Financing - McGraw-Hill Introduction to Business

New Round of Small Business Relief Arrives with Similar Problems

April 28, 2020

Last week, legislators approved of another round of small business loans after funding failed to reach thousands of companies the first time. Unfortunately, many of these desperate businesses are encountering the same problems as they did a few weeks ago. Shortly after going online on Monday, the Small Business Administration’s electronic loan portal crashed due to high demand. “The SBA’s systems were not designed to and are not capable of handling the volume of loans banks processed over the last Continue reading →

Regulation, Operations Management, Health, Ethics, Small Business, Entrepreneurship, Financing, Coronavirus, Loans

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law

Major Chains Receive Loans Meant for Small Businesses

April 21, 2020

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A few weeks ago, legislators approved a $2 trillion stimulus package that set aside $349 billion for small businesses that have drastically altered operations during the pandemic. After a poor rollout left many companies unable to petition for relief, however, the fund dried up last weekend with thousands of businesses still in need of loans. What’s more, among the companies that received relief included major chains with thousands of employees and numerous locations across the country.

For example, the Continue reading →

Regulation, Health, Small Business, Ethics, Financing, Food & Drink, Coronavirus, Loans, Stimulus Bill

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 5: Forms of Business Ownership, Chapter 6: Entrepreneurship, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law

Small Businesses Have Trouble Securing Vital Loans

April 7, 2020

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The ongoing coronavirus pandemic has caused countless restaurants and stores across the country to alter their services or close entirely, some for as long as a month so far. This stretch of downtime has been devastating for many small businesses that usually get by on week-to-week sales. At Old Town Pizza & Brewing in Portland, Oregon, owner Adam Milne had to lay off two-thirds of his staff as the brewpub transitioned into carry-out only service. In the process he racked Continue reading →

Direct-to-Consumer Company Brandless Closes Down

February 13, 2020

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In 2017, the home goods company Brandless launched with a novel way to take on Amazon as well as other big-box retailers. The direct-to-consumer startup sold high-quality, organic versions of everything from toilet paper to beauty products in simple, no-frills packaging. Brandless claimed that this eliminated the so-called “BrandTax” levied by many companies, which could account for as much as 40 percent of the product’s actual cost. With little money spent on traditional marketing, Brandless initially charged just $3 for Continue reading →

New Rules Seek to Limit the Power of Payday Lenders

October 10, 2017

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Each year some 12 million Americans take out a payday loan in order to get cash fast. But just because these borrowers can receive a quick injection of capital doesn’t mean they can pay it back with comparable speed. Many people who take out a payday loan end up drowning in a flood of loan fees and high interest rates. Last year alone the industry collected more than $7 billion in fees from customers. Borrowers can become so overwhelmed by Continue reading →

Product Development, Regulation, Financing, Ethics, Payday loans, CFPB

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 14: Product and Price, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law

Netflix Piles on Debt to Create Original Content

August 1, 2017

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Since launching 20 years ago, Netflix has transformed from a DVD-by-mail service into the undisputed king of streaming video. The company now has more than 104 million subscribers across the world, a 25 percent increase since last year and quadruple the number of customers from 2012. On any given evening in North America, Netflix streaming accounts for more than a third of all download Internet traffic. The company’s lineup of original shows and movies are also a hit with critics Continue reading →

Streaming, Television, Financing, Debt, Product Development, Entertainment, Innovation, Netflix

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 7: Management & Leadership, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 18: Financial Management, Bonus Chapter B: Technology and New Media

Indiegogo Allows Crowdfunders to Purchase Equity Stakes

December 2, 2016

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For years crowdfunding sites have provided cash and marketing boosts to entrepreneurs who aren’t afraid to reach out to the public. In exchange, donors receive prizes for their support, ranging from simple displays of gratitude to enormous giveaways for the most generous individuals. One reward they haven’t been able to receive, however, is a stake in the company. For instance, the makers of the Oculus Rift virtual reality headset brought in millions from their 2012 Kickstarter campaign. Facebook eventually purchased Continue reading →

Promotions, Crowdfunding, Kickstarter, Financing, Marketing, Indiegogo, Equity

Chapter 1: Taking Risks and Making Profits, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 16: Place and Promotion, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law

National Park Service Seeks Sponsors to Offset Costs

June 7, 2016

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For more than a century millions of visitors have marveled at the staggering beauty contained in America’s national parks. According to the writer Wallace Stegner, “National parks are the best idea we ever had. Absolutely American, absolutely democratic, they reflect us at our best rather than our worst.” Still, even these sublime sanctuaries face the same kind of bureaucratic headaches that afflict other government agencies. In fact, years of flat funding have left the National Park Service with an $11 Continue reading →

Regulation, Financing, Government, National Parks, Fundraising, Ethics

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 16: Place and Promotion, Chapter 18: Financial Management

Google Bans Payday Lenders from Placing Ads

May 26, 2016

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Each year, millions of Americans use payday lenders to obtain what seem like quick and easy loans. Many borrowers simply need an advance on an upcoming paycheck, allowing them to settle their loan as soon as payday arrives. For those who don’t manage to repay on time, however, the situation can rapidly turn desperate. Along with a variety of fees, payday lenders often charge interest rates than can eventually top out in the triple digits. As a result, one small Continue reading →

Personal Finance, Advertising, Ethics, Financing, Google, Payday loans, Online Advertising

Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter A: Business Law, Bonus Chapter B: Technology and New Media, Bonus Chapter D: Personal Finance

Beware of Deceptive Crowdfunding Campaigns

March 21, 2016

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For years crowdfunding websites have given regular people a platform to finance their personal causes. GoFundMe, for instance, adds 100,000 campaigns to its site each month. Most people are looking to raise money to combat a crisis, such as paying for medical bills or funeral expenses. Together these campaigns have raised more than $2 billion on GoFundMe alone, with more than half of that amount coming in the last 9 months. In fact, analysts expect that crowdfunding donations will grow Continue reading →

Charity, Ethics, Fraud, Crowdfunding, Regulation, Financing, GoFundMe

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 14: Product and Price, Bonus Chapter A: Business Law, Bonus Chapter B: Technology and New Media