What is the money market?
> 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?
> 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?
> If you decide you want to work in a production-related job, what additional classes should you consider taking before you graduate?
> What is the outlook for careers in this profession? If you were interested in this field, would you consider it, given the job outlook?
> What is the nature of the work for industrial production managers? Does the combination of people management and technical problem solving appeal to you?
> Which of the entrepreneurial characteristics mentioned in the chapter describe you? Which of these characteristics can you develop more fully in advance of running your own business?
> What training and qualifications are required for a career as an economist? Are the qualifications different for jobs in the private sector as opposed to those in the government?
> What is the job outlook for economists? What is the average salary for starting economists?
> Briefly describe what economists do and their typical working conditions.
> What factors are expected to contribute to the projected long-term growth of this industry?
> Do laws and regulations always restrict or impede the efforts of business professionals, or can they actually help businesses? Explain your answer.
> What is the typical starting position for many people in the securities industry?
> What are the licensing and continuing education requirements for securities brokers?
> What kinds of employers hire people for this position? According to your research, does the number of employers seem to be increasing or decreasing? How do you think this trend will affect your employment possibilities if you choose this career?
> What skills and educational qualifications would you need to enter this occupation? How do these qualifications fit with your current plans, skills, and interests?
> What are the day-to-day duties of this occupation? How would these duties contribute to the financial success of a company?
> What kinds of employers hire people for this position? According to your research, does the number of employees seem to be increasing or decreasing? How do you think this trend will affect your employment possibilities if you choose to enter this career?
> What skills and qualifications would you need to enter this occupation? How do these qualifications fit with your current plans, skills, and interests?
> What are the day-to-day duties of this occupation? How would these duties contribute to the financial success of a company?
> What training and qualifications should a marketing manager have?
> What does a marketing manager do?
> If individual accountability is an essential element of professionalism, why is it also important to be an effective team player? Explain your answer.
> Find two openings in the field you are researching. What educational background, work experience, and other qualifications are employers seeking in candidates for this position?
> Select a specific marketing job that interests you, and use the sites just mentioned to find out more about this career path. What specific duties and responsibilities do people in this position typically handle?
> If Apply temporarily can’t meet demand for a product, should it raise the price to bring supply and demand into balance? Why or why not?
> If consumers are willing to wait weeks or months for the latest iPhone, why does Apple need to worry about producing enough phones to meet immediate demand?
> Are programs that help specific groups of entrepreneurs, such as the SBA program that helps minority- and woman-owned businesses, fair to those who don’t qualify? Explain your answer.
> If your personal credit is shaky at the moment and you don’t have a lot of cash to invest in a new business, what steps could you take to get a new company going?
> Would Yolanda Diaz have been as successful if she had started her company right out of college, rather than waiting until she’d had a decade of corporate experience? Why or why not?
> Could a publicly owned, for-profit bank that truly espoused a customer-first approach successfully compete against both Alliant and other banks? Why or why not?
> Why might customers of big banks be reluctant to move to a credit union?
> Why do you suppose accounting regulations require companies to report paper losses or gains from futures contracts in their financial statements?
