What is ethics?
A set or moral principles or values that govern behavior.
Why are ethics important in business?
It reflects a company's beliefs about what actions are appropriate and fair among people. They develop ethics to determine how to behave.
What is a "Code of Ethics?
A document that outlines the principles of conduct to be used in making decisions within the organization.
What are at least 6 different items that can be included in the Code of Ethics for a company?
1: Health and safety in the workplace2: Conflicts on interest3: Selling and marketing practices4: Political activities5: Protection of the environment6: Security
To be effective, Codes of Ethics must be ______
enforced
Behaving unethically can ______ a person's career.
hurt, or even end
What could happen to businesses that behave unethically?
It can cause a business to lose millions of dollars or even go out of business.
What are three examples of a break in the code of ethics?
1: Employee theft2: Lying about hours worked3: Falsifying records
What are ethical dilemmas?
Situations in which the ethical course of action is not clear.
What are five questions you can ask yourself to help you solve an ethical dilemma in the workplace?
Have you defined the problem accurately?How would you define the problem if you stood on the other side of the fence?Whom could your decision or action injure? Can you discuss the problem with the affected parties before you make your decisions?Are you confident that your position will be as valid over a long period of time as it seems now?Could you disclose without qualm your decisions or action to your boss, your CEO, the board of directors, your family, and society as a whole?
Ethical dilemmas arise _____ in the business world.
regularly
What is the Sherman Act?
The purpose of the law is to ensure that companies remain able to compete fairly
What is the Clayton Act of 1914?
Makes it illegal to charge different prices to different wholesale customers. Bans the practice of requiring a customer to purchase a second good.
What is the Wheeler Act of 1938?
Bans unfair or deceptive acts or practices, false advertising.Businesses must inform consumers of possible negative consequences of using their products.
What does the Federal Food, Drug, and Cosmetic Act ban?
Bans the sale of impure, improperly labeled, falsely guaranteed, and unhealthful foods, drugs, and cosmetics
What did the Consumer Product Safety Commission establish?
Minimum product safety standard on consumer products
What did the Truth in Lending Act of 1968 accomplish?
Creditors are required to let consumers know how much they are paying in finance charges and interests
The Federal Food, Drug, and Cosmetic Act, the Consumer Product Safety Commission, and the Truth in Lending Act of 1968 are all considered ____
consumer protection
The National Environmental Policy Act of 1969 created the ______whose mission is to protect human health and safeguard the air, water, and land.
environmental protection agency (epa)
The clean Air Act of 1970 regulates _____.
air emissions
What does the Toxic Substances Control Act of 1976 allow?
Gave the EPA the ability to track the 75,000 industrial chemicals currently produced in or imported into the US
What does the Clean Water Act of 1977 accomplish?
Gives the EPA the authority to set standards on the type and quantity of pollutants that industries can put into bodies of water.
Business practices around the world are _____. This means that business managers must be ____ of different standards before conducting business with other countries.
different. aware
Are U.S. Government officials allowed to accept corporate gifts?
no
What is intellectual property?
Refers to ownership of ideas, such as inventions, books, movies, and computer programs
What is Social Responsibility?
Refers to the obligation that individuals or businesses have to help solve social problems.
_____ _____ occurred in the 19th century and early 20th century when businesses believed their role was simply to maximize profit.
Profit maximization
____ _____ occurred in the 1920s and 1930s when businesses recognized they had obligations to their employees, their customers and their creditors.
Trusteeship management
____ ____ occurred during the 1960s when people began to believe that corporations should use their influence and financial resources to address social problems.
Social involvement
What are four examples of stakeholders for a company?
employeescustomerssupplierscommunity
____ ____ is a review of a business's social responsiveness.
Social audit
What are three ways companies support their employees to give back to the community?
Donate bloodFood and clothing drivesUnited way
What are four ways to support environmental awareness?
Limiting the damage their operations cause to the environmentEncourage carpoolingEstablishing policies that reduce pollutionUsing biodegradable products and refillable containers
Companies should maintain a(n) ___ ___ ___ that reflect the societies in which they operate.
ethnically diverse workforce
What are three policies a company can adopt to help with their workers' quality of life?
Flexible work hoursOnsite daycareMoney
3 reasons an entrepreneur needs to understand market?
1: pick correct market/pricing2: reasonable plan3: study various factors that shape/contribute
5 levels of Maslow's Hierarchy of Needs?
physiological: food sheltersafety and security: employment, health, propertylove and belonging: relationshipsself-esteem: respectself-actualization: reaching full potential
two types of economic wants?
material goods (clothing, house), services (lawncare)
_____ are the means through which goods and services are produced
economic resources
products you can see and touch are ____
goods
activities that are consumed as they are produced _______
services
Four factors of production?
natural- raw materials supplied by naturelabor- people who create good/service capital- assets used in the production of goods/serviceentrepreneurs
3 examples of labor resources
agriculture, manufacturing, distribution
3 examples of capital resources
buildings, equipment, supploes
how do entrepreneurs play a role in supply/demand?
they supply goods and services to meet demand
how do entrepreneurs play a role in capital investments and job creations?
use money for equipment/employees which gives opportunities to community
entrepreneurs who create products that change the way people live and conduct business are _____
change agents
3 questions all economics must answer?
what goods and services will be produced?how will the goods and services be produced?for whom will the goods and services be producted?
