Anybody’s business PDF
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Barbara Van Syckle JACKSON COMMUNITY COLLEGE Brian Tietje CAL POLY STATE UNIVERSITY, SAN LUIS OBISPO BOSTON COLUMBUS INDIANAPOLIS NEW YORK SAN FRANCISCO UPPER SADDLE RIVER AMSTERDAM CAPE TOWN DUBAI LONDON MADRID MILAN MUNICH PARIS MONTREAL TORONTO DELHI MEXICO CITY SAO PAULO SYDNEY HONG KONG SEOUL SINGAPORE TAIPEI TOKYO VP/Publisher:Natalie E.Anderson Senior Operations Supervisor:Natacha Moore AVP/Executive Editor:Jodi McPherson Design Development Manager:John Christinia Director,Product Development:Pamela Hersperger Director of Marketing:Kate Valentine Editorial Project Manager:Melissa Arlio Text and Cover Designer:Blair Brown Development Editor:Shannon LeMay-Finn Manager, Visual Research:Beth Brenzel Editorial Assistant:Christina Rumbaugh Photo Researcher:Manager,Rights and Permissions:Zina Arabia AVP,Executive Editor,Media:Richard Keaveney Image Permission Coordinator:Cynthia Vincenti Director of Digital Development:Lisa Strite Cover, Visual Research and Permissions:Karen Sanatar Senior Marketing Manager:Maggie Moylan-Leen Cover Photos:Corbis/Colin Anderson;istockphoto Marketing Assistant:Justin Jacob Text Illustrations:Sproutin Up Designs,Inc.LLC and Blair Brown Editorial Media Project Manager:Ashley Lulling Full-Service Project Management:Words & Numbers,Inc. Media Development Managers:Cathi Profitko and Robin Lazrus Composition:Absolute Service Development Editor,Media:Gina Huck Siegert Printer/Binder:Courier/Kendallville Production Media Project Manager:John Cassar Cover Printer:Phoenix Color Senior Managing Editor:Cynthia Zonneveld Text Font:Gill Sans/Light 10/12 Production Project Manager:Lynne Breitfeller Credits and acknowledgments borrowed from other sources and reproduced,with permission,in this textbook appear on appropriate page within text (or on page 383). Microsoft® and Windows® are registered trademarks of the Microsoft Corporation in the U.S.A.and other countries.Screen shots and icons reprinted with permission from the Microsoft Corporation.This book is not sponsored or endorsed by or affiliated with the Microsoft Corporation. Copyright © 2010 Pearson Education,Inc.,publishing as publishing as Pearson Prentice Hall,Upper Saddle River,New Jersey,07458. All rights reserved.Manufactured in the United States of America.This publication is protected by copyright,and permission should be obtained from the publisher prior to any prohibited reproduction,storage in a retrieval system,or transmission in any form or by any means,electronic,mechanical,photocopying,recording,or likewise.To obtain permission(s) to use material from this work, please submit a written request to Pearson Education,Inc.,Permissions Department,Upper Saddle River,New Jersey 07458. Many of the designations by manufacturers and seller to distinguish their products are claimed as trademarks.Where those des- ignations appear in this book,and the publisher was aware of a trademark claim,the designations have been printed in initial caps or all caps. Library of Congress Cataloging-in-Publication Data Van Syckle,Barbara. Anybody’s business / Barbara Van Syckle,Brian Tietje. p.cm. ISBN 0-13-608634-9 1. Business enterprises—Finance.2. Finance. I.Tietje,Brian C.II.Title. HG4026.V363 2010 658—dc22 2009032661 10 9 8 7 6 5 4 3 2 1 ISBN 10 digit:0-13-608634-9 ISBN 13 digit:978-0-13-608634-5 Dedication To Phil,Fritz,Chivy,Calli,Rachael,and Thunder Lake for believing in me. To Jodi for believing in AB. God bless America, Blair, Brian, Jodi, Maggie, Melissa, Shannon, and the Hiawatha National Forest. And to each of you for whom Anybody’s Business makes a difference in your standard of living and quality of life. Barbara Van Syckle To my Lord who saved me; Debbie, whose love inspires me; Summer, who delights me;my parents,who sacrificed for me;and Hunter,our adventure on the horizon. Also to Jodi and Barbara,for inviting me into the AB family. Brian Tietje iv About the Authors About the Authors Barbara Van Syckle Never one to stand still for too long,Barbara spends much of her time travelling, working,and studying stateside and abroad—a passion that has led her to China, Cyprus, British Columbia,Alberta, Kenya, France, the Czech Republic,Tanzania, Belgium, Germany, Poland, Switzerland, the Netherlands, Newfoundland, and Russia.She’s received