THE ROLE OF BUSINESS IN SOCIAL AND ECONOMIC DEVELOPMENT Flashcards
What is Business?
A business is an organization where goods and services are exchanged for one another or for money.
A __________is an organization or economic system where goods and services are exchanged for one another or for money.
Business
Every ________ requires some form of investment and enough customers to whom its output can be sold on a consistent basis to make a profit
Business
__________ can be privately owned, not-for- profit, or state-owned
Business
Basic Forms of Business Organizations
Sole Proprietorship
Partnership
Corporation
Cooperative
Differentiate the Basic Forms of Business Organizations
Sole Proprietorship – Also known as a sole trader, is owned by one person and operates for their benefit.
Partnership – It is a business owned by two (2) to eight (8) people.
Corporation – consist of shareholders that decides
for the company’s interest. The individual that has more shares than others has greater power to decide.
Cooperative - is a business organization owned by a grouped of individuals and is operated for their mutual benefit.
Also known as a sole trader, is owned by one person and operates for their benefit.
Sole Proprietorship
The owner may operate the business alone or with other people. This type of business has unlimited liability for all obligations incurred by costs or judgments against the business.
Sole Proprietorship
The vast majority of small businesses start out as _________________________.
Sole Proprietorship
These firms are owned by one person, usually the individual who has day-to-day responsibility for running the business.
Sole Proprietorship
They also assume complete responsibility for any of its liabilities or debts
Sole Proprietorship
It is a business owned by two (2) or more people.
Partnership
In most forms of _____________, each partner has unlimited liability for the debts incurred by the business.
Partnership
In a ____________, the partners should have a legal agreement that sets forth how decisions will be made, where profits will be shared, disputes will be resolved, how future partners will be admitted to the ___________ when needed; Yes, it is hard to think about a “break-up” when the business is a defined process, there will be even greater problems. They also must decide up front how much time and capital each will contribute
Partnership
can be either government-owned or privately owned.
Corporation
The owners of a ________ have limited liability, and the business has a separate legal personality from its owners.
Corporation
A privately owned, for-profit corporation is owned by its shareholders, who elect a board of directors to direct the ___________ and hire its managerial staff.
Corporation
A privately owned, for-profit ___________ can be either privately held by a small group of individuals or publicly held, with publicly traded shares listed on a stock exchange
Corporation
Often referred to as a “co-op”, a _________ is a limited liability business that can organize for-profit or non-profit.
Cooperative
They can organize either for profit or as not-for-profit organizations.
Corporation
A __________ differs from a corporation in that it has members, not shareholders, and they share decision-making authority.
Cooperative
A _____________ is a business organization owned by a grouped of individuals and is operated for their mutual benefit.
Cooperative
The persons making up the group are called members.
Cooperative
_______________ may be incorporated or unincorporated
Cooperative
Basic Classifications of Business
Service Businesses
Merchandising Businesses
Manufacturing Businesses
Differentiate Basic Classifications of Business
Service Businesses – A service type of business provides intangible products
Merchandising Businesses – This type of business buys products at wholesale price and sells the same at retail price. They are known as “buy and sell” business.
Manufacturing Businesses – this classification of business buys products with the intention of using them as materials in making a new product.
A ___________ provides intangible products (products with no physical form).
Service business
This type of firms offer professional skills, expertise, advice, and other similar products.
Service business
Examples of this type of businesses are schools, repair shops, hair salons, banks, accounting firms, and law firms.
Service business
Types of Service Business
Service business
Financial business
Transportation business
Utilities
Include banks and other companies that generate profits through investment and management of capital.
Financial business
Typically charge for labor or other services provided to government, to consumers, or to other business. Interior decorators, consulting firms, and entertainers are____________.
Service business
Deliver goods and individuals to their destinations for a fee.
Transportation business
Produce public services such as electricity or sewage treatment, usually under a government.
Utilities
This type of business buys products at wholesale price and sells the same at retail price.
Merchandising Businesses
They are known as “buy and sell” business.
Merchandising Businesses
They make a profit by selling the products at prices higher than their purchase costs.
Merchandising Businesses
A __________ sells a product without changing its form.
Merchandising Businesses
Examples are grocery stores, convenience stores, distributors, and other resellers.
Merchandising Businesses
Give 3 examples of Merchandising Business
grocery stores, convenience stores, distributors, and other resellers
GIve 3 exampes of Service Business
Give 3 examples of Manufacturing Business
act as the middleman and get goods produced by manufacturers to the intended consumers; they make their profits by marking up their prices. Most stores and catalog companies are distributors or retailers.
Retailers and distributors
A ________________combines raw materials, labor, and factory overhead in its production process.
Manufacturing Businesses
Unlike a merchandising business, a __________________ buys products with the intention of using them as materials in making a new product.
Manufacturing Businesses
what are the different types of Manufacturing Businesses?
Agriculture and mining business
Manufacturers
Real-estate business
there is a transformation of the products purchased.
Manufacturing Businesses
Produce raw material, such as plants or minerals.Agriculture and mining business
Agriculture and mining business
Produce products, either from raw materials or from component parts, then sell their products at a profit, for example, cars, clothing, or pipes.
