Contemporary
Business
11th Edition
Louis E. Boone
University of South Alabama
David L. Kurtz
University of Arkansas
To the 3.3 million students around the globe who began their
business studies using Contemporary Business
in their classes
and
to the Text and Academic Authors Association, which awarded
Contemporary Business the William Holmes McGuffey
Award for Excellence and Longevity, the first textbook
ever to receive this prestigious award
Contemporary Business, 11e
Louis E. Boone and David L. Kurtz
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Jack W. Calhoun
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COPYRIGHT © 2005
by South-Western, part of the Thomson Corporation. South-Western, Thomson, and the Thomson logo are trademarks used herein under license.
Printed in the United States of America
1 2 3 4 5 07 06 05 04
Package ISBN: 0-324-18820-X
Text only: 0-324-18821-8
Audio CDs: 0-324-20612-7
Xtra! access certificate: 0-324-20613-5
InfoTrac: 0-534-55853-4
Library of Congress Control Number:
2003110033
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• Serious weight has been added to Ethics: the revised “Business Ethics and Social Responsibility” chapter has a new focus on application; all-new Solving an Ethical Controversy boxes put the reader in the hot seat; and end-of-chapter projects involve ethical dilemmas.
• Business Tool Kits cover “wake-up-and-smell-the-coffee” topics like dressing for success, résumé writing, interviewing, and time management.
• Best Business Practices address real companies’ real solutions.
• Business successes and failures get personal in Hits & Misses.
The Best Just Got Better!
With more video, audio, and Web resources than ever before, 11e
gives Contemporary Business students a technological edge:
Krispy Kreme
Continuing Video Case
Six video segments tell the incredible Krispy Kreme success story in one continuing case.
Xtra!
Xtra! includes digitized Krispy Kreme videos, flash tutorials, Introduction to Business news, current events, a business plan, Xtra! quizzes, and Krispy Kreme business activities.
Audio Chapter Reviews
Audio CDs with key chapter concepts and learning objectives provide a whole new way to prepare for class, anytime, anywhere.
InfoTrac® College Edition
InfoTrac College Edition means 24/7 access to the latest word on topics covered in the course and business world—and online research skills built doing Web exercises correlated to the text.
This edition’s supplement package has it all:
• Krispy Kreme continuing video case accompanied by a written case emphasizing strategy, so students can view one company through various functions
• New Collaborative Learning Handbook, with interactive exercises for each chapter, which includes quick team projects, questions to spark debate, role-plays, and involved group exercises
• WebTutor Advantage to take your course online, offering in-depth content, digitized videos, instructor customization, flashcards, quizzes, discussion questions, tutorials, and more
• Instructor’s PowerPoint CD-ROM (basic or expanded version) with text figures and photos, and embedded videos
• Web site completely revamped for students and instructors, with online supplements, quizzes, InfoTrac exercises, and more at http://boone.swlearning.com
• Completely revised Instructor’s Manual that includes changes to the new edition per chapter, lecture outlines, teaching tips, teaching notes for the cases, and much more
• Media Instructor’s Manual that integrates the complete media package, offers teaching objectives, spotlighted concepts, video outline, answers to text and video questions, experiential exercises, and multiple-choice questions
But wait! There’s more:
- 4,800-Question Test Bank
- End-of-Chapter Video Cases
- Transparency Acetates with Teaching Notes
- Instructor’s Resource CD-ROM
We hope this interactive package helps your students discover the thrill of a business degree and career. But even those who choose other paths will benefit from Contemporary Business, with life lessons such as how to get a job, how to manage personal finances, how to develop a business plan, and much more.
This edition’s student supplements package has it all:
• xtra!
• Study Guide
• InfoTrac College Edition
• Audio Chapter Review CD-ROMs
• WebTutor Advantage
• Text Web Site at http://boone.swlearning.com
Preface
Far from a simple updating of the previous edition, Contemporary Business 11e is replete with changes, up-to-the-minute updates, and improvements. In fact, the changes are so significant that the new edition is more a new text than a new edition. And this is what users of the text have come to expect from this award-winning book on which so many other introductory business texts pattern themselves. Instructors know the book will be current, complete, and focused on providing the teaching and learning resources to help them win teaching awards and assist their students in making that A. After all, from the very first edition, Contemporary Business has been a book of firsts. No introductory business text in print has been used by as many students—either in the U.S. or abroad. And the best just got better.
They Said It
First we will be best, and then we will be first.
—Grant Tinker (b. 1926)American television executive
Contemporary Business Firsts
Previous users will recognize that the significant improvements and up-to-the-minute currency of Contemporary Business 11e are the latest installment of a trend we established way back in the first edition—to move the introductory business course into the 21st century with a series of firsts. As authors and instructors, we knew that keeping several steps ahead of the competition was the reason Contemporary Business became the best-selling basic business text. We plan to keep it that way.
