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Questions and Answers
What is a Sole Proprietorship?
What is a Sole Proprietorship?
How many owners are required at a minimum to establish a private corporation?
How many owners are required at a minimum to establish a private corporation?
What does utilitarianism focus on?
What does utilitarianism focus on?
What is the main role of the Securities and Exchange Commission (SEC)?
What is the main role of the Securities and Exchange Commission (SEC)?
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What is the main concern of managers according to utilitarian principles?
What is the main concern of managers according to utilitarian principles?
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What does the term 'Egoism' refer to in a business ethics context?
What does the term 'Egoism' refer to in a business ethics context?
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In a Partnership, how is ownership structured?
In a Partnership, how is ownership structured?
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Which ethical framework states that moral behavior is relative to individual viewpoints?
Which ethical framework states that moral behavior is relative to individual viewpoints?
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Which dimension of corporate integrity focuses on the relationships among people?
Which dimension of corporate integrity focuses on the relationships among people?
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What is an ethical issue in business?
What is an ethical issue in business?
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What does corporate social responsibility emphasize in business operations?
What does corporate social responsibility emphasize in business operations?
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Which of the following is NOT an advantage of a sole proprietorship?
Which of the following is NOT an advantage of a sole proprietorship?
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Which dimension of corporate integrity looks at a company's impact on the environment?
Which dimension of corporate integrity looks at a company's impact on the environment?
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What principle does Universalism advocate in ethical decision making?
What principle does Universalism advocate in ethical decision making?
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According to virtue ethics, what determines morality?
According to virtue ethics, what determines morality?
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Which corporate integrity dimension emphasizes the importance of cultural relationships within a company?
Which corporate integrity dimension emphasizes the importance of cultural relationships within a company?
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Study Notes
Forms of Business Organizations
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Sole Proprietorship: Owned by one person, managing daily activities.
- Assets: Resources owned by the business.
- Liabilities: Debts or obligations of the business.
- Advantages: Manageable, least expensive.
- Disadvantages: Unlimited liability (owner responsible for all debts).
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Partnership: Shared ownership by two or more members.
- General Partnership: Unlimited liability for all partners.
- Limited Partnership: Some partners have limited liability (up to their investment).
- Advantages: Wider capital base.
- Disadvantages: Joint liability for all partners' actions.
-
Corporation: Private company, established by 5-15 owners (shareholders).
- Legally recognized by the government (incorporation).
- Stock Corporation: Issues shares, distributes profits (dividends).
- Non-Stock Corporation: Created for public interest (charitable, educational).
- Advantages: Limited liability for shareholders.
- Disadvantages: Close government monitoring, more paperwork.
Foreign Business Organizations
- Branch Office: Conducts head office activities in a host country.
- Representative Office: Supported by head office, no fund transfer.
- Regional Headquarters: Oversees subsidiaries, affiliates, and branches; administrative, communication, coordination.
- Services: Administration, planning, raw material acquisition, marketing, technical support, research and development.
Classification of Businesses
- Service Business: Provides labor or services.
- Merchandising Business: Sells products purchased from others.
- Manufacturing Business: Creates finished products from raw materials.
Ethical Environment of the Firm
- Ethics: Principles guiding behavior and judgments.
- Ethical Standards: Create values, ensure meaningful decisions.
- Ethical Issues: Moral dilemmas in business decisions.
- Universalism: Everyone should have the same values (honesty, respect).
- Egoism: Self-interest guides decisions.
- Utilitarianism: Greatest good for the greatest number.
Corporate Integrity
- Sense of wholeness: Created by right relationships among members (cultural, interpersonal, organizational, social, natural).
- Cultural: Internal relationships; language, rituals, beliefs.
- Interpersonal: Relationships between people (family, civic, work).
- Organizational: Purposes of the business (economic, managerial).
- Social: Impacts of the organization on society.
- Natural: Organization's impact on nature.
Corporate Social Responsibility (CSR)
- Corporate Social Responsibility considers the welfare of society.
- Social Obligation: Following legal and ethical standards.
- Social Responsiveness: Going beyond to impact society positively.
- Economic Responsibility: Producing goods at reasonable prices.
- Legal Responsibility: Complying with local and international laws.
- Ethical Responsibility: Fairness to consumers, employees, shareholders, community.
- Philanthrophic Responsibility: Voluntary activities like charity.
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Description
Test your knowledge on various forms of business organizations including sole proprietorships, partnerships, and corporations. Explore the advantages and disadvantages of each type and understand their legal implications and liabilities. Ideal for business students or anyone interested in entrepreneurship.
