BUSSINESS FI 2ND MIDTERM Flashcards
It is an entity in which economic resources or inputs,
such as materials and labor, are put together and
processed to provide goods or services or outputs to
customers
Business
usually complex enterprises involving
major activities like purchasing, manufacturing,
marketing, advertising, selling, and accounting.
Business
The objective of most businesses is
to earn profit
three types of business
organizations operated for profit
service, merchandising, and manufacturing
businesses
an area of business such as banking or
insurance that provides a service but does not produce
anything.
Ex: hotels, restaurants, bars, salon, contact centers
companies that buy products and then resell
them to end consumers
Merchandising business
Ex: clothing business, drug stores, and grocery stores
Merchandising business
they create products rather than providing services.
Manufacturing businesses
Ex: automotive companies, bakeries, shoemakers, and tailors
manufacturing
The 3 forms of business
sole proprietorship , Partnership, Corporation
business owned by one person.
Sole proprietorship
s an association of two or more people as partners.
partnership
also refers to an arrangement in which the individuals share profits and
liabilities of a business venture.
partnership
an entity created by law that is separate and
distinct from its owners and its continued existence is dependent upon the
corporate statutes of the state in which it is incorporated
Corporation
Most large businesses
are organized as
corporation
The Advantages of Corporation
Limited personal liability
Increased ability to raise funds
Unlike other forms of business, corporations are entities that are separate from their owners.
Because of this, shareholders are only liable to the extent of their individual investments.
Limited personal liability
- Since corporations may be made up of many investors who are attracted to this limited
liability investment, the ability to gain capital is far greater than those with few investors with unlimited liability
Increased ability to raise funds
The disadvantages of corporation
Costly to organize
Possible double taxation
- Unlike other business types, a corporation is a separate entity from its owners. Therefore, it has
extensive legal documentation and record-keeping requirements that can be very costly both during startup and ongoing
operations.
Costly to organize -
Unless structured as nonprofit corporation, corporate firms must pay taxes on all profits
retained as well as shareholders being required to pay income taxes on all distributions received as dividends.
Possible double taxation
the quality of making judgments that are
free from discrimination.
Fairness
Fairness comes from the old
English
Faeger
faeger, meaning
“pleasing, attractive
prohibits discrimination with respect to terms and conditions of
employment solely on the basis of sex
Republic Act No. 6725
such as the
minimum wage law and labor rights for workers,
ensuring that employees receive. a fair wage and
treatment
Fair labor practices
refers to the acceptance of responsibility for one’s
actions, decisions, and policies, and the expectation of accountgiving.
accountability
It is a quality or state of being accountable, and it implies a
willingness to accept responsibility or to account for one’s actions
accountability
the obligation to demonstrate that work has been
conducted in compliance with the agreed rules and
standards or to report fairly and accurately on
performance results vis-à-vis mandated roles and/or
plans
accountability
refers to the quality of being easily seen through, as well
as being open and honest in business or governance contexts.
transparency
requires disclosure of
all relevant information so that others can make informed decisions
transparency
allows an individual to be more
authentic and genuine in his/her relationships, to express
his/her points of view and to actively work to find shared
meanings and objectives
transparent approach
How to show transparency in a relationship
Honest Communication
Set Healthy Boundaries
Be Vulnerable
Be Accepting
Be Curious
Be Accountable
Be Trustworthy
Be Forgiving
Communicate openly and honestly with your
colleagues, sharing your thoughts, feelings, and concerns
honest communication
Establish clear boundaries and expectations with
your colleagues, and respect each other’s privacy.
set healthy boundaries
Share your fears, insecurities, and weaknesses with your
colleagues, and encourage them to do the same.
be vulnerable
Accept your colleagues for who they are, and avoid judging
or criticizing them
be accepting
Show interest in your colleagues’ life, and ask questions to
learn more about them.
Be Curious
Take responsibility for your actions and decisions, and
be willing to admit when you’re wrong.
be accountable
Follow through on your commitments
be trustworthy
Forgive your colleagues when they make mistakes, and
work together to find solutions to problems
be forgiving
How to display transparency in the workplace.
