book

Better Business, 5/e

Name: Better Business, 5/e
ISBN: 9780134522746

by Michael R. Solomon, Mary Anne Poatsy, Kendall Martin

January 2017

Intermediate to advanced

500 pages

33h 23m

English

Pearson

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Better Business
Dedication
Brief Contents
Contents
About the Authors
Reviewers
New to the Fifth Edition
Letter from the Authors
Prologue The 10 Easy Steps for Better Business Success

Better Business
Part 1 Looking at the Business Environment
Chapter 1 Business BasicsObjectives
Objective 1-1 The Business Landscape
Business DefinedThe Factors of Production
Objective 1-2 Common Business Challenges and Opportunities
CompetitionSocial EnvironmentGlobalizationTechnological Changes
Objective 1-3 Types of Businesses
Local and Regional BusinessesNational BusinessesMultinational (International) Businesses
Objective 1-4 Taking Business Personally
Life Skills for Business
Chapter 1 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
The Competitive Edge
Ethics and Corporate Social Responsibility
Cultural Awareness: Unwritten Laws
Web Exercises
References
Chapter 2 Economics and Banking
Objectives
Objective 2-1 The Basics of Economics
Economics DefinedEconomic SystemsPlanned Economic SystemsMarket EconomiesMixed EconomiesBusiness and Economics
Objective 2-2 Determining Price: Supply and Demand
SupplyDemandFactors That Determine PriceFactors That Affect DemandFactors That Shift Supply
Objective 2-3 Degrees of Competition
MonopoliesDuopolies and OligopoliesMonopolistic CompetitionPerfect Competition
Objective 2-4 Economic Indicators
Gross Domestic ProductConsumer and Producer Price IndicesThe Unemployment RateProductivity of Firms
Objective 2-5 Government and the Economy
Economic PoliciesFiscal PolicyMonetary PolicyReserve RequirementsShort-Term Interest RatesOpen Market Operations
Chapter 2 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
The Great DebateDebate Topics
Ethics and Corporate Social Responsibility
Economic InequalityQuestions for Discussion
Web Exercises
References
Chapter 3 Ethics in Business
Objectives
Objective 3-1 Ethics: The Basics
Ethics DefinedSystems of Ethical ConductPersonal Ethics
Objective 3-2 Personal Ethics Meets Business Ethics
You as a Person and as an EmployeeIdentifying a Company’s Ethics
Objective 3-3 Corporate Social Responsibility
The Five Pillars of Corporate Social ResponsibilityThe Conflict of CSR in the Business EnvironmentThe Benefits of CSRMeasuring CSRCSR and Social NetworkingThe Challenges of CSRThe Effects of CSR on SocietyThe Effects of Individuals on CSR
Objective 3-4 Dangers of a Weak Ethical Focus
Legal Regulations and Legal ComplianceRecovering from Weak Ethical Conduct
Objective 3-5 Business Opportunities Created by Ethical Needs
Creating New Markets with an Ethical FocusBusinesses Going Green
Objective 3-6 How Businesses Develop an Ethical Environment
Ethical Focus from the StartEthical Focus Every Day
Chapter 3 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
One Issue, Three SidesScenario
Ethics and Corporate Social Responsibility
Personal and Business Ethics
Web Exercises
References
Chapter 4 Business in a Global Economy
Objectives
Objective 4-1 What Is Globalization?
The Effects of GlobalizationReasons for the Rise in GlobalizationGlobal Business Trends
Objective 4-2 International Trade
International CompetitionFostering CompetitivenessThe Benefits and Costs of International Trade
Objective 4-3 Free Trade and Protectionism
Types of Trade BarriersTrade Barriers: Winners and LosersInternational Organizations Promoting Free TradeRegional Free Trade AgreementsThe European UnionThe North American Free Trade AgreementOther Free-Trade Areas
Objective 4-4 Conducting Business Internationally
International Business StrategiesEntering Foreign MarketsExportingTurnkey ProjectsFranchisingLicensingJoint VenturesStrategic AlliancesContract ManufacturingWholly Owned SubsidiariesThe Advantages and Disadvantages of Each Entry Mode
Objective 4-5 International Business: Economic Factors and Challenges
