Podcast
Questions and Answers
What is a significant disadvantage of foreign outsourcing?
What is a significant disadvantage of foreign outsourcing?
What characterizes a balance of payments deficit?
What characterizes a balance of payments deficit?
Which factor is a defining feature of joint ventures?
Which factor is a defining feature of joint ventures?
What is a correct statement about the SBA's role in lending?
What is a correct statement about the SBA's role in lending?
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Which of the following is a characteristic of oligopoly market structures?
Which of the following is a characteristic of oligopoly market structures?
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What does M1 money supply include?
What does M1 money supply include?
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In the context of global trade, what is an invaluable benefit for companies?
In the context of global trade, what is an invaluable benefit for companies?
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What signifies a budget surplus?
What signifies a budget surplus?
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What is one disadvantage of a franchise?
What is one disadvantage of a franchise?
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What distinguishes a corporation from other forms of business ownership?
What distinguishes a corporation from other forms of business ownership?
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Which statement about the Foreign Corrupt Practices Act is correct?
Which statement about the Foreign Corrupt Practices Act is correct?
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What is the primary focus of consumerism in business ethics?
What is the primary focus of consumerism in business ethics?
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What is a characteristic of a limited liability company (LLC)?
What is a characteristic of a limited liability company (LLC)?
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What is the main advantage of a sole proprietorship?
What is the main advantage of a sole proprietorship?
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What is a common reason for a firm to pursue a horizontal merger?
What is a common reason for a firm to pursue a horizontal merger?
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What is an example of corporate philanthropy?
What is an example of corporate philanthropy?
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Study Notes
Ethical Considerations in Business
- Ethics encompasses beliefs regarding right and wrong; legal actions aren’t always ethical.
- Social responsibility involves a company’s obligation to positively contribute to society.
- Sustainable development aims to fulfill current needs while preserving resources for future generations.
- The Foreign Corrupt Practices Act prohibits US companies from giving bribes since 1977.
Responsibilities Toward Customers and Communities
- Socially responsible organizations must deliver value through quality products at fair prices.
- Consumerism emphasizes businesses' duty to provide superior products at reasonable costs.
- Corporate philanthropy includes financial and product donations to nonprofits.
- A social audit begins with defining clear goals.
Business Structures and Ownership
- Franchising limitations include strict adherence to franchisor protocols with minimal flexibility.
- A sole proprietorship is owned and managed by one individual, offering ease of formation.
- Corporations are separate legal entities from their owners, providing limited liability for shareholders.
- Partnerships are voluntary co-ownership agreements between two or more individuals for profit.
Mergers, Ownership, and Business Dynamics
- Horizontal mergers may be pursued to enhance size and market power.
- Board of directors are elected by shareholders to represent their interests.
- General partnerships face challenges with difficulty in withdrawing and shared liabilities.
- Limited liability companies (LLCs) often incur annual franchise taxes in many states.
Entrepreneurial Challenges and Opportunities
- Small businesses often manage lower overhead costs, allowing competitiveness against larger firms.
- Entrepreneurs driven by vision create innovative solutions and products.
- Many individuals pursue entrepreneurship primarily for higher financial gains.
- The Small Business Administration (SBA) aids entrepreneurs by guaranteeing loans through local lenders.
Funding and Economic Dynamics
- Securing commercial loans is difficult for new small businesses due to lack of track records.
- Starting a new business from scratch avoids issues from previous owners’ mistakes.
- Trade surplus occurs when a country’s exports exceed its imports; countertrade accommodates customers lacking hard currency.
- Foreign outsourcing poses quality control risks as a significant drawback.
International Trade and Economics
- China and India report higher GDP growth rates compared to many other countries.
- A balance of payments deficit indicates more money is exiting than entering a country.
- The World Trade Organization (WTO) facilitates trade by reducing barriers and resolving disputes.
- Joint ventures involve the sharing of resources for mutual benefit.
Economic Concepts and Business Cycle
- Macroeconomics addresses broader economic issues, while microeconomics focuses on individual businesses.
- The debt ceiling represents the cap on government borrowing set by Congress.
- A budget surplus occurs when tax revenues exceed government spending.
- The Federal Reserve (FED) provides banking services for commercial banks.
Market Structures and Employment
- M1 money supply comprises all circulating currency, checking accounts, and travelers’ checks.
- Oligopoly markets typically engage in non-price competition to maintain market stability.
- Frictional unemployment arises from individuals voluntarily leaving jobs.
- The business cycle consists of two key phases: expansion and contraction.
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Description
This quiz explores the concepts of ethics, social responsibility, and sustainable development in the business context. It discusses the distinction between legal actions and ethical considerations, focusing on corporate obligations and practices such as the Foreign Corrupt Practices Act. Test your understanding of these critical principles in contemporary business.