Consider our record of providing instructors and students with firsts:
n The first business text written specifically for the student—rather than the professor—featuring a clear, concise style that students readily understand and enjoy. This decision—made by the authors in response to the overly long, all too boring, and much too definition-focused textbooks of the day—led to an avalanche of other books striving to emulate the new approach.
n The first introductory business text based on marketing research, written the way instructors actually teach the course.
n The first business text to integrate computer applications—and later, Internet assignments—into each chapter.
n The first business text to employ extensive pedagogy—such as opening vignettes and boxed features—to breathe life into the exciting concepts and issues facing contemporary business.
n The first business text to offer end-of-chapter cases written by the authors and then filmed by professional producers, who include text concepts in each chapter video.
n The first business text to utilize multimedia technology to integrate all components of the introduction-to-business ancillary program, videos, overhead transparencies, and PowerPoint CD-ROMs for both instructors and students—enabling instructors to custom-create lively lecture presentations.
Key Features of the New 11th Edition
The new edition of Contemporary Business is packed full of innovations. By now, you know that the book will be filled with the various latest developments in every aspect of business. When the European Union made a huge expansion from 15 to 25 members, you knew that both the expansion and its impact on global markets would be discussed in Chapter 4 along with such topics as the recent SARS epidemic that temporarily derailed the burgeoning Chinese economy.
Here are some of the exciting new features of the 11th edition.
Majorly Expanded Text Coverage of Business Ethics
Following closely on the heels of the 9/11 tragedy was an ethical disaster of historic proportions, as leaders of such corporate giants as Enron, WorldCom, Arthur Andersen, and Tyco quickly turned from heroes to villains in the wake of disclosures of legal and ethical misdeeds covered up by auditors with conflicts of interest and indirectly aided by corporate boards exhibiting a shocking lack of corporate governance. The result was an almost daily reporting of scandals, bankruptcies, job losses, Congressional investigations, and news coverage of arrested executives taking the so-called “perp walk” in front of TV cameras, a form of humiliation previously reserved for drug and violent crime offenders. Former top executives were indicted on civil and criminal charges, and some went to jail.
In addition to being responsible for hundreds of millions of dollars lost by investors misled by company announcements and incorrect financial reports as well as the job losses of thousands of innocent employees at these firms, the ethical misdeeds soiled the image of business in the minds of the general public. In a shift as rapid and far-reaching as the 2003 blackouts that affected 50 million people in North America, the image of business careers sank to new depths. A recent Harris Poll found that only 16 percent of parents want their children to become CEOs, down from 28 percent the year earlier.
In the wake of the recent crisis in business ethics, business programs in colleges and universities are examining their curricula and evaluating the extent and quality of their coverage of ethical issues. A number of universities, including Rutgers University and The Ohio State University, are either adding new courses or expanding existing elective courses in ethics. Still others advocate the integration of ethics throughout the courses that comprise their business core curriculum. Many of the latter are currently engaged in extensive review of course contents to determine the adequacy of current coverage.
The new 11th edition of Contemporary Business provides instructors and students with a thorough treatment of ethical issues affecting business, both from a macro perspective and in relation to specific business functions. The value of business ethics is introduced in Chapter 1 and then followed with a detailed analysis in Chapter 2, which focuses specifically on ethical and social responsibility issues. Laws passed in response to these ethical abuses, including the Sarbanes-Oxley Act, are discussed in detail in the new “Legal Framework for Business” appendix that follows Chapter 4, and their implications for managers are outlined in Chapter 8. Parts of the law that impact accounting practices are described in Chapter 16, and finance-related implications are covered in Chapter 17.
Here are a few examples that illustrate this coverage:
n “The Year of the Whistleblower” (Chapter 2 Hits & Misses feature)
n “Tyco Takes a Dive” (Chapter 2 opening vignette)
n “New Rules for Accountants” (Chapter 16 Best Business Practices feature)
n “MCI Returns: The Company Formerly Known as WorldCom” (Chapter 16 Hits & Misses feature)
n “Enron: A Lesson for Every Investor” (Chapter 18 opening vignette)
Every chapter includes a special experiential feature called Solving an Ethical Controversy. This feature is designed to facilitate class debates of current ethical issues. Each begins with a brief background and is followed by a series of pro and con points designed to elicit class discussion of the issues. Examples of this feature in the 11th edition include:
n “Entrepreneurs Behaving Badly: What Can Be Done? What Should Be Done?”
n “Using Undocumented Immigrants as Employees”
n “The Rush to Incorporate Overseas”
n “Should Drug Companies Stop Cross-Border Sales?”
n “Who’s Accountable? The Story of Enron and Arthur Andersen”
n “A Food Fight against McDonald’s”
n...
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