BUS 101 Test 2 Study Guide

Question 1

A set of beliefs about right and wrong, good and bad

Answer 1

Ethics

Question 2

Ethical norms that apply to all people across a broad spectrum of situations

Answer 2

Universal Ethical Standards

Question 3

The application of right and wrong, good and bad, in a business setting

Answer 3

Business Ethics

Question 4

A situation in which a difficult choice has to be made between two courses of action, either or which entails transgressing a moral principle

Answer 4

Ethical Dilemma

Question 5

A formal, written document that defines the ethical standards of an organization and gives employee the information they need to make ethical decisions across a range of situations

Answer 5

Code of Ethics

Question 6

Employees who report their employer’s illegal or unethical behavior to either the authorities or the media

Answer 6

Whistle-blowers

Question 7

The obligation of a business to contribute to society

Answer 7

Social Responsibility

Question 8

Any groups that have a stake—or a personal interest—in the performance and actions of an organization

Answer 8

Stakeholders

Question 9

A social movement that focuses on four key consumer rights: (1) the right to be safe, (2) the right to be informed, (3) the right to choose, and (4) the right to be heard

Answer 9

Consumerism

Question 10

All business donations to nonprofit groups, including money, products, and employee time

Answer 10

Corporate Philanthropy

Question 11

Marketing partnerships between businesses and nonprofit organizations, designed to spike sales for the company and raise money for the nonprofit

Answer 11

Cause-related Marketing

Question 12

Business contributions to the community through the actions of the business itself rather than donations of money and time

Answer 12

Corporate Responsibility

Question 13

Economic development that is conducted without depletion of natural resources

Answer 13

Sustainable Development

Question 14

A systematic evaluation of how well a firm is meeting its ethics and social responsibility goals

Answer 14

Social Audit

Question 15

The transmission of relevant information between a sender and a recipient

Answer 15

Communication

Question 16

Any interference that causes the message you send to be different from the message your audience understands

Answer 16

Noise*

Question 17

Obstacles to effective communication, typically defined in terms of physical, language, body language, cultural, perceptual, and organizational barriers

Answer 17

Communication Barriers

Question 18

Communication among people with differing cultural backgrounds

Answer 18

Intercultural Communication

Question 19

Physical appearance of documents, room temperature, or seating

Answer 19

Physical

Question 20

Different languages, slang, or jargon, or accents

Answer 20

Language

Question 21

Eye contact, crossed arms, or facial ticks

Answer 21

Body Language

Question 22

Point of view or influence of agenda

Answer 22

Perceptual

Question 23

Unspoken rules, hierarchy, or location

Answer 23

Organizational

Question 24

Interaction behaviors, dress, gender or socioeconomic hierarchy traditions, or food

Answer 24

Cultural

Question 25

Indicates integrity, trust, and respectful attention

Answer 25

Eye contact

Question 26

May indicate mood and contribute to effectiveness through variation

Answer 26

Tone of Voice

Question 27

Conveys various emotions, level of agreement, as well as comprehension

Answer 27

Facial Expression

Question 28

Conveys level of authority, confidence, and coherence

Answer 28

Gesture/posture

Question 29

Communication Channels

Answer 29

The various ways in which a message can be sent, ranging from one-on-one in-person meetings to internet message boards

Question 30

Texting, Memos/Reports, Email, Voice Mail, Telephone Conversation, Video-conferencing, In-person Presentation, Face-to-Face meeting

Answer 30

Types of Communication Channels

Question 31

Vibrant, compelling presentation delivery style that grabs and holds the attention of the audience

Answer 31

Dynamic Delivery

Question 32

The business is owned by a single individual

Answer 32

Sole Proprietorship

Question 33

Two or more people serve as co-owners of the business

Answer 33

Partnership

Question 34

The business is a separate legal entity

Answer 34

Corporation

Question 35

A hybrid with characteristics of both a corporation and partnership

Answer 35

Limited Liability Company

Question 36

Ease of formation Retention of control Pride of ownership Retention of profits Possible tax advantage

Answer 36

Advantages of Sole Proprietorships

Question 37

Limited financial resources Unlimited liability Limited ability to attract and maintain talented employees Heavy workload and responsibilities Lack of permanence

Answer 37

Disadvantages of Sole Proprietorships

Question 38

Ability to pool financial resources Ability to share responsibilities and capitalize on complementary skills Ease of formation Possible tax advantages

Answer 38

Partnership Advantages

Question 39

Unlimited liability Potential for disagreements Lack of continuity Difficulty in withdrawing from a partnership

Answer 39

Partnership Disadvantages

Question 40

Represented by shares of stock

Answer 40

Ownership

Question 41

An owner of a corporation

Answer 41

Stockholder

Question 42

The individuals who are elected by stockholders of a corporation to represent their interests

Answer 42

Board of Directors

Question 43

Limited liability Permanence Ease of transfer of ownership Ability to raise financial capital Ability to make use of specialized management

Answer 43

Corporation Advantages

Question 44

Expanse and complexity of formation and operation Complications when operating in multiple states Double taxation of earnings and additional taxes More paperwork and regulation and less secrecy Possible conflicts of interest

Answer 44

Corporation Disadvantages

Question 45

One firm buys another firm

Answer 45

Acquisition

Question 46

Two formerly independent business entities combine to form a new organisation

Answer 46

Merger

Question 47

Combination of firms in the same industry (Airlines or Pharmacies)

Answer 47

Horizontal Merger

Question 48

Combination of firms that are at different stages in the production of good or service, creating a buyer-seller relationship (IKEA)

Answer 48

Vertical Merger

Question 49

Combination of firms in unrelated industries (Clorox)

Answer 49

Conglomerate Merger

Question 50

A licensing arrangement under which a franchisor allows franchises to use its name, trademark, products, business methods, and other property in exchange for monetary payments and other considerations

Answer 50

Franchise

Question 51

Less risk Training and support Brand recognition Easier access to funding

Answer 51

Franchising Advantages

Question 52

Costs Lack of control Negative halo effect Growth challenges Rstrictions on sale Poor execution

Answer 52

Franchising Disadvantages