Unit 3

Question 1

Contract

Answer 1

a legally binding agreement between 2 or more people or businesses

Question 2

offer

Answer 2

a proposal to provide a good/service

Question 3

Acceptance

Answer 3

all parties involved agree to the terms of the contract

Question 4

Consideration

Answer 4

something of value must be promised in return

Question 5

Elements of a Contract

Answer 5

Offer, Acceptance, Consideration, intention

Question 6

Capacity

Answer 6

a person is legally able to enter into a binding agreement

Question 7

Contract of Law

Answer 7

regulates how contracts are written, executed and enforced

Question 8

breach of contract

Answer 8

when 1 or more parties don’t follow (break) the terms agreed terms of a contract w/o having a legitimate reason

Question 9

employment contract

Answer 9

the terms of employment between a business and an employee

Question 10

Employer Identification Number (EIE)

Answer 10

a number assigned by the IRS for businesses to use when preparing federal tax returns and forms

Question 11

Consumer Bill of Rights

Answer 11

basic expectations of fair treatment of customers
ex. right to: safety, be informed, choose freely, be heard, satisfy basic needs, redress, consumer edu., a healthy government

Question 12

recall

Answer 12

an order to remove or repair unsafe product in a market

Question 13

Integrity

Answer 13

the honesty of a person’s actions

Question 14

ethics

Answer 14

rules of behavior based on a group’s ideas about what is right and wrong.

Question 15

Morals

Answer 15

individuals ideas of what is right and wrong

Question 16

code of ethics

Answer 16

a document that dictates how business should be conducted

Question 17

code of conduct

Answer 17

typically a handbook that outlines the expectations of employee behavior

Question 18

confidentiality

Answer 18

specific information about a company or its employees is never shared, except with those who have clearance to receive it

Question 19

proprietary information

Answer 19

any work created by company employees on the job that is owned by the company

Question 20

trade secret

Answer 20

proprietary information; it is confidential info a company needs to keep private and protect from theif.

Question 21

False advertising

Answer 21

overstating features & benefits of product or making false claims about them

Question 22

social responsibility

Answer 22

behaving with sensitivity to social, environmental, and economic isssues

Question 23

corporate social responsibility

Answer 23

includes all the actions taken by a business to promote social good

Question 24

corporate culture

Answer 24

how the owners and employees of a company think feel and act like a business

Question 25

Philanthropy

Answer 25

promoting the welfare of others