Introduction To Business-Openstax.pdf

Introduction to Business SENIOR CONTRIBUTING AUTHORS LAWRENCE J.GITMAN,SAN DIEGO STATE UNIVERSITY-EMERITUS CARL MCDANIEL,UNIVERSITY OF TEXAS,ARLINGTON AMIT SHAH,FROSTBURG STATE UNIVERSITY MONIQUE REECE LINDA KOFFEL,HOUSTON COMMUNITY COLLEGE BETHANN TALSMA,DAVENPORT UNIVERSITY AND GRAND RAPIDS COMMUNITY COLLEGE JAMES C.HYATT,UNIVERSITY OF THE CUMBERLANDS OpenStax Rice University 6100 Main Street MS-375 Houston,Texas 77005 To learn more about OpenStax,visit https:/openstax.org.Individual print copies and bulk orders can be purchased through our website.2018 Rice University.Textbook content produced by OpenStax is licensed under a Creative Commons Attribution 4.0 International License(CC BY 4.0).Under this license,any user of this textbook or the textbook contents herein must provide proper attribution as follows:-If you redistribute this textbook in a digital format(including but not limited to PDF and HTML),then youmust retain on every page the following attribution:“Download for free at https:/openstax.org/details/books/Introduction-to-Business.”-If you redistribute this textbook in a print format,then you must include on every physical page thefollowing attribution:“Download for free at https:/openstax.org/details/books/Introduction-to-Business.”-If you redistribute part of this textbook,then you must retain in every digital format page view(includingbut not limited to PDF and HTML)and on every physical printed page the following attribution:“Download for free at https:/openstax.org/details/books/Introduction-to-Business.”-If you use this textbook as a bibliographic reference,please includehttps:/openstax.org/details/books/Introduction-to-Business in your citation.For questions regarding this licensing,please contact supportopenstax.org.Trademarks The OpenStax name,OpenStax logo,OpenStax book covers,OpenStax CNX name,OpenStax CNX logo,OpenStax Tutor name,Openstax Tutor logo,Connexions name,Connexions logo,Rice University name,and Rice University logo are not subject to the license and may not be reproduced without the prior and express written consent of Rice University.PRINT BOOK ISBN-10 PRINT BOOK ISBN-13 PDF VERSION ISBN-10 PDF VERSION ISBN-13 10 9 8 7 6 5 4 3 2 1 1-947172-54-9978-1-947172-54-81-947172-55-7978-1-947172-55-5OPENSTAX OpenStax provides free,peer-reviewed,openly licensed textbooks for introductory college and Advanced Placement courses and low-cost,personalized courseware that helps students learn.A nonprofit ed tech initiative based at Rice University,were committed to helping students access the tools they need to complete their courses and meet their educational goals.RICE UNIVERSITY OpenStax,OpenStax CNX,and OpenStax Tutor are initiatives of Rice University.As a leading research university with a distinctive commitment to undergraduate education,Rice University aspires to path-breaking research,unsurpassed teaching,and contributions to the betterment of our world.It seeks to fulfill this mission by cultivating a diverse community of learning and discovery that produces leaders across the spectrum of human endeavor.PHILANTHROPIC SUPPORT OpenStax is grateful for our generous philanthropic partners,who support our vision to improve educational opportunities for all learners.Laura and John Arnold Foundation Arthur and Carlyse Ciocca Charitable Foundation Ann and John Doerr Bill&Melinda Gates Foundation Girard Foundation Google Inc.The William and Flora Hewlett Foundation Rusty and John Jaggers The Calvin K.Kazanjian Economics Foundation Charles Koch Foundation Leon Lowenstein Foundation,Inc.The Maxfield Foundation Burt and Deedee McMurtry Michelson 20MM Foundation National Science Foundation The Open Society Foundations Jumee Yhu and David E.Park III Brian D.Patterson USA-International Foundation The Bill and Stephanie Sick Fund Robin and Sandy Stuart Foundation The Stuart Family Foundation Tammy and Guillermo Trevio Access.The future of education.OpenStax.org I like free textbooks and I cannot lie.Give$5 or more to OpenStax and well send you a sticker!OpenStax is a nonprofit initiative,which means that every dollar you give helps us maintain and grow our library of free textbooks.If you have a few dollars to spare,visit OpenStax.org/give to donate.Well send you an OpenStax sticker to thank you for your support!TABLE OF CONTENTSPreface11Understanding Economic Systems and Business91.1 The Nature of Business121.2 Understanding the Business Environment171.3 How Business and Economics Work211.4 Macroeconomics:The Big Picture281.5 Achieving Macroeconomic Goals331.6 Microeconomics:Zeroing in on Businesses and Consumers371.7 Competing in a Free Market431.8 Trends in the Business Environment and Competition462Making Ethical Decisions and Managing a Socially ResponsibleBusiness592.1 Understanding Business Ethics612.2 How Organizations Influence Ethical Conduct642.3 Managing a Socially Responsible Business692.4 Responsibilities to Stakeholders732.5 Trends in Ethics and Corporate Social Responsibilit