Professional Documents
Culture Documents
For
Finance Career Cluster
Discuss the nature of law and sources of law in the United States.
Laws are enforceable rules of society that reflect the culture and circumstances that create
them. Laws may be grouped into an organized form called a code. A number of forms of
law exist, including common law, positive law, English common law, and equity.
In the U.S., sources of law include the Constitution, state constitutions, statutes, ordinances,
administrative regulations, and criminal or civil cases.
Source: Adamson, J, & Mietus, N. J. (2003). Law for Business and Personal Use (15th ed.).
Mason, OH: South-Western.
Source: Adamson, J, & Mietus, N. J. (2003). Law for Business and Personal Use (15th ed.).
Mason, OH: South-Western.
many situations, a business may choose to assume a risk. Assumption of the risk is a legal
defense to negligence in which a business is aware of a risk, but subjects itself to it
voluntarily. In many other cases, businesses are required by law to manage risks. For
example, many companies are required to do background checks on employees or volunteers.
Sources:
Adamson, J, & Mietus, N. J. (2003). Law for Business and Personal Use (15th ed.). Mason,
OH: South-Western.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills,
CA: Glencoe/McGraw-Hill.
When analyzing your audience, consider several questions. How important will the audience
see your message? Does your communication ask the audience to take some action? How
much information does your audience need? What obstacles must you overcome? What are
the benefits to your audience of what you have to communicate? How will your audience
use this information? What method of communication is best suited to this message? In
addition, you should consider how formal and how detailed you wish your communication to
be. Use language and terminology that are appropriate to the audience.
Source: Locker, K. O. (1989). Business and Administrative Communication. Homewood, IL:
Richard D. Irwin, Inc.
Explain how to adapt communication to the cultural and social differences among
clients.
Begin by respecting differences among people. Another key is to avoid and overcome
stereotypes. A stereotype is an oversimplified, distorted belief about a person or group.
Keep an open mind and treat people with respect and you will maintain smooth relationships.
In business, you must maintain an awareness of the language and cultural differences that
will affect company employees as well as customers.
Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New
York, NY: Glencoe/McGraw Hill.
conditions a manager should be contacted to talk with a customer. You will also need to be
able to explain business policies to customers, such as return/exchange policies.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
relationships. The sharing of customer information among businesses has led to privacy
issues. The government has regulations protecting the privacy of consumers, including
offering customers the option of being added to mailing lists.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
maintain a profit x Prices are important in making the supply and demand system
work correctly.
x Individuals and enterprises are free to set their own financial goals, including the ability
to choose what kind of work they would like to do
Source: Private Enterprise. (Economics LAP 15: Career-Sustaining Level). (1998).
Columbus, OH: Marketing Education Resource Center.
Taxes are payments you make to the government for services they provide. The U.S. tax
system is based on the idea that everyone should contribute their fair share, that tax laws
should be clear and simple, and that the tax system should be flexible. Tax dollars are spent
on a number of things including public education and libraries, military defense and law
enforcement, transportation costs, and fire protection to name a few.
Income tax is calculated as a percentage of the taxable income you earn on the job. Social
Security, or FICA, tax is used so that workers can receive benefits upon retirement. Sales tax
is a percentage of the price of an item that a person pays when they buy something. Estate
and inheritance taxes are taxes on wealth, which are collected after a person has died.
Property tax is the main source of money for many local governments, and is based on the
value of property such as land and buildings.
Sources:
Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY:
Glencoe/McGraw Hill.
union assist in recruiting and training employees. Businesses, though, face increased costs in
wages and benefits, have limited control in personnel matters, and loss of production in the
event of a strike.
Source: Organized Labor. (Economics LAP 5: Marketing Specialist Level). (1998).
Columbus, OH: Marketing Education Resource Center.
in other countries, diversifying their operations, and gaining greater return on their
investments.
Multinational business is not without difficulties to overcome. Businesses must consider
language and cultural differences. Also, there are differences in the stability of the
government that might result in political risks. Different economic philosophies may lead to
more or less government influence on business in a particular country. In addition,
businesses have to deal with different monetary systems with fluctuating values among
global currencies.
Source: Dlabay, L. R. & Burrow, J. L. (2008). Business Finance. Mason, OH: Thompson
South-Western.
Identify ways to demonstrate active listening skills.
Active listening is where a person recognizes and evaluates what is being heard. Active
listening involves the following skills.