The Role of Exchange RatesExport and Import PricesTrade Deficits and Trade SurplusesFixed and Freely Floating Exchange Rate SystemsNonconvertible Currency and CountertradeOther Economic Challenges to Conducting International BusinessEconomic Growth and DevelopmentGovernment Economic PoliciesSocioeconomic Factors
Objective 4-6 Creating Successful International Businesses
Sociocultural ChallengesPolitical ChallengesLegal ChallengesEthical Challenges
Chapter 4 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
The Devil’s Advocate
Ethics and Corporate Social Responsibility
Offshore OutsourcingScenarioQuestions for Discussion
Web Exercises
References
Mini Chapter Chapter 1 Business Law
The U.S. Legal System
Sources of Law
How Laws Affect Businesses
Running a Business: Essential Concepts of Business LawContract LawElements of a ContractBreach of ContractTort LawIntellectual Property LawsSales LawAntitrust LawsEnvironmental LawsLaws for Consumers and EmployeesAdvertising LawsEmployment and Labor LawLaws That Govern Closing a BusinessBankruptcy
Key Terms
References
Part 2 Starting and Structuring a Business
Chapter 5 Small Business and the EntrepreneurObjectives
Objective 5-1 Small Business: The Mainstream of the American Economy
Small Business and the EconomySmall Business and the WorkforceReasons for Starting a Small BusinessThe Impact of Technology on Small BusinessesSocial Media and Mobile Marketing
Objective 5-2 Entrepreneurs and the American Dream
The Traits of Successful EntrepreneursTypes of EntrepreneursEntrepreneurial Teams
Objective 5-3 Buying Franchises and Existing Businesses
Franchising BasicsPros and Cons of FranchisingFranchising ConsiderationsBuying an Existing Business
Objective 5-4 The Risks of Small Businesses and Where to Get Help
Why So Many Small Businesses FailGetting Help
Objective 5-5 Financing Considerations
Cash and CreditSmall Business Loans and GrantsAngel and Venture Capital Financing
Chapter 5 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
Starting a Business: Brainstorming
Ethics and Corporate Social Responsibility
Social Entrepreneurship: Start Some Good
Web Exercises
References
Chapter 6 Forms of Business Ownership
Objectives
Objective 6-1 Sole Proprietorships
Starting a Sole ProprietorshipAdvantages and Disadvantages
Objective 6-2 Partnerships
Advantages and Disadvantages of PartnershipsElements of a Partnership AgreementTypes of Partnerships
Objective 6-3 Corporations
Advantages of IncorporationStructure of a CorporationShareholdersDirectorsOfficers and Line ManagersDisadvantages of IncorporationS CorporationsLimited Liability CompaniesComparing Forms of Ownership
Objective 6-4 Not-for-Profit and Cooperatives
Not-for-Profit OrganizationsCooperatives
Objective 6-5 Mergers and Acquisitions
Mergers versus AcquisitionsAdvantages of Mergers and AcquisitionsTypes of MergersDisadvantages of Mergers
Chapter 6 Summary
Key Terms
Self-Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
What’s the Plan?Process
Ethics and Corporate Social Responsibility
Code of EthicsQuestions for Discussion
Web Exercises
References
Mini Chapter Chapter 2 Constructing an Effective Business Plan
Planning—It’s Never Too Late
The Purpose of a Plan
Business Plan Competitions
Before the Business Plan: Finding the Right Fit
Components of a Business Plan
The Cover Sheet and Table of ContentsThe Executive SummaryThe Company and Management TeamMarket AnalysisThe ProductSales and PromotionFinancialsAppendices
Key Terms
References
Part 3 Managing a Business and Employees
Chapter 7 Business Management and OrganizationObjectives
Objective 7-1 The Foundations of Management
Business ManagementLevels of ManagementThe Skills of Successful Managers
Objective 7-2 The Functions of Management: Planning
Strategic PlanningVision and Mission StatementSWOT AnalysisTactical and Operational PlanningContingency Planning
Objective 7-3 The Functions of Management: Organizing
Organizational StructuresChanging StructuresAlternative Organizational Structures
Objective 7-4 The Functions of Management: Controlling
Controlling to Stay on CourseControl Strategies
Chapter 7 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
On a Mission
Ethics and Corporate Social Responsibility