innumerable awards and accolades,including a Fulbright to Eastern Europe,the first National Teaching Excellence award in Business (recog- nized by President Clinton and Michigan Governor Engler), a position as the board of director’s president for the Association of Collegiate Business Schools and Programs,and the honor of conducting an economic analysis for the Russian government.Barbara has also owned three small businesses along the way and holds a full-time faculty position at Jackson Community College. A true follower of the work hard,play hard life code,Barbara,her husband,Phil,and their black and chocolate Labrador Retrievers split their time between homes in Chicago,Grand Rapids,Thunder Lake in the Hiawatha National Forest,and Jackson,Michigan,when they’re not busy on the road.Passionate about art,antiques,and animals,Barbara and her husband spend their time snowshoeing,canoeing,hiking,and primitive camping.The couple volunteers with a variety of start-up companies,working with entrepreneurs to get their ventures “up and running,”and are deeply committed to multiple environmental issues.Barbara can be reached at [email protected]. Brian Tietje Brian is a left-handed farm boy from Ohio who ventured his way through a business degree at Bowling Green State University to a sales career with Johnson & Johnson.He later returned to academics,earning an MBA from the University of Hawaii and a Ph.D. in Marketing from the University of Washington.Brian has been a marketing professor at Cal Poly State University, San Luis Obispo,since 1999 and is currently the Associate Dean of the Orfalea College of Business.He has published articles in a variety of academic journals and has won several teaching awards for his contributions to sales and market- ing courses and executive education seminars.Brian and his wife,Debbie,their daughter,Summer,and son,Hunter,reside in Atascadero,California.He can be reached at [email protected]. | Anybody’s Business ACKNOWLEDGMENTS v Acknowledgments Thank You Anybody’s Business is much more than a book.It’s an approach to business and life that har- nesses the best of people and how they work together to produce a transformation in per- spective and purpose.It only makes sense,then,that the people who were involved in the development of Anybody’s Business reflect those same values. The vision of Anybody’s Business has been faithfully shepherded by our executive editor Jodi McPherson. Her leadership, tenacity, and uncanny ability to pull together a team from around the country and keep them on the same rhythm are truly remarkable. Anybody’s Business would have no life without her.Thank you,Jodi,and go Red Sox! With any visionary,there needs to be a faithful manager who makes sure that the right work gets done at the right time by the right people.Development Editor Shannon LeMay-Finn was instrumental in moving every detail of this project forward.Along the way,she displayed the rarest of synergies—the ability to manage every detail of the project,ensure the editorial quality of every word in the text,and accommodate the constant flow of new ideas and con- cepts that seemed to continually spring forth throughout the project,and doing all of this with patience,understanding,and sensitivity.Thank you,Shannon,for putting up with us! Melissa Arlio brought contemporary freshness, unbridled enthusiasm, and the unparal- leled ability to keep track of details and responsibilities for the development of the comple- mentary media and learning tools that are as critical to the success of Anybody’s Business as the book itself.As Editorial Project Manager/Assistant Editor,Melissa kept us focused on the student’s perspective, and she somehow managed to be everywhere at once as different phases of the project moved forward simultaneously. Anybody’s Business is so much more than just a book of words,and designer Blair Brown was the translator who took the time to patiently listen to our ideas and intentions,and some- how was able to express those ideas through visualizations that always managed to go beyond what we could have ever imagined.We thank Blair for the aesthetic distinctiveness and inten- tionality toward learning that are captured by the illustrations and designs in Anybody’s Business, and for his unpredictable sense of humor that continually reminded us that