1) Identify the purposereview the purpose of the communication and prepare to respond.
2) Look for a planbe aware of the structure of the communication to make it easier to see
how it all fits together.
3)
Give feedbackthese verbal and non-verbal cues indicate whether or not you
understand the message. Ask questions at an appropriate time.
4)
Search for a common interesttry to find something that interests you in order to
avoid tuning out the speaker.
5)
Evaluate the messagedo so from the speakers point of view as well as your own,
and try to limit bias and personal judgment.
6)
Listen for more than verbal contentassess what is being communicated nonverbally through rate of speech, pitch, volume, and voice quality.
7)
Listen for a conclusionat this time you may wish to take action or ask questions.
8) Take notesstructure your notes around the plan and check them to see you have
understood the main ideas.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Discuss the nature of law and sources of law in the United States.
Laws are enforceable rules of society that reflect the culture and circumstances that create
them. Laws may be grouped into an organized form called a code. They should be both
predictable and flexible. A number of forms of law exist, including common law, positive
law, English common law, and equity.
In the U.S., sources of law include the Constitution, state constitutions, statutes, ordinances,
administrative regulations, and criminal or civil cases.
Source: Adamson, J, & Mietus, N. J. (2003). Law for Business and Personal Use (15th ed.).
Mason, OH: South-Western.
Describe the determinants of exchange rates and their effects on the domestic economy.
An exchange rate is the value of one currency in terms of another, and they are established on
the foreign exchange market. This is a series of interconnected entities that exchange
currencies, including businesses, banks, and governments. The exchange rate for a countrys
currency is determined by the supply and demand for that currency. This is impacted by
foreign trade. The difference in the value of a countrys imports and exports affects supply
and demand, which affects exchange rates.
For instance, if the U.S. is importing more goods than it is exporting, it will need to convert
more U.S. dollars to other currencies. By doing so, the demand for other currencies increases
and the exchange rate for U.S. dollars increases.
Source: Dlabay, L. R. & Burrow, J. L. (2008). Business Finance. Mason, OH: Thompson
South-Western.
Source: Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New
York, NY: Glencoe/McGraw Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills,
CA: Glencoe/McGraw-Hill.
Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY:
Glencoe/McGraw Hill.
Finding the future value of your original deposit is called compounding. With compounding,
your money increases in value faster and faster over time. Figure the future value of your
money by multiplying the principal by the annual interest rate, and then adding the interest to
the principal. You can determine this future value for as many years as your money will be
in an account.
Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Financial goals are influenced by two main factors: the time frame in which you want to
achieve your goals, and the type of need that inspires your goals. Goals can be short-term
(usually one year or less to achieve), intermediate (two to five years), or long-term (more
than five years). Also, some goals may happen every year, while others occur only
occasionally.
How you establish your financial goals may also depend on whether a goal you have set
involves a consumable good that you would use up quickly, a durable good that lasts longer
and usually costs more, or something intangible, such as your health or an education. Keep
in mind that while setting financial goals, they should be realistic, specific, have a clear time
frame, and should help you decide on what action to take.
Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland
Hills, CA: Glencoe/McGraw-Hill.
your fair share while taking advantage of tax benefits. The types of taxes include income,
Social Security, sales, wealth and property taxes, as well as user fees.
One can use several strategies to reduce tax liability. First, it is important to understand the
current tax laws and how they affect you and your financial goals. Second, maintain
complete and accurate tax records. Finally, learn and understand the types of taxes and how
to make sound financial decisions, keeping taxes in mind.
Sources:
Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA:
Glencoe/McGraw-Hill.
Kimbrell, G. & Vineyard, B. S. (2008). Succeeding in the World of Work. New York, NY:
Glencoe/McGraw Hill.
back of it. Fill out a deposit slip to give to the bank teller with your name and account
number, along with the amount of the deposit. Also, be sure to record the amount of the
deposit into your checkbook register.
Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland
Hills, CA: Glencoe/McGraw-Hill.
Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland
Hills, CA: Glencoe/McGraw-Hill.
The first step to protecting your identity is to be cautious with sensitive information and
documents, including your social security number, checking and other bank account
numbers, and the like. Shred any documents that contain sensitive information before
throwing them out.
When paying with a credit or debit card, be sure the card is always returned to you after the
purchase. You may wish to keep a record of your card numbers in a place separate from your
cards. Also, always look over your bank and credit card statements carefully when you
receive them for mistakes and unknown charges or withdrawals.
Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland
Hills, CA: Glencoe/McGraw-Hill.
credit union have a common bond such as employment with the same company. Credit
unions offer a full range of financial services.
Non-deposit financial institutions include life insurance, investment, finance, and mortgage
companies. Such companies specialize in their respective industry but may offer other
financial services as well. Finance companies offer higher interest rates loans to individuals
and businesses that cannot borrow elsewhere, often due to credit problems.
Source: Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland
Hills, CA: Glencoe/McGraw-Hill.
need to be addressed. Planning for such instances helps to minimize the amount of loss that
may occur.
Source: Dlabay, L. T., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason,
OH: South-Western Cengage Learning.
reputation, and supplier flexibility. As part of the selection process, buyers and sellers will
need to negotiate the final terms of the agreement.
Source: Kotler, P. & Keller, K. L. (2006). Marketing Management, 12th Ed. Upper Saddle
River, NJ: Pearson Prentice Hall.
capable of running entire companies or divisions. They are skilled in a large number of areas
and are responsible for the final success of the business or division.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
personnel about, as well as monitor various laws and regulations. A compliance program is
viewed by management as a necessary component of an overall sound business strategy.
Source: The Role of Compliance (in the Securities Industry). (January 1, 2005). Retrieved
August 17, 2010 from http://www.accessmylibrary.com/article-1G1145219431/rolecompliance-securities-industry.html
it. The most common way to deal with risk, especially large risks, is to shift it, usually to an
insurance company. Risk shifting takes the financial burden of a risk and places it elsewhere
for a fee.
Sources:
Dlabay, L. T., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.). Mason, OH:
South-Western Cengage Learning.
Kapoor, J. R., Dlabay, L. R., & Hughes, R. J. (2007). Personal Finance. Woodland Hills, CA:
Glencoe/McGraw-Hill.
them and the costs to operate them are low. Interactive TV is a modern method of allowing
viewers to interact with the programming. This method gives customers instant access to
product information, links to online stores, and downloads for additional content, among
other benefits.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
exchange floor. Usually, smaller and newer businesses are traded OTC. The NASDAQ is an
OTC market.
Source: Dlabay, L. R. & Burrow, J. L. (2008). Business Finance. Mason, OH: Thompson
South-Western.
Source: Dlabay, L. R. & Burrow, J. L. (2008). Business Finance. Mason, OH: Thompson
South-Western.
Industrial Average, Standard & Poors 500, the NYSE Index, the NASDAQ Performance
Index, and the AMEX Index.
Source: National Association of Investors Corporation, BetterInvesting. (2007). Investing In
Your Future (2nd ed.). Mason, OH: Thompson South-Western.
the way business processes are completed, thus improving quality and efficiency and saving
money. In addition, technology makes it possible to perform business processes in different
locations to allow for business expansion and better use of resources.
Source: Dlabay, L. R. & Burrow, J. L. (2008). Business Finance. Mason, OH: Thompson
South-Western.
Financial analysis software applications are available to help you seek out more in-depth
answers to financial questions. These applications go beyond basic financial statements to
help you develop financial goals, set forecasts, and perform what-if scenarios. In addition,
you can create professional reports of the results of your detailed analysis with such software.
Using financial analysis applications makes performing advanced financial analysis quicker,
easier, and more visually appealing than with basic spreadsheets.
Source: Estes, J., Savich, R. S., & Ivanova, M. (November, 2007). Tools for Financial
Analysis. Retrieved August 23, 2010 from http://www.journalofaccountancy.com/Issues/
2007/Nov/ToolsForFinancialAnalysis
Ross, Kenton E., et. al. (2000). Century 21 Accounting Advanced (7th ed.). Mason, OH:
South-Western.
The Internet provides a nearly limitless source of free or fee-based information from
companies own websites or business clearinghouses. Data collected by government
agencies is available online regarding topics such as demographics, product and economic
news, and legislative trends. Government agencies also serve as good sources for written
material, such as the Small Business Administration, U.S. Census Bureau, Securities and
Exchange Commission, etc. Specialized research companies sell demographic data, sales
forecasts, and other business data they have collected.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Other legal issues businesses must be aware of include laws protecting investors and the
environment as well as maintaining competition in the marketplace. The Securities and
Exchange Commission regulates the sale of stocks and bonds and investigates deals among
corporations. Businesses must follow various other laws to protect human health and the
environment in regard to pollution, waste disposal, and recycling. Companies are also faced
with legal standards that protect against anti-competitive mergers and business practices.
