Topic outline

  • Course Introduction

    Have you ever wondered what qualities Warren Buffett, Steve Jobs, and Jeff Bezos have in common? After studying business practices in this course, you may find that you have qualities similar to those of other successful entrepreneurs. This course provides an introduction to business terminology, concepts, and key issues. The intent is to develop a viable business vocabulary, foster critical thinking, and enhance decision-making skills through readings, exercises, and research assignments.
  • Unit 1: The Context of Business

    This unit covers the basic concepts that give context to a business. We explore economic and historical information governments use to make decisions, which provides a foundation for future decision-making. You will learn about productivity, the business cycle, the impact of business on society, economic trends and policies, and elements of global business. We will examine the 2008 financial meltdown, including the government bailouts of AIG and General Motors and the collapse of Lehman Brothers, which provide valuable lessons in economic policy and business cycles.

    This unit aligns with the following Course Learning Outcomes:

    • explain how economic indicators shape business decisions
    • identify reasons for studying business
    • analyze business cycles

    Completing this unit should take you approximately 17 hours.

    • 1.1: Business Basics

      Every successful enterprise, whether a small, local shop or a global corporation, is built on a set of underlying principles. The topics in this section will provide you with a solid conceptual toolkit for understanding how businesses operate, why they exist, and how they evolve. As you move through the activities, keep in mind that these foundational ideas will reappear in nearly every advanced topic in business studies, from marketing to operations to strategy.

    • 1.2: Productivity and the Business Cycle

      In any economy, the concepts of productivity and the business cycle are central to understanding how firms, industries, and nations grow or contract over time. In this section, we will explore how output per unit of input shapes competitive advantage and how fluctuations in economic activity affect businesses of all sizes.

    • 1.3: Economic Indicators as Components of Economic Stability

      In an ever-changing economy, stability is as much of a goal as growth. Economic indicators serve as the signposts: measurable variables that help us assess whether an economy is healthy, trending upward, or at risk of slipping into turmoil. In this section, we will examine how a select set of indicators provides insight into economic stability and how analysts and policymakers use these indicators to make informed decisions.

      Understanding these indicators is essential not only for economists but also for business leaders and policymakers because these metrics help us detect early signs of overheating, recessions, or deflation and formulate timely responses. As you work through the readings and examples, reflect on how changes in these indicators affect macro- and firm-level decisions.

    • 1.4: Components of Economic Policy

      Economic policy refers to the tools that a government uses to guide the economy toward desired outcomes, such as growth, stability, full employment, and the fair distribution of resources. In this section, we focus on the major levers of economic policy, how they are deployed, and the trade-offs they entail.

      These tools are like the controls in an airplane cockpit: powerful but delicate. Understanding how they relate to theoretical models and real-world outcomes will prepare you to critically assess policy decisions at the national or business level.

    • 1.5: Doing Business Globally

      In today's interconnected world, businesses are not confined to domestic markets. International trade, global supply chains, and cross-border investments present tremendous opportunities and formidable challenges. This section will guide you through the essentials of operating on the global stage, including what it takes, what to watch for, and how to position your organization for international success.

      In the 21st century, understanding how to navigate the global business environment is essential. Whether you work in a multinational corporation or help a local firm explore new markets, this section will provide you with the fundamental knowledge and strategies to think globally.

    • Unit 1 Conclusion

      Throughout this unit, you explored the fundamental principles of how businesses operate and respond to broader economic forces. Starting with the basics of business structure and purpose, you learned how organizations create value, allocate resources, and interact with markets. Then, you examined how productivity and the business cycle influence the rhythm of economic activity and impact business performance, employment, and investment.

      Studying economic indicators provided you with the analytical tools needed to interpret an economy's health and stability, helping you connect abstract data to real-world decisions. Next, you explored economic policy, learning how governments use fiscal, monetary, and regulatory instruments to promote growth and stability and how these decisions affect the business environment.

      Finally, by studying global business, you placed these concepts in an international context and recognized that today's firms operate in a world of interconnected markets, complex supply chains, and diverse institutional systems.

      Together, these topics provide a comprehensive foundation for understanding the dynamic relationship between business and the economy, both locally and globally. They prepare you to think critically about how economic forces, policy choices, and strategic decisions intersect to shape the opportunities and challenges that define modern business life.

