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uploaded by user Umarzilla Class: Lecture/Exam: School: Semester: Professor: BUS 111 Midterm 1 Package SBU Spring 2014 N/A

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Jan 29
MIDTERM: What differentiates the NASDAQ from the other stock exchanges around the world? You dont go to the room.

NASDAQ doesnt have a building, its all electronic. Stock exchanges in other countries are buildings but not on the NASDAQ NASDAQ to the New York stock exchange In the past and today, once you become a public company, you go to the NASDAQ then to stock exchange High correlation between the stock exchange and what the market looks like. Price gold Crude oil $97 a barrel. Last year $105 Traveling traveling to Europe. 20 years ago 1:1, today $1.37 to 1 Euro Dont want to buy in Europe because so expensive. So many Europeans coming here because its good for them. Good making US products cheaper and many buying. Know SNP 500, DOW, NASDAQ, Gold is traded every day, Oil, exchange rate of money [currency is traded everyday] Best investment in life: education Long term investment

HW watch Superbowl commercial. How much is a 30 second commercial on Sunday 4mil!

Creflow (daisy) Tony Robbins Barb Richards

Feb 10
Exam will be March 27th Look at yahoo finance everyday Weekly assignment, will choose some of those questions from the assignment Video before the exam

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Assignment to know Number of people involved in these Find out what company they work for, what crime they committed, and where they are now Elliot Spitzer was hated by Wall Street. Attorney general then governor of NY. He had a passion for beautiful women. He had a prostitute and hooked up with her on regular basis. He made one big mistake of transporting her across state lines. 1) He couldnt have prostitute 2) cant make across state lines felony. He had to resign and Wall Street was elated. How to prevent people from being bad. At least one person When you commit a white collar crime (no violence) you get sent to a country club prison. Professors friend Jerry. 9 months in jail White collar crimes dont go to solid prisons because they would probably get murdered and there wouldnt be any more white collar crimes

Basic Moral Values: Right: Wrong: Cheating Cowardice Cruelty You should have a set of moral values and stick to it Your greatest influence is your peers Cant turn your colleague/companion in Whistle blowers are supposed to be protected by the govt but the life around you will be very miserable even if you are doing the right thing. Can the govt really protect you? If you see something wrong, do you go to your boss/supervisor? Strong possibility that you will leave either fired or your peers will make it miserable for you. Integrity Respect for human life Self-control Honesty Courage Self-sacrifice

Facing Ethical Dilemmas 3 questions: Is it legal? Is it balanced? [unethical]

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How will it make me feel about myself?

Driving above the speed limit when no car is there: legal? No. Ethical? Yes Person goes in store and puts milk and bread in pocket. Legal? Hes stealing. Is it unethical? It is unethical but we would do it to feed our family Bank teller makes error and gives $20 more Freshmen undergrad daughter gets pregnant

Feb 12
Stock market has been seesawing this week Friday market went up 180 points Employment for January (16-64 y/o who are actively looking for a job) report was bad number but unemployment rate dropped 10% People so discouraged they are not looking for work and are not considered unemployed 99 weeks of unemployment they get compensated

Shiny suit story restaurant #1 outside first Kew Garden 1st was all family, honest, everyone worked hard Takes a year off Kenny builds a second in union dale near Hofstra Hired some outside people, not as tight, not family, not as efficient Prof takes off, doesnt work Takes a year off Third restaurant at the Hamptons, another big success by Kenny Now the partner wants more money Eventually, Kenny brings 5 restaurants A lot of money Bad habits Africa went to Morocco, went to Hash factory Brought Opium (not hash) and he becomes and addict He gets set up by police
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They want to know the supplier (mob) He would do 20 years in prison Cuts a deal with Fed witness protection program Never see him after that. Wanted man by the mob. 15 years later see him

SJ hall of fame board, wanted Kenny there Gets call from brother that hes alive and well in Cabo, Mexico, just wants his family to know hes alive Call from Kenny, put on the board, hesitant about coming back Very bad physical appearance and clean 5x Rehab in Mexico Married 3x Doesnt remember some years Sells time shares

Reunion in August Wife called, he was really sick, rushed to hospital, opened him up and cancer everywhere, 6 months to live and died in 3 weeks Partner died of heroin overdose a little before

Business aspect Could have sold it, closed it down by taking money, franchise it choices He stole from business and takes drugs If he didnt go into the drugs, he would have been good. 14 months of time and money to make restaurant

[California story sowing up shoes] 50% of businesses fail every year and the rest fail the other year Reasons:
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Poor planning o You have to work in the business and know from A-Z Money o Back up money. How long should you give it until you determine whether it will o If your business doesnt make it in 6 months it wont make it o Need 6 months money in advance for every month. If broke after 2 months, how will you determine whether successful.

