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CHAPTER 3: DOING BUSINESS IN GLOBAL MARKETS.

• The theories of comparative and absolute advantage.

• Strategies for reaching global markets: Licensing, exporting, franchising, contract manufacturing (outsourcing), joint venture, strategic alliance, foreign subsidiaries, and foreign direct investment.

• What is meant by free trade?

• What is meant by trade protectionism?

• Understand the following terms: Tariff, import quota, and embargo.

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• What is meant by balance of trade, trade surplus (favorable balance of trade), and trade deficit (unfavorable balance of trade)?

CHAPTER 4: DEMANDING ETHICAL AND SOCIALLY RESPONSIBLE BEHAVIOR.

• Three important questions associated with addressing ethical dilemmas.

• Understand the following terms: Ethical dilemma, situational ethics, social responsibility, and philanthropy.

• Compliance-based ethics codes versus integrity-based ethics codes.

• Social audits. What is one of the major problems in conducting a social audit?

CHAPTER 5: HOW TO FORM A BUSINESS.

• Advantages and disadvantages of sole proprietorships.

• Advantages and disadvantages of partnerships.

• Advantages and disadvantages of corporations.

• Differences between general partnership, limited partnership, and master limited partnership.

• Differences between C corporations, S corporations, and limited liability companies.

• Purpose of taking a firm private.

• Distinguish between the three different types of mergers: Horizontal, vertical, and conglomerate.

• Advantages and disadvantages of franchises.

CHAPTER 6: ENTREPRENEURSHIP AND STARTING A SMALL BUSINESS.

• Intrapreneurs versus entrepreneurs.

• Attributes of successful entrepreneurs.

• Small-business success and failure.

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• Ways to learn about small-business operations.

• Important ingredients for starting and running a small business.

• Definition of a market.

CHAPTER 7: MANAGEMENT AND LEADERSHIP.

• Skills required for effective managers in the present/future world of business.

• Understand the four functions of management: Planning, organizing, leading, and controlling.

• What is a SWOT analysis?

• Distinguish between the four different types of planning: Strategic, tactical, operational, and contingency.

• Distinguish between goals and objectives.

• Distinguish between the different leadership styles. Is any one leadership style superior to the others under all circumstances?

CHAPTER 8: STRUCTURING ORGANIZATIONS FOR TODAY’S CHALLENGES.

• Understand the organizational theories of Henri Fayol and Max Weber.

• Understand the following terms: Bureaucracy (bureaucratic organization), hierarchy, span of control, division of labor, and departmentalization.

• Distinguish between centralized and decentralized management.

• Organization models: Line, staff, matrix, and cross-functional self-managed teams. What are the advantages and disadvantages of each type of organization model?

CHAPTER 10: MOTIVATING EMPLOYEES.

• Intrinsic versus extrinsic rewards.

• Understand Frederick Taylor’s scientific management.

• The importance of the Hawthorne Studies in relation to the direction of management theory.

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• Understand Abraham Maslow’s hierarchy of needs and the relationship to employee motivation.

• Theory X versus Theory Y versus Theory Z managers.

• Distinguish between Herzberg’s hygiene factors and motivators.

• What is meant by management by objectives (MBO)? How is an MBO program implemented?

• The basic components of expectancy theory.

• The basic components of equity theory.

CHAPTER 11: HUMAN RESOURCE MANAGEMENT: FINDING AND KEEPING THE BEST EMPLOYEES.

• What is the role of human resource management? What are the opportunities and challenges of human resource management?

• Understand the six steps in planning human resources. What is meant by a human resource inventory, job analysis, job description, and job specification?

• Contingent workers.

• Understand the six steps involved in the selection of employees.

• Management development and the role of job rotation.

• The purpose of appraising employee performance. What are the steps in the performance appraisal process?

• Compensation for team performance.

• Advantages and disadvantages of a flextime plan.

CHAPTER 13: MARKETING: HELPING BUYERS BUY.

• What is the goal of the marketing process?

• Understand the components of the marketing mix (i.e., the 4 Ps of marketing).

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• Distinguish between the Consumer (B2C) and Business-to-Business (B2B) markets.

• Understand the different types of market segmentation: Geographic, demographic, psychographic, benefit, and volume segmentation.

• Primary data collection versus secondary data collection.

• Understand the following terms: Niche marketing, mass marketing, target marketing, and relationship marketing.

• What is cognitive dissonance?

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