,Instructor Solution Manual For
Business Foundations A Changing World 13e O. C. Ferrell, Geoffrey Hirt and
Linda Ferrell
Chapter 1-16
Chapter 1: The Dynamics of Business and Economics
SUMMARY
LEARNING OBJECTIVES
KEY TERMS AND DEFINITIONS
CONTENT OUTLINE
BOXED TEXT DISCUSSION QUESTIONS WITH SUGGESTED ANSWERS
Enter the World of Business: Inside the Zoom Boom
Responding to Business Challenges: Taylor Swift Fights Scalpers
Business Disruption: Competition Is Brewing in Kombucha Market
Technology and the Economy: Up in the Air: Drones and Air Traffic Control
So You Want a Job in the Business World
END OF CHAPTER TEACHING RESOURCES
Check Your Progress
Get Involved
Build Your Skills: The Forces of Supply and Demand
Solve the Dilemma: Mrs. Acres Homemade Pies
Build Your Business Plan: The Dynamics of Business and Economics
See for Yourself Case: Tesla: More Than a Car Company
Team Exercise
CONNECT ACTIVITIES
GrubHub Excels Amidst the Changing Business Environment
Uber and Its Effect on the Sharing Economy
iSeeIt! Video Case: Supply and Demand
BONUS TEACHING RESOURCES
Term Paper or Project Topic
Guest Speaker Suggestions
We begin our study of business in this chapter by examining the fundamentals of business and
economics. First, we introduce the nature of business, including its goals, activities, and
participants. Next, we describe the basics of economics and apply them to the U.S. economy.
Finally, we establish a framework for studying business in this text.
LEARNING OBJECTIVES
LO 1-1 Define basic concepts such as business, product, profit, and economics.
LO 1-2 Identify the main participants and activities of business.
LO 1-3 Explain why studying business is important.
LO 1-4 Compare the four types of economic systems.
LO 1-5 Describe the role of supply, demand, and competition in a free enterprise system.
LO 1-6 Specify why and how the health of the economy is measured.
LO 1-7 Outline the evolution of the American economy.
LO 1-8 Explain the role of the entrepreneur in the economy.
LO 1-9 Evaluate a small business owner’s situation and propose a course of action.
KEY TERMS AND DEFINITIONS
big data Large volumes of structured and unstructured data that are
transmitted at very fast speeds.
blockchain A decentralized record-keeping technology that stores linked.
budget deficit The condition in which a nation spends more than it takes in from
taxes.
business Individuals or organizations who try to earn a profit by providing
products that satisfy people’s needs.
capitalism (free An economic system in which individuals own and operate the
enterprise) majority of businesses that provide goods and services.
, communism First described by Karl Marx as a society in which the people,
without regard to class, own all the nation’s resources.
competition The rivalry among businesses for consumers’ dollars.
demand The number of goods and services that consumers are willing to buy
at different prices at a specific time.
depression A condition of the economy in which unemployment is very high,
consumer spending is low, and business output is sharply reduced.
drones unmanned aerial devices, can be programed with AI to perform
human tasks such as delivering products or collecting
environmental data and imagery.
economic contraction A slowdown of the economy characterized by a decline in spending
and during which businesses cut back on production and lay off
workers.
economic expansion The situation that occurs when an economy is growing and people
are spending more money; their purchases stimulate the production
of goods and services, which in turn stimulates employment.
economic system A description of how a particular society distributes its resources to
produce goods and services.
economics The study of how resources are distributed for the production of
goods and services within a social system.
entrepreneur An individual who risks their wealth, time, and effort to develop for
profit an innovative product or way of doing something.
equilibrium price The price at which the number of products that businesses are
willing to supply equals the amount of products that consumers are
willing to buy at a specific point in time.
financial resources The funds used to acquire the natural and human resources needed
(capital) to provide products; also called capital.
free market system Pure capitalism, in which all economic decisions are made without
government intervention.
gross domestic product The sum of all goods and services produced in a country during a
(GDP) year.
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Succeed. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $29.99. You're not tied to anything after your purchase.
