《經(jīng)貿(mào)英語閱讀與翻譯》

1.ModernMarketing

Thetermsmarketandmarketingcanhaveseveralmeaningde

pendinguponhowtheyareused.Thetermstockmarketreferstothe

buyingandseHingofsharesincorporationsaswellasothera

ctivitiesrelatedtostocktradingandpricing.Theimportantworldstock

marketsareinLondonzGeneva,NewYork,Tokyo,and

Singapore.Anothertypeofmarketisagrocerymarket,whichisa

placewherepeopiepurchasefood.Wheneconomistsusetheword

markettheymeanasetofforcesorconditionsthatdeterminethe

priceofaproduct,suchasthesupplyavailableforsaleandthede

mandforitbyconsumers.Thetermmarketinginbusinessincludesall

ofthesemeanings,andmore.

Inthepast,theconceptofmarketingemphasizedsalesemphasized

sales.Theproducerormanufacturermadeaprocucthewantedto

sell.MarketingwasthetaskoffiguringouthowtoseiItheprod

uct.Basically^sellingtheproductwouldbeaccomplishedbysales

promotion,whichincludedasvertisingandpersonalselling.Inaddition

tosalespromotion,marketingalsoinvolvedthephysicaldistribution

oftheproducttotheplaceswhereitwasactuallysold.Distribution

consistedoftransportation,storageandrelatedservicessuchasf

inancing,standardizationandgrading,andtherelatedrisks.

Themodernmarketingconceptencompassesalloftheactivities

mentioned.butitisbasedonadifferentsetofprinciples.ltsubscribes

tothenotionthatproductioncanbeeconomicallyjustifiedonlyby

consumption.lnotherwords,goodsshouldbeproducedonlyifthey

canbesold.Therefore,theproducershouldconsiderwhoisgoingto

buytheproductorwhatthemarkerfortheproductis-beforep

reductionbegins.Thisisverydifferentfrommakingaproductand

thenthinkingabouthowtosellit.

Marketingnowinvolvesfirstdecidingwhatthecustomerwants,andd

esigningandproducingaproductthatsatisfiesthesewantsataprofi

ttothecompany.lnsteadofconcerntratingsolelyonproduction,the

companymustconsiderthedesiresoftheconsumer,andthisismuch

moredifficultsinceitinvolveshumanbehavior.Productiononthe

otherhand,ismostlyanengineeringproblem.Thus,demandand

marketforcesarestillanimportantaspectofmodernmarketing,but

theyareconsideredpriortotheproductionprocess.

Becauseproductsareoftenmarketedinternationally,distributionhas

increasedinimportance.Goodsmustbeattheplacewherethe

customerneedsthemandmustbroughtthere.Thisisknownasplace

utility;itaddsvaluetoaproduct.However,manymarketsare

separatedfromtheplaceofpreduction,whichmeansthatoftenboth

rawmaterialsandfinishedproductsmustbetransportedtothepoints

wheretheyareneeded.

Rawmaterialsrequiringlittleornospecialtreatmentcanbetranspo

rtedbarail,ship,orbargeatlowcost.LargequantitiesofrawmateriaIs

travelasbulkfreight,butfinishedproductsthatoftenrequirespecial

treatmerit,suchasrefregerationorcarefullhandlingzareusually

transportedbytruck.ThismerehandisefreightisusuallysmaIlerinvo

lumeandrequiresquickerdelivery.Merchandisefreightisatermfor

thetransportationofmanufacturedgoods.

AlongalIpointsofthedistributionchannelvariousamountsofstor

agearerequired.Thetimeandmannerofsuchstoragedependsupon

thetypeofproduct.lnventoriesofthisstoredmerchanciseoftenneed

tobefinanced.

Modernmarketingistheretoreacoordinatedsysternofmany

businessactivities,butbasicallyitinvolvesfourthings:l)sellingthe

correctproductattheproperplace,2)sellingitatapricedetermined

bydemand,3)satisfyingacustomer'sneedsandwants,and4)producing

aprofitforthecompany.

