Resource Management

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Identify the different types of insurance an individual or family might need and explain the reasoning behind why they need that insurance.

The major types of insurance that an individual or family might need are health insurance, homeowner's insurance, life insurance, and car insurance. The reason that a family should have these types of insurance is that a problem in any of these areas can have a significant impact on the financial security of the individual or the family as a whole. Health problems, fire, theft, the death of a provider in the family, or a car that the individual or family accident can all lead to additional expenses may not be able to afford. Having these types of insurance offers without individuals and families a way to pay unexpected expenses significantly impacting their overall financial well-being.

Define the following terms in a management context: 1. Goal 2. Decision-making

1. A goal is a particular purpose that an individual or organization wants to achieve in the near or distant future. In a corporate setting, for example, a goal could be achieving a specified amount of sales in the next quarter. In a family setting, a goal might be for a teenager in the family to find a job before the end of summer. 2. Decision-making is the process by which an individual or group attempts to determine what would be the best managerial selection from a set of possible options and/or actions from a managerial perspective, usually for the purpose of achieving a particular goal. For instance, a couple looking for a new home may make a list of the advantages and disadvantages of living in each house they view to help them decide which house to buy.

Explain whether or not the following goals are valid: 1. A manager of a local retailer that usually does somewhere between $35,000 and $60,000 a week decided that his or her store should set a goal of making $50,000 in sales a week each week for the month of November. 2. The mother of a child who is having difficulty in school has decided that her son needs to improve his grades.

1. This example demonstrates a completely valid goal, as the goal is well- defined and quantifiable. It can be measured by examining the amount of sales the store has done each week. In addition, the goal is relevant to the store's ability to make a profit within a set amount of time, as the goal of $50,000 is achievable because it falls within the store's normal sales range. 2. While the goal of improving the child's grades may be achievable and relevant to the success of the child, it is not well-defined enough to be considered a valid, effective goal. Although the goal no criteria are established as to what would be satisfactory could be measured, improvement in the boy's grades. Furthermore, established a timeframe in which her son is the mother has not expected to reach the goal.

Identify and explain some of the factors that a consumer should consider when choosing what child care service to use.

A consumer should consider many factors when attempting to decide which child care service to use. Some of the most important factors many include how children each teacher or caregiver is in charge of, what qualifications the teachers or caregivers have, how long those teachers or caregivers have worked for the facility, and whether the facility is appropriately licensed and accredited. The number of children that a particular caregiver has to care for at one time, as well as how children attend the facility, can play a large role in how much time many a caregiver can devote to each child. A consumer should also verify that not only the facility itself is accredited and licensed, but also that the teachers or caregivers who work with the children have the knowledge and experience necessary to care for them.

Identify some of the resources that a consumer can use to gather information when trying to decide which elder care facility is appropriate.

A consumer who is examining possibilities for the appropriate care facility for an elderly family member has the option of using resources available from the Administration on Aging. The Administration on Aging is a division of the Department of Health and Human Services that offers resources for locating local care facilities, as well as state and local agencies that monitor those facilities, so that consumers can get a better idea of what kinds of facilities are available. Another source of information available to consumers is the National Institute of Aging, an organization that provides a variety of publications regarding the needs and health concerns of elderly individuals. The National Institute of Aging also offers an online database for finding local care facilities. Regardless of which resources a consumer chooses to use, the best resource is often visiting the facilities in person to see what kind of services they can offer and what problems the facility might have.

Identify and explain some of the factors that a consumer should consider when choosing where to go for health care.

A consumer who is in need of health care services might take into account the number of complaints and the types of complaints a facility or specific doctor has received and consequently examine the qualifications of the doctors who practice in that facility. These factors are important to a consumer for any health care decision ranging from choosing a physician for a simple examination to choosing a surgeon for a complex surgery because they give the consumer a basic idea of the overall quality and reliability of the doctor and medical facility. By determining the number of complaints and the types of complaints that have been filed against a doctor or facility, a consumer can get an idea of mistakes the facility or what kinds of mistakes and how many of those doctor has made. Experience can also be a key particular doctor is and can greatly affect the quality of his or her care, doctors are usually better capable of providing factor in how reliable a as more experienced more effective care.

Identify some of the resources that a consumer might use to determine the best repair services to use.

A consumer who is looking for a nearby repair service can find information about local repair shops, garages, and other repair services providers from the local Better Business Bureau. Each Better Business Bureau is comprised of a number of area businesses that are uphold a certain standard of operation. In return, the Better Business expected to Bureau consumer is considering suggests member businesses in good standing to consumers. If a using a repair service that belongs to a larger consult a publication such as Consumer chain of stores, he or she might Reports to discover if the chain has experienced problems or had chain can often have its own complaints filed against make the chain appear to check with the local Better Business them in the past. Even if these publications to be a good option, the consumer may still want Bureau, as each store within a problems and complaints that are separate from the chain itself.

Explain the steps that a family should go through when creating a family budget.

A family that has decided to create a family budget should begin by calculating how much money it has on hand and how much income it receives annually. Next, the family should determine what expenses it has and which of those expenses are necessary and which expenses are for luxuries. Necessary expenses might include housing, food, utilities, child care, health care, transportation, and insurance. Luxuries might include eating at restaurants, going to movies, buying a bigger television, getting manicures and pedicures, and other activities that are not necessary to the family's continued survival. The third step that a family should take when making a budget is to add up all of the total necessary expenses and subtract that total from the family's total annual income to find its total annual income after necessary expenses. Next, the family should decide how much of that money will be applied to the family's savings. Any remaining money can then be budgeted for less necessary items and activities.

Briefly explain the steps a family should take when attempting to determine what financial resources they actually have available.

