Chapter 3,5,6

Question 1

Ethics

Answer 1

Individual standards or moral values regarding what is right and wrong or good and bad.

Question 2

Business Ethics

Answer 2

Ethical or unethical behaviours by a manger or employee of a business.

Question 3

Managerial Ehtics

Answer 3

Standards of behaviour that guide individual managers in their work.

Question 4

Conflict of Interest

Answer 4

Occurs when an activity benefits the employee at the expense of the employer.

Question 5

Corporate Social Responsibility

Answer 5

The idea that a business should balance its commitments to individuals and groups that are directly affected by the organizations activities.

Question 6

Fair-Trade Movement

Answer 6

A movement designed to help workers in developing countries receive fair payments for their work.

Question 7

Organizational Stakeholders

Answer 7

Groups, individuals, and organizations that are directly affected by the practices of an organization and that therefore have a stake in its performance.

Question 8

Consumerism

Answer 8

A social movement that seeks to protect and expand the rights of consumers in their dealings with businesses.

Question 9

Whistle-Blower

Answer 9

An individual who calls attention to an unethical, illegal, or socially irresponsible practice on the part of a business or other organization.

Question 10

Insider Trading

Answer 10

The use of confidential information to gain from the purchase or sale of stock.

Question 11

Pollution

Answer 11

The introduction of harmful substances into the environment.

Question 12

Recycling

Answer 12

The reconversion of waste materials into useful products.

Question 13

Social Audit

Answer 13

A systematic analysis of how a firm is using funds earmarked for social responsibility goals and how effective these expenditures have been.

Question 14

Sustainable Development

Answer 14

Activities that meet current needs but will not put future generations at a disadvantage when they try to meet their needs.

Question 15

Small Business

Answer 15

An independently owned and managed business that does not dominate its market.

Question 16

New Venture

Answer 16

A recently formed commercial organization that provides goods and services for sale.

Question 17

Entrepreneurship

Answer 17

The process of identifying an opportunity in the marketplace and accessing the resources needed to capitalize on it.

Question 18

Entrepreneur

Answer 18

A businessperson who accepts both the risks and the opportunities involved in creating and operating a new business venture.

Question 19

Intrapreneurs

Answer 19

People who create something new within an existing large firm or organization.

Question 20

Private Sector

Answer 20

The part of the economy made up of companies and organizations not owned or controlled by the government.

Question 21

Bootstrapping

Answer 21

Doing more with less

Question 22

Collateral

Answer 22

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.

Question 23

Incubators

Answer 23

Facilities that support small businesses during their early growth phase by providing basic services, office space, legal advice, and more.

Question 24

Franchising Agreement

Answer 24

Stipulates the duties and responsibilities of the franchisee and the franchiser.

Question 25

Unlimited Liability

Answer 25

A person who invests in a business is liable for all debts incurred by the business; personal possessions can be take to pay debts.

Question 26

Common Stock

Answer 26

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.

Question 27

Board of Directors

Answer 27

A group of individuals elected by a firms shareholders and charged with overseeing, and taking legal responsibility for, the firms actions.

Question 28

Chief Executive Officer (CEO)

Answer 28

The highest ranking executive in a company or organization.

Question 29

Public Corporation

Answer 29

A business whose stock is widely held and available for sale to the general public.

Question 30

Private Corporation

Answer 30

A business whose stock is held by a small group of individuals and is not usually available for sale to the general public.

Question 31

Initial Public Offering (IPO)

Answer 31

Selling shares of stock in a company for the first time to a general investing public.

Question 32

Private Equity Firms

Answer 32

Companies that buy publicly traded companies and make them private.

Question 33

Income trust

Answer 33

A structure allowing companies to avoid paying corporate income tax if they distribute all or most of their earnings to investors.

Question 34

Limited Liablilty

Answer 34

Investors liability is limited to their personal investments in the corporation; courts cannot touch the personal assets of investors if the corporation goes bankrupt.

Question 35

Stock

Answer 35

A share of ownership in a corporation.

Question 36

Double Taxation

Answer 36

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.

Question 37

Co-operative

Answer 37

An organization that is formed to benefit its owners in the form of reduced prices or the distribution of surpluses at year-end.

Question 38

dividends

Answer 38

The amount of money, normally a portion of the profits, that is distributed to the shareholders.