Z.BookkeepingandAccounting

AlIbusinessenterprisesjromthesmallesttothelargest,mustkeep

finacialrecords.Theserecordsarecalledthecompany's

accounts.Owenersofsmallbusinessessuchasstores,restaurants,or

gasolinestationsmayhandlealItheaccountsthemselves.Alarge

corporation,ontheotherhand,willprobablyhavehundredsof

employeesandusecomputerstorecorditsaccounts.Therecordsofa

company'saccountsarecalledits"books'.Eachaccountiskeptina

separatebookknownasaledger.Everyfinancialtransactionmustbep

ostedinthebooks.

Therearetwobasicbookkeepingsystems.Inthesingle-entry

system,expendituresandincomearerecordedtoshowacash

balance.Mostofusarefamiliarwithsingle-entrybookkeepingfrom

ourownbankorhousehoIdaccounts.Onlyoneentryinthebooksis

madeforeachtransactioninthissystern.

Indouble-entrybookkeeping,twoentriesaremadeforeachtransa

crion.Thebooksofaccountshavetwocolumns.Theoneontheleftis

caliedadebit,andtheoneontherightiscalledacredit.Atonetime,a

debitshowedanitemwithmonetaryvaluegoingout.Theitemof

valuecouldbecash,butitcouldalsobemerchandiseand

equipment.Today,however,mostcompanieskeepseveraldifferent

ledgers,sothesametransactionmayappearasadebitinoneledger

andasacreditinanother.Whenthetwocolumnsofeachledgerare

added,theyshouldbeequal.Whentheyarenotequal,amistakehas

beenmade.Inthemodernbusinessworld,accountingplaysaneven

moreimportantrolethanbookkeeping.Bookkeeperssimplyrecord

thefinancialtransaction,thoughtheymustunderstandwhichitems

arecreditsanddebits.Accountants,ontheotherhand,setupbook

keepingsystems,checktherecords,andheIpmanagementunders

tandthefigures.Manyaccountansaretheexpertoftaxes,whichhave

becomemoreandmorecomplicatedovertheyears.Thetaxlawsp

rovideformanydifferentkindsofdeductionsfromtaxablei

ncome.Forexample,thereisanallowanceforthedepreciationoffixed

assets,suehasplant,machinery,andevenofficefurniture."De

preciation"meansthattheseiternsbecomelessvaluableasthey

wearoutoveraperiodoftime.Onejobofataxaccountantiswork

outadepreciationschedulebasedontheaveragelifeoftheseitems.

Whenanewcompanyisformed,anaccountantsetsupitsboo

kkeepingsystem.Theaccountantmustdecidewhatbooksarene

cessaryforthebusiness.Thenheorshemusttrainthebookkeepersin

theproperwaytoposttheaccounts.Theprocessofcheckingthe

booksiscalledanaudit.Accountantsispreparingfinancialstatements

annuaIly.Theyshowthefinancialconditionofthecompanybylisting

itsassetsandIiabilitiesareamountsthatareowedorthathavebeen

lost.

Theaccountingandbookkeepingdepartmeritofalargecorporation

oftenhasseveralsections.Forexamplezonesectionwilltakecare

onlyofaccountspayable-themoneywhichthecompanyowes.There

maybestillothersectionstotakecareoftaxes,pensions,and

investments.

Bookkeepingandaccountingarecentraltomodernbusiness.Even

whencomputersareused,thepeopIewhoworkwiththeaccounts

mustbesystematic,methodicalandaccurate.Manyofthemenand

womenwhohaverisentotopmanagementpositionshavehada

backgroundinbookkeepingandabackgroundinbookkeepingand

accounting.