A family that is attempting to determine the status of its financial resources should first collect all of the financial records from each source of income that it has. The family should then list all of its assets, including the amount of cash the family has on hand, along with the amount of cash it could get by selling any stocks, bonds, mutual funds, and property that it owns. After adding up all of its on-hand assets and potential assets, the family should then list all of its loans, unpaid bills, balances due, and financial obligations and add the numbers together to get the family's total amount of liability. By subtracting its estimated total liability from its estimated total assets, the family will get a good estimation of its financial standing in terms of its net worth.

Identify some private and government agencies that can provide resources to consumers who are making a purchasing decision.

A number of agencies can provide resources that help inform consumers about the advantages, disadvantages, and even the scams related to certain products and services. Some of the government agencies that are most useful to consumers are the Federal Citizen Information Center, the Consumer Product Safety Commission, the National Fraud Information Center, and the Federal Trade Commission. All of these agencies have extensive information online, as well as available print publications, about many of the most common products on the market. Probably the most well known and useful private agencies to consumers are that publishes the magazine Consumer's Research, a non-profit agency Consumer Reports, and the Better Business Bureau, which is a private organization made up of businesses that sets certain standards which its members are expected to follow.

Define the term resource and explain the different types of resources.

A resource is anything that can be used to aid either in the daily functioning of an individual or organization or in the achievement of a particular goal. The four primary types of resources are land and natural resources, labor resources, capital and capital goods, and information resources. Land and natural resources consist of anything that comes from the environment, such as water, oil, soil, timber, and the land itself. Labor resources are comprised of the actual effort that various people involved in an organization put into a project, leading to the completion of that project. Capital and capital goods consist of any financial and human-made resources, including money, tools, equipment, buildings, and houses. Information resources are any resources that allow an individual or organization to find, compile, and put to use knowledge that might help in achieving a particular goal.

Explain the difference between wants and needs.

A want is anything that a person desires, as opposed to a need, which is anything that a person requires to continue functioning. A plasma television, for example, is a want because it is not necessary to an individual's continued survival. An example of needs would be food and water, both of which are things an individual requires to survive. Because people are inherently different, wants or desires vary from person to person. Typically, a person has more desires than his or her resources can fulfill. Needs, however, are universal because they are everyone's basic necessities and must be met for the continued existence of an individual.

Define warranty and explain how warranties are important for consumers.

A warranty, also known as a guarantee, is a promise made by the seller of a product or service that the product or service will function as advertised or else the seller will attempt to repair or replace the product or perform the service again. Warranties usually apply only if the product or service fails to function when the consumer is using the product properly, and there are often many other conditions that must be met for the seller to carry out the terms of the warranty. Warranties are important to consumers because they offer a certain amount of protection against products that fail immediately or shortly after being warranties limit the types of repairs purchased. However, because many the seller is required to perform, consumers should be aware of the terms and conditions of a warranty before making a purchase.

Identify some of the factors that an individual or family might want to consider when opening a checking or savings account.

An individual or family should consider several factors when opening a checking or savings account: What are the bank's minimum balance requirements? What bank fees are associated with the account? What is the annual interest rate earned by the account? Most banks charge account holders if they have less than the minimum balance required in their accounts. Banks often charge additional fees for ATM use and other services, which makes an account more expensive to the consumer than he or she might realize. If the financial institution charges a significant number of fees without offering a high interest rate on the account, the consumer should move his or her accounts to a different institution. Consumers should also verify that a bank, credit union, or any other institution that they are considering placing money into is insured by the federal government through the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).

Explain the basic techniques an individual or organization might use when determining if enough resources are available for a particular project.

An individual or organization that is assessing whether enough resources are available for a particular project might begin by determining exactly what the project consists of and researching how much the project will cost in both time and money. After the individual or organization has developed a basic outline of what the project needs, an inventory of what resources are readily available should be conducted. This inventory would include noting such resources as how much money has been allocated for the project, how many people are available to work on the project, what kind of equipment is available to complete the project, and whether workers have sufficient information regarding the project to complete it. If the individual or organization determines that the resources necessary to complete the project are nột available, then the project is not realistic.

Explain the steps that an individual should take when planning how much money he or she needs to invest or put aside for retirement.

An individual who is attempting to determine how much money he or she needs to invest or put aside for retirement should start by adding up how much he or she spends monthly on living expenses, with the exception of health care. That number is then multiplied by 1.5, while health care expenses are multiplied by 2 to determine how much those expenses will increase in ten years. The individual then needs to estimate how many years he or she has before retirement; for every ten years, the health care expenses once again are multiplied by 2 and all other expenses by 1.5. Finally, adding these two results together equals an individual's estimated monthly expenses adjusted for inflation, thereby providing the individual with a rough estimate of how much he or she will need each month to maintain the same standard of living after retirement.

Identify some of the basic techniques that an individual might use when making a decision.

An individual who is in the process of making a well-informed decision will often gather as much information as possible from as many reliable sources as possible, list the advantages and disadvantages of each choice, and then compare each choice with the others. In an employment or business situation where finances are involved, an individual may use a mathematical approach and calculate exactly how much money each job choice or each potential new product could offer, as well as how much a poor decision might cost if something goes wrong. A mathematical approach can be an extremely solid strategy when one is attempting to determine what choice might be the most appropriate. Unfortunately, many individuals do not make well-informed decisions because they oftentimes employ faulty methods of decision making. In peers, such instances, they may rely too heavily on the opinions of their gather information from such unreliable sources as erroneous web sites, or even leave the decision to random chance by flipping a coin.

Explain the Pareto analysis system.

