Pre-Finals Set A Flashcards
must earn profits for its own survival, for expansion, for bearing the risks and finally for the
prestige of its management
Enterprise
is a means and not an end.
Profit
TRUE OR FALSE:
profit can be the sole objective of the entrepreneur.
FALSE
TRUE OR FALSE
profit cannot be the sole objective of the entrepreneur.
TRUE
The ultimate objective of every enterprise
to be the good of the people.
what was the traditional view of social responsibility?
organizations existed solely to serve the interests of one stakeholder group: STOCKHOLDER.
The modern view of social responsibility considers the state of the various stakeholders:
- Employees
- Stockholders
- Suppliers
- Customers
- Government
- Trade Associations and Competitors
- Community
Management, as a part of its social responsibilities, is expected to provide for their social security, welfare, and sharing of excess profits.
SOCIAL RESPONSIBILITIES OF ENTREPRENEURS TO EMPLOYEES
is expected to provide for their social security, welfare, and sharing of excess profits.
Management
An entrepreneur must provide safe, fair adequate and stable long-run rate of return and steady capital appreciation to the shareholders for their investments.
SOCIAL RESPONSIBILITIES OF ENTREPRENEURS TO STOCKHOLDERS
Dealings with the suppliers should be based on?
integrity, impartiality and courtesy
Terms and conditions regarding delivery of goods and payment of prices must be reasonably fair.
SOCIAL RESPONSIBILITIES OF ENTREPRENEURS TO SUPPLIERS
Producers may make available to the suppliers the benefits of their information and research so as to promote indigenous growth or for the improvement of the quality of their products.
SOCIAL RESPONSIBILITIES OF ENTREPRENEURS TO SUPPLIERS
Entrepreneurial ventures must meet the requirements of the customers of different classes, tastes and with different purchasing power at the right time, place, and price and in right quality.
SOCIAL RESPONSIBILITIES OF ENTREPRENEURS TO CUSTOMERS
An entrepreneur should act as a what to the customer?
friend and guide
What should an entrepreneur do to the customers?
- He must try to protect consumers’ interest at all costs.
- He must guard against adulteration, poor quality, lack of service and courtesy to the consumer, misleading and dishonest advertisement, underweighting, supply of stale goods, etc.
- He must handle the complaints of the customers carefully and efficiently and cooperate to the maximum extent with the consumers associations.
Entrepreneurs must abide by the laws of the country in their true spirit.
SOCIAL RESPONSIBILITIES OF ENTREPRENEURS TO THE GOVERNMENT
What should entrepreneurs do to the government?
- They must conduct their affairs as may cause the minimum possible social damage such as air or water pollution.
- They must pay taxes honestly and promptly.
An entrepreneur should develop what inter-business relationships with fellow-entrepreneurs?
a healthy relationship
He must adopt fair trade practices regarding prices, quality, terms and conditions of sale and after-sales service.
SOCIAL RESPONSIBILITIES OF ENTREPRENEURS TO TRADE ASSOCIATIONS AND COMPETITORS
The entrepreneurs should manage their business with such competence and skill that it inspires confidence and pride in the mind of the people.
SOCIAL RESPONSIBILITIES OF ENTREPRENEURS TO THE COMMUNITY
Enterprise, on the whole, should act on the ideas of social justice without discrimination of any kind.
SOCIAL RESPONSIBILITIES OF ENTREPRENEURS TO THE COMMUNITY
Business must set high standards of morality and put in all efforts to minimize social damage.
SOCIAL RESPONSIBILITIES OF ENTREPRENEURS TO THE COMMUNITY
How can a business minimize social damage?
set high standards of morality
