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30 Cards in this Set

  • Front
  • Back
Beliefs about what's right and wrong
Ethical Behavior
Behavior conforming to individual beliefs and social norms about what's right and good
Unethical Behavior
Behavior conforming to individual beliefs and social norms about what is defined as wrong and bad
Business Ethics
The ethical or unethical behaviors by employees in the context of their jobs
Sources of Personal Codes of Ethics
Childhood responses to adult behavior 2) influence of peers 3) experiences in adulthood 4) developed morals and values
Managerial Ethics
The standards of behavior that guide individual managers in their work
Behavior affected by Ethics

The Organization

Other Economic Agents
Social Responsibility
The oveall way in which a business attempts to balance its commitments to relevant groups and individuals (stakeholders) in its social environment
Organizational Stakeholders
Groups, individuals, and organizations that are directly affected by the practices of an organization and, therefor, have a stake in its performance
Concept of Accountability
The expectation of an expanded role for business in protecting and enhancing the general welfare of society
Responsibility Toward the Environment
Controlling air, water and land pollution

Properly disposing of toxic waste

Engaging in recycling
Form of unfair pricing:

When two or more firms agree to collaborate on such wrongful acts as price fixing
Price Gouging
Form of unfair pricing:

Responding to increased demand with overly steep (and often unwarranted) price increases
Obstructionist Stance
A company does as little as possible and may attempt to deny or cover up violations
Defensive Stance
A company does everything required of it legally but no more.
Accomodative Stance
A company meets its legal and ethical requirements and also goes further in certain cases
Proactive Stance
A company actively seeks to contribute to the wellbeing of groups and individuals in its social environment
Small Business
A business that is independent (not part of a larger business) and has relatively little influence in its market
The process of seeking business opportunities under conditions of risk
One who accepts the risks and opportunites of creating, operation and growing a new business
Small business owner
Does not always have growth of the business as a primary entrepreneurial goal
Business Plan should Address
Goals and Objectives

Strategies that will be used to obtain them

Implementation of the chosen strategies
Advantages of Sole Prop.

Simple to Form

Low start-up

Tax benefits

Formation of coops
Disadvantages of Sole Prop.
Unlimited Liability!

Limited resources

Limited fundraising capability

Lack of continuity
Advantages of Partnerships
More talent and money

More fund raising capability

Relatively easy to form

Liited liabilty for limited partners

Tax benefits
Disadvantages of Partnerships
Unlimited liability for general partner

Disagreements among partners

Lack of continuity
Advantages of Corporations
Limited Liability


Stronger fund raising capability
Disadvantages of Corporations
Double taxation of dividends

Fluid Control

Complicated and expensive to form
Strategic Alliance
Two or more organizations collaborate on a project for mutual gain
Joint Venture
Partners share ownership of a new enterprise