Bussiness And Community Flashcards
What is corporate social responsibility?
Is the reporting of societal and environmental impacts of a business’s activities.
What is a stake holder?
Stakeholders are those parties that have interests on various effects businesses may have.
Most imitate stake holder is an owner.
List 3 benefits of corporate social responsibility
Favourable perception from others
Compliance with gov regulations
Possible future business opportunities through improved products or process
Explain the cost of csr
Direct costs eg new process
Additional staff and equipment for reports.
Indirect cost eg loss of competitiveness.
Ethical behaviour is…
Concerned with correct moral behaviour and displaying distinction between right and wrong.
List 3 ways why a business acts unethical
Self deception - everybody does it Self indulgence - doing it for 'someone' Self protection Self righteousness- always right Faulty reasoning
3 Types of ethical Delmas
Conflict of interest Confidentiality Making use of financial info for personal gain. Using company assets for personal gain. Evade or reduce tax Manipulation of financial information
Insolvency can occur due to (7)
Overstocking Poor budgeting Poor credit policy (^acc rec) Poor record keeping Excessive debt compared to equity Lack of internal control Poor cash flows due to lack of sales
Define bankruptcy
When an individual is unable to pay private or business debts owing.
What is receivership?
The position of a company when a secured creditor applies to the court for a receiver to be appointed when a company may not be able to pay debts.
Explain insolvency
Insolvency occurs when a business’s liabilities are great than value of assets and is unable to repay debts as they are due.
Explain liquidation
Liquidation occurs when a companies wound up. Assets are sold for cash creditors are paid and shareholders receive what remains.
