Business and Ethics Study Guide

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Questions and Answers

What is the primary purpose of organizing in management?

To arrange resources and activities into a coherent structure (correct)

To define problems and select courses of action

To monitor an organization’s performance

To guide and motivate employees towards goals

Which skill is essential for understanding and getting along with people in a management context?

Human relations skills (correct)

Decision-making skills

Technical skills

Conceptual skills

What does an organizational structure define within a company?

The number of employees in each department

The timeline for project completion

The framework for decision-making and resource allocation (correct)

The motivation techniques used for employees

Which skill involves the ability to think abstractly and analyze situations?

Conceptual skills Signup and view all the answers

In the context of controlling, what is primarily monitored to ensure goals are met?

Organization’s performance Signup and view all the answers

What is the definition of profit in a business context?

The difference between a business’s revenues and its expenses. Signup and view all the answers

Which environment affects a business through international factors like currencies and cultures?

Global Business Environment Signup and view all the answers

Which factors are included in the technological environment of a business?

Human knowledge, work methods, telecommunications Signup and view all the answers

What does the political-legal environment primarily reflect?

The relationship between business and government Signup and view all the answers

Which of the following best describes the economic environment?

The conditions existing in a country's economic system Signup and view all the answers

In a planned economy, what most significantly influences the production decisions?

A centralized government authority Signup and view all the answers

What do the factors of production refer to in the context of a country's businesses?

The resources used to produce goods and services Signup and view all the answers

Which economic system relies on government control over most production factors?

Planned Economy Signup and view all the answers

What is the primary function of a firewall?

To protect systems from unauthorized access Signup and view all the answers

Which of the following best describes malware?

Infectious software like viruses and worms Signup and view all the answers

Who primarily uses financial accounting information?

External parties like investors and creditors Signup and view all the answers

What is the main goal of supply chain management (SCM)?

To improve overall flow through a system of collaborating companies Signup and view all the answers

What distinguishes managerial accounting from financial accounting?

Managerial accounting serves only internal users Signup and view all the answers

What is the purpose of anti-virus software?

To identify and eliminate malware Signup and view all the answers

Which of the following is NOT considered counterproductive behavior in an organization?

Good quality of work Signup and view all the answers

According to Theories Y, how are people generally viewed in terms of their motivation?

As naturally energetic and self-motivated Signup and view all the answers

Which of these groups is a typical external user of accounting information?

Consumers and stockholders Signup and view all the answers

What does the Hawthorne Effect refer to?

An increase in productivity from special attention by management Signup and view all the answers

What is a key service provided by CPA firms?

Auditing Signup and view all the answers

What is the purpose of positive reinforcement in motivation techniques?

To reward desired behaviors Signup and view all the answers

Which of the following is not a characteristic focus of managerial accounting?

External financial reporting Signup and view all the answers

Which of the following accurately represents Maslow's Hierarchy of Needs?

Lower-level needs must be satisfied before higher-level needs. Signup and view all the answers

What is the key feature of participative management?

Increasing job satisfaction through employee involvement Signup and view all the answers

Which theory holds that workers are motivated solely by financial incentives?

Classical Theory of Motivation Signup and view all the answers

What is a characteristic of High Risk-taking Managers?

They make quicker decisions. Signup and view all the answers

Which of the following best describes Job Analysis?

A systematic analysis of jobs that results in a job description and job specification. Signup and view all the answers

What does External Recruiting involve?

Seeking candidates from outside the organization. Signup and view all the answers

What is the main difference between a Bonus and a Merit Salary System?

Bonuses are based on individual performance, while Merit Salary links pay raises to performance levels. Signup and view all the answers

What does Consumer Behavior study?

The decision processes involved in buying and consuming products. Signup and view all the answers

Which concept refers to the collection, storage, and retrieval of customer data?

Data Warehousing Signup and view all the answers

What is Brand Competition primarily concerned with?