How old you have to be to start a business? No age Home Depot started in 50y/o Personality Sheila C. Johnson First African-American woman became millionaire

What is an entrepreneurship? Accepting the risk of starting and running a business

Why TAKE the risk? Opportunity Profit Independence Challenge

What does it take to be an Entrepreneur? Self-directed o Have to have the drive Self-nurturing o Cant worry about what people think about you Action-oriented Highly energetic Tolerant of uncertainty o You dont know whether you will be successful or not, whether you think you need a lot of opportunity. Most entrepreneurs never relax

Micropreneurs Willing to accept the risk of starting and managing a business that remains small, lets them do the work they want to do, and offers a balanced lifestyle

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Many micropreneurs are home-based business owners writers, consultants, video producers, architects, bookkeepers, etc. Nearly 60% of home-based micropreneurs are men *happy to make a significant amount of money that wont affect their lifestyle+

Intrapreneurs A creative person who works as an entrepreneur within a corporation Intrapreneurs use a companys existing resources to launch new products for the company Art Fry of 3M developed Post-Its when he was trying to mark pages of its hymnal without damage. [He was ethical and said he made it during work rather than made it during work. My creation, my patent, my money. But he was ethical, could have been a billionaire but the work took over his creation and made money from that. Ethic]

Incubators offer new businesses low-cost offices with basic services (there is one in stony brook). If product is successful, they get a percentage of it.

Small business Business Plans Business Plans a detailed written statement that describes the nature of the business and the target. SWOT plan What did they do in Business that got them into trouble? What are their crimes? Where are they today? Elliot Spitzer Angelo Mozilo Dennis Kozlowski Kenneth Lay [died of heart attack] Bernie Madoff Bernhard Ebbers Jeffery Skilling Arthur Anderson (company)

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Feb 17
40-50 m/c, 3 versions of exams, Risk = reward If not much risk then not much reward Never want high risk with low return

Franchise great way to start business; working for another corporation. Good thing if with major franchise rarely will it ever go out of business. When people dont know enough about the business, it will fail. They fail because they never worked in it; but they havent been part of the field. Second reason = financial reasons, people dont have enough money in case business is at a slow start.

Video 5 years to be successful They knew something about sailing and had a passion for it They arent micropreneuers, they wanted to be a big time business and expanding No business plan or any idea what they were doing Sailboat and asked people if theyd like to go for a ride (or ride the boat) If youre willing to put in work and time, you can become very successful; but if never ready to work, you wont be able to make it Intrapreneurs working freely and however they want in a corporation They started their sailing school Buying time share Market their business and relationship with different corporations (hotels, etc.) Out of the business then CEO managing business and setting it up. It is still fun for them.

Importance of small businesses 20 million in the US 75% of all new job 50% of countrys GDP Most jobs in small businesses 80% of Americans find their first job in small businesses At least 3 years of experience before starting own business 90% business fail from poor failure Need a business plan, life plan

SONIC franchise video [TX] by Cody Barnett USAs largest chain of drive-in fast food restaurant Over 3,000

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Founded in 1954 Parked cars in lot and waiters brought food in roller skates Cody was raised in middle class family Decision to whether continue college or take over fathers business after fathers death or sell fathers business. Father was micropreneur in a way No longer growing the business but spend time with family. Since hes a multimillionaire, he can do that.

Franchise agreement Sells the right of use the business name to use the product of business to the franchisee Startup cost is very high (disadvantage) when starting franchise Need to be very cautious when starting up franchise Need to understand the culture Started as soul-proprietor then corporation. Can buy shares of it now.

Feb 19
Professor Businesses Lutheran High School biggest summer program in the US. Dont have a baseball team. 2 week baseball program Ended up doing for 15 years then came to stony brook (did what?) for going for only 2 weeks. Started 2 businesses still running

Globalization Intl program fair, taking students to Greece and Rome. Professor teaches BUS 115 Hawaii story Giving exam to get ticket back home

Learned French French ppl didnt like Americans because of our govt and being authoritative

Portugal
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Whole floor about $25

Morocco Suggestion of a guard b/c of theft Turns out guard was stealing from them Saw women were working and not men

