BUSETH MIDTERM Flashcards
Involves significant operations such as buying assembling, distributing, advertising, selling, and accounting
Business
-Term used in businesses
-Primary goal of business owners in establishing a business
Profit
3 Types of Business Organizations
Service Businesses
Merchandising Businesses
Manufacturing Businesses
Provides services than products
Service Businesses
-Resellers
-Buy-and-sell
Merchandising Businesses
-Produces the products sold
-Turns basic inputs into products
Manufacturing Businesses
-One-person business
-Owner has full control over the finances and
Sole Proprietorship
When a business needs help from persons who can fund the equipment/stores needed
Partnership
- Double taxation
- Relies on the corporate laws of the state; incorporated to continue its existence
- Large organizational chart: president, owners, managers, marketing department, advertising department, production department, and clients
Corporation
Rules, processes, and relationships that guide how a company is being directed; blueprint
Business Ethics
An ethical theory in which individuals are accountable for fulfilling their civic duty and the actions of an individual must benefit the whole of society
Social Responsibility
Describes how businesses are structured and how their structure helps them to meet their goals
Business Organization
Single sentence or very short paragraph
-Explains an organization’s existence, what it does, and for whom
Mission
Single sentence that defines the desired image or legacy of an organization at a point, far into the future
Vision
Measured with indicators (i.e. employment rate, level of employment, life expectancy)
Socio-Economic Development
Rule, belief, or idea that guides you
Has many definitions; core principles has one accurate meaning
Principles
Commandments, pillars, or habits that guide your decisions and actions
Core Principles
Must be seen within the organization, in all employees
Must be shown in consumers
Principle of Fairness
Fair result
Has no criteria
Result deserved with more effort
Substantive Fairness
Fair procedures
Has a criteria
Procedural Fairness
Admit mistakes/achievements
Requires the person to take full responsibility for what to do with the personal data and how to comply with the other principles
Have appropriate measures and records in place to be able to demonstrate compliance
Principle of Accountability
Full and honest accounting of all facts, information, and context essential to ensuring an informed and equitable decision-making process
Principle of Transparency
Position and duties of a steward or person who acts as the surrogate of others
Stewardship
Defines success of the organization; establishes a strong foundation for the company and grows the market share
Organizational Practice/Common Practice
3 definitions of practices
- An actual application or use of an idea, belief, or method, as opposed to theories (e.g. superstitious belief)
- Exercising the skills repeatedly/regularly to improve/maintain proficiency (e.g. perfect practice makes perfect)
- Profession (e.g. practicing medicine)
Produces results that are superior to those achieved by other means
Best Practice
8 Common Practices
- Decorum
- Protocol
- Policies
- Advertising
- Marketing
- Bookkeeping
- Reportorial Requirement
- Documentation
A correct or proper behavior that shows respect and good manners
Decorum
Unwritten rules/guidelines
Case-to-case basis
Not posted to public
Protocol
Written rules that are well-known among employees
Posted to public
Scope or spheres within which decisions can be taken by the subordinates in an organization
Policies
How companies encourage people to buy their products, services, and ideas
Advertising
Process of product development as well as sales, promotion, and distribution
Marketing
Process of recording all financial transactions to keep track of cash flow
Bookkeeping
Public reporting
Reporting any financial data by a business enterprise
Reportorial Requirement
Process and items which serve as evidence for the validity or truth of a certain claim or statement
Documentation
Accurately representing facts
Telling truth in its entirety
Communicating clearly and openly about everything a company does and says
Transparency
Sticking with a decision, especially when pressured to do otherwise
Integrity
Companies that keep promises and fulfill commitments to their employees, business partners, and customers
Trustworthiness
Encompasses all relationships a business has (incl. staff, partners, investors, consumers)
Allows a business to make decisions benefiting these relationships and to overcome influences from outside conflicting interest
Loyalty
Acting fairly and committing to exercising their power justly
Leaders should use honorable methods to gain advantages over the competition
Equality
Demonstrate genuine kindness, understanding, and care for the livelihood of others
Business decisions are made with careful consideration of the options and how each one may affect a person or community to reduce the potential negative impacts
Compassion
Treat all humans with respect regardless of religion, sex, race nationality or other signifier
Respect
Work within the boundaries of the legal system are more credible and honorable
Establish a strong positive reputation as an employer that encourages high-quality candidates to apply for roles
Lawfulness
Lead with the values and mission of the organization
Responsibility
Accept responsibility for all decisions made as a company
Accountability