3.Insurance

Eachofusconstantlychancesthepossibilityoffinacialloss.Homes

maybedamagedordestroyedbyfirestromandvandalism.Automo

tiveaccidentsmayresultinIossofIife,largeofmedicalexpenses,or

damagedproperty.AwageearnermaynoIongerbeabletoearna

livingbecauseofillness,injury,oroldage.Deathmayresuitinun

expectedexpensesandlossofincomefortherestofthefamily.Situat

ionsuchastheseinwhichyouchancethepossibilityoffinancialloss

arecalledeconomicrisks.

Toavoidfinancialhardship,manypeopletrytobuiIdfinancialsecurit

y.TheyregularlyputasidesavingstopayforsmalIfinacialemergenci

esortotidethemoverincaseoftemporarylossofincome.Most

people,however,arenotabIetobuildupenoughsavingstocoverI

argeorIong-termIosses.Therefore,theybuyinsuraneeaspartof

theirfinancialsecurityplan.

Insuranceistheprotectionagainsteconomiclossprovidedbys

haringtheriskwithothers.Insurancecompaniesarebusinessthat

provideinsuraneeservices.Becauseinsurancecompaniesareableto

insuremanypeopleagainstaspecificrisk,thepoolofpeoplesharing

theriskislarge.Andsothecosttoeachmemberofthepoolissma

II.Inadditionjnsurancecompaniesbasetheircostsonthetheoryofp

robability;thatis,anestimateoftheIikehoodthataparticularevent

willoccur.Onthebasisofpastexperiencejnsurancecompaniescand

eterminewiithreasonableaccuracyhowmanyaccidentsofagiven

typewilllikelyoccurwithinacertainperiod.Thegreaterthech

ance,thegreaterthecostofthattypeofinsurance.

Whenapersoninsuressomething,thereisaIwaysawrittenagreeme

ntorcontractbettweentheinsurerandtheinsured.Thisagreement

iscalledtheinsurancepolicy.Thecompanysellingtheinsuranceis

calledtheinsurer.Theinsuredzorpolicyholderjsthepersononwhose

lifeorpropertyaninsurancepolicyisissued.Aninsurancepolicyisa

legallybindingcontract.ltisimportant,therefore,thatyoustudyit

verycarefully.YoushouldbefamiliarwithaIIthebenifitsaswellas

welIastherestrictionsthatmightaffectyoucoverage.Manyin

surancepolicieshavebeenstandardized.ButyouwiIIfindtherearedi

fferences,especiallyinhealthandcarinsurance.

Whenyoubuyinsurancezyoumakeregularpaymentsfortheinsurance

protectionyoureceive.Theamoutofmoneypaidforinsurancep

rotectioniscalledthepremiam.Severalfactorsdeterminethe

amountofthepremium.Twoofthesefactorsarethedollaramount

(ordollarvalue)oftheobjecttobeinsuredandthelikelihoodofloss.F

orexample,theowenerofa$35000homeprobablywouldpaymore

forhomeinsurancethantheowenerofa$20000home.Thisisbecause

thedollaramountoftheriskishigher.HoweverJfthe$20000home

werelocatedinanareainwhichforestfiresfrequentlyoccurred,the

premiummaybehigherthanfora$35000homeinafire-safear

ea.Thisisbecausethechanceoflossbyfireishigher.Similarlyjife

insurancefora60-year-oldpersonwouldcostmorethanforanequal

amountofinsurancefora15-year-old.Thisisbecausethe15-year-old

canexpecttoliveIongerthan60-yearp-old.

Insurancecompaniesjikeotherbusinesses,haveoperatingcosts.S

omeofthesecostsareofficeexpenses,andmargin.Officeexpenses

arethecostsofrunningtheinsurancecompany.Theyineludesuch

thingsassalaries,officeequipment,telephones,andofficespace.Selli

ngexpensesarecommissionandsalariespaidtosalesperson

nel.Marginistheamountofmoneyaboveandbeyondallexpenses

thatissetasidetobeusedincaseofunusuaIlosses.Theseexpenses

alsoaffectthecostofinsurance.