      In the next unit, we will explore forms of business ownership and entrepreneurship.

    • Unit 1 Assessment

  • Unit 2: Entrepreneurship and Legal Forms of Business

    In this unit, we will explore the different forms of business ownership, such as sole proprietorships, partnerships, and corporations. These forms affect how businesses are taxed, how profits are distributed, and which regulations must be followed. The form of ownership you choose will correspond to your company's growth, taxation, and future. We also examine techniques that business owners use to analyze profitability. Additionally, we review the characteristics of successful entrepreneurs, the impact of small businesses on the economy, and the role of the Small Business Administration in the United States.

    This unit aligns with the following Course Learning Outcome:

    • describe the legal forms of business and the advantages and disadvantages of each

    Completing this unit should take you approximately 12 hours.

    • 2.1: Legal Forms of Business

      One of the first strategic decisions an entrepreneur or manager must make is choosing the legal structure of the enterprise. This decision affects everything from liability and taxation to governance, capital raising, and the ease of expansion or dissolution. In this section, we will explore the main legal structures that businesses adopt, understand their respective advantages and disadvantages, and learn how to determine the most appropriate structure for different circumstances.

      Selecting the right legal form is more than a technicality. It shapes how the business grows, responds to legal risks, and interacts with stakeholders. As you work through this section, consider real firms you know and how their structure influences their decisions.

    • 2.2: Entrepreneurship and How Small Businesses Affect the Economy

      Entrepreneurs are innovators and risk-takers who introduce new products, services, and business models to the marketplace. However, their importance extends beyond individual ventures. Small businesses collectively serve as the backbone of many economies by generating jobs, fostering competition, and driving local economic dynamism. In this section, we will explore the nature of entrepreneurship and the influence of small firms on economic performance at the macro and micro levels.

      Understanding the relationship between entrepreneurship and small businesses is important because, although large corporations often dominate the headlines, small businesses sustain economic vitality locally. As you work through the section, consider the entrepreneurs and local small businesses you know, and reflect on their broader economic significance.

    • 2.3: Analyzing the Potential of a Business to Be Profitable

      No business can survive long without making a profit. However, determining whether a business or venture will be profitable requires more than wishful thinking. It necessitates clear analytical frameworks, sound assumptions, and a rigorous examination of costs, revenues, and uncertainties. In this section, we will explore how to evaluate a firm's profit potential before allocating resources.

      This section gives you the tools necessary to transition from qualitative optimism to quantitative assessment, enabling you to evaluate business ideas, stress-test assumptions, and determine the viability of a venture before investing time, capital, or effort.

    • Unit 2 Conclusion

      Together, these sections trace the journey from forming a business idea to turning it into a viable and sustainable enterprise. First, you explored the legal forms of business and learned how structure affects ownership, liability, taxation, and control. This understanding helps entrepreneurs choose the model that best fits their goals and resources.

      Next, you examined entrepreneurship and the role of small businesses, recognizing that innovation, adaptability, and local enterprise drive employment and economic growth. Entrepreneurs create value and are vital contributors to community and national prosperity.

      Finally, you learned how to analyze a business's potential profitability, a critical step in turning ideas into measurable outcomes. Using tools such as cost-volume-profit analysis, margin of safety, and sensitivity testing allows you to evaluate whether a business concept can realistically sustain and grow itself.

      Business success requires vision and analysis, as well as a solid legal and strategic foundation, an entrepreneurial mindset, and the ability to interpret financial realities. With these skills, you are better equipped to design, launch, and assess a business thoughtfully and informatively.

      In the next unit, we will take a closer look at marketing. Marketing is much more involved than you might think.

    • Unit 2 Assessment

  • Unit 3: Marketing

    Marketing encompasses more than just advertising and selling. It describes the activities businesses engage in to create, communicate, deliver, and exchange their products with customers, clients, partners, and society. Business owners aim to provide customers with the goods and services they want and need. They also need to convince customers to make a purchase and come back for more. Marketing involves product, price, distribution, and promotion, including advertisements, publicity, public relations, and sales promotions. In this unit, we will explore e-commerce, e-business, and social media marketing.