Basically, the Pareto analysis system is a decision-making model which assumes that approximately 80% of the benefits that an organization receives from a particular task are the result of 20% of the effort that the various individuals within the organization put into the task. It also assumes that 80% of the problems that the organization faces are produced by approximately 20% of the factors that may be causing them. The first step necessary in using the Pareto analysis system is to list all of the problems that need to be addressed and/or the choices that are available. Next, each of those problems or choices should be grouped so that the choices offering similar benefits and/or the factors leading to larger related problems are grouped together. Each group is then given a score based on how much that particular group affects the overall organization.

Explain the importance of a consumer's responsibility to be aware and well-informed when purchasing goods or services.

Before making any purchase that requires a financial investment, a consumer should gather as much information as possible about the product or service he or she plans to buy. By finding out what other consumers have said about a particular product and discovering exactly what the product is and is not capable of doing, a consumer can avoid purchasing a product that is defective or less useful than he or she originally thought. A consumer can also research what kinds of problems other consumers have had with the product, as well as compare the quality and uses of similar products to determine if another product would be a better match for the needs of the consumer. Because the seller of a product is not under any obligation to inform a consumer about how the product compares in price, quality, and usefulness to other products, it is the consumer's responsibility to know exactly what he or she is getting when making a purchase.

Identify some of the ways that an individual or organization can effectively work toward achieving any given goal.

Both internal and external factors can have an effect on whether an individual or organization will be able to achieve a particular goal. However, the most important thing for an individual or organization to keep in mind, regardless of the situation, is that everyone involved in the goal-attaining process should remain focused on the goal and the appropriate ways by which to achieve that goal. This means that if a goal is important to the success of the individual or the organization as a whole, people must be committed to giving their best efforts to achieve that particular goal. Any less important or irrelevant goals should not be allowed to distract the individual or the organization from the primary goal; any secondary goals should ultimately be put aside until the primary goal is achieved. From a managerial standpoint, it is important that people are regularly encouraged to recognize that the goal is achievable so that no one gives up before the goal is actually reached.

Define change management and explain its importance.

Change management is the process by which an organization attempts to modify a particular aspect of how it operates with as little harm to the organization as possible. In most cases, an organization makes these operational changes either to adapt to changes in societal or economic demands or to improve the organization's overall operations. Although everything undergoes change at some point, many individuals have difficulty adapting to social, economic, or other changes despite how important adapting to these changes might be. Organizations that want to continue functioning must respond to changes by using change management techniques that do not place too much unnecessary stress upon the members of the organization.

Define the concept of consumer rights and explain its importance.

Consumer rights consist of a series of protections, usually guaranteed by law, that seek to prevent individuals from being taken advantage of in the marketplace. In the United States, a large number of state and federal laws establish the rights of consumers, rights that are enforced by the consumer affairs departments of each state, the Federal Trade Commission, and the U.S. Justice Department. Some examples of federal acts that have guaranteed certain rights to consumers are the Equal Credit Opportunity Act, the Fair Housing Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, and the Truth in Lending Act. All of these federal acts and state laws are important because they help prevent consumers from wasting their finances by spending them on products or services that have been sold to them under unethical business practices. Some of these acts also protect the consumer from being discriminated against by businesses or individuals that harbor prejudices against certain consumers.

Explain the cost/benefit analysis strategy.

Cost/benefit analysis is a decision-making strategy that examines the total estimated cost of each option that is available alongside the total estimated benefit of each option available and then compares the cost with the benefit to determine if the benefits of the option outweigh their cost. Usually, a cost/benefit analysis refers to the financial cost and benefit of a particular decision, but it can actually be used in any situation in which resources are used. For example, if a corporation has two clothing materials, A and B, that both cost the same but material B can be used more efficiently, the cost/benefit analysis would show that material B is the best choice because it allows for the production of the most clothing using the least amount of material. While cost/benefit analysis can be useful when deciding which option will have the greatest benefit, this method also relies heavily on estimation, which makes it not as accurate as other methods of analysis.

Define credit and explain the importance of managing it carefully.

Credit is the ability of a consumer to purchase a product or service now pay and for that product or service at a later time, either in full or in installments. Credit can be useful for consumers because it offers a way for handling larger expenses, such as the purchase of a house, when the consumer does not have enough funds on hand to make the purchase. However, consumers must keep track of the purchases they make with credit and realize that purchases made using credit must be paid back, usually with interest. If consumers fail to pay back the bank or credit card company that loaned them the money for the purchase or does not pay installments on time, their ability to get credit in the future is greatly impacted.

Define environmental economics and explain its importance to consumers.

Environmental economics is the study of the effects that businesses and consumers have on the overall financial and natural environment when operating within set limits. In other words, environmental economics studies how much pollution actually costs based on the costs or savings associated with pollution and the amount of environmental resources lost due to that pollution. Environmental economics is important to businesses and consumers because it can influence what products are available and what processes can be used in manufacturing those products. Based on environmental economists' recommendations, laws and regulations are made to reduce the amount of damage done to financial and natural environments due to the inefficient or irresponsible use of natural resources. Even though these laws ultimately exist to prevent the waste of natural resources, these regulations can result in the elimination of some products from the marketplace, as well as significant cost increases to the end consumer as businesses incur additional costs in meeting those regulations.

Explain the importance of an individual's being a responsible consumer.

Even though state and federal laws exist to protect consumers from unethical business practices, preventing every type of unscrupulous tactic from being used is not always possible. As a result, consumers should be knowledgeable about their rights to avoid being scammed. Many businesses adhere to legal standards and do not employ tactics that are illegal or unethical. However, some businesses choose to do what is profitable instead of what is ethical. Finding loopholes in regulations allows businesses to make claims about their products that may not necessarily be true without being held legally accountable for those claims. Unethical business operations have also been known to find ways to charge consumers additional fees that are legally questionable. In spite of the number of laws designed to protect them, consumers must be diligent about protecting their own interests when making transactions in the marketplace.

Explain the steps that an individual or family should take when choosing which investments to make.