this project was fun. The success of any academic textbook rests largely on the support it receives from the publisher’s marketing and sales force.We are indebted to Marketing Manager Maggie Moylan for putting her full support behind this project and inspiring her marketing and sales force to catch the vision of Anybody’s Business so that its impact could extend across the country. Maggie always managed to bring her panache to this project even amidst an intense travel and project schedule.Maggie,we still don’t know how you do it! Of course, no text can find success without someone working behind the scenes to make sure all the pieces come together in the final product. Production Project Manager, Lynne Breitfeller,worked tirelessly to ensure that every word,illustration,and photograph you now see on these pages appeared seamlessly,essentially taking all of our ideas and concepts and literally giving them life. Every word,paragraph,and chapter was an experiment for us,and any experiment first needs to be tested before the ideas can be publicly communicated.We enlisted a team of elite reviewers—our Top Hats—who are listed on the next page.These reviewers generously shared their expertise and passion for a high-impact learning experience and tirelessly repeated the “read-edit-repeat”process time and again for every chapter.We are so grateful for their help. This project would never have seen the light of day without the support of Jerome Grant and Natalie Anderson,who were willing to take risks and invest resources on a project that tended to break the rules of traditional publishing in almost every aspect of its design.Thank you for taking the chance on us.Remember,high risk,high reward! There are so many more individuals who invested themselves in this project.We are deeply indebted to them,and we hope that they can share our satisfaction of a job well done. Anybody’s Business has been born! Now,we invite you to join us as we embark on a learning experience where business truly comes to life. vi REVIEWERS Reviewers Top Hats Like any well-oiled machine,the Anybody’s Businessteam often needed to enlist the help of talented verbal mechanics to fine tune the writing process and make sure we never veered off course.Without the invaluable feedback,suggestions,and ideas of these passion- ate reviewers,this text may have never been able to plow through the weeds,and if it did,it certainly wouldn’t have been so shiny. Thomas Christian Brian Stetler Louann Cummings,University of Findlay Henry Velarde,Malcolm X College Patrick Greek,Macomb Community College Timothy Whited,National College LaShon Harley,Durham Technical Community College Ned Young,Sinclair Community College Lisa Pierce,Northwestern College Gerald Pierri,Villanova University Phyllis Shafer,Brookdale Community College Susan Sieloff,Northeastern University Rachael Snyder Market Reviewers We’d also like to extend our gratitude to the reviewers below whose time,hard work,and passion helped shaped Anybody’s Business. Michael Aubry,Cuyamaca College Marian Canada, Ivy Tech Community College of Gerard Dobson, Waukesha County Technical April Bailey, Shippensburg University of Columbus College Pennsylvania Bonnie Chavez ,Santa Barbara City College Kathleen Dominick, Bucks County Community Felicia Baldwin,Richard J.Daley College William Chipman,Kankakee Community College College Michael Baran, South Puget Sound Community Desmond Chun,Chabot Community College Michael Drafke,College of DuPage College Michael Cicero,Highline Community College Allison Duesing,Northeast Lakeview College Richard Bartlett, Columbus State Community Subasree Cidambi,Mount San Antonio College Steve Dunphy,Indiana University Northwest College David Clifton, Ivy Tech Community College - Timothy Durfield,Citrus College Gayona Beckford-Barclay,Community College of Southern Indiana Robert Edmonds, State University of New York- Baltimore County Paul Coakley, Community College of Baltimore Maritime College Connie Belden,Butler Community College County Karen Edwards,Chemeketa Community College George Bernard,Seminole Community College Rachna Condos,American River College Russ Edwards,Valencia Community College Patricia Bernson,County College of Morris Solveg Cooper,Cuesta College James Emig,Villanova University Laurel Berry,Bryant & Stratton College Shawna Coram, Florida