Laws also exist that regulate the distribution of products such as alcohol and tobacco.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Explain forms of financial exchange. (cash, credit, debit, electronic funds transfer, etc...)
Credit enables a business or individual to purchase goods and services in exchange for a
promise to pay later. It is most helpful when consumers want to make major purchases,
though it is often used for more common, less expensive items. Customers are typically
issued a credit card from a bank to make such purchases. Debit is a variation of credit.
Consumers using a debit card authorize a seller to withdraw funds directly from the
consumers bank account at the time of sale. A cash sale is any transaction in which the
customer pays for the item with cash or a check.
Other forms of retail sales transactions include layaway, on-approval, and cash-on-delivery
(COD). Layaway means removing merchandise from stock and keeping it in a separate
storage area until the customer pays. In an on-approval sale, an agreement is made
permitting a customer to take merchandise home for further consideration before paying. A
COD sale is a transaction that occurs when a customer pays for goods at the time they are
delivered.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
The form of written communication you choose to use will depend on the above
considerations. Letters are formal methods of communicating outside the business. E-mail is
an informal method used to reach those inside or outside the company. Memos, while being
replaced by e-mail, are a more formal way to communicate within a company.
Business reports are for lengthy topics, typically for internal use or for stockholders.
Similarly, company publications may be used internally (for company policies) or externally
(for marketing purposes).
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Relate your subject to the audience and decide how to clearly make your point(s). The best
approach is to be clear, brief, and direct.
Good speaking skills are important, and your delivery, style, and attitude are as important as
your message. Speak at an appropriate volume and speed. Use inflection and tone of your
voice to stress key ideas. Try to make emotional contact with your audience, and make eye
contact. Use posture and body language that match your message. Avoid nonwords, such as
uh and um. Pronounce words correctly and enunciate clearly. Project enthusiasm and a
positive attitude.
Source: Kimbrell, G. & Vineyard, B. S. (1998). Succeeding in the World of Work (6th ed.).
New York, NY: Glencoe/McGraw Hill.
the report is long and/or technical so that busy readers can get the main points quickly
without having to read the entire report.
The format of an executive summary should match the main report. If the report is written in
direct order, write the executive summary in direct order. An executive summary is typically
a one-page document. The formatting may not match exactly the report that follows. Line
spacing and headings may be different between the two, and it is usually not numbered in
sequence with the body of the report.
Source: Means, T. (2004). Business Communications. Mason, OH: South-Western.
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New
York, NY: Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills,
CA: Glencoe/McGraw-Hill.
The law of supply states that price and quantity supplied move in the same direction (a direct
relationship). Thus, as price increases, the amount of goods and services supplied increases.
Conversely, the law of demand states that as price increases, the amount desired by
consumers will decrease (an inverse relationship). When the amount of a product/service
being supplied equals the amount being demanded, equilibrium exists in the marketplace at
that price. If, however, there is more supply than demand for a product a surplus exists,
potentially leading to lower prices. A shortage exists when demand exceeds supply, a
condition that can lead to rising prices.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New
York, NY: Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills,
CA: Glencoe/McGraw-Hill.
Source: Kelly-Plate, J. & Volz-Patton, R. (1991). Career Skills (2nd ed.). New York, NY:
Glencoe/McGraw-Hill.
first, which are usually minorities and the young. Lastly, unemployed people tend to get
discouraged about themselves and their abilities, and may give up their search for work.
Unemployment is an important indicator of the overall strength of an economy. The higher
the unemployment rate, the greater the chances of an economic slowdown. Likewise, the
lower the unemployment rate, the greater the chances of an economic recovery. When more
people are working, more people are spending money and paying taxes to help the economy
grow.
Sources:
Economics: Concepts and Choices. (2007). Evanston, IL: McDougal Littell.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills,
CA: Glencoe/McGraw-Hill.
Insurance companies estimate the probability of loss due to risk and determine a rate to
charge for the policy, called a premium.
Property insurance is one common type of insurance, which covers loss or damage to
buildings and equipment. Property insurance can be purchased to cover full replacement
cost, automatic increase protection, and business interruption. Liability insurance is a form
of insurance that protects against damages for which a business or individual may be liable,
including injury or property damage to others.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
computer terminal at the companys location. New employee orientation also makes use of
technology for job training and disseminating company policies. Payroll functions are
automated in many companies.
