MGTS1301 Flashcards
Define Entrepreneurship
the process of initiating business venture, organising the necessary resources and assuming the associated risks and rewards
What is an entrepreneur?
a person who recognises a viable idea for a business product or service and carries it out
What are the 5 types of business owners?
Idealists: rewarded by chance to work on something new and creative
Optimisers: get personal satisfaction from being business owners
Hard Workers: thrive on the challenge of building a larger, more profitable business
Jugglers: high-energy people who enjoy handling every detail of their own businesses
Sustainers: enjoy chance to balance work and personal life
What are the traits of entrepreneurs?
- internal locus of control
- high energy level
- need to achieve
- tolerance for ambiguity
- awareness of passing time
- self-confidence
What is debt financing?
borrowing money that has to be repaid at a later date in order to start a business
Main sources: family and friends or credit cards/banks
What is equity financing?
Refers to financing that consists of funds that are invested in exchange for ownership in a company
- venture capital firm
- crowdfunding: small amounts of money from a large number of investors
- social media
What are the impacts of entrepreneurial organisations?
- job creation
- contribute to organisational innovation
- opportunity to take advantage of diversity
What is social entrepreneurship?
the process of initiating business venture, organising the necessary resources and assuming the associated risks and rewards where the primary motivation is the creation of social value while also making a profit through earned income
What are ethics?
the code of moral principles and values that governs the behaviour of a person or a group with respect to what is right
What is an ethical dilemma?
a situation in which all alternative choices or behaviours have potentially negative ethical consequences,
making it difficult to distinguish right from wrong
What are the approaches for ethical decision making?
- utilitarian approach
- individualism approach
- moral-rights approach
- justice approach
Define the utilitarian approach
moral behaviour produces greatest good to the greatest number of people
What is the individualism approach?
acts are moral when they promote the individuals best long-term interests, which ultimately leads to greater good
Define the moral-rights approach
moral decisions respect the fundamental rights and liberties of all people
What is the justice approach?
moral decisions are based on standards of equity, fairness and impartiality
What is distributive justice
the treatment of people should not be based on arbitrary characteristics
what is procedural justice
requires rules to be administered fairly
what is compensatory justice?
compensation for the cost of their injuries by the party responsible
In kohlberg’s theory of moral development, define pre-conventional, conventional and post-conventional morals
pre-conventional: follows rules to avoid punishment, acts in own interests and obedience for its own sake
conventional: lives up to expectations of others, fulfills duties and obligations of social system and uphold laws
post-conventional: follows self-chosen principles of justice and right, aware of differences and balances concern for individual with concern for common good
What is cultural relativism?
ethical behaviour is always determined by cultural context
Define ethical imperialism
behaviour that is unacceptable in ones home environment should not be acceptable anywhere else
What is corporate social responsibility?
the obligation of the management of an organisation to make decisions and take actions that will enhance the welfare and interests of society as well as the organisation
What is the classical economic perspective?
there is one and only one social responsibility of business - to use is resources and engage in activities designed to increase its profits so long as it stay within the rules of the law
What is the stakeholder perspective?
management must be concerned for the broader social welfare for all stakeholders
