Wk02_1301 Intro to Biz Sector (Ch.2)

Wk02_1301 Intro to Biz Sector (Ch.2) - ADM1301 Week2A Text...

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ADM 1301  Week 2A Introduction to the Business Sector Text:  Chapter 2 – How the Business System Works Supplemental: The Canadian Private Sector
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2 Chapter Outline The Right of Private Property Individualism  and Economic Freedom Equality of Opportunity Competition and Profits The Work Ethic  Consumer Sovereignty The Role of  Government The Fundamentals and Canadian Capitalism Various Forms of Capitalism
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3 The Right of Private Property The legal right to own and use economic  goods—for example, land and buildings Ethical implications: Uneven distribution of wealth Infringement of copyright rights Membership rights (e.g., labour unions) are  sometimes preferred over individual rights
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4 Individualism and  Economic Freedom Individualism :  The view that the individual,  and not society or a collective, is the  paramount decision maker in society;  assumes that the individual is inherently  decent and rational. Economic freedoms :  Exist when the business  system operates with few restrictions on its  activities.
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5 Equality of Opportunity The  assumption  that all individuals or groups  have an even chance at responding to some  condition in society. Ethical implications: Difficult to achieve in capitalistic system Wealth created not distributed equally Inequities such as layoffs, drops in living  standards, excessively high executive salaries
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6 Competition The condition in a market system in which  many rival sellers seek to provide goods and  services to many buyers. Ethical implications: Oligopolies (few sellers in industry) or even  monopolies (one seller) can be created More difficult for some firms to enter certain  industries Firms might engage in anti-competitive activity
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7 Profits The excess of revenues over expenses;  closely associated with competition. Ethical implications: Profits sometimes viewed with disdain or  as immoral Taxation of excessive profits
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8 The Work Ethic A code of values, or a body of moral principles,  claiming that work is desirable, a natural activity, and  good in and of itself. Ethical implications: Government programs and society’s expectations have  influenced individuals’ attitudes toward work Individuals now expect more from government and business  enterprises in terms of working conditions, benefits, and  salaries
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9 Consumer Sovereignty The  assumption  existing in an economy that  consumers have and exercise power over producers  through the decisions they make in purchasing the  goods and services provided by corporations.
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