Assessing Social Responsibility
Web Exercises
References
Chapter 8 Motivation, Leadership, and Teamwork
Objectives
Objective 8-1 Motivation
Personal MotivationMotivating EmployeesTraditional Theories of MotivationMotivational Theories in the Modern WorkplaceEvolution of Motivational Theories
Objective 8-2 Leadership
Traits of LeadershipLeadership and Corporate Culture
Objective 8-3 Teamwork
The Advantages of Teams in the WorkplaceThe Challenges of Teams in the WorkplaceBest Practices for TeamsYour Role on a Team
Chapter 8 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
Forming a Successful Team
Ethics and Corporate Social Responsibility
Ethics in TeamworkScenarioQuestions for Discussion
Web Exercises
References
Chapter 9 Human Resource Management
Objectives
Objective 9-1 Human Resource Management
Managing Staffing NeedsHiring
Objective 9-2 Training and Evaluating Employees
Training Methods and RequirementsPerformance Appraisals and Alternatives
Objective 9-3 Compensating, Scheduling, Promoting, and Terminating Employees
Compensation StrategiesBenefitsAlternative Scheduling and Work ArrangementsContingent WorkersPromotionsTerminating EmployeesRetirement
Objective 9-4 Managing Workplace Diversity
Benefits and Challenges of Diversity
Objective 9-5 Labor and Union Issues
Organized LaborCollective BargainingThe State of Labor Unions
Chapter 9 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
Seeing Both Sides
Ethics and Corporate Social Responsibility
The Ethics of InterviewingScenarioProcess
Web Exercises
References
Chapter 10 Online Business and Technology
Objectives
Objective 10-1 Online Business
Marketing OnlineTypes of Online Business TransactionsChallenges of E-Commerce
Objective 10-2 Technology in Business
The Information Technology OrganizationInformation Systems
Objective 10-3 Security
Threats to Online BusinessPrivacy
Objective 10-4 Impact of Social Media and Mobile Technology
Social NetworkingMobile Devices
Chapter 10 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
The Winds of Change
Ethics and Corporate Social Responsibility
Computer Hacking: A High Price to PayQuestions for Discussion
Web Exercises
References
Chapter 11 Production, Operations, and Supply Chain Management
Objectives
Objective 11-1 The Production of Goods and Services
The Importance of ProductionMoving to a Service-Based EconomyThe Global Production Landscape
Objective 11-2 Production Management
The Make-or-Buy DecisionCommon Production Processes and TechniquesSocial Media and Manufacturing
Objective 11-3 Operations Planning and Management
Capacity PlanningFacility LocationFacility LayoutProduction Technology
Objective 11-4 Operations Control
Production Process ControlPurchasing and Inventory ControlQuality Management
Objective 11-5 Suppliers and Supply Chain Management
Supply Chains
Chapter 11 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
To Outsource or not to Outsource … That is the QuestionScenario
Ethics and Corporate Social Responsibility
Environmental Shipping ConcernsQuestions for Discussion
Web Exercises
References
Mini Chapter Chapter 3 Business Communications
Improving Your Presentation Skills
Improving Your Writing Skills
Business LettersMemosMemo Writing Tips
What Form of Communication Should You Use?
E-MailTips For Writing An Effective Business E-MailTexting
Using Collaborative Communication Tools
VideoconferencesCollaborative EditingBlogsPodcasts
References
Part 4 Principles of Marketing
Chapter 12 Marketing and Consumer BehaviorObjectives
Objective 12-1 Marketing Fundamentals
The Evolution of MarketingMarketing for Not-for-Profits and OthersBenefits of MarketingCriticisms of Marketing
Objective 12-2 Marketing Tactics
Marketing Strategy: The Four Ps of MarketingProductPricePromotionPlaceThe Four Cs of Marketing: Marketing from the Consumer’s PerspectiveThe Marketing Process
Objective 12-3 The Marketing Environment
The Competitive EnvironmentThe Economic EnvironmentThe Technological EnvironmentThe Social and Cultural EnvironmentThe Political, Legal, and Regulatory EnvironmentsThe Global Environment
Objective 12-4 Marketing Research and Planning
The Market Research ProcessThe Marketing PlanTarget Markets