    This unit aligns with the following Course Learning Outcome:

    • describe the components of the marketing mix and how segmentation and research will foster an understanding of consumer behavior

    Completing this unit should take you approximately 9 hours.

    • 3.1: Marketing Defined

      Marketing is much more than advertising and selling. It's the process businesses use to create, communicate, and deliver value to customers and build lasting relationships with them. In this section, you will explore how marketing bridges the gap between what an organization offers and what customers need or want.

      With this foundation, you'll be prepared to explore topics such as market research, segmentation, branding, and promotional strategies.

    • 3.2: The Product

      In marketing, a product is more than just a physical object or service; it is the core offering that value, satisfaction, and differentiation revolve around. This section explores how products are designed, positioned, and managed to meet consumer needs and surpass competing offerings.

      Since every marketing strategy is based on a firm's offerings, knowing how to thoughtfully design, position, and manage products is essential for achieving market success.

    • 3.3: Consumer Behavior

      Successful marketing hinges on one critical insight: you can't market effectively without understanding how consumers think, choose, and act. The study of consumer behavior helps us understand the psychological, social, and situational forces that influence purchasing decisions, from routine purchases to major investments. In this section, we'll explore what motivates consumers, how they make decisions, and how marketers can respond.

      Understanding consumer behavior is essential because marketing is not about what a company wants to sell but what consumers want to buy. As you engage with the readings and examples, observe your own decisions and those of the people around you. What drives their choices? What external cues influence those choices? Recognizing these patterns is the first step toward designing marketing strategies that truly connect with consumers.

    • 3.4: Marketing Segmentation

      Not every customer is the same, so marketing to "everyone" often results in diluted, unfocused efforts. Market segmentation allows businesses to divide a broad market into meaningful subsets of consumers who have similar needs, preferences, or behaviors. By doing so, firms can tailor their offerings, messaging, and positioning to resonate more deeply with each segment.

      Getting segmentation right is like choosing your audience before delivering a speech; it allows you to speak directly to the people most likely to respond. With this groundwork, you'll be better equipped to design offers and messages that connect meaningfully.

    • Unit 3 Conclusion

      These three sections revealed that effective marketing begins with understanding what you offer and whom you serve. First, you explored the product, the foundation of marketing strategy. You learned how tangible and intangible attributes, branding, and the product life cycle shape customer perceptions and business performance.

      Next, you examined consumer behavior, uncovering the psychological, social, and situational forces that influence purchasing decisions. Understanding why and how consumers buy enables marketers to design more meaningful value propositions and customer experiences.

      Finally, through market segmentation, you learned how to organize diverse consumers into distinct groups with shared characteristics. This allows firms to target and position their offerings with precision and relevance.

      Together, these sections illustrate that marketing success depends on aligning product design with consumer insight and market focus. Businesses that understand their customers and craft offerings that meet specific needs create lasting value for both the buyer and the brand.

      Unit 4 will explore the financial side of business ownership.

    • Unit 3 Assessment

  • Unit 4: Accounting, Finance, and Banking

    Every day, business owners make financial decisions that affect every phase of business operations, including payroll, cash flow, and projecting future growth. A thorough understanding of accounting and financial management enables business owners to identify the most effective sources of funding and allocate funds appropriately. For instance, you can determine the health of your business by analyzing income statements, balance sheets, and financial ratios. We investigate financing options, how to analyze credit, and the time value of money. We also examine how banks, such as the US Federal Reserve Bank, affect the ability of businesses to obtain financing.

    This unit aligns with the following Course Learning Outcome:

    • explain the components of a balance sheet and income statement
    • communicate the implications of several financial ratios for future performance of a company

    Completing this unit should take you approximately 12 hours.

    • 4.1: Business Accounting

      Accounting is often described as the "language of business". It is the formal means by which organizations record, measure, communicate, and interpret their financial activities. Whether you're starting a small business or managing a large corporation, sound accounting practices are essential for making decisions, ensuring legal compliance, evaluating performance, and building investor confidence.

      This unit will prepare you for more in-depth exploration of topics such as management accounting, budgeting, cost analysis, and financial forecasting.

    • 4.2: Components of an Income Statement

      An income statement is a core financial document that summarizes a company's operations over a set period of time. It shows how revenues turn into net profit (or loss). Unlike a balance sheet, which provides a snapshot of a company's financial position at a specific point in time, an income statement tells the story of a company's performance over a period of time.

