Business and Society Test #1

Business and Society Test #1 - Business and Society:...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Business and Society: Chapter 1: A business is an enterprise that provides products or services desired by customers The goal of a business is to be profitable. Profit = Revenues (bring into the business) – Expenses Goal of managers is to maximize the firm’s value (increase revenue, decrease expenses, competitive advantage over price, quality, or convenience) Stock price can determine company quality 5 key stakeholders in business: 1) Owners: organize, manage, and assume risk of starting a business 2) Creditors : Provide loans to start business 3) Employees: Hired to conduct the business operations 4) Suppliers: Provide the materials needed for Production 5) Customers : Buy products which satisfy their needs Resources required for Production: - Natural resources land (to own a house) - Human resources People (skilled labor) - Capital Machinery; tools - Entrepreneurship (intangible) need to take risk Business Environment: - Social Environment - Industry environment (micro) things that are happening to the - Economic environment (macro) the economy as a whole - Global environment risks in doing business in other countries (international way of business) (U.S dollar getting weaker) Key functions of business: - Management     m e a ns by which e m ploye e s a nd othe r re source s a re use d by the firm (a lloca tion of sca rce re source s. How to m a na ge with
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
- Marketing     Means by which products and services ar e d eveloped, price, distribut ed, a nd promot ed to custo m ers (4p’s in m arketing) - Finance     Me a ns by which firm s obta in a nd use funds for the ir busine ss ope ra tions (how do we ge t the m one y? borrow m one y a nd inve stm e nts) (how do we use the m one y? is the re a be tte r - Accounting     sum m a ry a nd a na lysis of the firm ’s fina ncia l condition (use d to m a ke va rious busine ss de cisions) - Information Systems     inform a tion te chnology, pe ople , a nd proce dure s tha t provide a ppropria te inform a tion to m a ke e ffe ctive Cha pte r 2: Profit e thica lly. Ma xim ize the va lue of the firm by stock price Une thica l busine ss de cisions usua lly re sult in a be ne fit to one or m ore e m ploye e s but ha ve a n a dve rse im pa ct on othe r sta ke holde rs or on the Social responsibility to Customers: - How business ensure responsibility:     o Sa fe production a nd e thica l sa le s pra ctice s o Esta blish code of e thics o Monitor custom e r com pla ints o Ga in custom e r fe e dba ck - How government ensures responsibility:     o Re gula tion of product sa fe ty o Re gula tion of a dve rtising o Re gula tion of industry com pe tition More busine sse s tha t com pe te be tte r for custom e r in price a nd Social responsibility to Employees: - Employee safety:
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/08/2008 for the course MGG 150 taught by Professor Murray during the Spring '08 term at SUNY Buffalo.

Page1 / 9

Business and Society Test #1 - Business and Society:...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online