The government determines what, how, and for whom goods and services are produced is ____ economy
command
Individuals and business decide what, how and whom goods and services are produced is _____ economy.
market
Goods and services are produced the way they have always been produced is ____ economy.
traditional
When elements of the command and market economies are combined is ____ economy
mixed
what creates or obtains products or services for sale?
Production
What attracts as many customers as possible?
Marketing
What operates your business smoothly with developing and implementing your business ideas?
Management
What is planning and managing the financial records and functions of the business?
fiance
what is function of management?
operates your business smoothly with developing, implementing your business
____ and ____ determine the quantities and prices of goods and services produced.
consumers, producer
What is the quantity of a good or service a producer is willing to produce at different prices?
Supply
What is the quantity of a good or service that consumers are willing to buy at a given price?
Demand
the point which the supply and demand curves meet is known as _____ ____
equilibrium price/quantity
What do entrepreneurs have to consider when settling their prices?
Goods and services they are offering to determine price.Resources such as an office, materials, labor, and equipment.
What are cost that must be paid regardless of how much a good or service is produced?
fixed
What are costs that go up and down depending on the quantity of the good or service produced?
Variable
What is the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service?
Marginal Benefit
What is the cost added by producing one additional unit of a product or service?
Marginal Cost
what are the four major market structures?
perfect competition, monopolistic competition, oligopoly, monopoly
___ competition consists of a very large number of businesses producing nearly identical products and has many buyers.
perfect
___ competition has a large number of independent businesses that produce goods and services that are somewhat different.
monopolistic
___ competition when a market is dominated by a small number of businesses that gain the majority of total sales revenue.
Oligopoly
___ competition where there is only one provider of a product or service.
Monopoly
What is a business plan?
is a written document that describes all the steps necessary for opening an operating a successful business.
What are three purposes of a business plan?
1: explains the idea behind your business and spells out how your product or service will be produced and sold2: Sets specific objectives and describes how your business expects to achieve them3: Describes the backgrounds and experience of the leadership team
What are five reasons a business plan is important?
Business plans are documents used for planning out specific details about your business.A business plan makes you think about all aspects of your business.It may help your secure financing for your business.Helps you communicate your ideas to others.A business plan can serve as a tool for managing your business.
What are five different things a business plan describes?
the nature, visions, goals, objectives, etc. of your businessWho will run and supply your businesshow your business will win over customers and beat competitiondetailed financial information on how your business will make profitplans for future growth
Every business has a business plan, but they are not all ________________.
alike
The five basic sections of a business plan are:
IntroductionMarketingFinancial ManagementOperationsConcluding Statement
The introduction of a business plan includes what four parts?
The advantages you and your business have over your competition.The skills and experience you bring to the business.The ownership of the business and legal structure.A detailed description of the nature of the business and its goals.
The ______________ section of a business plan describes your products or services, and explains how they differ from those already on the market.
marketing
The marketing plan also explains how to:
Explain who your prospective customers are, how large the market in, how you plan to enter the market, and deal with competition.Describe the industry in which you will operate.Explain the location of your business.
Financial management helps you identify any ___________ to your business and how you plan to deal with it.
risk
Financial management also includes your _________________________.
projected financial statements.
In the financial section, you'll include how much _____________ you need to borrow, and how you plan to ______________________________________.
money, use the money
What is the operations part of the business plan?
Explain how the business will be managed day-to-day basis and discuss hiring and personnel procedures.
The operations section includes your ___________ and lease or rental agreements.
information on insurance
The operations section also includes the _______________ you need to make or produce your product.
equipment
What is an exit strategy?
he way an entrepreneur intends to extract, or harvest, his or her money from a business after its operating successfully.
What are the two goals of your concluding statement?
Summarize the goals and objectives you have for your business.Emphasize your commitment to the success of the business.
What five items go in the introductory section of a business plan?
Cover LetterTitle PageTable of ContentsStatement of PurposeExecutive Summary
What is an executive summary?
Cover LetterTitle PageTable of ContentsStatement of PurposeExecutive Summar
The executive summary needs to be _____________ pages long.
03-Feb
What are three examples of online resources you can use when creating a business plan?
Internet, business website, competition websites
What are three examples of government or professional resources you can use when creating a business plan?
SBA, Chamber of Commerce, Trade Associations
Public libraries, magazines, and government documents are examples of ___________ resources.
paper
What are six mistakes people make when creating a business plan?
1: Unrealistic Financial Projections.2: An undefined target market.3: Poor research.4: Ignored competition.5: Inconsistencies in the business plan.6: The people who are considering investing don't understand your vision or think it's profitable.
What are seven tips to make your business plan successful?
Know Your Competition and Audience.Have proof of all claims.Be Realistic with time and resources available.Have a strong team.Document how your idea will work.Be logical.Describe your facilities and location for performing the work.