Chapter 2/13 (Ethics/Funding)

Question 1

Business Ethics

Answer 1

application of ethical behavior in a business context

Question 2

Ethical Dilemma

Answer 2

a morally problematic situation in which you must choose between two or more alternatives that aren’t equally acceptable to different groups

Question 3

Ethical Decision

Answer 3

entails a “right-versus-wrong” decision—one in which there’s a right (ethical) choice and a wrong (unethical or downright illegal) choice

Question 4

Ethical Lapse

Answer 4

when you make a decision that’s unmistakably unethical or illegal

Question 5

Conflict of Interest

Answer 5

situations in which you’ll have to choose between taking action that promotes your personal interest and action that favors the interest of others

Question 6

Whistle-blower

Answer 6

an individual who exposes illegal or unethical behavior in an organization

Question 7

Code of Conduct

Answer 7

describes the principles and guidelines that all members must follow in the course of job-related activities

Question 8

Corporate Social Responsibility

Answer 8

refers to the approach that an organization takes in balancing its responsibilities toward different stakeholders when making legal, economic, ethical, and social decisions

Question 9

Fiduciary Responsibility

Answer 9

responsibility to safeguard the company’s assets and handle its funds in a trustworthy manner

Question 10

Functions of Companies (6):

Answer 10

1. Provide jobs
2. Pay taxes
3. Support local education, health, and recreation activities
4. Donate funds to community projects
5. Encourage employees to volunteer their time
6. Donate equipment and products for a variety of activities

Question 11

Sustainability

Answer 11

the principle of providing products today that don’t compromise the ability of future generations to meet their needs

Question 12

Triple Bottom Line

Answer 12

Three p’s

1. Profit
2. People
3. Planet

Question 13

Financial Plan

Answer 13

a document that shows the amount of capital that it needs for a specified period, how and where it will get it, and how and when it will pay it back

Question 14

Lines of Credit

Answer 14

allow companies to borrow up to a specified amount as the need arises

Question 15

Angel Investors

Answer 15

wealthy individuals who are willing to invest in ventures that they believe will succeed

Question 16

Venture Capitalists

Answer 16

willing to invest larger sums of money, often want to cash out more quickly than angels. They generally invest in existing businesses with strong growth potential