Lead by Example
Speak Honestly:
Disclose Information
Ask Questions
Provide Feedback
Stay Professional
Be Open to Feedback
Be the first to set the standard for transparency in the workplace. If
you expect your team to practice transparency, then you need to be open and honest
with them
lead by example
Communicate openly and honestly with your colleagues, sharing
information and insights that are relevant to their work
speak honestly
Provide your team with the details they need to understand the
situation, especially if your company gains negative attention for any reason
disclose information
Encourage open dialogue by asking questions and seeking feedback from
your team.
ask question
Offer constructive feedback to your team, and be open to receiving
feedback from them as well
provide feedback
it’s important to maintain
professionalism in all your interactions and communications.
stay professional
Create a safe and trusting environment where
employees feel comfortable expressing their ideas and opinions. Lead by
example by being open to feedback and encouraging a culture of open
communication
be open to feedback
articulate ethical parameters of the organization – what is acceptable or not
ethics codes
clarify the norms and values the organization seeks to uphold
ethics codes
differ from mission statements by articulating the value system and
answering the question “Within what ethical standards and values should the mission be
pursued?
ethical codes
state the principle that guide the cojmpany’s directors, officers and employees in the performance of their duties and responsibility
code of ethics
a set of principles and guidelines that outline the ethical standards and
best practices for a particular profession or organizatio
code of ethics
It is designed to help professionals conduct themselves in an ethical and responsible
manner, and to provide guidance on how to approach ethical dilemmas and decisionmaking.
codes of ethics
includes standards related to honesty, integrity, professionalism,
confidentiality, and respect for others
codes of ethics
This type of code of ethics focuses on ensuring that
employees adhere to laws and regulations.
Compliance-Based Code of Ethics
It emphasizes the importance of following legal
requirements in all business activities, especially in industries such as banking and finance
Compliance-Based Code of Ethics
A compliance-based code of ethics should provide clear and specific
guidelines for employees to follo
Precise Directives
The code should outline the processes and procedures for
implementing the compliance program.
Implementation Procedures
The code should specify the consequences of noncompliance with the rules and regulations
Sanctions for Non-Compliance
A compliance-based code of ethics should include mechanisms
for enforcing adherence to the code, such as regular audits, surprise inspections, and
employee reporting systems.
Enforcement Mechanisms
The code should ensure that the organization adheres to all relevant
laws and regulations, and it should be regularly updated to reflect changes in the legal
landscap
Legal Compliance
While a compliance-based code of ethics focuses primarily on
adherence to laws and regulations, it can also include value-based components, such as
promoting fairness, respect, and diversity.
value based components
The organization should communicate the code of ethics to
all employees, customers, and stakeholders, and provide training on its contents to ensure
understanding and compliance
Communication and Training:`
outlines the organization’s core
values and principles. It guides employees on how to make decisions based on the organization’s values, such as integrity, respect, and responsibility.
Value-Based Code of Ethics
specific to a particular
profession and outlines the ethical principles that govern decisions and behavior within that
profession. It provides guidance on handling issues like harassment, safety, and conflicts of
interest.
Code of Professional Practice
provides specific guidance on how
employees should behave in the workplace. It outlines the expected standards of behavior, such as
honesty, respect, and compliance with company policies.
Employee Code of Conduct
Philosophy, derived from the Greek word
Philosophia
This is considered the oldest philosophy of Western culture
idealism
it refers to the world of mind and ideas, where reason is primary.
idealism
this can be considered the antithesis of Idealism, whereby the Universe exists whether mind perceives it or not.
realism
This would date to the time of Thomas Aquinas (1225-1274) and is also known as theistic realism whereby “God exists and can be known through faith and reason”.
neo-theism
refers to the current era of Western philosophy, beginning in the early 20th century and continuing to the present day.
contemporary philosophy
is a philosophical tradition that emphasizes the practical consequences of beliefs.
pragmatism
means thinking of or dealing with problems in a practical way, rather than by using theory or abstract principles.
pragmatism
a philosophical tradition that focuses on the nature of human existence and the human condition.
existentialism
It is characterized by an emphasis on personal freedom, individual responsibility, and the search for meaning and purpose in life.
existentialism
is a philosophical tradition that emphasizes clarity of language, rigor in argumentation, and the use of formal logic and analysis.
analytic philosophy
He held that they are absolute, or eternal, in that they never change.
plato
He was appointed ‘ordinary’ professor of logic and metaphysics in Konigsberg.
immanuel kant
which simply mandates an action, irrespective of one’s personal desires.
