Chapter 3,5,6 Flashcards
Ethics
Individual standards or moral values regarding what is right and wrong or good and bad.
Business Ethics
Ethical or unethical behaviours by a manger or employee of a business.
Managerial Ehtics
Standards of behaviour that guide individual managers in their work.
Conflict of Interest
Occurs when an activity benefits the employee at the expense of the employer.
Corporate Social Responsibility
The idea that a business should balance its commitments to individuals and groups that are directly affected by the organizations activities.
Fair-Trade Movement
A movement designed to help workers in developing countries receive fair payments for their work.
Organizational Stakeholders
Groups, individuals, and organizations that are directly affected by the practices of an organization and that therefore have a stake in its performance.
Consumerism
A social movement that seeks to protect and expand the rights of consumers in their dealings with businesses.
Whistle-Blower
An individual who calls attention to an unethical, illegal, or socially irresponsible practice on the part of a business or other organization.
Insider Trading
The use of confidential information to gain from the purchase or sale of stock.
Pollution
The introduction of harmful substances into the environment.
Recycling
The reconversion of waste materials into useful products.
Social Audit
A systematic analysis of how a firm is using funds earmarked for social responsibility goals and how effective these expenditures have been.
Sustainable Development
Activities that meet current needs but will not put future generations at a disadvantage when they try to meet their needs.
Small Business
An independently owned and managed business that does not dominate its market.
New Venture
A recently formed commercial organization that provides goods and services for sale.
Entrepreneurship
The process of identifying an opportunity in the marketplace and accessing the resources needed to capitalize on it.
Entrepreneur
A businessperson who accepts both the risks and the opportunities involved in creating and operating a new business venture.
Intrapreneurs
People who create something new within an existing large firm or organization.
Private Sector
The part of the economy made up of companies and organizations not owned or controlled by the government.
Bootstrapping
Doing more with less
Collateral
Assets that a borrower uses to secure a loan or other credit and that are subject to seizure by the tender if the loan isnt repaid according to the specified repayment terms.
Incubators
Facilities that support small businesses during their early growth phase by providing basic services, office space, legal advice, and more.
Franchising Agreement
Stipulates the duties and responsibilities of the franchisee and the franchiser.
Unlimited Liability
A person who invests in a business is liable for all debts incurred by the business; personal possessions can be take to pay debts.
Common Stock
Shares whose owners usually have last claim on the corporations assets (after creditors and owners preferred stock) but who have voting rights in the firm.
Board of Directors
A group of individuals elected by a firms shareholders and charged with overseeing, and taking legal responsibility for, the firms actions.
Chief Executive Officer (CEO)
The highest ranking executive in a company or organization.
Public Corporation
A business whose stock is widely held and available for sale to the general public.
Private Corporation
A business whose stock is held by a small group of individuals and is not usually available for sale to the general public.
Initial Public Offering (IPO)
Selling shares of stock in a company for the first time to a general investing public.
Private Equity Firms
Companies that buy publicly traded companies and make them private.
Income trust
A structure allowing companies to avoid paying corporate income tax if they distribute all or most of their earnings to investors.
Limited Liablilty
Investors liability is limited to their personal investments in the corporation; courts cannot touch the personal assets of investors if the corporation goes bankrupt.
Stock
A share of ownership in a corporation.
Double Taxation
a corporation must pay income taxes on its profits, and then shareholders must also pay personal income taxes on the dividends they receive from the corporation.
Co-operative
An organization that is formed to benefit its owners in the form of reduced prices or the distribution of surpluses at year-end.
dividends
The amount of money, normally a portion of the profits, that is distributed to the shareholders.