Senegal Hotels room rented in Dakar Good hotel, had surfboards Guy tells him theres no rooms, no longer has rooms b/c president taken over the rooms, relative of pres is getting married and has confiscated all rooms No rooms at all Doctor who is also a surfer meets them Finds a place for them to sleep in a village with Senegalese people (in huts) it was safe His friend has the only house on an island Helped the village people and in the end they gave them a BBQ they BBQ a boat

Fly to South Africa with Apartheid govt Separation, distinct separation btwn white and black and do not mix for any circumstance They go through all their luggage Prof brought textbooks, clinical psychologist at the time, took the books Every building says white only and once in a while will say black White bus stop, didnt see any black bus stop; black ones at the end of town 2 ends Dutch make up 14% of the population, then traditional black people, then a mixed group any mixture of black Asian, black and white, etc. theyre called colored people and they have no bus stop at all. Feels like America during slavery. Black people live in no sanitary considiton and live there all life 0 unemployment rate, every black person works, if black people didnt work then theyd revolt. White person with rifle and black people doing farm work
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Black person gets in car, nothing to fear, surfers, perfect English, college education in China because one of the places they were welcomed, goal in life: throwing people out of Africa as soon as leader gets out of jail. ANC African National Congress guerrilla warfare groups attacking congress every now and then. Hes talking about Nelsen Mandela. 86% of us and 14% of them and by sheer number they will be successful. Never know when revolution will come but it will definitely come Worst slum in the world in Soweto, Johannesburg real hostile area. House out of cardboard right next to each other, no sanitation, kids playing in filth, can smell from far away.

2003 Call from US govt to go to South Africa Apartheid is now gone Want them to go back Removed all white people from leadership position and black people will get power, but they didnt know how work govt position. Prof was called to teach them with 3 other ppl Went to 5 universities and Olympic villages how to market and other things Instead of paying them, they decided to give them 3 days in Safari but as part of that someone picked them up with rifle in benz. Johannesburg has 60% unemployment rate. American businesses pulled out. Saw from distance and people lined up to buy paper cup, apple, oranges, really bad. Wanted to see Soweto, 20 years later. Nothing was improved. Getting rid of apartheid was important but now have to make the economic from scratch

SJohn North and Arctic Uloo no sundown in June USSR still exists, cold war exists, still have Berlin war, East and West Germany, very hostile. Warning dont get any type of incidents. Dont run into KGB because you might end up in Siberia and will never hear from them again. 72 hours in weekend drinking and smoking Next week comes, asks to buy jeans Same thing the next Friday Prof finally sits with them on 3rd week Gets information govt takes over everything Everybody wants American product
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Govt allows this. They sell and govt gets percentage Prof puts in brown bag, last one to leave, puts the jeans on table, no money, he was so moved and started crying, prof left 2 books communist countries banned Religious books and Sears Catalog [1000 pages] every product they made was in that book and the Russian govt didnt want that

Feb 24
Hurricane Katrina Stage 1: Cleanup stage Stage 2: Rebuild. $61 bil 28 years work worth of building

IF these people were white, the govt would have given them money ASAP, there is a class and color system. In Long Island, people live near water and have money.

Feb 26
DOW exchange 30 largest companies by value in the US Bull and Bear high or low stock day SNP: 500 largest companies Can only buy oil in USD Why hasnt crisis in Ukraine affected the stock market?? Entrepreneurship $60k for Duke she pays, $100k debt, $10k was paid off working in McDonald, she went to pornography business St Johns and call girl story (very high class) [Christy], she graduated and is practicing attorney and happily married now Spanish teacher in high school, second job high class stripper, 2 days a week, $1k a night, danced four more years and went to full time teaching

Sunday night, log on at 10pm for 5mins

At least 1 question about Eminem on the Exam PowerPoints

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Macro and Micro economics NY state = micro US = macro

Malthus believed if the rich had most of the wealth and the poor had most of the population, resources would run out This belief led the writer Thomas Carlyle to call economics The Dismal Science Neo-Malthusians believe there are too many people in the world and believe the answer is radical birth control

Adam Smith father of economics Smith believed: Freedom was vital to any economys survival Freedom to own land or property and the right to keep the profits of a business is essential People will work hard if they believe they will be rewarded

Understanding the Invisible Hand theory A farmer earns money by selling his crops To earn more, the farmer hires farmhands to produce more crops When the farmer produces more, there is plenty of food for the community The farmer helped his employees and his community while helping himself

Capitalism All or most of the land, factories and stores are owned by individuals, not the govt, and operated for profit Countries with capitalist fountain o US o England o Australia o Canada Free Market decisions about what and how much to produce are made by the market Market Price (Equilibrium Point) determined by supply and demand, this is negotiated price negotiated price, settlement

