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41 Cards in this Set

  • Front
  • Back
if increase taxes:
less spending
if decrease taxes:
more spending
cost of money
Capitalism: (Adam Smith)
1. right to private ownership
2. entitled to all profits
3. freedom of choice
4. fair competition
1. state owns basic non-profit businesses; some private industries exist
2. profits exist only in private sector
3. government can influence one's job choice
1. state owns all industries
2. profits are not officially recognized
3. state decides one's occupation.

put in what you can, you'll get out what you need
Profit Business
main goal:
increase wealth of owner
Non-Profit Business
Main goal:
provide good to society
Government Business
Main Goal:
Security of Nation
Profit formula
Intristic Compensation
doing something for less $
Adam Smith's 4 rights in a free market
1. own property/land
2. make a profit
3. to compete
4. own
fiscal policy
use of government spending and taxes
to manipulate the economy
if government spending increases?
=more jobs
if government spending decreases:
=less jobs
study of relationships between

living things
their environment
nutrients that support them
areas of corruption being addressed by international agreements

air pollution

espionage--good corporate behavior
rules/standards that governs a business
ethical dilemma
both sides of an issue that can be supported by valid arguments
ethical lapse
an individual makes a decision that is illegal, morally wrong or unethical
people to whom the busines has a responsiblity to: employees, customers, investors, etc.
code of ethics
written statement that a business is going to do business by
3 steps businesses take to encourage ethical behavior
1. code of ethics
2. hire an ethics officer
3. ethics hot line
social responsibility
a business has certain obligations to society other than the pursuit of profit
social audit
assessment of a company's performance in the area of social responsibility
determining what is ethical
1. religious teaching
2. is it legal
3. is it fair to all
4. does it make me feel good
5. will it actually work in the real world
3 activities in which socially responsible business might engage
1. social audit
2. cause-related marketing
3. philanthropic
cause-related marketing
portion of sales helps worthy causes
giving of time, money, and goods to

humanitarian institutions
environmental institutions
business responsibilities to society
1. employees
2. customers
3. investors
4. society
air, water, land
damage to/destruction of natural environment by harmful substances
industrial symbiosis
some companies work together in a mutally advantageous relationship by one donating their waste product to one who uses it for fuel or raw materials
activities to air pollution
1. epa: environmental protection agency

2. some states pass own laws

3. recycling & safely disposing of hazardous materials
affirmative action
activities undertaken to recruit women/minorities based on analysis of workforce and available labor pool
5 actions to take to address environmental problems
1. measure environmental performance
2. research long-term cost before using materials
3.consider this part of daily business operation/operating decisions
4.conduct training/awareness programs
5.tie compensation to environmental performance
pressures business to consider consumer interests/needs
diversity initiatives
1. co. policy designed to enhance opportunities for minorities
2. promote understanding of diverse cultures, customs, talents
4 rights of consumer
1. safe product
2. be informed
3. to chose which products to buy
4. to be heard
responsibility to investors
1. accurately represent investment
2. accurately give what belongs to shareholders
3. keep quest for profits above board
insider trading
attempt to benefit from stock market fluctuations by using unpublished info gained on the job
denial of opportunities on the basis of some characteristic that has no bearing on their ability to perform a job.