Community College at Mary Ewanechko, Monroe Community Robert Berwick,Heritage Institute Jacksonville College Judy Boozer,Lane Community College Douglas Crowe,Bradley University Thom Foley.Kent State University - Geauga Chuck Bowles,Pikes Peak Community College Dana D’Angelo,Drexel University Mark Fox,Indiana University South Bend Malcolm Bowyer, Montgomery Community Thomas D’Arrigo,SUNY-Maritime College Leatrice Freer,Pitt Community College College James Darling,Central New Mexico Community Theresa Freihoefer, Central Oregon Community Mike Bowyer,Montgomery Community College College College Steven Bruenjes,Dover Business College Jamey Darnell, Durham Technical Community William Furrell,Moorpark College Barry Bunn,Valencia Community College College Mary Beth Furst,Howard Community College Patrick Burke,Ivy Tech Community College Helen Davis,Jefferson Community College George Gannage Jr., West Georgia Technical Patrice Burleson,Winthrop University Kate Demarest,Carroll Community College College | Anybody’s Business REVIEWERS vii Wayne Gawlik,Joliet Junior College Todd Korol,Monroe Community College Robert Reck,Western Michigan University Larisa Genin,Saint Mary’s College of California Jack Kraettli,Oklahoma City Community College Delores Reha,Fullerton College Paul Gerhardt,Pierce College Christine Kydd,Universtiy of Delaware Gloria Rembert,Mitchell Community College Vanessa Germerot,Ozarks Technical Community Kim Lamb,Stautzenberger College Reina Reynolds,Valencia Community College College Marie Lapidus,Oakton Community College Lynn Richards, Johnson County Community Gerald GeRue,Rock Valley College Angela Leverett,Georgia Southern University College Katie Ghahramani, Johnson County Community Peter Lippman,Santa Monica College Tim Rogers,Ozarks Technical College College Lori Long,Baldwin-Wallace College June Roux, Delaware Technical & Community Lucia Gheorghi, Passaic County Community Ivan Lowe,York Technical College College College John Mago,Anoka Ramsey Community College Carol Rowey,Community College of Rhode Island David Gillis,San Jose State University Mike Magro,Mt.Sierra College Carolyn Seefer,Diablo Valley College Robert Goldberg,Northeastern University Jan Mangos,Valencia Community College Patricia Setlik,William Rainey Harper College Connie Golden,Lakeland Community College Suzanne Markow,Des Moines Area Community Phillis Shafer,Brookdale Community College Carol Gottuso,Metropolitan Community College College Dennis Shannon,Southwestern Illinois College Madeline Grant,Santa Ana College Stacy Martin,Southwestern Illinois College Carole Shook,University of Arkansas Lawrence Green,Salt Lake Community College Marian Matthews, Central New Mexico Steven Skaggs,Waubonsee Community College Maurice Greene,Monroe College Community College Maria Sofia, Bryant and Stratton College,North Gary Guidetti,Northampton Community College Kelli Mayes-Denker,Carl Sandburg College Campus Lynn Halkowic, Bloomsburg University of Lee McCain, Valencia Community College,East Frank Sole,Youngstown State University Pennsylvania Campus Ray Sparks,Pima College Karen Halpern, South Puget Sound Community Patrick McCormick, Ivy Tech Community College Rieann Spence-Gale, Northern Virginia College Fort Wayne Community College Alexandria Campus Roxanne Hamilton,Landmark College Lisa McCormick,Community College of Allegheny Keith Starcher,Indiana Wesleyan University LaShon Harley, Durham Technical Community County Shallin Suber,Tri-County Technical College College Edward McGee, National Technical Institute for Deanna Teel,Houston Community College Helen Marie Harmon, Indiana University the Deaf at Rochester Institute of Technology Alexis Thurman,County College of Morris Northwest Bruce McLaren,Indiana State University Frank Titlow,Saint Petersburg College Linda Hefferin,Elgin Community College Robert McNutt,University of Delaware Kristin Trask,Butler Community College Charlane Held,Onondaga Community College Bill McPherson,Indiana University of Pennsylvania Joyce Twing,Vermont Technical College Kathleen Hess,Salem State College Juan Meraz,Missouri State University ShafiUllah,Broward College Dorothy Hetmer-Hinds,Trinity Valley Community John Miller,Pima Community College Downtown Bob Urell,Irvine Valley College College Mark Nagel,Normandale Community College Ezgi Uzel,State University of New York Maritime Linda