Objective 12-5 Consumer Behavior
B2C MarketsB2B Markets
Chapter 12 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
Brand Analysis
Ethics and Corporate Social Responsibility
Patagonia and Common Threads PartnershipQuestions for Discussion
Web Exercises
References
Chapter 13 Product Development, Branding, and Pricing Strategies
Objectives
Objective 13-1 New Product Development
The New Product Development ProcessThe Product Life Cycle
Objective 13-2 Modifying Existing Products and Product Lines
The Total Product OfferProduct DifferentiationProduct Lines and the Product MixConsumer Products and Business-to-Business ProductsConsumer Product ClassificationsB2B Classifications
Objective 13-3 Branding
Branding BenefitsBrand Loyalty and Brand EquityBranding StrategiesPackagingThe Importance of Labels
Objective 13-4 Pricing Goods and Services
Product Pricing and Pricing ObjectivesPricing Strategies and Price PerceptionsAdjusting Prices
Chapter 13 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
Developing A New Product
Ethics and Corporate Social Responsibility
The Ethics of RXScenarioQuestions for Discussion
Web Exercises
References
Chapter 14 Promotion and Distribution
Objectives
Objective 14-1 Promotion and the Promotional Mix
Promotion
Objective 14-2 Advertising and Public Relations
The Role of AdvertisingTypes of AdvertisingAdvertising MediaInternet AdvertisingSocial MediaMobile MarketingProduct PlacementInfomercialsGlobal AdvertisementsPublic Relations
Objective 14-3 Personal Selling and Sales Promotion
Personal SellingSales PromotionsSocial Media Promotions
Objective 14-4 Distribution: Marketing Intermediaries
Distribution Channels and Marketing IntermediariesWholesalers, Agents, and BrokersRetailersDistribution LogisticsThe Benefits and Costs of Transportation ModesWarehousing and Inventory Control
Chapter 14 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
Developing a Promotional Mix
Ethics and Corporate Social Responsibility
Just What the Doctor Ordered?ScenarioQuestions for Discussion
Web Exercises
References
Mini Chapter Chapter 4 Finding a Job
Marketing Yourself
Developing a RésuméGetting StartedContact InformationObjectiveEducationExperience or Work HistorySkills/InterestsReferencesRésumé Showdown!Writing a Cover LetterTip #1: Tailor Your Cover Letter to Fit the Job You’re Applying For.Tip #2: Indicate What You Can Do for the Employer.Tip #3: Clearly Explain Why the Company Should Hire You.Tip #4: Keep It Short.ePortfolios
Search Strategies
NetworkingSpot the TruthInternet ResearchNewspapersRecruitersCold Calling Pros and ConsCollege Campus Career ResourcesInformational Interviews
Interviewing and Negotiating
Interview Red FlagsPreparing for the InterviewInterview QuestionsDuring the InterviewInterview Take-AlongsNegotiating Strategies
References
Part 5 Principles of Finance
Chapter 15 Financing and Accounting for Business OperationsObjectives
Objective 15-1 Financial Management
The Financial ManagerPlanning for a Firm’s Financial NeedsAddressing Cash Flow and the Budget
Objective 15-2 Financing Small Business Activities
Short-Term Financing OptionsShort-Term Loans and GrantsSocial Funding
Objective 15-3 Financing Big Business Activities: Debt and Equity
Short-Term Financing OptionsLong-Term Financing OptionsFinancing with BondsFinancing with Equity
Objective 15-4 Accounting Functions
Accounting FundamentalsTypes of AccountingAccounting Standards and Processes
Objective 15-5 Financial Statements
The Balance SheetAssetsLiabilitiesOwners’ EquityAnalyzing a Balance SheetBalance Sheet RatiosIncome StatementsRevenueCost of Goods SoldOperating ExpensesAnalyzing Income StatementsIncome Statement RatiosStatement of Cash FlowsComponents of a Statement of Cash FlowsAnalyzing a Statement of Cash Flows
Chapter 15 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
Industry Analysis
Ethics and Corporate Social Responsibility
Getting to the Bottom of the Sarbanes-Oxley ActExerciseQuestions for Discussion
Web Exercises
References
Chapter 16 Investment Opportunities in the Securities Market
Objectives
Objective 16-1 Investment Fundamentals