Shopcarefullyforanyinsuranceyoupurchase.Althoughmany

insurancepolicieshavestandardcoverage,thecostforthesame

protectionmayvaryamongcomprties.Youshouldcomparethecost

andthecoverage.Forexamplejfyouwanttoinsureacar,checkthe

ratesofseveraIcompanies-don'tjustsettleforthefirstone.

Sometypesofinsuraneecanbeboughtwhereyouwork.Mostof

ten,however,youwillhavetorelyontheadviceofaninsuraneeagent.

Aninsuraneeagentisapersonwhosellsinsurance.Someinsurance

agentsmayrepresentonlyonecompanyorspecializeinonlyone

typeofinsurance.Otheragentsmayrepresentseveraldifferent

companiesofoffermanykindsofinsurance.

Choosingaknowledgeableinsuraneeagentisanimportantpartof

shoppingforinsurance.Mostpeopledonotknowwhattypesofinsur

anceareavailableorwhataspecificinsurancepolicyinclude.Agood

insuranceagentcanhelpyouundestandthelanguageofaninsurance

policy.Andheorshecanhelpyoudecideonthebestkindofpolicy

foryourneeds.

4.Contracts

Asaconsumer,youwilltakepartinagreatmanybusinesstransactio

nsthroughoutyourIifetime.Forthemostpart,thesetransactionswill

simplyinvolvethebuyingofgoodsandservices.Usuallyzyouwillhave

littleornodifficultyinhandlingthesetransact!ons.Occasionally,how

everythingswillnotgoassmoothlyasyouwouldIike.Perhapsyou

mayfeelthatyouarebeingtreatedunfairly.Oryoumaywanttobe

particularlysurethatthetermsofanagreementwillbemet.Whent

hishappens,aknowledgeofthelawthatappliestobusinesstransactio

nsorofwheretoseekadvicemayhelpyoutosolveyourproblems.

AcontractisalegalIyenforceableagreementbetweentwoormore

parties.Manyconsumersthinkthatcontractsapplyonlytolargepu

rchasessuchashomesorcarswherethebuyermakesawritten

promisetopayoveranextendedperiodoftime.Butthisisnottrue.

Eventhesimplestpurchasesresuitincontracts.Ordinarilyzanytime

yougivesomeonemoneyinpaymentforagoodorservice,youhave

enteredintoacontract.Whenyoupayforasoftdrinkandaboxof

popcorn,youhavemadeacontract.Whenyougetintoataxicab,and

tellthedriverwhereyouwanttogo,youhavemadeacontract.AII

thesetransactions,thoughsimpleeverydayactsjnvolvecontracts.

Fromtheseexamples,youcanseethatmanycontractsareimplied

contracts.Impliedcontractsarecontractsinwhichtheintentofthe

contractingpartiesisunderstoodbytheiractionsratherthanstated

ineitherspokenorwrittenwords.

Itisalsoclearthatmostcontractsareoral.However,becauseimplied

andoralcontractsarehardtoprove,youshouldhaveallimportant

contractsputinwriting.

Acontractmusthavecertainfeaturesinorderforacourttoupholdit

asavalidcontract.Thesefeaturesarel)mutuaIassent,2)considera

tions,3)competentparties,and4)legalpurpose.

Ifacontractistobebinding,theremustbemutualassent.Mutual

assentisagreemeritbythepartiestoallthetermsofa

contract.Mutualassentexistswhenthereisanofferandcomplete

acceptanceofthatoffer.Anoffermustmeetcertainrequirementsto

beIegallybinding.ltmustbedefinite,anditmustshowgenuine

intenttoenterintoanagreement.Ifafriendjokinglyoffersyouami

Iliondollarsforaridetoschooljtisobviousthatthereisnoreal

intent.Similarly,anoffermadeinangerzfear,orstressisnotusuallyone

thatisseriousinintent.

