Module 1 Flashcards
is an active process which is an integral part of human society.
business
refers to the difference between the amount received and the amount spent on something purchased, produced, or manufactured.
profit
provide services to customers rather than products.
Service businesses
sell to customers products they buy from other businesses.
Merchandising businesses
turn basic inputs into products which are sold to consumers.
Manufacturing businesses
The fundamental reason for examining business activities from a moral point of view
help promote the common good and protect the rights and interests of individuals.
It is a one-person business. The owner has full control over the finances and operations and decides alone.
- Sole Proprietorship
It is a business relationship between two or more people.
- Partnership
It is an entity created by law that is independent and distinct from its owners and relies on the corporate laws of the state in which it is incorporated to continue its existence.
- Corporation.
This is the standard of judging which is exempted from bias or prejudice.
Fairness
is giving to a person what is due to him/her.
Fairness
The most important aspect of preventing and detecting corruption is the sound accountability structures
Accountability
considers intrinsic or ethical salience as an important feature of the relational dimension of a person.
Transparency
why is a civil society organization without proper systems of accountability is fragile and open to rumors of mismanagement and abuse of authority?
A lack of accountability in a civil society organization can result in rumors of mismanagement and abuse of power and undermine trust and confidence among stakeholders.
advantages Sole Proprietorship
Tax preparation is faster
Sole proprietorship has lower start-up costs
Handling money for the
business is easier
least government rules and regulations that affect them.
can own the business for as long as he/she wants
can pass the business down to his/her heir.
advantages of Partnership
lacks formality as compared with managing a limited company
It is easy to start
You share the burden
Every partner would add his/her own expertise
There is better decision-making.
There is privacy
The partners own and control the business
more funds are available in the company, which can be used for possible expansion.
There is an easy access to profits in a business partnership. The partners just have to divide the profits.
advantages of corporation
The liability of the shareholders of a corporation is limited up to the amount of their investments.
A publicly held corporation may sell shares or issue bonds to raise substantial amounts.
It is easy for a shareholder to sell shares in a corporation.
A corporation’s life has no limit
Disadvantages of sole proprietorship
personally liable for all debts and actions of the Enterprise
lack of financial control because of looser structure of sole proprietorship.
difficulty in raising capital.
Disadvantages of partnership
does not have any independent legal status.
has no separate legal personality
lack the sense of prestige more closely associated with a corporation.
Disadvantages of corporation
a. The corporation pays taxes on its income depending on its type and the shareholders pay dividend taxes, so income gets taxed twice.
b. The management team of a corporation can operate the business without any real oversight from the owners.
