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business
understanding business ethics
Understanding Business 13th Edition William Nickels, Jim McHugh, Susan McHugh - Solutions
1. 2. Countries like the United States that have a high standard of living are referred to as industrialized nations. Countries with a lower standard of living and quality of life are called developing countries (or sometimes underdeveloped or less developed countries).What factors prevent
1. 1. About 95 percent of the world’s population lives outside the United States, but many U.S. companies, especially small businesses, still do not engage in global trade. Why not? Do you think more small businesses will participate in global trade in the future?Why or why not?
1. What are the two primary concerns associated with offshore outsourcing?
1. What key challenges must China face before becoming the major global economic leader?
1. What are the major threats to doing business in global markets?
1. What three nations comprise make up NAFTA?
1. What is the key objective of a common market like the European Union?
1. What is the primary purpose of the WTO?
1. What are the advantages and disadvantages of trade protectionism and of tariffs?
1. What does the Foreign Corrupt Practices Act prohibit?
1. How would a low value of the dollar affect U.S. exports?
1. What does ethnocentricity mean, and how can it affect global success?
1. What are four major hurdles to successful global trade?
1. What makes a company a multinational corporation?
1. What is the key difference between a joint venture and a strategic alliance?
1. What services are usually provided by an export-trading company?
1. What are the advantages to a firm of using licensing as a method of entry in global markets? What are the disadvantages?
1. What is meant by the term dumping in global trade?
1. How are a nation’s balance of trade and balance of payments determined?
1. What is comparative advantage, and what are some examples of this concept at work in the United States?
1. What are two of the main arguments favoring the expansion of U.S.businesses into global markets?
Why hasn’t the company ever needed to seek bank financing?
Why is cash flow so important to a firm like Threadless?
What were the major financial challenges faced by Jason Macatangay when he became vice president of finance at Threadless?
Factoring accounts receivable is a form of financing used since the days of Babylonian King Hammurabi 4,000 years ago. Today it’s still a source of short-term funds used by small businesses. Visit 21stfinancialsolutions.com to get more indepth information about factoring and be prepared to
Contact a lending officer at a local bank in your community, or visit the bank’s website, to check the bank’s policies on providing a business a line of credit. Evaluate the chances that this bank will give a small business this form of short-term loan.
Glory Days is a day care center for older adults operated by a local church. It needs funding to remodel the center’s kitchen and install an elevator to make the building accessible to those in wheelchairs. Does it meet SBA criteria? Why or why not?
Glamour Galore is a cosmetic company that pays sales commissions based on a system that depends on salespeople recruiting additional salespeople. It needs funding to build a marketing campaign. Does it meet SBA criteria? Why or why not?
Why do firms generally prefer to borrow funds to obtain long-term financing rather than issue shares of stock?
What are the primary sources of short-term funds for new business owners? What are their major sources of long-term funds?
What’s leverage, and how do firms use it?
What are the two major forms of debt financing?
What are the major sources of long-term financing?
What’s commercial paper?
Is factoring a form of secured loan?
What’s the difference between a secured loan and an unsecured loan?
What is meant by a line of credit?
Why should businesses use trade credit?
What’s the difference between short-term and long-term financing?
What’s the difference between debt financing and equity financing?
What are firms’ major financial needs?
What are the three budgets in a financial plan?
What do financial managers do?
What are the most common ways firms fail financially?
What sources of long-term funding (capital) are available, and which will best fit our needs?
What funds do we need to achieve the firm’s long-term goals and objectives?
What are our organization’s long-term goals and objectives?
What is factoring?
What’s the primary reason an organization spends a good deal of its available funds on inventory and capital expenditures?
Why is accounts receivable a major financial concern to the firm?
Money has time value. What does this mean?
What is the purpose of preparing budgets in an organization? Can you identify three different types of budgets?
How do short-term and long-term financial forecasts differ?
What three primary financial problems cause firms to fail?
Identify and describe different sources of longterm financing.
Identify and describe different sources of shortterm financing.
Explain why firms need operating funds.
Outline the financial planning process, and explain the three key budgets in the financial plan.
Explain the role and responsibilities of financial managers.
Explain the concept of marketing channels and their value.
Demonstrate how intermediaries perform the six marketing utilities.
Identify the types of wholesale intermediaries in the distribution system.
Compare the distribution strategies retailers use.
Explain the various kinds of nonstore retailing.
Explain the various ways to build cooperation in channel systems.
Describe logistics, and outline how intermediaries manage the transportation and storage of goods.
What is a channel of distribution, and what intermediaries participate in it?
Why do we need intermediaries? Illustrate how intermediaries create exchange efficiency.
How would you defend intermediaries to someone who said getting rid of them would save consumers millions of dollars?
Can you give examples of the utilities intermediaries create and how they provide them?
Describe the activities of rack jobbers and drop shippers.
What four systems have evolved to tie together members of the channel of distribution?
How does logistics differ from distribution?
What are inbound logistics, outbound logistics, and reverse logistics?
What are some wholesale organizations that assist in the movement of goods from manufacturers to consumers?
What is a retailer?
What are three distribution strategies marketers use?
What are some of the forms of nonstore retailing?
What are the four types of distribution systems?
What is logistics?
What is the difference between logistics and distribution?
What are the various transportation modes?
What is intermodal shipping?
What are the different kinds of warehouses?
Imagine that we have eliminated marketing intermediaries, and you need groceries and shoes. How would you find out where the shoes and groceries are? How far would you have to travel to get them? How much money do you think you’d save for your time and effort?
Which intermediary do you think is most important today and why? What changes are happening to companies in that area?
Many suggest that a scarce item in the future will be water. If you could think of an inexpensive way to get water from places of abundance to places where it is needed for drinking, farming, and other uses, such as fracking, you could become a wealthy marketing intermediary. Pipelines are an
What is the difference between hosted and self-hosted e-commerce platforms?
What are the advantages and disadvantages of the two types of e-commerce platforms?
Imagine Harvest Gold is such a success that you now want to expand your business by selling the ingredients for healthy meals online. Which platform would you use? Why?
The six utilities of marketing are form, time, place, possession, information, and service. Give examples of organizations in your area that perform each of these functions.
Form small groups and diagram how Dole might get pineapples from a field in Thailand to a canning plant in California to a store near your college. Include the intermediaries and the forms of transportation each one might use.
In class, discuss the differences between wholesaling and retailing and why retailing has more appeal for students considering jobs. Since fewer students seek jobs in wholesaling than in retailing, do you think wholesaling jobs may be easier to get?
One part of retailing is using auction sites like eBay to sell new and used merchandise.Form small groups and discuss group members’ experiences using eBay. What tips have they learned? How do eBay users minimize the problems associated with shipping?
What intermediaries are most threatened by the growth of direct-to-consumer (D2C) companies?
What products do you purchase from D2C companies? What products will you not purchase from D2Cs companies?
What’s the value to a company in receiving very favorable customer reviews from a company such as Amazon?
Identify the new and traditional tools that make up the promotion mix.
Contrast the advantages and disadvantages of various advertising media, including the Internet and social media.
Illustrate the steps of the B2B and B2C selling processes.
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