Thepartymakingtheofferistheofferor.Thepartytowhomtheoffer

ismadeistheofferee.Acceptancetakesplacewhentheoffereeagre

estotheoffermadebytheofferor.Theacceptancebytheoffereemust

bewithoutcondition.Thatis,theoffereecannotchangethetermsof

theofferinanyway.Forexamp?supposeyouoffertosellyourbieyeIe

toafriendfor$25andyourfriendsay/TIIbuyitifyouputref

ledtors.Onfirst."Thisisnotacceptablebecauseyourfriendhasmadea

condition.

Theacceptancemustalsobestateddirectlybytheoffereetothe

offeror.Ifyourfriendtellssomeoneelsethatheorsheisplanningto

buyyourbicycle,thisisnotanacceptance.Oncetheacceptancehas

beenmadetotheofferor,theagreementisacontract,andboth

partiesareboundbyit.

Anotherfeatureofacontractisthatsomethingmustbepromis

ed,given,。rdonebyeachofthepartiestobindtheagreement.That

sometingiscailedcondideration.Money,services,andgoodsmost

frequentlyserveasconsiderationinacontract.Promisesmayalsober

egardedasconsideration.Tobevalid,promisesmustmeetcertain

requirements.Apromisecannotbeapromisetodosometingthat

oneisalreadyrequiredbylawtodo.Also,apromisecannotbea

promisetodosomethingagainstthelaw.

Athirdfeatureofabindingcontractisthatthepartieswhoenterinto

itmusthavetheabilitytomakeacontract.Personswhohavethe

abilitytomakeacontractarecalledcompetentparties.Competent

partiesmeansthosewhoareabletounderstandthecontractandits

consequences.lngeneral,minorsarenotregardedasbeingcompeten

tparties.

Sometimesbusinessfirmsdomakecontractswithminors.Thisisrisky

becauseminorsaresometimesabletorefusetocarryouttheterms

ofthecontract.Ifthecontractisfornecessaries,aminorisliablefor

theirreasonablevalue.Necessariesarethosethingsthatareneeded

forlifeandthataresuitabletoone'seconomicandsocialposition.Fo

od,clothing,shelter,medicalcare,basiceducation,andtoolswith

whichtoearnalivingareneccessariesbylaw.

Goodsforrecreationaluse,suchasm。torcycles,sailboats,andstereo

sets,arenotnecessaries.Amerchantwhomakesacontractwitha

minorforsuchgoodsistakingariskbecausetheminorcanrefuseto

payforthegoods.Theminorcannotkeepthegoods,butsometimest

heremaybenogoodstogiveback.Supposeaminormadeacontract

tobuyasailboatandtheboatsankbeforeitwaspaidfor.Iftheminor

refusedtopayfortheboat,therewouldbenogoodstogiveback.Even

ifthemerchantwillhavelostmoney.

Aforthfeatureofabingingcontractisthatitcannotinanyway

violatethelaw.ThecontractmustbeforalegaIpurpose.Inadditio

n,manycontractshavebeenjudgedbythecourtstobeagainstthe

publicgoodortobeharmfultohealthandmoralsofthegeneral

public.Examplesofillegalcontractsarethoseinvolvinggambling,cri

me,ordoingbusinesswithoutalicenseisrequiredbylaw.

5.consumerDecisions

Consumerdecisionscanbedividedintotwomaintypes:thosethat

relatetospendingforthenecessitiesoflifeandthosethatrelatetoall

otherneeds.Therefore,basicconsumerdecisionswillbediscussed

first.

Allconsumerdecisionsthatinvolvethepurchaseofgoodsand

servicestosatisfythebasicneedforfood,cl。thing,andshelterare

calledbasicconsumerdecisions.Forsomepeople.particularlythose

withveryIowincomes,almostalIspendingmayinvolvebasicc

onsumerdecisions.Therangeoftheirchoicesmaybelimited.They

mayhavetobeconcernedmainlywithgettingenoughfoodtosurvi

ve,enoughclothingtokeepwarm,andenoughhousingtoprotect

themagainsttheelements.

