Business failure or bankruptcy occurs when a firm cannot pay its debts on time or when liabilities exceed ASSETS. Bankruptcy is an ancient issue, critical to the development of an economic and social system. It is addressed both in the Old Testament of the Bible and the U.S. Constitution.

PROFITS are the “bottom line” for businesses and CORPORATIONs, but should maximizing profits at any cost be the primary motivation of a business? Should responsibility to employees, customers, and the community be a concern as well? Can businesses act in ways that balance the duties they have to their SHAREHOLDERS with the duties they have to their STAKEHOLDERS?

Business cycles are the patterns of increase and decreases in GROSS DOMESTIC PRODUCT (GDP) that occur in an economy. Most countries’ economies have tended to grow over time, but within the trend of overall growth there have been periods of expansion, peaks, contractions, and troughs, followed again by expansion.

The parameters established by the U.S. Constitution affect business and commerce through federalism, judicial interpretation, and politics. Federalism is the relationship (division) of powers between the national government and state governments and, along with separation of powers and checks and balances, forms the foundation of the Constitution.

The Bureau of Land Management (BLM), an agency in the Department of Interior, manages over 264 million acres of public land primarily in 12 western states and Alaska. In addition, the BLM manages 300 million acres of belowground mineral rights throughout the country.

The Bureau of Labor Statistics (BLS), part of the DEPARTMENT OF LABOR, is the principal agency providing labor statistics in the United States.

The Bureau of Economic Analysis (BEA) is an agency within the Department of Commerce that produces U.S. economic statistics. Each month the BEA estimates GROSS DOMESTIC PRODUCT (GDP); gross domestic income; and industry, regional, and international economic statistics.

See AUTOMATIC STABILIZERS.

Budgeting is the process of developing budgets, or financial plans that project a firm’s inflows and outflows for a future time period. Often budgeting results in the construction of pro forma statements, namely the budgeted INCOME STATEMENT and the budgeted BALANCE SHEET.

The crime of bribery is the offer or gift of money, goods, or anything of value in order to influence federal, state, or local public officials in the discharge of their duties. Bribery of foreign government officials may violate the federal FOREIGN CORRUPT PRACTICES ACT. Commercial bribery in the business world is an unfair trade practice.

Bretton Woods, a small town in New Hampshire, was the host, in July 1944, for a major economic summit that has since transformed international economic relations. In economic discussions, the phrase “ever since Bretton Woods” means ever since the creation of the INTERNATIONAL MONETARY FUND (IMF) and International Bank for Reconstruction and Development (IBRD, also called the WORLD BANK), which were created at the Bretton Woods conference at the Mount Washington Hotel.

Break-even analysis is a tool used by managers to estimate either the quantity they need to sell at a given price to cover all costs or the price they must charge to cover all costs for a given quantity of output.

Brands are names, terms, designs, signs, symbols or some combination that identify a firm’s PRODUCTs. Brands facilitate easy recognition of a company’s products and increase consumer loyalty through repeat purchase. According to MARKET RESEARCH, consumers’ brand loyalty goes through three stages: recognition, preference, and insistence.

Brady bonds are debt instruments issued by governments and private lenders in developing countries as a means of restructuring their debt. Named after Nicholas Brady, secretary of the Treasury during the George H. W. Bush administration, these BONDS were first issued by the Mexican government as part of a plan to repackage loans made to Mexico during the 1980s.

Boycotts are organized attempts to influence a company, organization, or government through refusal to patronize a business or other group. Boycotts are frequently used to affect business practices.

The Border Environmental Cooperation Commission (BECC), a binational organization created in 1993 as a side agreement to the NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA), helps states, localities, and the private sector develop and find financing for environment INFRASTRUCTURE projects along the U.S.-Mexico border.

Bonds are long-term debt instruments used by both the private and public sectors to raise funds. They are liabilities for the issuer and can be excellent INVESTMENT opportunities. In the private sector, corporate bonds are most common.

See STOCK MARKET, BOND MARKET

A company’s board of directors makes its strategic decisions, including hiring and terminating executives, directing company policy, and considering proposals from outside investors or other companies to purchase or be purchased by the company.

Blue laws are legislation regulating activities associated with the Sabbath (Sunday). In the Bible, the Sabbath, or holy day, is a day of rest. Blue laws got their name from 17th-century laws in Connecticut, which were written on blue paper.

The term blue-collar refers to workers who traditionally wear blue work uniforms, including ASSEMBLY LINE and other laborers.

Blue-chip stocks are COMMON STOCKs of nationally known companies that have a proven record of profitability, increases in stock value, and reputations for being leaders in their respective industries.

A blind trust exists when a beneficiary, the party for whom the benefit of a TRUST exists, turns over control of their ASSETS to a trustee, who is an independent third party, typically a professional money manager. The trustee is given broad discretion over the assets.

A bill of lading is a document issued by a shipping company to acknowledge that the seller has delivered particular goods to it. Bills of lading are used in both interstate and international shipments.