Families that are selecting what investments to make should first consider the financial goals that they hope to attain from these investments. For example, if a family is investing its resources to send family members to college, the family should estimate how much money it will need to pay for each member who plans to attend college. After a family has determined its financial needs, it can begin researching investment options to determine which investments are likely to yield enough financial gain for the family to reach its goals. Once it has identified which investments best suit its goals, the family should assess how much risk each investment carries. Finally, the family should choose the investment that has the lowest risk but will still meet its financial goals.

Explain the force field analysis strategy.

Force field analysis is a decision-making strategy that examines all of the factors that affect a particular situation and identifies those factors as either aiding the organization in achieving a goal or ultimately causing the organization to fall short of reaching its specified goal. Basically, force field analysis is the process of identifying and listing which factors involved with each option help the organization and which ones hurt the organization. The first step of the force field analysis strategy is to make a list of all of the factors involved with a particular option and then identify them as either aiding the organization in moving towards a particular goal or hindering the organization's movement towards that goal. Each factor is then given a rating on a scale of 1 to 5, with 1 being the weakest and 5 being the strongest. If the forces that hinder the organization are have higher numbers, indicating that they are stronger overall, the option is probably not a sensible or realistic choice; however, if the forces that aid the organization have higher numbers, then the option may prove beneficial.

Explain the importance of goal-setting.

Goal-setting is important because it allows individuals and organizations to identify what objectives they seek to accomplish and then determine the best means by which to accomplish those objectives. Goal-setting typically involves establishing a particular timeframe in which a goal should be achieved. Knowing what goals he or she is striving to reach in a set amount of time helps motivate each individual involved to reach that ultimate objective. Goals also provide the individual or organization with a means of measuring the amount of effort-or lack thereof-that each individual puts into obtaining those goals. In a corporate setting, goals can also provide the organization with a way to measure its overall success, which in turn can be important in determining what future actions the organization will need to take.

Explain the grid analysis strategy.

Grid analysis is a decision-making strategy that takes all of the factors involved with each option, rates each factor, and then gives each factor a weight based on its importance to the overall decision. For example, if the owner of a clothing factory had three materials and was attempting to decide which material would provide the most profit, he or she might consider each material's cost, how much material is wasted during the manufacturing process, and how difficult each material is to use. The owner would then rate the materials using a set scale-from 0 to 5, for example, with 0 being the most expensive or most wasteful and 5 being the least expensive or least wasteful-and rate the cost, waste, and difficulty of each material's use. By using a similar scale, the owner would then assign the factors of each option a weight based on the effect each factor has on the company's overall profit. Finally, the owner would determine a weighted score by multiplying the weight by the rating that each factor received. The material with the highest total score would be the best option.

Explain the importance of identifying and defining the goals and values of a family or other organization before making a decision.

Identifying and defining the goals that a family or other organization needs to meet and the moral values that the family or organization wants to uphold can be extremely important prior to any decision because doing so offers a guide as to what options are unacceptable before an incorrect choice is made. By setting well-defined goals to achieve in the future, a family or organization can choose the options that appear to move it closer to the achievement of those goals. Defining the family's or organization's moral values is also important, because doing so aids in eliminating choices that might be directly opposed to what the family or organization considers correct and ethical.

some of the factors that are important to Identify creating a valid goal.

Individuals or organizations attempting to set a goal can follow the common management mnemonic SMART (specific, measurable, achievable, relevant, and time-related) to make sure that their goal is well-defined, valid, and useful when both measuring success and motivating the organization as a whole. Established goals should be specific and well-defined, have some way of being measured accurately, be attainable, and be relevant to the tasks that need to be completed for the success of the organization. The individual or organization should also decide upon an appropriate amount of time that should be spent in achieving a goal not only to make sure that it is achieved in a timely fashion, but also to ensure that the goal can be compared to other goals in the future.

Explain the steps an individual should take when planning his or her wardrobe.

Individuals who are planning their wardrobes should begin by considering what kinds of clothing they usually wear, along with what kinds of clothing they will need for casual, business, and other environments. For example, the president of a major corporation would need to focus more on purchasing formalwear and business attire as opposed to buying a closetful of very casual clothing. After an individual has established a basic outline of the kinds of clothing that best suit his or her wardrobe needs, the individual should take an inventory of what clothing he or she already has in order to determine what types of clothing need to be purchased. Once the individual has determined which types of clothing are lacking in his or her wardrobe, the individual will decide what factors are important for each of those types of clothing. For example, an individual searching for formalwear that will be worn only occasionally might be more concerned with corresponding colors and overall appearance than how durable the materials are. Finally, the individual can select clothing to build a wardrobe based on the factors he or she has established.

Define investment and explain the importance of an individual's making investments and retirement plans early.

Investment is the process of committing an individual's resources to a particular activity, organization, or fund, with the hope that such a commitment will provide additional resources for the individual in the future. Investing and saving for retirement early in a person's career is important because careful investment planning guarantees that a person's financial resources have the opportunity to grow as much as possible. Individuals may have difficulty maintaining their customary standard of living if they do not have sufficient funds set aside when they retire because living expenses increase yearly. Individuals who do not have enough money set aside when they retire could become a burden to family members, as they may depend on the family to help support them financially.

Identify some examples of low-risk and mid-risk investments.

Investments such as checking accounts, savings accounts, and CDs are considered low-risk investments, but they also offer a lower return. These investments are safe because banks guarantee that these accounts will earn a certain amount of interest; however, the rate of interest is relatively low in comparison with other investment options. While CDs are low-risk investments, they do offer slightly higher rates of interest than checking or savings accounts, but they can be liquidated only after they mature over a length of time set by the bank. Mutual funds are usually considered low-risk to mid-risk investments, as people have the potential to lose the resources they have invested, but mutual funds also have the potential to yield a higher return, though not as high as high- risk stocks. Because the stock portfolios that mutual funds are invested in are typically diversified and comprised of many different types of relatively stable stocks, mutual funds are generally regarded to be safe investments.

