Major Problems Faced by Businesses
37 Questions
1 Views

Major Problems Faced by Businesses

Created by
@HeavenlyBohrium

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a common reaction by companies to uncertainty?

  • Innovating their product lines
  • Expanding into new markets
  • Investing in long-term goals
  • Sticking with manageable short-term goals (correct)

    • Globalization has a minimal impact on the costs faced by businesses.

    False

    Innovations in information technology have led to faster communication and an influx of information.

    Information overload

    The ___ environment consists of factors that have an indirect but significant influence on business operations.

    <p>external</p> Signup and view all the answers

    Match the following problems to their definitions:

    <p>Uncertainty = Fear of unpredictable outcomes affecting costs Complexity = Emergence of a complicated business environment Diversity = Inclusion of various ideas and perspectives Innovation = Creating a culture that fosters new ideas</p> Signup and view all the answers

    What is one of the disadvantages of a partnership?

    <p>Joint liability for obligations</p> Signup and view all the answers

    Which of the following is NOT a factor in the internal environment of a business?

    <p>Regulatory agencies</p> Signup and view all the answers

    The macroenvironment is directly controllable by firms.

    <p>False</p> Signup and view all the answers

    Corporations have a distinct personality separate from their owners.

    <p>True</p> Signup and view all the answers

    What is the minimum paid-up capital required for corporations in the Philippines?

    <p>5,000 pesos</p> Signup and view all the answers

    What is the operating environment also known as?

    <p>Microenvironment</p> Signup and view all the answers

    A __________ corporation has a capital stock divided into shares and pays dividends.

    <p>stock</p> Signup and view all the answers

    Match the following with their respective descriptions:

    <p>Stock Corporation = Issues shares of stock and pays dividends Non-Stock Corporation = Does not issue shares of stock Branch Office = Operates under the lead office from a host country Shareholder = Owner of shares in a corporation</p> Signup and view all the answers

    Which of the following is a disadvantage of forming a corporation?

    <p>Heavily regulated by the government</p> Signup and view all the answers

    A branch office requires a minimum paid capital of 100,000 US Dollars.

    <p>False</p> Signup and view all the answers

    Name one internal factor that can lead to the dissolution of a partnership.

    <p>Death of a partner</p> Signup and view all the answers

    What is a key advantage of sole proprietorship?

    <p>Complete control over the business</p> Signup and view all the answers

    A limited partnership means that all partners have unlimited liability.

    <p>False</p> Signup and view all the answers

    What is a disadvantage of a sole proprietorship?

    <p>Unlimited liability</p> Signup and view all the answers

    A ___ has debts or obligations arising during business operations.

    <p>liability</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Sole Proprietorship = Business owned and run by one individual General Partnership = All partners share unlimited liability Limited Partnership = Only some partners have limited liability Jurídical Person = Entity that is recognized as having legal rights</p> Signup and view all the answers

    Which of the following is NOT a feature of a partnership?

    <p>Single Tax Identification number</p> Signup and view all the answers

    What is the minimum capital required to establish a Regional Operating Headquarters?

    <p>200,000 US DOLLARS</p> Signup and view all the answers

    How can obtaining additional capital be challenging for sole proprietorships?

    <p>Low guarantee of profitable returns to lenders</p> Signup and view all the answers

    Partnerships can only exist between two individuals.

    <p>False</p> Signup and view all the answers

    A Representative Office obtains funds directly from its main office overseas.

    <p>False</p> Signup and view all the answers

    What is one of the services performed by a Regional Operating Headquarters?

    <p>Technical support and communications</p> Signup and view all the answers

    A ___________ business is a type of business that provides labor and other services to customers.

    <p>service</p> Signup and view all the answers

    What type of business primarily purchases products from manufacturers to sell at retail prices?

    <p>Merchandising Business</p> Signup and view all the answers

    Match the following ethical perspectives with their definitions:

    <p>Universalism = Values like honesty and respect for all Egoism = Promotes the greatest good for oneself</p> Signup and view all the answers

    Universalism advocates for values that are applicable only to specific individuals.

    <p>False</p> Signup and view all the answers

    What is an ethical issue?

    <p>A concern on which an individual must decide what is morally right or wrong.</p> Signup and view all the answers

    What principle focuses on achieving the greatest good for the greatest number of people?

    <p>Utilitarianism</p> Signup and view all the answers

    Corporate social responsibility only focuses on the financial performance of a business.

    <p>False</p> Signup and view all the answers

    What does corporate integrity refer to?

    <p>A sense of wholeness created by the right relationships among members of the corporation.</p> Signup and view all the answers

    The ______ dimension views the organization as actively engaging with society.

