Ethics
What are acceptable business behavior determined by an organization or stakeholders?
Business Ethics
One owner; individual income taxed
Sole Proprietorship
What is transferring manufacturing and other tasks to countries where labor and supplies are less expensive?
Outsourcing
Created in 1994, this made it easier for U.S. businesses to invest in Mexico and Canada; provided protection for intellectual property.
North American Free Trade Agreement (N A F T A)
What is the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their various stakeholders?
Corporate Citizenship
What are payments, gifts, or special favors intended to influence the outcome of a decision?
Bribes
Any number of shareholders; Tax-exempt
Nonprofit Corporation
What is the purchase of goods and services from foreign sources?
It was created in 1995 and is for international organization dealing with rules of trade between nations.
The World Trade Organization (W T O)
What do you call the activities that independent individuals, groups, and organizations undertake to protect their rights as consumers?
Consumerism
What refers to the laws and regulations that govern the conduct of business?
Business Law
Unlimited number of shareholders; Individual taxed or corporation taxed; Avoidance of personal lawsuits
Limited Liability Company (LLC)
What exists when a country is the most efficient producer of a unique item?
Monopoly or Absolute Advantage
This was established in 1958 to promote trade among its members, which initially included Belgium, France, Italy, West Germany, Luxembourg, and the Netherlands.
European Union (EU)
What is defined as conducting activities in such a way as to provide for the long-term well-being of the natural environment, including all biological entities?
Sustainability
What is a business’s obligation to maximize its positive impact and minimize its negative impact on society?
Social Responsibility
Up to 100 shareholders; Taxed as a partnership
S Corporation
What is the ratio at which one nation’s currency can be exchanged for another nation’s currency?
Exchange Rate
This was established in 1989 and differs from other international trade alliances regarding the business and private sectors.
Asia-Pacific Economic Cooperation (A P E C)
What are financial, legal compliance, ethics, and philanthropy?
Four Stages of Social Responsibility
What occurs when an employee exposes an employer’s wrongdoing to outsiders, such as the media or government regulatory agencies?
Whistleblowing
Individuals or businesses banding together to reap the benefits of belonging to a larger organization
Cooperative (Co-op)
What is the difference in value between its exports and imports?
Balance of Trade
This was established in 1947 to promote trade among member-nations by eliminating trade barriers and fostering financial cooperation.
International Monetary Fund (IMF)
What is a framework that enables the evaluation of a firm’s efforts to operate sustainably, contribute to social causes, and engage in responsible and ethical conduct—has gained popularity?
Environmental, social, and governance (E S G) framework.