FUNDAMENTALS OF BUSINESS
For Profit and Non-Profit
Name 3 stakeholders a business has.
customers
employees
investors
community
lenders
Is it legal?
What is the lifeblood of business?
PROFIT
What is a certified B Corp?
a type of for profit company that has been certified by the non-profit organization B Lab as meeting rigorous standards of social and environmental performance, accountability and transparency
What are 2 of the four ways to build an ethical culture?
Lead by example
Create ethical hiring practices
Create code of ethics and train
Reward ethical behavior
What are the two types of markets in the world today?
Free Markets (Capitalistic)
Command Markets (Controlled, Socialist)
How many goods and services people can buy with the money they have
What historical event created our modern macroeconomic economy influenced by the writing of J.M. Keynes?
Name the 2 types of ethical codes available to a business.
Compliance based ethics code
Integrity based ethics code
What are the 3 functions of the government within an economy?
Enforce Private Property
Promote Efficiency
Promote Equity
What are the FOUR Factors of Production in an economy?
Labor, Land, Entrepreneurship, and Capital
What socio-political event brought about the rise of globalism in business?
The fall of communism (USSR) and the opening up of previously closed borders and markets.
What are the four steps of building an ethical organization?
Create explicit values
Incorporate critical thinking in decision making
Integrate incentives for ethical behavior
Develop cultural norms of ethical behavior
What is the Law of Supply?
Supply is positively related to price
Name 3 of the six factors that affect the "business environment."
1.Economic Forces
2.Technological Forces
3.Competitive Forces
4.Social Forces
5.Global Forces
6.Legal/Regulatory/Political Forces
Name 2 of the four roles business plays in supporting society.
What are the three factors that make up the Triple Bottom Line approach to Corporate Social Responsibility?
People
Planet
Profit
What are the FOUR types of compeitition?
Perfect Competition
Monopolistic Competition
Oligopoly
Monopoly