The rivalry among companies offering similar products within the same market. Signup and view all the answers

Which of the following is NOT a feature of Low Risk-taking Managers?

They are faster to make decisions than High Risk Managers. Signup and view all the answers

What does M-1 measure in terms of the money supply?

Liquid or spendable forms of money Signup and view all the answers

Which of the following is NOT a characteristic of money?

Scarcity Signup and view all the answers

What information does the income statement provide?

A record of annual revenues and expenses Signup and view all the answers

How does M-2 differ from M-1?

M-2 adds easily convertible forms of money to M-1 Signup and view all the answers

Which statement accurately describes a statement of cash flows?

It details yearly cash receipts and payments. Signup and view all the answers

What does a balance sheet present?

A summary of a firm's assets, liabilities, and owners' equity Signup and view all the answers

Which of the following best describes time deposits?

Bank funds with a fixed term of time to maturity Signup and view all the answers

What are Money Market Mutual Funds primarily used for?

Pooling assets to purchase short-term, low-risk securities Signup and view all the answers

Study Notes

Final Exam - Study Guide

Exam date: Monday, 16 Dec (12:30 – 3:30 PM)
Subject: Business and related topics (based on provided text)

Chapter 1: The Concept of Business and Profit

Business is an organization that provides goods or services to earn profits.
Profit is the difference between a business's revenues and its expenses.
Profit is the amount of money gained after selling goods and services minus the expenses.

Chapter 2: Ethics

Ethics: People's beliefs about what is right and wrong or good and bad in actions that affect others.
Ethical behavior: Behavior that conforms to individual beliefs and social norms about what's right and good.
Unethical behavior: Behavior that conforms to individual beliefs and social norms about what is defined as wrong and bad.

Dimensions of the External Environment

Domestic Business Environment: The environment in which a firm conducts its operations and derives its revenues (customers, suppliers, competitors).
Global Business Environment: International forces that affect a business; various factors affect the global environment at both general and immediate levels (international suppliers, cultures, currencies).
Technological Environment: Includes all the ways by which firms create value for their constituents; technology includes human knowledge, work methods, physical equipment, electronics, telecommunications, and various processing systems (mobile apps for online shopping).
Political-Legal Environment: Relationship between business and government, usually in the form of government regulation of business (employment laws, tax policies, safety and health standards).
Sociocultural Environment: Customs, mores, values, and demographic characteristics of the society in which an organization functions (acceptable to society or not, recycling).
Economic Environment: Relevant conditions that exist in the economic system in which a company operates (economic system, spending power of consumer, inflation, unemployment).

Five Factors of Production

Labor: The human resource element in businesses, including physical and intellectual contributions people make in economic production.
Capital: The financial resources needed to create and operate a business enterprise.
Entrepreneurs: An individual who accepts the risks and opportunities entailed by creating and operating a business.
Physical Resources: Tangible things that organizations use to conduct their business.
Information Resources: Businesses rely on information resources (market forecasts, specialized knowledge of people, and economic data).

Types of Economic Systems

Planned Economy: A system where a centralized government controls all or most factors of production and allocation decisions (Example: Communism).
Market Economy: Ownership of both factors of production and businesses is private. Producers and consumers are free to sell and buy as they choose (Example: Capitalism).
- Communism: A type of planned economy with a high degree of government control and high social services (e.g., North Korea, China).
- Socialism: An alternative to communism on a spectrum with planned and market economies that leans toward a higher degree of government control for certain goods/services but allows for some private markets (Examples may not be included).
- Capitalism: A type of market economy with a low degree of government control and low level of social services (e.g., U.S. & Japan).

Chapter 3: Importance of Small Businesses

Job Creation: Small businesses are an important source of new jobs.
Innovation: Small businesses are sources of revolutionary ideas and inventions.
Contributions to Big Businesses: Small businesses provide many services and raw materials to big businesses.