“categorical imperative,
Father of Utilitarianism.
jeremy betham
family of normative ethical theories in which actions are prescribed to maximize happiness and well-being for the affected parties.
utilitarianism
Major contribution to utilitarianism is his argument for the qualitative separation of pleasures.
john stuart mill
considered the first major Christian ethical philosopher
augustine
equated with the achievement of wisdom
happiness
wrote Summa Theologiae and Summa Contra Gentiles
thomas aquinas
is essentially realist and concrete.
philosophy of St. Thomas
Thomas Aquinas involves a merger of at least two apparently disparate traditions:
Aristotelian eudaimonism and Christian theology.
which characterizes much of
market capitalism as we know it. With utilitarianism, actions are good
when they prove to have utility, that is to say, when they increase the
total sum of happiness in a given society
Consequentialist or teleological -
is a normative ethical theory that advocates actions that
maximize happiness or pleasure and oppose actions that cause
unhappiness or harm.
Utilitarianism
holds that
only intrinsic character of the action is relevant to evaluating it:
consequences do not matter, and neither do traditions or the agent’s
character.
Deontological or duty-based ethics
presented one of the earliest fully
developed systems of utilitarianism.
Jeremy betham
Benthams’s famous
formulation of utilitarianism is known as the
Greatest principle
possesses deep historical importance, and its roots can be
traced to such great ancient historians such as Socrates, Plato, and
Cicero.
Virtue ethics
widely viewed as the most
influential early work on virtue ethics. Aristotle pointed out that an
ultimate end for people must be one that is self-sufficient, final, and
attainable; he maintained that happiness is the goal that meets these
requirements. V
Aristotle’s Nicomachean Ethics i
in
virtue ethics is defined as some desirable character trait, suh as
courage, that lies between two extremes, such as rashness and
cowardice
Virtue
based on ethical standards.
Moral rights
emphasizes people’s character: an ethics
of virtues (and vices) focuses on the process of personal and moral
character developmen
Virtue approach to ethics
largely understood in its American sense, as what is
right and wrong in business
Business ethics
refers to some problem-solving techniques designed to
help practitioner when confronted with dilemmas
Business ethics
corresponds to a wide range of concept
pairs in Filipino.
Businesd ethics
The word ‘ethics’ derives from the
ēthikós
moral theory that focuses on the development of virtuous character
Virtue ethics
is a set of values that are
important to the majority of Filipinos, including a unique
combination of consistent ideologies, moral code, ethical
principles, etiquette, cultural and personal values, and others.
Filipino value system
Filipinos recognize their family as an important social structure that one must take
care of. They give importance to the safety and unity of one’s family. It is also common to
find the whole clan living in the same area and have extended family structure.
Pagkakabuklod - buklod
is a technique of reciprocity of debt of gratitude to others within the family circle or
primary group , sometimes unlimited in nature , emotional rather than financial
Utang na loob
Filipinos are taught to become respectful individuals. This is mainly due to the influence of
Christianity that tells us to honor both our parents and our elders. The use of ‘’po’’ and
‘’’opo’’ in conversation and “mano
Galang
Filipinos are religious. They believe so much in supernatural powers and taught them to
trust prayers rather than hard work in the realization of their dreams. Succes is
considered a blessing from abov
Pagkarelihiyoso
Denotes a good relationship among the people in the family or within the group or
community and connotes helping one another in time of need. Filipinos engage
themselves in mutual cooperation.
Damayan/balikatan
Filipino Family each of the member have the adherence or the willingness to help the
other member who is in need more than they do , emotional or financial needs. They have
this care to their family members and this is the way they show their love to each other
Malasakit
a value system in Filipino culture and politics
where one gains favor, promotion, or political appointment through family affiliation or
friendship, as opposed to one’s me
Padrino system
is a Filipino term that refers to a cultural trait of enthusiastically
starting things, but then quickly losing enthusiasm soon after
Ningas cogon
the regular tendency or practice of putting off until tomorrow what can
be done today
Manana habit
Spanish-derived term commonly used in the Filipino language, which
translates to ‘delicacy’ or ‘propriety’ in English. It is a value deeply ingrained in the Filipino
culture and refers to a
Delicadeza
occurs when
individuals who hold positions of power in
an organization misuse their authority,
whether with staff members or in relation to
their administrative function
Abuse of leadership
are often tied to
companies straying from the rules and laws of conducting
business. Businesses are required to comply with all
environmental, federal and state regulations. If they don’t, they
can jeopardize the health and livelihood o
Compliance
at the
forefront of ethical issues today in business
Data privacy
is the key to the moral life, for it is from a
virtuous character that moral conduct and values
naturally arises
Character
Leaders who use their power to exploit employees by underpaying
them, withholding benefits, or subjecting them to unfair treatment
Unethical leadership
misappropriation of funds, tax evasion, and window dressing
Unethical accounting
financial advisor who knowingly advises clients to purchase financial
products that are not in line with their stated goals but earn the advisor
a bigger commission
Conflict of interest