Explain the importance of finding the right type of elder care facility.

Knowing the needs of an elderly person and finding the elder care facility that best suits those needs is important because each elderly individual functions at a different level of ability. Because each person has different capabilities and needs, facilities should be evaluated on how well they are able to take care of the individual needs of each patient. Ensuring that an elderly individual is placed in the environment that allows him or her the most freedom and is the closest match to his or her current level of functioning is of utmost importance. For example, a woman who is capable of performing normal activities such as bathing, eating, and moving around on her own should not be placed in a nursing home. However, for a woman who has a high risk of injuring herself due to medical conditions, an assisted living home may be an appropriate option.

Identify some examples of how different types of resources can be used.

Land resources can be used as locations for homes and businesses or as sites for other natural resources located on a piece of land, such as oil, minerals, soil that can be used for planting, and water for drinking and fishing. Examples of people who can be considered labor resources are marketers who determine the best way to sell a product, salespeople who sell the product to the consumer, factory workers who assemble that product, and anyone else who aids in achieving the end goal of those dealing with the product. Capital refers specifically to money, but capital goods include the machinery that turns raw goods into a finished product in a factory. Information resources may be books or online sites that can be used to learn how to construct a better product or how to better manage a particular organization. All of these resources can be used in a variety of ways, and most projects require a combination of different types of resources.

Explain the effects marketing has on the consumer's purchase decision process.

Marketing can influence almost every stage of the consumer's purchase decision process, but it has the greatest direct effect on the first three stages of the process. The first stage of the process can be triggered by an advertisement marketing a certain product that the consumer may not normally consider to be necessary. By creating the idea or image that a product or service is something necessary to the consumer, a business can make something the consumer wants appear to be something the consumer needs. Marketing can also directly influence the second and third stages of the decision making process by making a product appear better or more useful than competing products, even though this may not necessarily be true. The marketing process can even indirectly influence the fourth stage of the process; consumers actually purchase the product because they have the preconceived notion that a certain product is better than other similar products as a result of the advertisements that they have seen.

Define marketing and explain its importance to a consumer.

Marketing is the process of informing as many consumers as possible of the existence of a particular product or service and the benefits of that product or service with the intent of influencing a consumer's purchasing decisions. In other words, marketing is a combination of tactics that includes many different forms of advertising that individuals, businesses, and other organizations use to convince consumers to purchase their products. Marketing is important because it allows businesses to play a large role in what consumers actually purchase. Consumers may have the final say in what products or services they decide to use, but marketing can make certain products seem more appealing, more useful, and of a normally believe them to be. higher quality than a consumer would Marketing can also be useful to consumers by informing them about various useful products within the marketplace; however, consumers advertisements made by marketers should be wary of claims and than they really are. that may make products seem better

Explain the importance of non-financial resources to a family during difficult economic times.

Non-financial resources, or resources that are not cash or cannot be sold outright and turned into cash, can be extremely useful to a family that is experiencing financial problems. Non-financial resources can often be used to produce income or reduce costs that the family is experiencing. For example, a family that may not want to sell its house can rent out a room to make additional money. A family member who is a seamstress could lower the family's costs by mending everyone's clothing instead of throwing it away and buying new garments. A carpenter in the family could make necessary repairs to the family home, eliminating the cost of paying anyone else for labor. Any skill that a family member possesses can help cut the family's costs, and any service the family can offer to people outside the home can serve as a way of gathering additional income.

Explain some of the basic steps an individual or group might take when prioritizing activities.

One of the most important techniques in time management is prioritizing so that the most important tasks are completed first and the least important tasks are left for when a person has more time available to do them. This system allows people to rank both goals and the corresponding tasks that lead to achieving those goals based on how essential they are to the individual or the organization. An individual, family, or organization can determine what activities are important by first identifying and defining which goals need to be achieved in order to continue functioning. Once this step is completed, people can then decide what tasks are the most crucial for the individual or organization to continue functioning. These tasks should be given the highest priority, while less important tasks, although they also can lead to goal accomplishment, should be considered a lower priority.

Explain the importance of product labels.

Product labels are important, and sometimes vital, because they inform a consumer about the ingredients in a product, the materials used in the construction of a product, the appropriate way to use a product, and the hazards that can result from using a product incorrectly. This information can be useful for determining not only which products suit the needs of a consumer, but also if products are safe to use around children and other family members. For example, a label allows a consumer to determine if a particular piece of clothing is made out of a strong enough material for the consumer's intended use or if the material could trigger an allergic reaction in the consumer.

Explain some of the factors that an individual or family might consider when deciding what investments to make.

Some of the factors that an individual or family might consider when making investment decisions are the risk of the investment, the potential return of the investment, and how difficult liquidating the investment would be. The risk of the investment refers to how likely it is that the individual or family will gain some benefit from the investment and how likely it is that the individual or family will lose the resources that they have invested. The potential return of the investment refers to how much money the individual or family will likely earn from the investment's interest or dividends over time. The degree of difficulty in cashing-out the investment is an important factor because different investments have different costs, taxes, lengths of time to mature, and stipulations regarding the access of the money associated with them.

Identify and briefly explain some of the factors that can affect an individual's nutritional needs.

Some of the major factors that can affect an individual's nutritional needs include the age of the individual, the individual's gender, and his or her level of activity. The age of an individual plays a major role in the nutritional needs that person has in several ways. As a child grows, for instance, the number of calories the child needs also increases, but after the individual passes a certain age, the number of calories he or she needs decreases. A person's need for specific vitamins and minerals also increases as he or she gets older. Gender can affect an individual's nutritional needs; men typically require more protein and more calories than women do, while women usually require significantly more iron than men. The individual's level of activity also plays a large role in his or her nutritional needs because an individual who is more active will require a larger number of calories than an individual who less active.