Chapter 8: Forms of Employee Behavior

Employee Behavior: The pattern of actions by members of an organization that directly or indirectly influences the organization's effectiveness.
Performance Behavior: The total set of work-related behaviors that the organization expects employees to display.
Organizational Citizenship: The behavior of individuals who make a positive overall contribution to the organization beyond performance requirements.
Counterproductive Behavior: Employee behavior that goes against the legitimate interests of an organization (e.g., absenteeism, turnover, resignations, violence, harassment, poor quality of work, theft, or misuse of property).

Chapter 9: Early Approaches to Leadership

Task-Focused Leader Behavior: Leader behavior focusing on how tasks should be performed to meet goals and achieve performance standards.
Employee-Focused Leader Behavior: Leader behavior focusing on employee satisfaction, motivation, and well-being.

Chapter 10: HR Planning

Job Analysis: A systematic examination of jobs within an organization, resulting in a job description and job specification.
Job Description: Lists duties, responsibilities, working conditions, tools, materials, equipment, and information used to perform the job.
Job Specification: Lists skills, abilities, and credentials needed to perform the job effectively.

Chapter 11: Marketing

Utility: The ability of a product to satisfy a human want or need.
Consumer Behavior: The study of the decision-making process by which people buy and consume products.
Data Warehousing: The collection, storage, and retrieval of customer data in electronic files.
Data Mining: The application of electronic technologies for searching, sifting, and reorganizing data pools to uncover useful information.

Chapter 14: Business Communication Technologies Using the Internet

Intranet: An organization's private network of internally linked websites accessible only to employees.
Extranet: A system allowing outsiders limited access to a firm's internal information network.
Internet: A global network connecting computers around the world.

Chapter 15: Accounting

Accounting: A comprehensive system for collecting, analyzing, and communicating financial information, tracking, and recording financial activity.
Users of Accounting Information: Business managers, employees, investors, creditors, tax authorities, and government regulatory agencies.

Chapter 16: Money

Money: A portable, divisible, durable, and stable object serving as a medium of exchange, a store of value, and a measure of worth.
M-1 (Spendable Money Supply): A measure including cash, checks, and checking accounts.

Chapter 16: Financial Institutions

Commercial banks: Accept deposits, make loans, earn profits, pay interest, and dividends (examples mentioned).
Savings institutions: Established to promote general savings.
Credit unions: Non-profit, cooperative financial institutions owned by members (often employees of a particular organization) for saving and borrowing.
Non-deposit institutions: Use inflowing funds for purposes other than earning interest (pension funds, insurance companies, finance companies, securities investment dealers, and more).

Additional Topics

Globalization: Process by which the world economy becomes a single interdependent system.
Balance of Trade: The total economic value of a country's exports minus its imports.
Legal and Political Differences: Local content laws, business practice laws (quotas, embargoes, tariffs, and subsidies).
Operations Planning: Capacity planning, location planning, layout planning, quality planning, methods planning (relevant steps).
Lean Production System: A production system designed for smooth production flows that avoids inefficiencies, eliminates unnecessary inventories, and continuously improves processes.
Supply Chain Management (SCM): A system of companies that work together to create a product; includes the flow of information, materials, and services starting with raw-materials suppliers, adding value, until it reaches the end customer.
The Stakeholder Model of Responsibility: Companies concentrate on employees, customers, investors, suppliers, and local/international communities.
Five Basic Management Skills: Technical skills, human relations skills, conceptual skills, decision-making skills, and time management skills.
Key terms related to Management and Leadership styles (Transformational, Transactional, Charismatic, others).
Marketing Strategy: All marketing programs and activities; includes: Product, Pricing, Place, and Promotion.
IT Risks and Threats: Hackers, Identity theft.
IT Protection Measures: Firewalls (and related devices).

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Description

Prepare for your upcoming final exam on Business concepts and ethics. This study guide covers the fundamentals of business, including profit definitions and ethical considerations, alongside the dimensions of the external environment. Brush up on these key topics to ensure you're ready for the exam!