The Risks and Rewards of Saving and InvestingInvestment Risk
Objective 16-2 Investing in Stocks
Primary and Secondary Security MarketsTypes of StocksChanging Stock Prices
Objective 16-3 Investing in Bonds
Bond Basics
Objective 16-4 Mutual Funds and Other Opportunities
Mutual FundsRisk-and-Return Relationships of Different Types of Mutual FundsOther Investment Opportunities
Chapter 16 Summary
Key Terms
Self Test: Multiple Choice
True/FalseCritical Thinking Questions
Team Time
Take This $50,000 and Invest It!
Ethics and Corporate Social Responsibility
Can Investments be Socially Responsible and Lucrative?
Web Exercises
References
Mini Chapter Chapter 5 Personal Finance
Do You Need Tools to Help Manage Your Money?
Creating a Financial Plan
Step 1: Take a Financial InventoryStep 2: Set Financial GoalsStep 3: Know Where Your Money GoesStep 4: Create a BudgetSo You Want to Be a Millionaire?Step 5: Execute the PlanStep 6: Monitor and Assess Your Plan
Managing Your Personal Credit
Know Your Credit Score
Car Considerations
Getting WheelsInsurance and InvestmentsInsuring Your Present and Your FutureInvesting Now and for the FutureHow Fast Can Your Investment Double in Value?Investing for RetirementIndividual Retirement AccountsRoth IRAsSimplified Employee Pension Individual Retirement ArrangementPension Plans401(k), 403(b), and 457 Plans
Taxes
How Much Tax Are You Paying?
Business Plan Project Appendix
Part 1. IntroductionBusiness NameWhat is the name of your business?Description of BusinessWhat will your business do?Form of Business OwnershipWhat form of business ownership (sole proprietorship, partnership, LLC, or corporation) will your business take? Why did you choose this form?Ideal CustomersDescribe your ideal customers. What are they like in terms of age, income level, and so on?Company AdvantagesWhy will customers choose to buy from your business instead of your competition?
Part 2. The Company and Management Team
The Mission StatementMission StatementWrite a brief mission statement for your business.Ethical IssuesAll businesses must deal with ethical issues. One way to address these issues is to create a code of ethics. List three core (unchanging) principles that your business will follow.Social ResponsibilityA business shows social responsibility by respecting all its stakeholders. What steps will you take to create a socially responsible business?Industry ProfileIndustry DescriptionDescribe the industry and sector in which your company operates.Opportunities and ThreatsDescribe the opportunities and threats that face your company.Company Profile and StrategyBusiness GoalsWhat are three business goals you want to achieve in the first year? What are two intermediate to long-term goals you want to achieve in the next three to five years?Company StrengthsDescribe the strengths of your company.Raw Materials and SuppliesExplain what raw materials and supplies you will need to run your business. How will you produce your good? What equipment do you need? What hours will you operate?Anticipated Challenges and Planned ResponsesAnticipated ChallengesDescribe any weaknesses or potential challenges that face your company.Planned ResponsesDescribe any plans you have to address these weaknesses and anticipated challenges.The Management TeamManagementWho are the key individuals that will manage the business?Organization ChartShow how the “team” fits together by creating a simple organizational chart for your business. Make sure the organizational chart indicates who will work for each manager as well as each person’s job title.
Part 3. Marketing
Market AnalysisMarket ResearchDescribe your target market in terms of age, education level, income, and other demographic variables.Assessment of the CompetitionDescribe three companies that you see as your main competitors.The Product or ServiceProduct Features and BenefitsDescribe the features and benefits of your product or service.Product DifferentiationHow will you make your product(s) stand out in the crowd?PricingWhat pricing strategy will you choose for your product(s), and why did you choose this strategy?Sales and PromotionPlace (Distribution) IssuesWhere will customers find your product or service? (That is, what distribution channels should you consider?)AdvertisingHow will you advertise to your target market? Why have you chosen these forms of advertisement?PromotionsWhat other methods of promotion will you use and why?