    • 4.3: Components of a Balance Sheet

      The balance sheet is one of the most important financial statements in accounting. It offers a snapshot of a company's financial position at a specific moment in time. It shows what a firm owns (assets), what it owes (liabilities), and the residual interest retained by owners (equity).

      With this foundation in place, you'll be better equipped to analyze and compare financial positions, assess risks, and support decision-making.

    • 4.4: Financial Ratio Analysis

      Financial statements, including the balance sheet, income statement, and cash flow statement, provide essential raw data about a company's performance and position. However, to transform this data into meaningful insights, analysts often rely on financial ratio analysis. Ratios provide context by comparing numbers, revealing strengths, weaknesses, and trends that are difficult to discern in isolation.

      When wielded carefully, ratio analysis is a powerful tool that allows you to monitor performance, spot red flags, and make more informed decisions.

    • 4.5: The Role of Banks in Finance

      Banks play a central role in the financial system. They connect savers and borrowers, facilitate payments, and support economic growth. As financial intermediaries, they channel funds from those with surplus capital to those who need it for investment or consumption. Without banks, much of the flow of money and credit that fuels modern economies would slow dramatically.

      Banks are the backbone of financial systems, turning savings into opportunities, supporting businesses, and shaping the flow of capital that drives economic progress.

    • 4.6: Financing Options

      Every business, whether a startup or an established firm, needs external capital at some point to launch new initiatives, scale operations, manage cash flow, or invest in assets. However, not all financing is created equal. The choice between debt, equity, internal funding, or hybrid instruments has significant implications for control, risk, cost, and long-term viability.

      Selecting the appropriate combination of funding sources is akin to designing the backbone of a building: it must support operations, growth, and resilience without endangering the structure.

    • Unit 4 Conclusion

      Throughout this unit, you learned how financial information is essential to sound business decision-making. Starting with business accounting, you learned how financial data are recorded, organized, and communicated through primary statements that convey a company's financial story. The balance sheet provides a snapshot of a company's assets, liabilities, and equity, and the income statement shows how revenues and expenses translate into profit or loss.

      Building on this foundation, you learned how to interpret these numbers through financial ratio analysis, turning data into insight about liquidity, profitability, and efficiency. Then, you looked outward to the broader financial system, examining the role of banks as intermediaries that facilitate credit, manage risk, and keep capital flowing through the economy. Finally, in the Financing Options section, you examined how businesses raise funds by balancing debt, equity, and internal resources to meet their strategic goals.

      Together, these topics demonstrate that financial literacy encompasses more than bookkeeping; it involves understanding how money moves, how value is created and measured, and how financial decisions impact a business's sustainability. Armed with this knowledge, you can critically interpret financial information and make more informed decisions about managing, investing in, or evaluating a business.

      In Unit 5, we will explore the fundamentals of business management.

    • Unit 4 Assessment

  • Unit 5: Management

    The management practices that a business adopts will inform how well it can achieve its goals and respond to changes in the workplace. Both for-profit and nonprofit companies achieve their goals by following the four steps of management: planning, organizing, controlling, and leading. The management process requires technical, conceptual, and interpersonal skills. Management also involves using human, financial, and informational resources. In this unit, we will explore how successful business management requires teamwork, communication, establishing a clear corporate mission and culture, adhering to good business ethics, and committing to social responsibility.

    This unit aligns with the following Course Learning Outcome:

    • explain leadership and management skills necessary for a successful business

    Completing this unit should take you approximately 16 hours.

    • 5.1: Defining Management

      Management is both an art and a science. It involves coordinating people, resources, and processes to achieve organizational goals. However, management encompasses more than just giving orders or overseeing tasks. It also involves vision, planning, leadership, and adaptability in changing environments. In this section, you will explore how management is defined, how it has evolved, and what modern managers must understand and do.

      Grasping the essence of management and the characteristics of effective management provides a solid groundwork for delving into leadership, strategy, operations, and organizational behavior.

    • 5.2: The Role of Human Resource Management

      People are an organization's most valuable asset. Even the best strategies can falter without talented, motivated employees working together. Human resource management (HRM) is the discipline in which organizations recruit, develop, motivate, and retain their workforce, aligning HR practices with business goals. As the modern workplace evolves, the role of HR has expanded from providing administrative support to forming strategic partnerships.

