MGTS1301

Question 1

Define Entrepreneurship

Answer 1

the process of initiating business venture, organising the necessary resources and assuming the associated risks and rewards

Question 2

What is an entrepreneur?

Answer 2

a person who recognises a viable idea for a business product or service and carries it out

Question 3

What are the 5 types of business owners?

Answer 3

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

Question 4

What are the traits of entrepreneurs?

Answer 4

• internal locus of control
• high energy level
• need to achieve
• tolerance for ambiguity
• awareness of passing time
• self-confidence

Question 5

What is debt financing?

Answer 5

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

Question 6

What is equity financing?

Answer 6

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

Question 7

What are the impacts of entrepreneurial organisations?

Answer 7

• job creation
• contribute to organisational innovation
• opportunity to take advantage of diversity

Question 8

What is social entrepreneurship?

Answer 8

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

Question 9

What are ethics?

Answer 9

the code of moral principles and values that governs the behaviour of a person or a group with respect to what is right

Question 10

What is an ethical dilemma?

Answer 10

a situation in which all alternative choices or behaviours have potentially negative ethical consequences,
making it difficult to distinguish right from wrong

Question 11

What are the approaches for ethical decision making?

Answer 11

• utilitarian approach
• individualism approach
• moral-rights approach
• justice approach

Question 12

Define the utilitarian approach

Answer 12

moral behaviour produces greatest good to the greatest number of people

Question 13

What is the individualism approach?

Answer 13

acts are moral when they promote the individuals best long-term interests, which ultimately leads to greater good

Question 14

Define the moral-rights approach

Answer 14

moral decisions respect the fundamental rights and liberties of all people

Question 15

What is the justice approach?

Answer 15

moral decisions are based on standards of equity, fairness and impartiality

Question 16

What is distributive justice

Answer 16

the treatment of people should not be based on arbitrary characteristics

Question 17

what is procedural justice

Answer 17

requires rules to be administered fairly

Question 18

what is compensatory justice?

Answer 18

compensation for the cost of their injuries by the party responsible

Question 19

In kohlberg’s theory of moral development, define pre-conventional, conventional and post-conventional morals

Answer 19

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

Question 20

What is cultural relativism?

Answer 20

ethical behaviour is always determined by cultural context

Question 21

Define ethical imperialism

Answer 21

behaviour that is unacceptable in ones home environment should not be acceptable anywhere else

Question 22

What is corporate social responsibility?

Answer 22

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

Question 23

What is the classical economic perspective?

Answer 23

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

Question 24

What is the stakeholder perspective?

Answer 24

management must be concerned for the broader social welfare for all stakeholders

Question 25

What is the triple bottom line?

Answer 25

an organisations performance should be measured by traditional economic outcomes, environmental outcomes and social outcomes./