Hoffman, Ivy Tech Community College- Northeast Rachna Nagi-Con,American River College Richard Vaughan, Durham Technical Community Phil Holleran,Mitchell Community College Mark Nygren,Brigham Young University-Idaho College William Huisking,Bergen Community College Akira Odani,State University of New Yok-Delhi Dom Visco,Bucks County Community College Kimberly Hurns,Washtenaw Community College Mary Padula, City University of New York Louis Watanabe,Bellevue College Holly Hutchins, Central Oregon Community Borough of Manhattan Community College Tim Whited,National College College Esther Page-Wood,Western Michigan University Les Wiletzky,Pierce College - Puyallup Campus Marc Hyman,Cascadia Community College Rose Pollard,Southeast Community College George Williams,Bergen Community College Channelle James,University of North Carolina at Lana Powell,Valencia Community College Richard Williams,Santa Clara University Greensboro Sally Proffitt, Tarrant County College, Northeast Doug Wilson,University of Oregon Pam Janson,Stark State College of Technology Campus Colette Wolfson, Ivy Tech Community College - Dennis Johnson, Delaware County Community Michael Quinn,James Madison University South Bend College Lori Radulovich,Baldwin-Wallace College Kim Wong, Central New Mexico Community Gwendolyn Jones,The University of Akron Carlton R. Raines, Lehigh Carbon Community College Ken Jones,Ivy Tech Community College College Wanda Wong,Chabot College Lillian Kamal,University of Hartford Greg Rapp,Portland Community College Mark Zorn,Butler County Community College viii LETTER FROM THE AUTHORS Letter from the Authors This book is different,in many ways,from other texts in the Introduction to Business landscape.But because differentisn’t necessarily a guarantee for better,we know that the distinctiveness of this book needs to deliver on some important promises.We make these promises to the students who will be learning from this book,the instructors who are the facilitators of that learning,and the organ- izations who will be hiring students who have experienced business in a distinctively “AB”way. AB is relevant to today’s business environment.Although some students may enjoy long,successful careers with a single employer like a Fortune 500 corporation,other students are more likely to work for private firms,nonprofit organizations,and not-just-for-profit organizations, or they might launch their own venture now or in the future.AB is relevant for the entire spectrum of organizations in our global economy.You won’t find traditional terms like “corporate finance”in AB, because the core concepts of cash flow and profitability are far more relevant and adaptive to the diverse business landscape students face. Students:you’ll be able to use what you learn from AB in any career direction you take. Instructors: we’ve prepared concepts,skills,and examples that you can use for any audience, any age,on any career path. Employers and investors:the AB student you hire will be ready to contribute to your organ- ization,regardless of its ownership structure,size,mission,or industry. AB delivers learning that lasts a lifetime.We intentionally focus on the higher levels of learning—application,synthesis,and evaluation—that equip students to use important business con- cepts to solve problems,make decisions,and improve their quality of life and standard of living.We only use terminology if it’s essential to help the reader learn how to do something well,like a SWOT analysis,and our writing always emphasizes the “how to”aspect of a concept.Students won’t forget a five-step process if they use that process daily.AB equips students with skills that they can use now, in the business of life,and the memory of these skills will last a lifetime.A student who understands how to evaluate a decision’s impact on cash flow will be able to apply that knowledge through- out his or her personal and professional life. Students:you will use what you learn from AB for the rest of your life. Instructors:AB will help you achieve high levels of learning (and the corresponding assessment) in your course and program. Employers and investors:the AB student you hire will not only be able to tell you what he or she learnedfrom this course,that student will also be able to tell you what he or she can doto impact your bottom line today. AB