Identify some of the more common strategies that a business or other organization might use when attempting to make a decision.

Some of the most common decision-making strategies that a business or other organization might use when making a decision include the Pareto analysis system, a cost/benefit analysis strategy, a force field analysis strategy, a grid analysis strategy, and a scenario analysis strategy. Because each strategy has its own advantages and disadvantages, businesses and other types of organizations will usually select the system or systems that best support the kind of decision they are attempting to make. For example, a Pareto analysis system can be useful when an organization is attempting to handle a group of related problems that are discovered to be responsible for most of the difficulties that the organization is experiencing. However, a Pareto analysis system will not work as well, if at all, in situations where a large number of problems are caused by completely unrelated factors.

Explain some of the actions that an individual or should avoid when attempting to make a well- group informed decision.

Some of the most common pitfalls that should be avoided when attempting to make a well-informed decision are entering the decision- making process with a preconceived notion that the individual is unwilling to abandon, allowing peer pressure to influence a decision, and overgeneralizing. Entering the decision-making process with a prejudice either for or against a particular idea, source of information, or choice will often lead to the selection of an option that is not the best or most logical choice available. While outside sources should be used to gather information about the decision that needs to be made, no single source should be allowed to pressure the individuals involved in making the decision into making a particular choice. Furthermore, the overuse of generalizations, stereotypes, and attempts to attribute effects to causes that may not have any logical link will often lead to a decision being made that may not be the best course of action.

Identify some important techniques used in time management.

Some of the techniques used in time management includes setting goals, planning the best way to complete a task, scheduling, prioritizing tasks, making sure that all necessary equipment is easily accessible, and effectively managing one's workload. A successful time management system successfully incorporates all of these techniques, with the end result of accomplishing the most tasks possible in the amount of time given.

Explain some tactics that consumers might use to manage their credit more carefully.

Some tactics that might be useful to consumers attempting to manage their credit more carefully include paying bills on time, avoiding purchases that they cannot afford, keeping track of how much debt they have, and carefully monitoring their credit report. Consumers who avoid making purchases that they cannot afford are much more likely to pay off loans on time, which will help keep their credit in good standing. If consumers make too many purchases, accumulate too much debt, or take out too many loans, they will most likely struggle to pay their bills. Extensive debt often indicates that consumers cannot manage their credit, which adversely affects their credit scores. Consumers should also closely monitor their credit reports so that they can dispute erroneous claims that may be negatively influencing their credit.

Explain the rights that the Equal Credit Opportunity Act and the Fair Housing Act grant to consumers.

The Equal Credit Opportunity Act is a federal act prohibiting any organization that issues credit to consumers from denying credit to a consumer on the basis of race, gender, age, marital status, religion, national origin, or skin color. The act also prohibits any organization from denying a consumer credit if he or she is receiving federal aid or has previously used another of their rights granted to them by federal law so long as the consumer used that right without malicious intent. If a consumer is denied credit, the organization issuing the denial is required by law to send the denial notification in writing, and the consumer has 60 days to request that the organization send the reason for the denial in writing as well. The Fair Housing Act is a similar anti- discrimination act that prevents a seller or organization offering financing for a home from denying to sell, rent, or finance a residence on the basis of race, color, gender, religion, family status, national origin, or handicap.

Explain the rights that the Fair Credit Reporting Act grants to consumers.

The Fair Credit Reporting Act states that consumer reporting agencies collecting and distributing information about consumers for credit related purposes are required to follow certain guidelines concerning how they maintain and distribute the information they collect. This act requires consumer reporting agencies to follow a series of procedures established by law to verify and correct mistakes on a consumer's credit record if a consumer makes a dispute. Agencies must also keep records confidential and release them only to businesses that have a legitimate need for those records. This act also sets limits as to how long certain negative information can be kept on record. If a negative piece of information is removed through a dispute, that information cannot be added back onto a consumer's record without notifying the consumer in writing within 5 days. This act was later amended by the Fair and Accurate Credit Transactions Act to allow consumers the right to receive one free copy of their credit report from the three major credit reporting agencies each year.

Explain the rights granted to consumers by the Fair Debt Collection Practices Act.

The Fair Debt Collection Practices Act requires third party debt collectors, businesses that collect debts due to other individuals or businesses, to refrain from using abusive or deceptive practices in collecting those debts. This act prohibits such actions as calling consumers at times other than in between 8:00 a.m. and 9:00 p.m. local time and contacting consumers in any manner other than filing a lawsuit if the consumer has given written notice not to contact him or her regarding the debt. This act also prohibits the collection agency from such practices as adding extra fees and charges to the original balance unless allowed by law, threatening consumers with arrest or legal action that is not permissible by law, or reporting false information on a consumer's credit report. This act also requires third party debt collectors to identify themselves as a debt collector to the consumer during every communication and to provide verification of the original debt upon request.

Explain the meaning of the Latin expression "caveat emptor" and explain the importance of this phrase in regard to the responsibilities of a consumer.

The Latin phrase "caveat emptor" literally means "let the buyer beware." This expression suggests that a buyer needs to be aware of products or services that may be defective or not as useful as the buyer had anticipated. Some states have laws that create implied warranties regarding certain types of products and allowa consumer the right to return a product that is defective. However, even implied warranties do not protect the consumer from some kinds of defects and protect the consumer only from defects that show up before a certain period of time has passed. If the product or service is not what the consumer thought it was and the seller made no the seller is typically under no legal deliberate attempt to defraud the consumer, obligation to take the product back or refund the consumer's money.

