Principles of Business, Marketing, and
Finance
Economic Measurements
for a Changing World
•
Gross Domestic Product-total
value of goods and service
produced in a country in a
given year
•
Consumer goods and services
•
Business goods and services
•
Government goods and services
•
Goods and services sold to other
Economic Measurements
for a Changing World
•
Unemployment Rate
•
Rate of Inflation
-rate at which the cost of goods and services rise
•
Standard of Living
-amount of goods and services the average citizen can
buy
•
Deflation
Economic Measurements
for a Changing World
•
National Debt
-total amount of money a
government owes
•
Budget Surplus
-when a government’s revenue
exceeds its expenditures
Basic Business
Cycle
Prosperity
Recession
Depression
Recovery
Ethics
•
A set of moral principles by
which people conduct
themselves personally,
socially, or professionally
•
Businesses have a legal
responsibility to do what is
right for society’s welfare
•
Business Ethics
-a set of laws
Unethical Business Practices
•
Bad for business
•
Affects a business’s profits,
customer base, and employee
loyalty
•
Sweatshops
Important Ethical Questions
•
Is it against the law?
•
What if everyone did this?
Making Decisions on Ethical
Issues
•
Identify the ethical dilemma.
•
Discover alternative actions.
•
Decide who might be affected.
Social Responsibility
•
Duty to do what is best for
the good of society
•
Businesses have a
responsibility to
Government’s Responsibility to
Customers
•
FDA (Food and Drug Administration)
•
FTC (Federal Trade Commission
•
CPSC (Consumer Product Safety
Commission)
Business’ Responsibility to
Employees
•
Equal Pay Act
•
OSHA-division of the
Department of Labor
(sets and enforces
Business’ Responsibility to
Society
•
EPA (Environmental
Protection Agency
)
•
Saving energy
•
Recycling
•
Conflict of Interest-when a
Adapting to Current Markets
•
Meeting the challenges of
international competition
•
Overcoming economic
conditions
•
Adjusting to changing
government demands
•
Adjusting the workforce to
