BUS 101 Test 2 Study Guide Flashcards
A set of beliefs about right and wrong, good and bad
Ethics
Ethical norms that apply to all people across a broad spectrum of situations
Universal Ethical Standards
The application of right and wrong, good and bad, in a business setting
Business Ethics
A situation in which a difficult choice has to be made between two courses of action, either or which entails transgressing a moral principle
Ethical Dilemma
A formal, written document that defines the ethical standards of an organization and gives employee the information they need to make ethical decisions across a range of situations
Code of Ethics
Employees who report their employer’s illegal or unethical behavior to either the authorities or the media
Whistle-blowers
The obligation of a business to contribute to society
Social Responsibility
Any groups that have a stake—or a personal interest—in the performance and actions of an organization
Stakeholders
A social movement that focuses on four key consumer rights: (1) the right to be safe, (2) the right to be informed, (3) the right to choose, and (4) the right to be heard
Consumerism
All business donations to nonprofit groups, including money, products, and employee time
Corporate Philanthropy
Marketing partnerships between businesses and nonprofit organizations, designed to spike sales for the company and raise money for the nonprofit
Cause-related Marketing
Business contributions to the community through the actions of the business itself rather than donations of money and time
Corporate Responsibility
Economic development that is conducted without depletion of natural resources
Sustainable Development
A systematic evaluation of how well a firm is meeting its ethics and social responsibility goals
Social Audit
The transmission of relevant information between a sender and a recipient
Communication
Any interference that causes the message you send to be different from the message your audience understands
Noise*
Obstacles to effective communication, typically defined in terms of physical, language, body language, cultural, perceptual, and organizational barriers
Communication Barriers
Communication among people with differing cultural backgrounds
Intercultural Communication
Physical appearance of documents, room temperature, or seating
Physical
Different languages, slang, or jargon, or accents
Language
Eye contact, crossed arms, or facial ticks
Body Language
Point of view or influence of agenda
Perceptual
Unspoken rules, hierarchy, or location
Organizational
Interaction behaviors, dress, gender or socioeconomic hierarchy traditions, or food
Cultural
Indicates integrity, trust, and respectful attention
Eye contact
May indicate mood and contribute to effectiveness through variation
Tone of Voice
Conveys various emotions, level of agreement, as well as comprehension
Facial Expression
Conveys level of authority, confidence, and coherence
Gesture/posture
Communication Channels
The various ways in which a message can be sent, ranging from one-on-one in-person meetings to internet message boards
Texting, Memos/Reports, Email, Voice Mail, Telephone Conversation, Video-conferencing, In-person Presentation, Face-to-Face meeting
Types of Communication Channels
Vibrant, compelling presentation delivery style that grabs and holds the attention of the audience
Dynamic Delivery
The business is owned by a single individual
Sole Proprietorship
Two or more people serve as co-owners of the business
Partnership
The business is a separate legal entity
Corporation
A hybrid with characteristics of both a corporation and partnership
Limited Liability Company
Ease of formation
Retention of control
Pride of ownership
Retention of profits
Possible tax advantage
Advantages of Sole Proprietorships
Limited financial resources
Unlimited liability
Limited ability to attract and maintain talented employees
Heavy workload and responsibilities
Lack of permanence
Disadvantages of Sole Proprietorships
Ability to pool financial resources
Ability to share responsibilities and capitalize on complementary skills
Ease of formation
Possible tax advantages
Partnership Advantages
Unlimited liability
Potential for disagreements
Lack of continuity
Difficulty in withdrawing from a partnership
Partnership Disadvantages
Represented by shares of stock
Ownership
An owner of a corporation
Stockholder
The individuals who are elected by stockholders of a corporation to represent their interests
Board of Directors
Limited liability
Permanence
Ease of transfer of ownership
Ability to raise financial capital
Ability to make use of specialized management
Corporation Advantages
Expanse and complexity of formation and operation
Complications when operating in multiple states
Double taxation of earnings and additional taxes
More paperwork and regulation and less secrecy
Possible conflicts of interest
Corporation Disadvantages
One firm buys another firm
Acquisition
Two formerly independent business entities combine to form a new organisation
Merger
Combination of firms in the same industry (Airlines or Pharmacies)
Horizontal Merger
Combination of firms that are at different stages in the production of good or service, creating a buyer-seller relationship (IKEA)
Vertical Merger
Combination of firms in unrelated industries (Clorox)
Conglomerate Merger
A licensing arrangement under which a franchisor allows franchises to use its name, trademark, products, business methods, and other property in exchange for monetary payments and other considerations
Franchise
Less risk
Training and support
Brand recognition
Easier access to funding
Franchising Advantages
Costs
Lack of control
Negative halo effect
Growth challenges
Rstrictions on sale
Poor execution
Franchising Disadvantages