    <p>social</p> Signup and view all the answers

    Match the following ethical theories or corporate concepts with their descriptions:

    <p>Utilitarianism = Greatest good for the greatest number Relativism = Ethical behavior based on individual perspectives Virtue Ethics = Morality based on personal character Corporate Social Responsibility = Business activities that benefit society</p> Signup and view all the answers

    Study Notes

    Major Problems Faced by Businesses

    • Uncertainty creates fear among executives, prompting a focus on short-term goals to manage risks.
    • Globalization necessitates costly adaptations to serve new markets and trends.
    • Innovation is essential for fostering a culture that encourages creative problem-solving and development.
    • Government Policies require businesses to comply with new regulations across various sectors, including environmental and financial.
    • Technology demands investment to leverage its benefits, keeping companies competitive as advancements occur rapidly.
    • Diversity enhances products and services by integrating varied perspectives and ideas into business processes.
    • Complexity in the business environment is driven by globalization and information technology.
    • Information Overload arises from rapid communication advances and the vast amount of data available online.

    Environment of the Firm

    • The business environment encompasses conditions and elements vital for effective operations and success.
    • Internal Environments directly affect business operations, influencing day-to-day functions.
    • External Environments indirectly influence operations, classified into:
      • Microenvironment: Directly relevant factors such as customers, suppliers, and competitors, which are somewhat uncontrollable.
      • Macroenvironment: Wider environmental factors impacting business indirectly.

    Forms of Business Ownership

    • Sole Proprietorship:

      • Advantages: Simple ownership structure, complete control, ease of changes and dissolution.
      • Disadvantages: Unlimited liability risks personal assets and difficulty in capital acquisition.

    • Partnership:

      • Joint ownership shared by two or more individuals with profit and loss agreements.
      • Types include General Partnership (unlimited liability) and Limited Partnership (differentiated liability based on investment).
      • Advantages: Broader capital base and easier expansion due to shared management.
      • Disadvantages: Joint liability leading to potential partner-related conflicts and limited lifespan due to partnership dynamics.

    • Corporation:

      • Can legally operate independently of its owners, engaging in contracts and owning property.
      • Requires a minimum of 5 and a maximum of 15 shareholders.
      • Subject to regulation and taxation separate from individual shareholders.
      • Types: Stock Corporation (shares and dividends) and Non-Stock Corporation (no shares).
      • Advantages: Limited liability protects personal assets.
      • Disadvantages: Complex formation process and heightened scrutiny from regulatory agencies.

    Foreign Business Organizations

    • Branch Office: Engaged in foreign operations, requiring registration and a minimum capital of 200,000 USD.
    • Representative Office: Supports the parent company without independent funding, needing 30,000 USD for operations.
    • Regional Headquarters: Focuses on managerial functions and internal coordination.
    • Regional Operating Headquarters: Provides specific services and derives income from local activities, needing 200,000 USD capital.

    Classification of Businesses

    • Service Business: Provides labor and services directly to customers.
    • Merchandising Business: Purchases goods to sell at a profit.
    • Manufacturing Business: Converts raw materials into finished products through various processes.

    Ethical Environment of the Firm

    • Business Ethics involves moral decision-making and addressing ethical issues.
    • Perspectives on Ethics include:
      • Universalism: Shared values like honesty and respect.
      • Egoism: Promoting self-interest.
      • Utilitarianism: Greatest benefit for the majority.
      • Relativism: Ethics shaped by individual viewpoints.
      • Virtue Ethics: Morality linked to character maturity.

    Corporate Integrity and Social Responsibility

    • Corporate Integrity reflects a sense of unity within a corporation fostered by healthy internal relationships.
    • Corporate culture, interpersonal relations, and societal engagement are crucial for a positive ethical climate.
    • Corporate Social Responsibility (CSR) represents the firm’s commitment to socially beneficial activities, enhancing its public image.
    • Social Obligations and Responsiveness refer to actions taken for reasons beyond mandatory compliance, demonstrating a company’s ethical stance.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    Document (1).docx

    Description

    This quiz explores the significant challenges that businesses encounter in today's dynamic environment. Key topics include uncertainty, globalization, innovation, and the impact of government policies on business operations. Test your understanding of how these factors affect decision-making in organizations.

    More Like This

    ¿Qué tanto sabes sobre las empresas?
    3 questions

    ¿Qué tanto sabes sobre las empresas?

    GloriousAmazonite avatar
    GloriousAmazonite
    Forretningsdrift i fremvoksende markeder
    9 questions

    Forretningsdrift i fremvoksende markeder

    FormidableProbability avatar
    FormidableProbability
    Challenges in Managerial Leadership
    18 questions

    Challenges in Managerial Leadership

    BrighterCuboFuturism avatar
    BrighterCuboFuturism
    Business Challenges in Manufacturing Cloud
    13 questions

    Business Challenges in Manufacturing Cloud

    InspiringYew avatar
    InspiringYew
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser