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EP1110 - Introduction to Business > Quiz 2 > Flashcards

Quiz 2 Flashcards

1
Q

Angel Investors

A

Investors who invest capital in start-up businesses. The term angel is in reference to the fact that traditional lenders will not normally lend to companies at the early stages of operations.

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2
Q

Business Plan

A

A precise statements of the rationale for a business and a step-by-step explanation of how it will achieve its goals.

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3
Q

Entrepreneurship

A

The process of creating and managing a business to achieve desired objectives.

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4
Q

External Shock

A

Events that occur in a company’s external environment that the company could not control.

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5
Q

Franchise

A

A license to sell another’s products or to use another’s name in business or both.

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6
Q

Franchisee

A

The purchaser of a franchise.

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7
Q

Franchisor

A

The company that sells a franchise.

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8
Q

Intrapreneurs

A

Individuals in large firms who take responsibility for the development of innovations within the larger organization.

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9
Q

Small Business

A

Any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people.

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10
Q

Undercapitalization

A

The lack of funds to operate a business normally

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11
Q

Venture Capitalists

A

Persons or organizations that agree to provide some funds for a new business in exchange for ownership interest or stock.

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12
Q

Bribes

A

Payments, gifts, or special favors intended to influence the outcome of a decision.

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13
Q

Business Ethics

A

Principles and standards that determine acceptable conduct in business.

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14
Q

Code of Ethics

A

Formalized rules and standards that describe what a company expects of its employees.

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15
Q

Consumerism

A

The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers.

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16
Q

Ethical Issue

A

An identifiable problem. situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical, or unethical.

17
Q

Corporate Citizenship

A

The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders.

18
Q

Plagiarism

A

The act of taking someone else’s work and presenting it as your own without mentioning the source.

19
Q

Social Responsibility

A

A business’s obligation to maximize its positive impact and minimize its negative impact on society.

20
Q

Whistleblowing

A

The act of an employee exposing an employer’s wrongdoing to outsiders, such as the media or government regulatory agencies.

21
Q

Facts about Small Businesses

A
  1. 98 percent of all employer firms are small businesses
  2. they employ 90 percent of all private-sector employees.
  3. Many opportunities for women to succeed in business.
  4. Roughly 83.5 percent of the jobs created in Canada between 2013-2017
  5. 2.9 million Canadians are self-employed
  6. 99 percent of small businesses are in the service sector
  7. Small firms spend approximately $4 billion on R&D annually.
22
Q

Industries that Attract Small Business

A
  1. Retailing
  2. Wholesaling
  3. Services
  4. Manufacturing
  5. Technology
23
Q

Advantages of Small Business Ownership

A
  1. Independence
  2. Enjoyment
  3. Financial Rewards
  4. Low start-up costs
  5. Focus
  6. Reputation
24
Q

Disadvantages of Small Business Ownership

A
  1. High stress level
  2. Limited Financial rewards
  3. Time demands
  4. High failure rate
25
Q

Top Ten Challenges for Small Business

A
  1. Underfunded
  2. Not understanding your competitive niche.
  3. Lack of effective utilization of websites and social media
  4. Lack of marketing and business plan
  5. Poor site selection, if operating a retail store.
  6. Pricing mistakes ( too high or too low)
  7. Underestimating the time commitment for success.
  8. Not finding complementary partners to bring in additional experience.
  9. Not hiring the right employees and/or not training them properly.
  10. Not understanding legal and ethical responsibilities.
26
Q

Advantages of Franchises

A
  1. management training and support
  2. brand name appeal
  3. standardized quality of goods and services
  4. National Advertising programs
  5. Financial Assistance
  6. Proven products/business formats.
  7. Centralized buying power
  8. Site selection and territorial power
  9. Greater chance for success.
27
Q

Disadvantages of Franchises

A
  1. Franchise fees and profit sharing with the franchiser
  2. Strict adherence to standardized operations
  3. Restrictions on purchasing
  4. Limited product line
  5. Possible market saturation
  6. Less freedom in business decisions.
28
Q

Demographic Trends

A
  1. Baby boomer Generation
  2. Millennials
  3. Gen Z
  4. Immigrants.
29
Q

Technological and Economic Trends

A
  1. Internet
  2. Increase in service exports
  3. Economic turbulence provides both opportunities and threats.
  4. Energy markets and alternative fuels.
30
Q

Making a Big Business Act “Small”

A
  1. Many larger firms are emulating smaller firms to improve their bottom line.
  2. Downsizing or Right-sizing
  3. Intrapreneurs.
31
Q

The difference between Social Responsibility and Ethics

A

Ethics: Decisions made by an individual or workgroup that society evaluates as right or wrong.

Social Responsibility: Impact of the entire organization’s activities on society.

32
Q

Social Responsibility Issues

A
  1. Relations with owners and stockholders
  2. Employee relations
  3. Relations
  4. Environmental issues
  5. Response to environmental issues
  6. Community Relations
33
Q

Business Law

A
  • Refers to the laws and regulations that govern the conduct of business.
  • The most basic ethical and social responsibility concerns have been codified as laws and regulations that encourage business to conform to society’s standards, values, and attitudes.
34
Q

Role of Ethics in Business

A
  • Society’s judgment directly affects an organization’s ability to achieve its goals.
  • Well-publicized incidents of unethical and illegal activity increase public pressure to raise standards.
  • Fairness and honesty.
35
Q

Legal and Ethical Issues

A
  • Ethical conflicts can evolve into legal disputes.
  • Business ethics goes beyond legal issues.
  • Not limited to for-profit organizations.
36
Q

Improving Ethical Behavior in Business

A
  • Ethical decisions in organizations are influenced by three factors…
  1. Individual moral standards and values.
  2. Influence of managers and co-workers.
  3. Opportunity to engage in misconduct.
  • Professional code of ethics
  • Whistleblowing
37
Q

Arguments For Social Responsibility

A
  1. Business creates problems and should therefore help solve them.
  2. Businesses should be more responsible because they have the financial and technical resources to help solve social problems.
  3. As members of society, businesses should do their fair share to help others.
  4. Socially responsible decision-making by businesses can prevent increased government regulation.
  5. Social responsibility is necessary to ensure economic survival: If businesses want educated and healthy employees, customers with money to spend, and suppliers with quality goods and services in years to come, they must take steps to help solve the social and environmental problems that exist today.
38
Q

Arguments Against Social Responsibility

A
  1. Sidetracks managers from the primary goal of business - earning profits.
  2. Participation in social programs gives businesses greater power, perhaps at the expense of segments of society.
  3. Some people question whether business has the expertise needed to assess and make decisions about social problems.
  4. Many people believe that social problems are the responsibility of government agencies and officials, who can be held accountable by voters.

EP1110 - Introduction to Business (1 decks)

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