Business Final Review
Chapter 1
1. Overview of the business world P5
Overview of the business world
Economy
Finance
Owners
Information Technology
Legal, Political, and Regulatory Forces

Marketing

Customers

Competition
Social Responsibility and Ethics

Management

Employees

2. All economic systems must address three important issues: p 8
1) What goods and services, and how much of each, will satisfy consumers’ needs?
2) How will goods and services be produced, who will produce them, and with what resources will they be produced?
3) How are the goods and services to be distributed to consumers?
Chapter 2
1. Six ethical issues: P 26
1) Misuse of company resources
Excessive use of email at work
Unauthorized use of equipment and computer systems to embezzling of company funds
Internal employee theft
Time theft
2) Abusive and Intimidating behavior
Physical threats, false accusations, profanity, insults, yelling, harshness, and unreasonableness to ignoring someone or simply being annoying; and probably have some ideas of your own.
It is difficult to assess and manage because of diversity in culture and lifestyle.
Bullying is associated with a hostile workplace when a person or group is targeted and is threatened, harassed, belittled, verbally abused, or overly criticized. (A mix of verbal, nonverbal, and manipulative threatening expressions to damage workplace productivity).
3) Conflict of Interest
Bribes---payments, gifts or special favors intended to influence the outcome of a decision.
A bribe is a conflict of interest because it benefits an individual at the expense of an organization or society.
4) Fairness and Honesty
Competitors knowingly through deception, misrepresentation, coercion, or discrimination.
How employees use the resources of the organization.
Disclosure of potential harm caused by product use.
5) Communications
False and misleading advertising, as well as deceptive personal-selling tactics, anger consumers and can lead to the failure of a business.
Truthfulness about product safety and quality are important to consumers.
6) Business relationships
Customers, suppliers, and others in their workplace
Keeping company secrets, meeting obligations and responsibilities, and avoiding undue pressure
Managers have the opportunity to influence employee’s actions.
It is the responsibility for managers to create a work environment that helps the organization achieve its objectives and fulfill its responsibilities.
2. The four dimensions of social responsibility The pyramid P34
Voluntary responsibilities--- Being a “good corporate citizen”, contributing to the community and quality of life
Ethical responsibilities--- Being ethical; doing what is right, just, and fair; avoiding harm
Legal responsibilities--- obeying the law (society’s codification of right and wrong); playing by the rules of the game
Economic responsibilities--- being profitable
Chapter 3
1. Social and cultural barriers P69
Cultural differences includes differences in spoken and written language; some translations
Differences in body language and personal space also affect international trade.
Gestures vary from culture to culture.
Family role also influences marketing activities.
Different perception of time as well.
2. The difference between Balance of trade & Balance of payments P64-65
Balance of trade--- The difference in value between a nation’s exports and its imports.
Trade deficit ---A nation’s negative balance of trade, which exists when that country imports more products than it exports. (The failure of business, the loss of jobs, and a lowered standard of living)
Balance of payments ---The difference between the flow of money into and out of a country. A country’s balance of trade, foreign investments, foreign aid, loans, military expenditures, and money spent by tourists comprise its balance of payments.
Chapter 4
1.