Manufacturers
Give 15 reasons Why Start a Business?
1.To make money and have financial independence
2.To be your own boss
3.To Make Dreams Come True
4.To have a second career
5.To create opportunities
6. To take up a challenge
7.To be efficient
8.To set and meet own deadlines
9.To avoid commuting
10.To create a customer
11.To offer value
12.To have more life, more freedom
13.To solve problems
14. To build our future
15.To self-actualize
Sell, rent, and develop properties, including land, residential homes, and other buildings.
Real-estate business
Core Principles in Business Operations
Fairness
Accountability
Transparency
Stewardship
Refers to the level of even-handedness in dispensing justice, whereby claims are recognized in the order of their legal and contractual priority.
Fairness
has also been used to refer to the ability to make judgments that are not overly general but that are concrete and specific to a particular case.
fairness
Explain the Core Principles in Business Operations
- Fairness – Refers to the level of even-handedness in dispensing justice,
- Accountability – The obligation of an individual or organization to account for its activities, accept responsibility, and to disclose the results in a transparent manner.
- Transparency – Refers to the lack of hidden agendas and conditions, accompanied by the availability of full information required.
- Stewardship - A steward is a person employed to manage another’s property.
means giving each person what he or she deserves or, in more traditional terms, giving each person his or her due.
Justice
usually has been used regarding a standard of rightness, and fairness often has been used with regard to an ability to judge without reference to one’s feelings or interest;
Justice
What is the Principles of Justice
“Individuals should be treated the same unless they differ in ways that are relevant to the situation in which they are involved.”
Refers to the extent to which people are fairly compensated for their injuries by those who have injured them; just compensation is proportional to the loss inflicted on a person.
Compensatory Justice
what are the Different Kinds of Justice
- Distributive Justice – Refers to the extent to which society’s institutions ensure that benefits and burdens are distributed among society’s members in ways that are fair and just.
- Retributive or Corrective Justice – Refers to the extent to which punishments are fair and just.
- Compensatory Justice – Refers to the extent to which people are fairly compensated for their injuries by those who have injured them; just compensation is proportional to the loss inflicted on a person.
Refers to the extent to which society’s institutions ensure that benefits and burdens are distributed among society’s members in ways that are fair and just.
Distributive Justice
Refers to the extent to which punishments are fair and just.
Retributive or Corrective Justice
The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.
Accountability
is often used synonymously with responsibility, blameworthiness, and liability. As an aspect of governance, accountability has been central to discussions related to problems in the public, non-profit, and corporate sectors.
Accountability
refers to the act of being accountable to the stakeholders of an organization, which may include shareholders, employees, suppliers, customers, the local community, and even the particular country that the firm operates in.
Corporate Accountability
is the essential condition for a free and open exchange whereby the rules and reasons behind regulatory measures are fair and clear to all participants.
Transparency
Refers to the lack of hidden agendas and conditions, accompanied by the availability of full information required for collaboration, cooperation, collective decision making.
Transparency
describes the extent to which a corporation’s actions are observable by outsiders.
Corporate transparency
This is the consequence of regulation, local norms, and the set of information, privacy, and business policies concerning corporate decision-making and operations openness to employees, stakeholders, shareholders, and the general public.
Corporate transparency
___________, in a business or governance context, is honesty and openness. ____________ and _____________ are generally considered the two (2) main pillars of good corporate governance.
Transparency
Transparency and accountability
Originally made up of the tasks of a domestic steward, from stig (house, hall) and weard, (ward, guard, guardian, keeper).
Stewardship
____________ is a method, procedure process, or rule employed or followed by a company in the pursuit of its objectives.
Business practice
referred to the household servant’s duties for bringing food and drink to the castle’s dining hall. A steward is a person employed to manage another’s property.
Stewardship
A behavior that is socially correct, calm, and polite.
Decorum
Different types of Decorum
- On-Time and Promptness
- On Preparation
- On Attire and Appearance
- On Basic Courtesy and Respect
- On Greetings
- On Formal and Informal Address
- On Speaking in Meetings
- On Cell Phones and Laptops
- On Appropriate Communication
On Building Relationships – Show others that you value their work by taking the time to visit and talk with them.
The way to exhibit professionalism is to consistently be punctual.
On-Time and Promptness
Must be prepared to conduct a business at hand.
On Preparation
Good business etiquette includes dressing appropriately.
On Attire and Appearance
Consider the feelings of others and address conflicts in a straightforward and impersonal manner.
On Basic Courtesy and Respect
Standard greetings are an exchange of handshakes and a smile.
On Greetings
When calling or receiving a call, you should always identify yourself and your department and speak in a polite and considerate manner.
On Appropriate Communication
Keep the meeting organized by only speaking when you have the floor.
On Speaking in Meetings
Start out by addressing a new business acquaintance by his or her family name
On Formal and Informal Address
Turn off your cellphone or set your phone to vibrate if you are expecting an urgent call prior to the start of the meeting. Lower the screen of your laptop so that you do not obstruct anyone’s view.
On Cell Phones and Laptops
Show others that you value their work by taking the time to visit and talk with them.
On Building Relationships