      With this in mind, it's clear that HR is not just a support department; it's a vital contributor to sustained organizational success.

    • 5.3: Teamwork and Communications

      In today's workplace, few organizational goals are achieved in isolation. Whether you're working on a project, solving a problem, or implementing a strategy, success usually depends on effective teams and strong communication. This section explores how people coordinate, interact, and exchange information to accomplish shared goals.

      Understanding how teams operate and communicate is foundational because, in nearly every organization, the ability to work well together and share ideas effectively turns plans into results.

    • 5.4: Forming a Corporate Mission and Culture

      A company's mission and culture are foundational elements that guide decisions, shape behavior, and anchor identity. They are more than inspirational platitudes. The mission defines the organization's purpose and goals, while the culture describes its values and how people interact within it.

      Together, the mission and culture provide a unifying purpose and guide everyday choices. The resources ahead will show you how well-crafted missions and cultures can differentiate organizations and provide a sustainable competitive advantage.

    • 5.5: Business Ethics

      An organization's mission and culture are its guiding compass and social framework. The mission explains why the company exists and what it hopes to accomplish, while the culture reflects how people behave and interact internally to fulfill that mission. Together, they give meaning to daily work, influence decision-making, and shape stakeholder perceptions.

      Mission and culture are the invisible threads that tie strategy to everyday actions. In this section, you will learn how to thoughtfully shape and nurture them to build cohesive, purposeful, and resilient organizations.

    • 5.6: Concepts in Business Law

      Business doesn't happen in a vacuum. It operates within a framework of legal rules and principles that define rights, obligations, and remedies. A foundational grasp of business law is essential for managers and entrepreneurs alike to ensure that agreements are enforceable, risks are managed, and disputes are resolved appropriately. The legal environment establishes the boundaries within which commerce operates.

      While a working knowledge of business law won't make you a lawyer, it will help you think more safely, negotiate smarter, and spot pitfalls before they become crises.

    • Unit 5 Conclusion

      Throughout this unit, you explored the fundamental elements that influence how organizations function, lead, and achieve success. You began by defining management and learning that effective management blends planning, organizing, leading, and controlling in order to align people and resources toward shared goals. Then, you studied human resource management, which emphasized the importance of recruiting, developing, and supporting employees as the foundation of organizational performance.

      The study of teamwork and communication showed that collaboration and clear information flow are vital for productivity, problem solving, and innovation. Then, you examined how a clear organizational purpose and shared values guide behavior, unify employees, and strengthen identity.
      Finally, you learned about the legal environment in which organizations operate, ensuring fairness, accountability, and compliance in all business activities.

      Together, these topics illustrate that organizational success depends on more than just strategy: it stems from strong leadership, effective communication, a people-centered approach, ethical grounding, and a well-defined sense of mission. These are the building blocks of responsible and resilient organizations.
      That is all the units for this course. Let's take a look at the course conclusion.

    • Unit 5 Assessment

  • Course Conclusion

    Congratulations on finishing the course! You have explored the fundamental principles that influence how businesses begin, expand, and flourish, from management and marketing to finance, law, and human resources. You now have the tools to think critically, make informed decisions, and understand how all parts of a business come together to create value.

    Throughout the course, you explored essential business concepts, language, and systems. Starting with the fundamentals, you examined how organizations operate, the forces that influence economic activity, and the principles that guide decision-making. Next, you studied how entrepreneurship and small businesses drive innovation, create jobs, and influence economic growth. You also learned how to evaluate a firm's profit potential through careful financial analysis.

    Then, you explored the frameworks that enable businesses to flourish within broader economic and legal systems. By studying economic indicators, policy components, and business law, you learned how government actions, regulations, and market dynamics work together to promote stability and fairness.

    The course also guided you through the inner workings of business functions, including management, human resources, marketing, and accounting. You learned that effective management requires coordination, control, leadership, and communication. Through human resource management, you learned that people are at the heart of every organization. Teamwork and communication revealed that collaboration is essential to achieving shared goals. Lessons on corporate mission and culture emphasized that successful organizations are grounded in clear purpose and shared values. Studies in marketing, consumer behavior, and product strategy showed you how businesses connect with customers and deliver value.

