Business Ethics Chapter 1 Quiz

Course Material: Business Ethics and Social Responsibility

• Chapter 1: The Role of Business in Social and Economic Development
  • Explores the nature and forms of business organizations.
  • Discusses the purpose of establishing a business and the roles of leaders within businesses.
  • Examines the role of business organizations in economic development, including economic development, world economy, and why business matters in a given economy.
  • Covers corporate responsibility and economic health, including introduction to business ethics, concepts of ethical principles and moral values, and managing ethics in the workplace.
  • Outlines core principles in business operations and stewardship, such as fairness, accountability, and transparency.
  • Details common practices in business organizations, including business and office decorum, and business protocol.
  • Includes organizational ethics programs.

Nature and Forms of Business Organizations

• Sole Proprietorship: Owned by one person, with the owner personally liable for all business debts and obligations. Registration is with the Department of Trade and Industry (DTI).
• Partnership: Formed by two or more individuals who contribute money, property or effort, intending to share profits and ownership. Partners are personally liable for the debts and obligations of the partnership. Registration is with the Securities and Exchange Commission (SEC).
• Corporation: Owned by shareholders, with shareholders being liable only up to the extent of their capital contribution. Can be stock or non-stock, and is controlled by a Board of Directors or Trustees. Registration is with the SEC.
• Joint Ventures: Two or more entities entering into a contract to undertake a commercial enterprise, sharing profits and losses. Usually governed by the joint venture contract and partnership law. Corporations can engage in joint ventures.

Key Factors in Choosing a Business Organization

• Liability of Owners: Extent of personal liability for business debts.
• Tax Treatment: How the business is taxed.
• Control and Management: Who has control and manages the business.
• Ease of Raising Capital: How easily funds can be obtained.
• Ease of Establishing the Business: Simplicty of establishing the business.

Additional Topics

• Purpose of the Enterprise: Businesses have impacts on society, with a focus on innovation and execution as key elements.
• Purpose for Establishing a Business: A business' purpose is not fixed; ethical considerations are important, with changing societal expectations influencing the role of business.
• Leadership in Business: Trust in business leaders is declining, and leaders have a growing responsibility to consider societal impacts.
• Role of Business in Economic Development: Businesses drive economic stability by providing services, products, and employment opportunities .