Explain the rights granted to consumers by the Truth in Lending Act.

The Truth in Lending Act requires any organization issuing credit to a consumer to disclose the full terms of the lending arrangement and all costs associated with entering into that arrangement. This means that when a consumer applies for a loan, a credit card, or any other type of credit, the organization must provide the consumer with information about finance charges, the annual percentage rate for the loan, and any additional fees associated with the loan arrangement. In addition to establishing a procedure for the fair and timely handling of billing disputes related to credit transactions, this act also limits the amount of money that a consumer can be held liable for if his or her credit card is lost or stolen.

Identify some of the resources that a consumer might use to determine if an automobile, a child's toy, or other product is safe.

The best resources that a consumer can use when attempting to determine if a product is safe are Consumer Reports magazine, the Consumer Product Safety Commission, and the National Fraud Information Center. In addition to offering a variety of reviews and information regarding the quality of most common products, Consumer Reports documents common defects and complaints that consumers have reported about those products. The Consumer Product Safety Commission offers consumers access to a number of publications regarding what to look for when inspecting products for defects. The Consumer Product Safety Commission also features listings of products that have already been recalled or have been shown to have potentially dangerous defects. The National Fraud Information Center can also be an important resource for evaluating the safety of a product, as it provides consumers information about products that businesses may have deliberately hidden or lied about in an attempt to make their products more appealing to consumers.

Explain the effects that environmental concerns can have on the purchasing decisions of a consumer.

The condition of the natural environment can affect the purchasing decisions of a consumer in two major ways. First, most consumers, due to their own personal values or the values of society, are at least somewhat concerned with the state of the environment around them and will seek ways to prevent unnecessary waste. However, hardly anyone will always purchase the most environmentally-friendly products and conserve every possible resource at all times, but consumers will often choose to purchase products that are recycled or less wasteful when they are available and are not significantly more expensive. The second major way that the environment can affect the purchasing decisions of a consumer involves a consumer's decision to conserve a particular resource because that resource has become more expensive due to a shortage. For example, if an area experiences a gas shortage, the prices of gas will rise significantly, and many consumers will conserve gas to avoid paying higher prices.

Explain the importance of the decision-making process.

The decision-making process is important because understanding the process can aid in the discovery of a future rational and reasonable course of action when an individual or organization is presented with a decision that must be made. Each individual has a unique perspective and therefore a different way of reaching a particular decision; through a combination of intuition, knowledge, and an understanding of how the decision-making process works, a decision that is best suited for the goals of a particular individual or group can be made. Effective, knowledgeable decision making consists of identifying the decision that needs to be made, recognizing the benefits of each choice related to that decision, analyzing the potential drawbacks of making each choice related to that decision, and, finally, actually making a choice. By understanding what specifically needs to be identified at each stage of the decision-making process, an individual or organization will be able to make a more informed decision that will be more likely to lead to the achievement of a particular goal.

Explain the effects that the state of the economy can have on the purchasing decisions of a consumer.

The economy plays an important role in how careful consumers are when using their resources and what they perceive as needs as opposed to what they perceive as wants. When the economy is doing well, unemployment figures are low, which means that people can easily attain their basic necessities. As a result, consumers will are typically more willing to spend their financial resources. Consumers will also be more willing to spend their resources on products and services that are not necessary to their survival, but are instead products and services that consumers enjoy having and believe increase their quality of life. On the other hand, when the economy is in a slump, consumers are much more likely to cut back on their spending because they perceive a significantly higher risk of being unable to acquire basic necessities due to a lack of financial resources.

Explain the empirical-rational strategy of managing change.

The empirical-rational strategy of managing change assumes that people are ultimately interested in their own well being and will more quickly accept changes if they believe that those changes offer them some sort of benefit. In other words, the empirical-rational strategy of managing change relies on either offering an incentive to the members of the organization who take part in a change or convincing the members of the organization that the change will benefit them in some way. For example, if a company's board of directors realized that the company's competitors had employees who were performing more effectively because they had more education, the board might decide to use an empirical-rational strategy to encourage its employees to go back to school. By offering to pay for additional schooling and/or offering promotions, raises, or other incentives, the board of directors could encourage some of their employees to seek further education and, as a result, be better trained for their professional lives.

Explain the steps that a consumer normally goes through when choosing which elder care services he or she should use.

The first step in the process of choosing a facility to care for an elderly family member is recognizing that the family member needs assistance beyond what the rest of the family can provide. After the family realizes that the elderly individual needs additional care, the second step is to evaluate the needs of the family member. By having a basic idea of what the elderly individual is capable of doing on his or her own and what he or she needs assistance with, a consumer will more effectively be able to research facilities that best suit the needs of the individual. The next step of the process involves gathering information regarding the appropriate facilities for the elderly individual. Finally, the family should choose the facility that appears to best suit those needs.

Briefly explain the steps of the decision process that a consumer usually goes through to make a purchase.

The first step of the decision process for any consumer planning to make a purchase is recognizing that he or she has a need or a want that to fulfill. After the want or need has been identified, the consumer typically gathers information about products or services that will fulfill that need or want by searching online, examining magazines and advertisements, or talking with other people. The consumer will then evaluate the various product or service choices available in order to determine which option will best fulfill that need or want. Once the consumer's options have been evaluated, he or she will decide which product or service is most suitable and make the purchase. After the purchase is complete, the consumer will be able to decide whether or not that product or service really satisfied the initial want or need that initiated the decision process.

Explain the normative-reeducative strategy of managing change.