Part 4. The Financials
Expected RevenueHow much will you charge for your product? How many products do you believe you can sell in one year (or how many customers do you think your business will attract)? Multiply the price that you will charge by the number of products that you hope to sell or the amount you hope each customer will spend. This will give you an estimate of your revenues for one year.Cost of Doing BusinessWhat are the costs of doing business? Equipment, supplies, salaries, rent, utilities, and insurance are just some of these expenses. Estimate what it will cost to do business for one year. Include any assumptions you use in generating cost estimates.Start-up CostsHow much money will you need to get your business started?FinancingHow will you finance your business? For example, will you seek out a bank loan? Borrow from friends? Try crowdfunding? Sell stocks or bonds initially or as your business grows?Income Statement and Balance SheetCreate a balance sheet and an income statement for your business.
Part 5. The Finishing Touches
Cover Sheet and Table of ContentsCover SheetCreate a cover sheet for your business plan.Table of ContentsCreate a table of contents for the plan so a reader can quickly find information.Executive SummaryAfter you’ve finished your business plan, write an executive summary that contains the key points of the business plan. The summary should be brief—no more than two pages—and cover the following points:
Glossary
Index
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
Answer Key
Chapter 1 Business Basics
Self Test Multiple Choice
Self Test True/False
Chapter 2 Economics and Banking
Self Test Multiple Choice
Self Test True/False
Chapter 3 Ethics in Basics
Self Test Multiple Choice
Self Test True/False
Chapter 4 Business in a Global Economy
Self Test Multiple Choice
Self Test True/False
Chapter 5 Small Business and the Entrepreneur
Self Test Multiple Choice
Self Test True/False
Chapter 6 Forms of Business Ownership
Self Test Multiple Choice
Self Test True/False
Chapter 7 Business Management and Organization
Self Test Multiple Choice
Self Test True/False
Chapter 8 Motivation, Leadership, and Teamwork
Self Test Multiple Choice
Self Test True/False
Chapter 9 Human Resource Management
Self Test Multiple Choice
Self Test True/False
Chapter 10 Online Business and Technology
Self Test Multiple Choice
Self Test True/False
Chapter 11 Production, Operations, and Supply Chain Management
Self Test Multiple Choice
Self Test True/False
Chapter 12 Marketing and Consumer Behavior
Self Test Multiple Choice
Self Test True/False
Chapter 13 Product Development, Branding, and Pricing Strategies
Self Test Multiple Choice
Self Test True/False
Chapter 14 Promotion and Distribution
Self Test Multiple Choice
Self Test True/False
Chapter 15 Financing and Accounting for Business Operations
Self Test Multiple Choice
Self Test True/False
Chapter 16 Investment Opportunities in the Securities Market
Self Test Multiple Choice
Self Test True/False

Content preview from Better Business, 5/e

Ethics and Corporate Social Responsibility

Just What the Doctor Ordered?

In Chapter 13, you considered the ethics involved with the pricing of prescription drugs. Now turn your attention to the promotion of these products and the ethical issues raised by their advertising.

Scenario

Currently, the United States and New Zealand are the only two countries in the world that permit the widespread use of direct-to-consumer (DTC) advertising for prescription drugs. Such advertising has become big business in the United States: Billions of dollars are spent on it each year. Some people argue that DTC advertising is unethical because it encourages the overuse of medications, preys on the elderly or the chronically ill, and does not fully inform consumers ...

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