    Finally, you gained a foundational understanding of financial systems. You learned about accounting statements, ratio analysis, the role of banks, and financing options. You also developed the ability to interpret and apply financial information to make informed decisions.

    Together, these topics provide a comprehensive picture of how businesses operate, adapt, and succeed. You now have a working knowledge of key business concepts and a growing business vocabulary. You are also better able to think critically about real-world challenges. Whether you plan to start your own venture or work within an established organization, the skills and insights you gained here will help you analyze problems, make informed decisions, and lead with confidence: qualities shared by great business minds like Warren Buffett, Steve Jobs, and Jeff Bezos.

    Before taking the final exam, review the study guide. It will help you revisit key concepts, definitions, and examples that summarize what you've learned. Reflect on how these ideas apply to real-world organizations, or even your own future business plans.

    When you're ready, take the final exam with confidence. You've built a strong foundation in business thinking and practice, and this is your opportunity to demonstrate your progress. Remember, every successful entrepreneur and leader started where you are now: learning, preparing, and taking the next bold step forward.

    You've got this – good luck!

    If you found this course interesting, check out the following courses from the Business Administration catalog at Saylor University:

    • BUS204: Business Statistics is useful for building analytical skills that underpin financial analysis, market research, and performance measurement.
    • BUS210: Business Communication reinforces writing, speaking, and communication skills in a business context.
    • BUS250: Introduction to Business Intelligence and Analytics teaches you how businesses use data, analytics, and information systems to make decisions.
    • BUS305: Small Business Management focuses on entrepreneurship, business planning, and managing small ventures. 
    • BUS503: Foundations of Entrepreneurship offers a deeper exploration of entrepreneurial thinking and planning.
    • BUS610: Advanced Business Intelligence and Analytics will be great if you want to go deeper into data-driven strategies and decision-making processes.
  • AI Learning Zone

    Welcome!

    Have you used the AI tutor in this course yet?

    AI tools can help you understand course content, practice for the exam, and explore how ideas from this course apply beyond the classroom.

  • Study Guide

    This study guide will help you get ready for the final exam. It discusses the key topics in each unit, walks through the learning outcomes, and lists important vocabulary. It is not meant to replace the course materials.

  • Certificate Final Exam

    Take this exam if you want to earn a free Course Completion Certificate.

    To receive a free Course Completion Certificate, you will need to earn a grade of 70% or higher on this final exam. Your grade for the exam will be calculated as soon as you complete it. If you do not pass the exam on your first try, you can take it again as many times as you want, with a 7-day waiting period between each attempt. Once you pass this final exam, you will be awarded a free Course Completion Certificate.

  • Saylor Direct Credit

    This course is recommended for college credit by the American Council on Education (ACE), and you must complete this Saylor Direct Credit Final Exam if you plan to use the credit recommendation. 

    You can take this exam at any time. Upon passing, Saylor University will review your exam session and email you within three business days with details on how to claim your badge from our ACE partner Credly, which will allow you to send an electronic transcript to any recipients you choose.

    Before attempting this exam, you should review the Saylor University credit program details at www.saylor.org/credit, where you will find information on proctoring, transcripts, and earning college credit with American Council on Education (ACE) credit recommendations.

    Exam details:

    • This exam is closed-book (any allowed materials will be provided in the proctoring session).
    • You have up to two hours to complete this exam.
    • You have up to three attempts to pass this exam.
    • You must wait 14 days between each attempt.
    • The passing score is 70% or higher.
    • Your grade is calculated as soon as you complete your exam.

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    • This exam must be taken using the SmarterProctoring automated proctoring software.
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    • Technical requirements:
      • Desktop or laptop computer
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      • Complete requirements at www.saylor.org/requirements

    Saylor University support staff review recordings and exam records to maintain exam integrity. Please see the Student Handbook's Academic Code of Conduct for additional details. Contact the Student Affairs team with any questions you might have.

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    Please take a few minutes to give us feedback about this course. We appreciate your feedback, whether you completed the whole course or even just a few resources. Your feedback will help us make our courses better, and we use your feedback each time we make updates to our courses. If you come across any urgent problems, email contact@saylor.org.