The normative-reeducative strategy of managing change revolves around the idea that peer pressure can bring about the changes that an organization needs. Basically, this strategy assumes that people rely heavily on social interaction and therefore will normally behave according to the expectations of society. Using this assumption, an organization can institute new changes by gradually redefining aspects of the organization's structure and and each individual will purpose, then begin to accept the changes as part of the social norm. For example, if the board of directors of a retail chain realizes that customer service is becoming a more important marketing point than the price of goods, the directors may institute a normative-reeducative strategy. The company would then begin emphasizing desirable customer-service behaviors by placing posters in the break room that affirm the importance of customer service, holding meetings and performance reviews that address apprópriate ways to treat customers, and training new employees in good customer service tactics.

Identify and explain some of the basic rights that consumer laws protect.

The overall of purpose any consumer law is to uphold the three basic rights of the consumer: the right to safety, the right to be informed, and the right to be treated fairly. Federal and state laws are usually designed to protect one or more of these basic rights and may include protections against products that are dangerous, protections against deceptive business tactics or hidden costs associated with a transaction, and protections against certain types of discrimination within the marketplace. Ultimately, state and federal laws are designed to hold businesses accountable for the manner in which they conduct business.

Explain the power-coercive strategy of managing change.

The power-coercive strategy of managing change assumes that people will listen to authority figures and do as they are told. This strategy works by preventing the members of the organization from choosing any option other than the path that the manager wants them to follow, mainly because no other acceptable options are available to them. If an individual still refuses to accept the changes that the organization has implemented, the organization might punish the individual for not complying. In a family situation, if a child is doing poorly in school because he is spending too much time watching television, the child's mother might simply turn off the TV and tell her child to do his homework. If the child turns the television back on, his mother might send him to his room and ground him for a week as punishment for disobeying.

Identify some ways that consumers can help protect the environment.

The primary way that consumers can help protect the environment is by conserving natural resources and finding ways to reduce pollution and waste. Some of the best ways to conserve natural resources include reducing the amount of resources that a household uses, finding ways to use resources more efficiently, and reusing resources rather than simply discarding them. For example, a household can reduce the amount of resources it consumes by turning off the lights and heat in an unused room or by insulating outside walls to reduce the amount of heat that is lost in a room. A household can also participate in area recycling programs or find new uses for items, such as using a cardboard box that a product came in to store other household items.

Explain the scenario analysis strategy.

The scenario analysis strategy is a decision-making method whereby individuals or organizations use their experience, knowledge, and intuition to predict what kind of situations may arise from each option if that particular option were chosen. In other words, decision-makers employing the scenario analysis strategy attempt to determine all of the possible outcomes of a particular choice and what effect each outcome might have on the organization or individual as a whole if that choice were made. In some instances, especially in a business setting, each of these potential outcomes might be assigned a score based on how likely it is that each scenario will actually occur. However, anticipating every possible outcome that might occur and accurately predicting what events are most likely to occur in the future can be impossible.

Identify the common types of strategies that an organization might use when attempting to bring about important changes within organization.

The three main strategies an organization can use when making changes in its overall functions are the empirical-rational strategy, the normative-reeducative strategy, and the power-coercive strategy. Each strategy has its own advantages and disadvantages, and which strategy an organization chooses is usually based on how much the organization needs to change and what resources are available to relieve problems that may be caused by particular changes. Which strategy an organization uses may also be based heavily on how much time is available to make the changes and how many members of the organization will resist the changes.

Define time management and explain its importance.

Time management is the process of using skills, tools, principles, and practices together in order to most efficiently use the time that an individual or group of individuals has available. The efficiency goal of time management is similar to that of work simplification; however, time management itself does not actually make work easier. Instead, time management involves finding the most proficient way to complete a task at hand in the amount of time given. Time management is extremely important in both business and personal settings, as people often do not have enough time available to complete every single task they face. Planning how to complete the greatest number of tasks possible in the amount of time available allows people to get more value out of their time and efforts.

Identify some of the resources that a consumer can use to gather information when deciding the appropriate health care services to use.

Unfortunately, determining the exact number of complaints a physician or facility has had filed against them is difficult because no federal law exists that requires physicians or facilities to disclose or even report information regarding complaints. However, the United States Department of Health and Services does keep track of reported complaints and is a good source of information for a consumer who is attempting to gather information about a specific doctor or medical facility. Despite the lack of federal laws, many states have laws that do require medical facilities to report the number of complaints and the nature of those complaints filed against the facility or doctors employed by the facility. In many of these states, the facility may not be obligated to disclose the information directly to patients, but a consumer can oftentimes access a state database containing the information online.

Identify some of the resources that a consumer can use to gather information when deciding what child care service to use.

While many resources are available to consumers seeking the best child care in their area, one of the best sources of information is usually the child care facility itself. By visiting child care centers under consideration, consumers can gather firsthand information about a particular facility, such as how many children the facility cares for at one time. A consumer should also be able to find information regarding the facility's accreditation while visiting the facility and should later verify that the accreditation is valid and accurate. The Child Care Bureau, which is a subdivision of the United States Department of Health and Human Services, has services available to help consumers locate local organizations that will verify the accreditation of a child care provider. The Child Care Bureau can also be a useful resource for finding additional information about local child care programs.

Explain the advantages and disadvantages of each of the three main types of strategies used in managing changes within an organization.

While the empirical-rational strategy is very effective when an organization has enough available resources to offer the incentives necessary to make changes more acceptable to employees, it is much less successful if the organization does not offer substantial enough incentives. The changes must have an obvious benefit to the individuals who need to implement them. The normative-reeducative strategy is useful when the managers and workers of an organization have a strong relationship and have time available to implement the changes; however, this strategy is much less effective when relations between management and staff are strained or when employees feel rushed or obligated to execute the changes. The power-coercive strategy is particularly useful in situations where time is limited and the threat to the organization or individual is more crucial; however, this method can often promote unrest among members of the organization, especially m organizations that have traditionally allowed more individual freedoms.


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