SOLUTIONS MANUAL
** All Chapters included
** Answers To End-Of-Chapter Materials
,Table of Contents are given below
1. Business Basics
2. Economics
3. Ethics in Business
4. Business in a Global Economy
5. Small Business and the Entrepreneur
6. Forms of Business Ownership
7. Business Management and Organization
8. Motivation, Leadership, and Teamwork
9. Human Resources Management
10. Online Business and Technology
11. Production, Operations, and Supply Chain Management
12. Marketing and Consumer Behavior
13. Product Development, Branding, and Pricing Strategies
14. Promotion and Distribution
15. Financing and Accounting for Business Operations
16. Investment Opportunities in the Securities Market
, CHAPTER 1: BUSINESS BASICS
CHAPTER OPENER
Many students come to an introduction to business class not quite sure about what’s in it
for them. However, the course has something for everyone, from those who have been in
the business world a while to those without any experience at all. As the book unfolds,
students will develop an understanding of the foundations of business and will be able to
apply what they already know about business to many parts of the course.
This first chapter dives right into the world of business:
explaining the differences between goods and services
differentiating between for-profit businesses and not-for-profit organizations
identifying and describing the factors of production
Next, the chapter covers the ways in which competition, the social environment,
globalization, and technological growth both challenge and provide opportunities to
business owners. Students will then be introduced to different types of businesses in
terms of their scope. Finally, the chapter will make the vital connection between their
current life skills and the business environment.
STUDENT LEARNING OUTCOMES
1-1 Define business and list the factors of production.
1-2 Explain how competition, the social environment, globalization, and
technological changes challenge and provide opportunities to business owners.
1-3 Describe the four types of businesses.
1-4 Explain how life skills translate to the business environment.
, DETAILED LECTURE OUTLINE
I. The Business Landscape – Define Business and List the Factors of Production.
A. Business Defined
1. What exactly is a business?
a. Businesses are entities that offer products and services to their customers
in order to earn a profit.
b. A profit is earned when a company’s revenue (the money it brings in)
exceeds its expenses (the money it pays out).
c. When expenses exceed revenue, the company posts a loss.
2. What kinds of products do businesses offer?
a. Products can be either a good or a service.
b. Goods are physical products a business sells.
c. A service is an intangible product that is bought or sold.
d. Some companies (such as restaurants) offer products that are both goods
and services.
e. Countries change over time in whether goods or services dominate their
economic system.
3. What do businesses do with their profits?
a. As profits are generated, a company can reward its employees, increase its
productivity, or expand its business.
b. A successful business benefits both the owner and society because they
offer desired goods and services, provide employment, and generate
income and spending in the economy.
4. What about nonprofits?
a. Nonprofit organizations do not pursue profits for its owners, but instead
seek to service the community through social, educational, or political
means.
b. Profits are used to further the organization’s causes by expanding the
services they provide.
B. The Factors of Production
1. What do businesses use to create the products they sell?
a. The factors of production are the resources used to create goods and
services. These are as follows:
i. Labor refers to any physical or intellectual work (ideas and
knowledge) that people contribute to a business’s production.
ii. Natural resources are raw materials provided by nature that are
used to produce goods and services.
iii. Capital, both real and financial:
a. Real capital refers to the physical facilities used to produce goods
and services.
b. Financial capital refers to money used to facilitate a business
enterprise.
iv. Entrepreneurial talent:
a. An entrepreneur assumes the risk of creating, organizing, and
operating a business and directs all of a business’s resources.
** All Chapters included
** Answers To End-Of-Chapter Materials
,Table of Contents are given below
1. Business Basics
2. Economics
3. Ethics in Business
4. Business in a Global Economy
5. Small Business and the Entrepreneur
6. Forms of Business Ownership
7. Business Management and Organization
8. Motivation, Leadership, and Teamwork
9. Human Resources Management
10. Online Business and Technology
11. Production, Operations, and Supply Chain Management
12. Marketing and Consumer Behavior
13. Product Development, Branding, and Pricing Strategies
14. Promotion and Distribution
15. Financing and Accounting for Business Operations
16. Investment Opportunities in the Securities Market
, CHAPTER 1: BUSINESS BASICS
CHAPTER OPENER
Many students come to an introduction to business class not quite sure about what’s in it
for them. However, the course has something for everyone, from those who have been in
the business world a while to those without any experience at all. As the book unfolds,
students will develop an understanding of the foundations of business and will be able to
apply what they already know about business to many parts of the course.
This first chapter dives right into the world of business:
explaining the differences between goods and services
differentiating between for-profit businesses and not-for-profit organizations
identifying and describing the factors of production
Next, the chapter covers the ways in which competition, the social environment,
globalization, and technological growth both challenge and provide opportunities to
business owners. Students will then be introduced to different types of businesses in
terms of their scope. Finally, the chapter will make the vital connection between their
current life skills and the business environment.
STUDENT LEARNING OUTCOMES
1-1 Define business and list the factors of production.
1-2 Explain how competition, the social environment, globalization, and
technological changes challenge and provide opportunities to business owners.
1-3 Describe the four types of businesses.
1-4 Explain how life skills translate to the business environment.
, DETAILED LECTURE OUTLINE
I. The Business Landscape – Define Business and List the Factors of Production.
A. Business Defined
1. What exactly is a business?
a. Businesses are entities that offer products and services to their customers
in order to earn a profit.
b. A profit is earned when a company’s revenue (the money it brings in)
exceeds its expenses (the money it pays out).
c. When expenses exceed revenue, the company posts a loss.
2. What kinds of products do businesses offer?
a. Products can be either a good or a service.
b. Goods are physical products a business sells.
c. A service is an intangible product that is bought or sold.
d. Some companies (such as restaurants) offer products that are both goods
and services.
e. Countries change over time in whether goods or services dominate their
economic system.
3. What do businesses do with their profits?
a. As profits are generated, a company can reward its employees, increase its
productivity, or expand its business.
b. A successful business benefits both the owner and society because they
offer desired goods and services, provide employment, and generate
income and spending in the economy.
4. What about nonprofits?
a. Nonprofit organizations do not pursue profits for its owners, but instead
seek to service the community through social, educational, or political
means.
b. Profits are used to further the organization’s causes by expanding the
services they provide.
B. The Factors of Production
1. What do businesses use to create the products they sell?
a. The factors of production are the resources used to create goods and
services. These are as follows:
i. Labor refers to any physical or intellectual work (ideas and
knowledge) that people contribute to a business’s production.
ii. Natural resources are raw materials provided by nature that are
used to produce goods and services.
iii. Capital, both real and financial:
a. Real capital refers to the physical facilities used to produce goods
and services.
b. Financial capital refers to money used to facilitate a business
enterprise.
iv. Entrepreneurial talent:
a. An entrepreneur assumes the risk of creating, organizing, and
operating a business and directs all of a business’s resources.
