking about purchasing 100 shares of common stock in General Electric. Why might you want to first review the company’s mission statement? What would you be looking for in the company’s mis