Forthepeople,onlyarelativelysmallpercentageofspendingwillinv

olvebasicconsumerdecisions.Andtheirrangeofchoicesmaybequite

wide.Mostpeople,howeverjallsomewherebetweenthesetwoex

tremes.Themajorpart-butnotall-oftheirspendingisrelatedtobasic

consumerdecisions.Andtheirchoicesarefairlywide.

Forexample』oodisabasicneed.Butalthoughyoumusteatever

yday7youreatinghabitswillhavemuchtodowithhowmuchyou

spendonfood.Ifyoulikeeatinginrestaurantsoronlyenjoyfine

foods,yourfoodbillswillbehigh.Ifyouareathriftyshopperorprefer

plainmeals,yourfoodbillswillbelow.

Clothingisanotherbasicneed.However,thekindofclothingyou

wearoftendependsonyourlife-style.ApersonlivinginHawaiii,fore

xample,hasdifferentneedsfromapersonlivinginNorthDak

ota.Workingpeoplehavedifferentclothingneedsfromchildrenor

retiredpeople.Eventhetypeofworkapersondoesaffectsthat

person'sclothingneeds.Abusdriverwhowearsauniformeachday

doesnothavethesameneedsasasalesclerkinadepartmentsto

re.Factoryworkershavedifferentclothingneedsfromofficeworkers.

Andindividualperferencesaffectaffectclothingbills.SomepeoplewiII

buyonlyhigh-costfashionableclothing,whileotherspreferlow-cost

utilitydoting.

Shelter,thethirdbasicneedjsusuallythemostcostlyexpense.Most

likely,youwillspendmoreofyourmoneyonhousingthannoany

otherexpense.Againzyourindividuallife-stylewilldeterminehow

muchyouarewillingtospendforthisparticularneed.

Afteryouhavemadeyourbasicconsumerdecisions.Discretionary

consumerdecisionsarethosedecisionsthatinvolvethebuyingofgoo

dsandservicesfromchoiceratherthanfromnecessity.Themoney

usedinthistypeofspendingisdescretionaryincome-incomeleft

aftermeetingtheexpensesforallthenecessities.

Decisiononhowtouseyourdescretionaryincomearemadefar

moreoftenthanbasicconsumerdecisions.Thesedecisionsousually

involveconsumerwants,andtheyareconcernedwithpleasur

e,satisfactionandcomfort.Youcoulduseyourdiscretionaryincomein

anynumberofways.Itcouldbesaved.ltcouldbespentontr

avel,entertainment,orrecreation.Oritcouldbespentonacar,aboat,

orahobby.Evenmorethanbasicconsumerdecisions,discretionary

consumerdecisionsaredeterminedbypersonalpreferencesandgoa

Is.Learningtomanageyourdiscretionaryincomeisessentialtoeffect

iveconsumerdecisionmaking.Ifyoucanmakewisedecisions,youwill

probablybeabletosatisfythewantsatisfythataremostimportant

toyou.

AsyouhaveIearned,yourbasicneedsaffectyourspendingdecisi

ons.AnumberofotherfactorsSalsoinfluenceconsumerdecision

making.Chiefamongthesefactorsareincome,personalgoals,social

presures,habit,andadvertising.Moreoftenthannot,acombinationof

thesefactors,ratherthanjustone,willdeterminehowyousend

yourmoney.

Bothbasicanddiscretionaryconsumerdecisionsarelargelydepe

ndentofnumbertheamoutofdisposableincomeaindividualh

as.DisposableincomeistheamountofmoneyleftaIIdeductionsfor

taxesjnsuranee,socialsecurity,andothersimilaritemshavebeen

made.Disposableincomeisthemoneyavailableforspending.Disposa

bleincomeisalsocailedtake-homepay.

Ifyouhavenodisposableincome,yourspendingchoicesareclearlyI

imited.Thegreateryourincome,thewideryourspendingchoic

es.Generally,thelargertheincomeyouhave,thesmallerthe

percentageofitthathastobespentonsatisfyingbasicneeds,andth

usthelargerthepercentageofitthatisavailabIefordiscretionary

spending.Therefore,anindividualwithIittledisposableincomehasve

rylittlediscretionaryincomeandiscretionaryasmallselectionofgo

odsandservicesfromwhichtochoose.

