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?
> 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?
> How do tariffs and quotas protect a country’s own industries?
> 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.
> 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
> If your bank specializes in lending money to home builders, and the forecast for new home sales is predicting a decline in the coming months, what type of financial instrument could you use to protect against builders defaulting on loans because they are
> If you are worried that a panicked market might cause the price of one of your stocks to plunge, what type of sell order could you use with your broker to limit your losses?
> If investors want a steady predictable flow of cash, what types of investments should they seek and why?
> Would it be ethical for you to write in your personal blog about the positive outlook on a stock that you own, without telling readers that you own the stock? Why or why not?
> What is the difference between a secured and an unsecured loan?
> When might an investor sell a stock short? What risks are involved in selling short?
> Why may different analysts arrive at different intrinsic values for the same stock?
> How might the word “free” affect public and political discussions of free-market systems?
> Why is asset allocation recommended as a way to diversify against risk?
> Would it be wise for a young company that is growing quickly but still hasn’t achieved profitability to attempt to issue bonds as a way to expand its working capital? Why or why not?
> How can factoring help a company manage its cash flow?
> What does it mean when someone refers to a company’s capital structure?
> If you were a U.S. exporter selling to Japan, how would a stronger dollar be likely to affect demand for your products? How would a weaker dollar be likely to affect demand?
> Is the company alone in facing these changes, or is the entire industry trying to adapt? What are other companies in the industry doing to adapt to the changes?
> What changes in the workforce or employee needs caused the company to adapt? What did the company do to respond to these changes? Was the company’s response voluntary or legally mandated?
> Questions you might pose to that broker to help you evaluate the merits of purchasing a specific security.
> Questions you might ask a stockbroker to help you decide whether you would use his or her services.
> Why is competition an important element of the free-market system?
> Prepare a brief written summary of your conclusions.
> What other changes in the workforce or in employee needs do you think this company is likely to face in the next few years? Why?
