2.2 Ethical And Environmental Consideration

Question 1

Ethics

Answer 1

Ethics refers to whether a business decision is thought to be morally right or wrong. An ethical decision is made on the basis of what is judged to be morally right.

Question 2

Profit

Answer 2

Profit measures the difference between the values of a business’s revenue (sales) and its total costs.

Question 3

Fair trade products

Answer 3

Fair trade products are those for which customers pay higher prices and offer better trading terms, such as payments with orders. The aim is to improve the living standards of people in poorer countries where the products are produced.

Question 4

Social responsibility

Answer 4

Social responsibility is an approach to managing businesses in which the interests of all groups in society are taken into account when making decisions

Question 5

The environment

Answer 5

The environment is the natural world in which we live. It is the landscape and its natural features such as the seas, rivers, forests and mountains.

Question 6

External costs

Answer 6

External costs of production arise when a business’s activities result in harmful effects on other people not directly involved in production.

Question 7

Non-renewable

Answer 7

Non-renewable resources are those of which only a limited amount exists such as coal and oil.

Question 8

Global warming

Answer 8

Global warming is the gradual heating of Earth’s surface, oceans and atmosphere.