Podcast
Questions and Answers
Which of the following best illustrates the distinction between a business and an organization?
Which of the following best illustrates the distinction between a business and an organization?
- A business is primarily focused on profit generation, whereas an organization may have broader goals including non-profit objectives. (correct)
- An organization is legally required to have a formal structure, while a business can operate informally.
- A business is involved in buying and selling goods only, unlike an organization engaging in diverse activities.
- A business always operates with multiple stakeholders, while an organization can function with a single individual.
Which action primarily reflects the 'value' basis of ethics?
Which action primarily reflects the 'value' basis of ethics?
- An employee following a supervisor's order, despite personal reservations.
- A manager establishing a profit-sharing program to motivate employees.
- A parent instilling honesty and responsibility in their child. (correct)
- A company modifying its pollution output to adhere to environmental regulations.
A general partnership differs from a limited partnership primarily in that:
A general partnership differs from a limited partnership primarily in that:
- General partnerships are suitable for large corporations, while limited partnerships cater to small businesses.
- Only general partnerships are required to register with the state, limited partnerships can operate informally.
- All partners in a general partnership have unlimited liability, whereas limited partnerships have partners with limited liability and operational involvement. (correct)
- General partnerships require more than two partners, while limited partnerships are restricted to two.
Which of the following best describes the role of shareholders in a corporation?
Which of the following best describes the role of shareholders in a corporation?
How do cooperatives primarily differ from corporations in terms of profit distribution?
How do cooperatives primarily differ from corporations in terms of profit distribution?
Which core principle of corporate governance would be most violated if a company's financial records were intentionally misleading to investors?
Which core principle of corporate governance would be most violated if a company's financial records were intentionally misleading to investors?
Which of the following scenarios highlights a conflict between personal loyalties and official responsibilities within a business setting?
Which of the following scenarios highlights a conflict between personal loyalties and official responsibilities within a business setting?
How does 'technical morality' differ from 'legal responsibilities' in the context of business ethics?
How does 'technical morality' differ from 'legal responsibilities' in the context of business ethics?
A company adopts a 'code of conduct' primarily to:
A company adopts a 'code of conduct' primarily to:
What is the key distinction between a 'code of ethics' and a 'code of practice'?
What is the key distinction between a 'code of ethics' and a 'code of practice'?
Flashcards
Ethics
Ethics
A discipline that examines what is morally good and bad, and morally right and wrong.
Business Ethics
Business Ethics
Written and unwritten codes of principles and values that govern decisions and actions within an organization, guiding policy and practice.
Social Responsibility
Social Responsibility
Acting in the best interest of the environment and society as a whole.
Sole Proprietorship
Sole Proprietorship
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Partnership
Partnership
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Corporation
Corporation
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Fairness
Fairness
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Accountability
Accountability
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Transparency
Transparency
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Stewardship
Stewardship
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Study Notes
- A business is an organization engaged in buying and selling goods and services with the purpose of making a profit.
- Ethics is a discipline concerned with what is morally good and bad, right and wrong.
- The three bases of ethics are value, principles, and purpose.
Business Ethics
- Business ethics involves written and unwritten codes of principles and values that govern decisions and actions within an organization.
- It includes implementing business policies and practices in an ethical manner.
Social Responsibility in Business
- Social responsibility involves acting in the best interest of the environment and society as a whole.
Forms of Business Organizations
- Sole Proprietorship: Owned by one person.
- Partnership: Owned by two or more people.
- General Partnership: All partners share responsibilities and liabilities.
- Limited Partnership: Some partners are active while others are inactive.
- Limited Liability Partnership: Partners are not liable for each other's debts.
- Corporation: Involves more complex ownership structures.
- Types of ownership: Founders, stockholders, shareholders, and staff
- Examples: Amazon, food/beverage companies, Google, Microsoft, motorcycle corporations
- Cooperation: Owned and operated by member staff.
- Cooperative (Coop): Profits are only distributed among members.
Core Principles of Good Corporate Governance
- Fairness: Making judgments free from discrimination.
- Accountability: The obligation of an individual to be responsible for their actions.
- Transparency: Operating in an authentic and open manner.
- Stewardship: Managing resources responsibly for the betterment of creation.
Types of Business Ethics
- Personal Responsibilities: Based on an individual's personal beliefs.
- Official Responsibilities: Tied to the position a person holds.
- Personal Loyalties: Subordinate to superiors.
- Corporate Responsibilities: Obligations of a corporation as a separate legal entity.
- Organizational Loyalties: Loyalty towards the organization as an entity.
- Economic Responsibilities: Guiding individual actions of an economic nature.
- Technical Morality: Ethical standards adhered to by professionals.
- Legal Responsibilities: Responsibilities imposed by law.
- Illegal actions are typically considered unethical.
Codes of Ethics, Conduct, and Practice
- Codes of ethics, conduct, and practice involve understanding the difference between right and wrong.
- Code of Conduct: Designed to influence the behavior of employees.
- Code of Practice: Policies adapted by a profession, government, or non-government organization.
- Code of Ethics: Written and unwritten principles guiding ethical business practices.
- Ethical behavior is truthful and aligns with legal responsibilities. Unethical behavior involves actions that are wrong.
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