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BUSINESS PRINCIPLES
AND MANAGEMENT
12e
JAMES L. BURROW, PH.D
BRAD KLEINDL, PH.D.
KENNETH E. EVERARD, ED.D
Business Principles and Management, Twelfth Edition
James L. Burrow, Brad Kleindl, and Kenneth E. Everard
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Reviewers
Brenda Albright-Barnhart
Teacher, Business Department
Bolton High School
Alexandria, LA
Janice Goddard
Teacher, Business & Information
Technology
Norcross High School
Norcross, GA
Stephanie Hezekiah
Business Teacher
Lowndes High School
Valdosta, GA
Kimberly H. Orrick
Teacher, Business Department
Seminole County Middle/High School
Donalsonville, GA
Ernest H. Powers
Business/Marketing Teacher
South Charleston High School
South Charleston, WV
Jennifer L. Wegner
Business & IT Department Chair
Mishicot High School
Mishicot, WI
About the Authors
James L. Burrow, Ph,D.,
has a background in mar-
keting and human resource development. He works
regularly with the business community and other
organizations as a consultant on marketing and
performance improvement strategies. He recently
retired from North Carolina State University where
he served as the coordinator of the graduate Train-
ing and Development Program for over 15 years.
Dr. Burrow received degrees from the University of
Northern Iowa and the University of Nebraska in
marketing and marketing education.
Brad Kleindl, Ph.D.,
is Dean of The Robert W.
Plaster College of Business Administration at
Missouri Southern State University. He has taught
courses in marketing, international business, entre-
preneurship, and Internet marketing and has pre-
sented at conferences and industry meetings across
the U.S., Europe, Africa, and Asia. In the Spring of
2003, Dr. Kleindl was a Senior Fulbright Scholar
in South Africa lecturing on Internet marketing,
e-business, and e-commerce.
Kenneth E. Everard, Ed.D.,
is Professor Emeritus at
The College of New Jersey, where he served as pro-
fessor of management and as developer and adminis-
trator of graduate programs in business education,
office administration, human resources management,
and management.
iii
Contents
Unit 1
Business and Its Environment 2
Features in Unit 1
Business Note 8, 15, 38, 63, 92, 96
Career Cluster 107
Ethics Tip 37, 57
Facts & Figures 10, 17, 30, 33, 39, 58, 64,
70, 85, 89, 99
Focus On… 13, 43, 68, 90
Net Bookmark 20, 44, 73, 98
Success Tip 4, 19, 31, 55, 83
Winning Edge Event Prep 109
2.3 Ethical Issues 41
Chapter 2 Assessment 46
Case in Point 49
Project: My Business, Inc. 51
CHAPTER 3
Economic Environment of Business 52
3.1 Economic Wants 53
3.2 Economic Systems 57
3.3 Fundamentals of Capitalism 62
3.4 Managing the Economy 69
Chapter 3 Assessment 75
Case in Point 78
Project: My Business, Inc. 80
CHAPTER 1
Characteristics of Business 3
1.1 The Nature of Business 4
1.2 Changes Affecting Business 7
1.3 The Contributions of Business 14
Chapter 1 Assessment 22
Case In Point 25
Project: My Business, Inc. 27
CHAPTER 4
International Environment of Business 81
4.1 The Importance of International
Business 82
4.2 Forms of International Business 88
4.3 Theories of International Trade and
Investment 95
Chapter 4 Assessment 101
Case in Point 104
Project: My Business, Inc. 106
CHAPTER 2
Social and Ethical Environment of Business 28
2.1 Human Resources 29
2.2 Societal Values 36
Unit 2
Forms of Business Ownership and the Law 110
Features in Unit 2
Business Note 118, 145, 163
Career Cluster 185
Ethics Tip 148, 164, 175
Facts & Figures 112, 122, 137, 150, 166,
169, 170
Focus On… 129, 144, 173
Net Bookmark 115, 153, 179
Success Tip 124, 147, 167
Winning Edge Event Prep 187
iv
CHAPTER 5
Proprietorships and Partnerships 111
5.1 Entrepreneurship 112
5.2 Proprietorship 117
5.3 Partnership 121
Chapter 5 Assessment 130
Case in Point 133
Project: My Business, Inc. 135
Chapter 6 Assessment 155
Case in Point 158
Project: My Business, Inc. 160
CHAPTER 7
Legal Aspects of Business 161
7.1 Regulations Maintaining
Competition 162
7.2 Regulations Protecting Business
and the Public 167
7.3 Business Taxes 174
Chapter 7 Assessment 180
Case in Point 183
Project: My Business, Inc. 184
CHAPTER 6
Corporate Forms of Business Ownership 136
6.1 Corporations 137
6.2 Close and Open Corporations 145
6.3 Specialized Types of Organizations 150
Unit 3
Information and Communication Systems 188
Features in Unit 3
Business Note 205, 222, 255
Career Cluster 237
Ethics Tip 214, 242
Career Tip 202, 223, 247
Technology Tip 220, 225
Facts & Figures 192, 194, 198, 215, 228,
240, 255, 257
Focus On… 199, 221, 251
Net Bookmark 200, 217, 250
Winning Edge Event Prep 267
CHAPTER 9
E-Commerce 213
9.1 Business and the Internet 214
9.2 Stages of E-Commerce
Development 219
9.3 Establishing an E-Commerce
Business 226
Chapter 9 Assessment 231
Case in Point 234
Project: My Business, Inc. 236
CHAPTER 8
Technology and Information
Management 189
8.1 Electronic Technology Fundamentals 190
8.2 Managing Technology 197
8.3 The Effects of Technology on Work and
Workers 203
Chapter 8 Assessment 207
Case in Point 210
Project: My Business, Inc. 212
CHAPTER 10
Organizational Communications 238
10.1 The Communication Process 239
10.2 Corporate Communications 246
10.3 Organizational Communication 252
Chapter 10 Assessment 260
Case in Point 263
Project: My Business, Inc. 265
v
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