Equallyimportant,howmuchyouhavetospendoftendeterminesthe

kindsofgoodsandservicesyoucanbuy.Sojnadditiontohavinga

smallerselectiontochoosefrom,theindividualwithlittIedisposable

incomemayhaveonlyitemsoflowerqualitywithinthatselection.

Theconsumerdecisionsofmostpeopleareaffectedbyotherpeople

intheirsocialgroup.Socialpressuresocialmayexertgreatinfluence

onclothingstyles,hairstylesk,thetypeofhousing,andthekindofre

creationyouchoose.Sometimes,socialpresurescankeeppeoplefrom

buyingaparticularproduct.Aothertimesharetheymaycausepe

opletopurchasegoodsandservicessothattheycanbe"oneofthe

gang".

Consumerdecisionsareaffectedbyhabit.Wedomanythingsautom

aticallyjncludingmuchofourspending.Habitmaycauseyoutodo

mostofyourshoppinginjustafewstoresortobuyonlycertain

brandsofmerchandise.Youmayhaveusedonegoodorserviceforso

Iongthatithasalmostbecomeapartofyourlife.Youmaynotbeable

torememberwhenorwhythehabitstarted.Youmayseenoreasonto

changeandmayevennotlistentosuggestionseeforchange.Youare

happywithyourpresenthabiteventhoughyoumaynotknowwhy.

Advertisinginfluerncesconsumerdecisions.Advertisingreachesusin

manyways-throughnewspaper,magazines/adioandtelevision.Adv

ertsingcircularsmaybeplacedinyourmailboxorleftonyourwindsh

ieldofyourcar.Youmayfindadvertisingonthepensandpencilsyou

writewith.YouseeitasyouIookthroughtheclassifiedsectionofthe

telephonedirectory.Youseeitinyourschoolnewspaper.

Someadvertisersurgeustogooutandbuytheirproductsi

mmediately.Otheradvertiserstrytomakealastingimpressiononour

mindssothatwhenweneedaproductzaweIl-knownproductname

comestomind.Manyadvertisingmethodsandtechniquesareused,but

theyalltrytokeepthenameofagoodorserviceinfrontofyou,the

consumer.Whenyougointoastoretomakeapurchase,youmaysee

someproductthatisfamiliartoyoufromatelevisionad.Youidentify

theproductwiththead.Ifyoulikedthead,thechancesaregoodthat

youwilltrytheproduct.

6.BusinessEthics

Ethicsissystemof"oughts"-acollectionofprinciplesandconductb

asedonbeliefsaboutwhatisrightandwrong.Businessethicsareethi

csthatapplytobusinessbehavior.Behaviorthatconformstothese

principlesisconsideredtobeethicalbusinessbehavior.Otherwisejt

isunethical.

Firmsoftencreateacodeofethics.Acodeofethiesisformlyarranged

collectionofrulestoupgradeandguidebehavior.ltsetsstandards

fordealingethicallywiththefirm'sstakeholders.Suchcodesdealwith

issueslikeattemptingtoinfluencegovernmentregulatoryofficia

Is,andusingcompanypropertyforpersonaluse.Thecodesrangefrom

onegeneralstatementstoIengthybookletscontainingdet

ailedguidesandrulestoensureethicalbehaviortowardthefirm'sst

akeholders.TheunderlyingbeliefisthatadherencetoethicaIstandard

sisinthebestIong-runinterestofthefirm.But,inordertohaveany

realmeaning,thecodemustbecommunicatedtoemployees,contain

provisionsfordealingwithviolations,andhavesoildbackingbytop

management.

UnitedStatesWhenbusinesspeopleareconsistentlyunethical,society

usuallyreactsbypassinglawsthatprohibittheunethicalbehavior.For

example,therearelawsthatmakeitillegal