Source: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.).
Mason, OH: South-Western Cengage Learning.
Sources:
Allen, K. R. & Meyer, E. (2006). Entrepreneurship and Small Business Management. New
York, NY: Glencoe/McGraw-Hill.
Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials. Woodland Hills,
CA: Glencoe/McGraw-Hill.
Financial information for a business can be recorded, summarized, and reported in a variety
of ways. The way in which information is kept and reported is determined by the size, type,
and complexity of a business. Businesses should also consider the types of decisions that
will be made when designing an accounting system. Types of information to be gathered
include purchases, sales, expenses, and payroll. There are two basic types of accounting
methods: cash and accrual. In the cash accounting method, income and expenses are
recorded at the time the money changes hands. The accrual method of accounting records
transactions at the time they occur even if no money changes hands at that time.
Accounting records show changes and the current account balance of each asset, liability, and
owners equity account. The recording of debit and credit parts of a transaction is called
double-entry accounting. A record summarizing the information relevant to a single item in
the accounting equation is called an account. With every action, at least two accounts will
change. A group of accounts is called a ledger. A form for recording transactions is called a
journal.
Sources:
Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th
ed.). Mason, OH: South-Western Cengage Learning.
Nature of Accounting. (Marketing and Business LAP 9: Career-Sustaining Level). (1996).
Columbus, OH: Marketing Education Resource Center.
Accounting reports are used by individuals outside the business as well as inside. Outside the
business, investors, lenders, consumers, competitors, and government may be interested.
Workers, union leaders, and management all may have a need to see and clearly understand a
business financial situation.
Source: Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting:
Real-World Applications & Connections. New York, NY: Glencoe/McGraw-Hill.
Internal auditors work independently within a business to review and improve the companys
operations. They use strict standards to ensure the business sticks to its agreements, to design
plans to protect assets, and to make the best use of company resources.
Sources:
Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th
ed.). Mason, OH: South-Western Cengage Learning.
Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting: Real-World
Applications & Connections. New York, NY: Glencoe/McGraw-Hill.
Describe connections between company actions and results. (e.g., influence buying
behavior, etc.)
Company actions that affect consumers include: advertising, pricing, product mix, supply of
goods, sales and promotions, product development and improvement, product safety,
payment options, etc.
Company actions that affect the competition include: advertising, pricing, product mix,
supply of goods, sales and promotions, distribution methods and locations, etc.
Company actions that affect employees include: the use of technology in production and
record keeping, managerial ethics, human resources management, production planning and
scheduling, risk management, investing, etc.
Other actions to be considered include company actions that affect things like the
environment, the global economy, etc.
Source: Dlabay, L. R., Burrow, J. L., & Kleindl, B. (2009). Intro to Business (7th ed.).
Mason, OH: South-Western Cengage Learning.
Liabilities are the amounts that a business owes and are classified as current or long-term. A
current liability is a debt the business must pay back during the upcoming year. A long-term
liability is a debt that is due after 12 months time, such as a long-term loan. Owners equity
(or net worth) is the amount of ownership interest in the business. The difference between
assets and liabilities equals the owners equity.
Source: Farese, L. S., Kimbrell, G. & Wolosyk, C. A. (2009). Marketing Essentials.
Woodland Hills, CA: Glencoe/McGraw-Hill.
Gilbertson, C. B., Lehman, M. W., & Passalacqua, D. (2009) Century 21 Accounting (9th
ed.). Mason, OH: South-Western Cengage Learning.
Guerrieri, D. J., Haber, F. B., Hoyt, W. B., & Turner, R. E. (2007). Accounting: Real-World
Applications & Connections. New York, NY: Glencoe/McGraw-Hill.
Assessing current business trends is important to both business and professional growth.
Business owners and entrepreneurs should keep up-to-date through a variety of means.
Classes are offered at vocational/technical schools, two- and four-year colleges, and online.
Joining a professional association or club is an excellent way to stay current with trends and
knowledge relevant to an industry. Another way to stay up-to-date is by reading journals,
professional trade publications, news sources, websites, and blogs. Attend professional
conferences, meetings, seminars, and speakers. These activities also provide the opportunity
for networking, wherein you can learn from colleagues by sharing insight and experience.
Source: Bailey, L. J. (2003). Working: Career Success for the 21st Century (3rd ed.). Mason,
OH: South-Western.