Four Degrees of Competition:

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Perfect Competition Monopolistic Competition Oligopoly Monopoly

The Beeus (diamonds) Socialism: An economic system based on the premise that some basic businesses, like utilities, should be owned by the govt in order to more evenly distribute profits among the people. Entrepreneurs run smaller business Citizen are highly taxed Govt is more involved in protecting the environment and the poor

The Negatives of Socialism Few incentives for businesspeople to take risks Brain Drain: Some of a countries best and brightest workers (i.e. doctors, lawyers and business owners) move to capitalistic countries Fewer inventions and innovations b/c the reward is not as great as in capitalistic countries.

Trending Toward Mixed Economies Communist govts are disappearing Mostly socialist govts are cutting back on social programs, lowering taxes and moving toward capitalism Mostly capitalist countries are increasing social programs and moving toward more socialism

US is moving more toward socialism Cuba and North Korea are the only socialist countries left Communism: an economic and political system in which the govt makes almost all the economic decisions and own almost all the major factors of production Prices dont reflect demand which may lead to shortages of items, including food and clothing Most communist countries today suffer severe economic depression and citizens fear govt

Mixed economy: some allocation of resources is made by the market and some by the govt that is us today

Mar 3
E-Portfolio Extra Credit Write a reflection in your BUS111 reflection of the portfolio journal type eportfolio@stonybrook.edu www.stonybrook.digication.com

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Log on next Wednesday night

Ghana MBA program professor finds to join both institutions, run with guard, typical Ghanaian village, 2 little kids staring at him first white person they saw. A lot of kids selling stuff, compulsory education until 16 y/o, wealthier families go to private schools, Kumasi, Ghana it is a matriarchal society they run the govt, the economics, women run everything and men agree to it, professor met the matriarch over a hundred and wrinkle free GDP in Ghana $140 in a year. US $30K-40K

Mar 5
Physicist, mathematicians and attorneys Warren Buffet 3 billion people in the world live on less than $2 a day 1 billion people in the world live on less than $1 a day

Video Housing Bubble .com bubble crisis Prime mortgage person with good credit getting mortgage Sub-prime mortgages giving mortgages to those who dont deserve (bad credit) increased. Highest interest. Riskier ones pay higher return Buying mortgages Mid 2000s Housing prices fell, money was less than they owed No incentive to pay mortgages so they defaulted Banks were left with hundreds of millions of $ in mortgages Bear Stearns went broke, was $180/share then went to $2 a share then went broke within a week Lehman Brothers stocks went down Debts were much higher than assets because SCC relaxed in 2004. Foreign markets collapsed as well, went global. Toxic Acid Ted Bernanke (of the Federal Reserve) using tax payer money to bail out banks (our money to banks, who drove us down, not to small businesses), the banks gave their workers bonuses (as per contract)
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Late 2000s recession near great depression, more than 4 million people lost their homes, congress Dodge Frank (?) act to regulate Wall Street, Banks were afraid to lend (to small people and not to businesses). Great many mistakes were made.

Mar 24
China is #1 exporter then Germany US is #1 importer Systematic risked Frannie M + Freddie Mac govt saves Govt helped people on Wall St. but not small (ordinary people under the houring market crashed

Know Cold War vs. Hot War Cricket Lee (Fitlogic) Developed a system of cloths sizing called Fitlogic Lees system standardizes sizes and provides flexibility large clothes Though she has an excellent idea, Lee must market her product

Marketing: the activity ---?

Lance Fried electrical engineer who went into business after he built a waterproof MP3 player; unfortunately his products doesnt make it because people werent into it Focused his marketing pan on small surfs shops instead of large stores Now he attends trade shows and runs a website to help sell more products

Four areas of Marketing very important (slide 13.1) Marketing Concepts (3 parts): 1) Customer Orientation: finding out what the customers want and then providing it 2) Service Orientation 3) Profit organization

The Customer Relationship ERA Learning as much as you can about customers and doing what you can to satisfy or exceed their expectations Organizations seek to enhance customer satisfaction building long-term relationships

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Today firms like Priceline and Travelocity use CRM that slow customers to build a relationship with the suppliers

(slide 3015)

No bad publicity Entertainment

Eliot Spitzer What does it mean to help the buyer buy? What are the three parts of the marketing concept? What are the four Ps of the marketing mix?

Professor chose the seawolf from patriots, we son best logos of the year.

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