Lesson 1

Question 1

Forms of Business

Answer 1

Sole Proprietorship
Partnership
Corporation

Question 2

a business owned by a person

Answer 2

Sole Proprietorship

Question 3

a formal arrangement by two or more parties to manage and operate a business and share its profits

Answer 3

Partnership

Question 4

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.

Answer 4

Corporation

Question 5

The Role of Business in Social and Economic Development:

Answer 5

• Business must always take in consideration what the consumers demands are and responds to that needs by creating the goods or services.
• Business is a venue providing to expand job opportunities to others and creates opportunities to pay salaries and wages.
• A business contributes more to a national well-being

Question 6

How can a business contribute more to national well-being?

Answer 6

1. collecting taxes that help the government maintain all kinds of public and social institutions and services
2. investing money in developing science and technology to take lead in solving environmental issues

Question 7

A good corporate governance in all businesses and non-profit organizations builds…

Answer 7

• trust and confidence with the investors, donors, and the community in general
• integrity of the institution.

Question 8

Core Principles of a Good Corporate Governance:

Answer 8

Fairness, Accountability, Transparency & Stewardship

Question 9

comes from the old English word faeger, which means “pleasing or attractive.”

Answer 9

Fairness

Question 10

the quality of making judgments that are free from discrimination.

Answer 10

Fairness

Question 11

involves balancing the interests involved in all decision-making of the business

Answer 11

Fairness

Question 12

the obligation of an individual or organization to account for its activities, accept responsibility for them and disclose the results in a transparent manner.

Answer 12

Accountability

Question 13

a connection to expectations.

Ex. Employees who do not meet the expectations of their supervisor are held accountable for their actions and must answer for their inability to do so.

Answer 13

Accountability

Question 14

being authentic in the way an organization message themselves externally

Answer 14

Transparency

Question 15

Explain upfront what it costs, what they’ll get, and how they’ll get it. There’s no need to hide these information at it promotes doubt to customers.

Answer 15

Transparency

Question 16

the responsibility that companies have to understand and manage their impacts on the environment in any number of ways.

Answer 16

Stewardship