meets students where they are.The writing style is clear and concise,classic and con- temporary,approachable and encouraging,and its tone is seasoned with sassiness.As a result,this book will not be perceived as pages of content that have to be endured,but rather experiences that stu- dents won’t want to miss.Throughout AB,we draw upon real events in a student’s life and reveal how these experiences demonstrate important business concepts for personal and professional success.A trip to the doctor’s office,filing an auto accident claim,or paying the tab at the restaurant—all of these events become AB internships as business concepts are brought to life. Students:you’re doing business already (but maybe you don’t always see it that way),and AB will show you how to take the skills you already have and leverage them for personal and pro- fessional success. Instructors:AB triggers student motivation and engagement by making the personal connec- tion between business and life. Employers and investors:you need a workforce that “gets”business and is passionate about it.AB triggers an enthusiastic business sense by helping students see business in their lives and appreciate business excellence when they see it. AB Positive, Barbara and Brian | Anybody’s Business STUDENT HIGHLIGHTS ix Made for Students, by Students On a constant quest to breathe even more life and a young, fresh voice into Anybody’s Business,the team decided there was no better resource for insight and creativity than those who were closest to the college experience.After all, when building a text intentionally designed to come to YOU,the student,why not go back to the source? As you look through Anybody’s Business, take note of the photos that appear throughout it.They were taken by a student just like you.Aaron Binaco,the photographer and artist whose work fills these pages,was born in Massachusetts. Surrendering to the pull of bright lights and urban living,Aaron made his way to New York City to attend the School of Visual Arts with a focus in photography. In the past four years, he has worked alongside high-end celebrity photogra- phers,noted documentarians,and fine artists,as well as his talented and success- bound classmates. His work can be seen in many magazines and galleries throughout the United States.Aaron truly is his own business and a real-life example of what Anybody’s Business can do for you. It was during a first-grade project where the class was asked to create a story- book out of a cereal box, construction paper, and crayons that advertising copywriter Janine Lucasrealized she wanted to be a writer. What she didn’t know at the time was how her desire to write would one day translate into a career in business.Years later, with a bachelor’s degree in English and creative writing from SUNY New Paltz,and several freelance writing projects under her belt,Janine has found herself writing advertising copy as well as descriptive con- tent for Pearson textbooks, including Anybody’s Business. Eager to help other students turn their passion into business careers,Janine has used her love of writ- ing to show you what this text,and the study of business,is all about. Curiosity may have killed the cat,but it’s what helped Melissa Arlioland a cen- tral role on the AB team and the title of Editorial Project Manager/Assistant Editor at Pearson Education.Her first word reportedly,“Why?”Melissa set out to Rutgers University,where she turned her endless inquisitions into a bachelor’s degree in journalism. An internship at Pearson later turned into a full-time Editorial Assistant’s spot and,one year into the gig,led to a promotion to her current position. It was here that Melissa changed the focus of her questions from “Why?”to “Why not?”and aided the team in pushing the envelope and essentially changing the way business is taught and learned.Melissa was involved in every aspect of the project from vision to creation and beyond,and her aim throughout the process was to offer a unique student perspective.After all,she,too,in the not-so-distant past,once sat in those lecture hall chairs wondering what it all meant to her life—a life that goes beyond papers and final exams. She now hopes that her hard work on Anybody’s Business will provide students like you with the answer.
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