Standard

Posted: 06/01/06

MSD 112 – Introduction to Business

Course Description

This course is designed to provide the student with an overview of the functions of business in the market system. The student will gain an understanding of the numerous decisions that must be made by managers and owners of businesses. Topics include: the market system, the role of supply and demand, financial management, legal issues in business, employee relations, ethics, and marketing.

Competency Areas	Hours
The market system	Class	5
The role of supply and demand	D. Lab	0
Financial management	P. Lab/O.B.I.	0
Legal issues in business	Credit	5
Employee Relations
Marketing

Prerequisite:	Provisional admission
Corequisite:

Course Guide

Competency	After completing this section, the student will:	Hours
		Class	D.Lab	P.Lab/ O.B.I.
THE MARKET SYSTEM		5	0	0
Types of economic systems	Contrast the market system, socialism, and communism.
Necessity of an economic system	Answer the three basic economic questions all economic systems must answer: (a) what goods will be produced, (b) how will goods be produced, and (c) for whom will goods be produced.
The circular flow model	Describe the role of business plays in the market system.
Capitalism	Explain the basic philosophical underpinnings of the capitalist system, as developed by Adam Smith
Strengths and weaknesses of capitalism	Be capable of enumerating the benefits of capitalism in terms of economic activity and growth, and the costs involved in terms of resource usage and inequality.
THE ROLE OF SUPPLY AND DEMAND		5	0	0
Demand	Explain the law of demand and the role of consumers in the business world.
Supply	Explain the law of supply and the role of producers in the business world.
Equilibrium	Explain the concept of equilibrium in markets, and the process by which the market obtains this point
FINANCIAL MANAGEMENT		10	0	0
Role of Accounting	Explain the need for an accounting system and the role it plays in maintaining accountability in business.
The Accounting Process	Provide an overview of the double-entry bookkeeping system and the accounting cycle.
Financial statements	Provide an overview of the structure and purpose of a balance sheet, income statement, and cash-flow statement.
The Banking System	Describe the role of the banking system in the growth of businesses within the economy.
Financial services	List the different types of traditional services provided by financial institutions, including different types of accounts and loans.
Credit	Understand the process of obtaining a business loan from a lender, and the essentials of effective credit management.
Financing	Explain the difference in debt and equity financing, and the sources thereof.
LEGAL ISSUES IN BUSINESS		10	0	0
Form of Ownership	Distinguish between the major forms of legal structures in business, including sole proprietorship, partnership, corporation, and limited-liability entities.
Contracts	List the elements of a legally enforceable contract.
Negotiable Instruments	Explain the role in negotiable instruments, and the requirements needed to establish negotiability.
Agency Law	Define agency and discuss the importance it holds in determining liability in the court system.
Employment Law	List and explain the primary employee protection laws
Bankruptcy Law	Explain the different types of bankruptcy and the process through which it is declared.
Government Regulation of Business	Discuss the various laws that protect the consumer from anti-competitive actions, including anti-trust and trade laws.
EMPLOYEE RELATIONS		10	0	0
History of Motivational theory	Trace the historical trend of motivational theory, from scientific management to the present
Techniques	Identify the current trends in motivational theory, including employee empowerment, self-managed work teams, and job flexibility.
MARKETING		10	0	0
Target market	Define the concept of a “target market” and discuss methods of market segmentation.
Strategy	Discuss the concept of a “marketing mix” and the role it plays in the marketing strategy of a business.
Behavior	Distinguish between the buying behavior of the consumer and that of the business.
Product Mix	Identify the product-life cycle, and the process of managing the product mix through changing, deleting, and developing new products.
Pricing	Determine pricing objectives and the pricing methods/strategies needed to meet business objectives.

Suggested Resources

Books

Pride/Hughes/Kapoor (2005). Business (8^th ed.). Upper Saddle River, NJ: Prentice-Hall

Gitman/McDaniel (2004) The Future of Business. (5^th ed.). South-Western Publishers,

Bovee/Thill. (2004). Business in Action (3^rd Ed.) Upper Saddle River, NJ: Prentice-Hall