-
Tangible
Car, food, and clothing
-
Intangible
A service, an idea
-
Natural Resources
Land, forests,etc. (not made by people)
-
Human Resources
Physical/mental abilities used by people to produce goods and services
-
Financial Resources
funds necessary to acquire needed natural and human resources.
-
Questions for economic systems
- 1. What goods and services and what quantity will satisfy the needs of the customer?
- 2. How will the goods and services be produced?
- 3. How are goods and services to be distributed to the consumer?
-
Types of Economic systems
- Communism
- Socialism
- Capitalism
-
Role of entrepreneur
An individual who risks his/her wealth,time,and effort to develop for profit an innotative product or way of doing something.
-
Role of government
federal,state,and local governments intervene in the economy with laws and regulations designed to promote competition, protect consumers,employees, and the environment.
-
Supply
the number pf products that businesses are willing to sell at different prices at a specific time;consumer ususally buy more of the product when the price falls
-
Demand
The number of goods and services that consumers are willing to buy at different prices at a specific time;businesses are usully willing to supply more of a good at higher prices because the potential profits are higher.
-
Business Ethics
the principles and standards that define acceptable conduct in business.
-
Social responsibility
A business's obligation to maximize its positive impact and minimize its negative impact on society.
-
Ethical Issue
- is an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that maybe evaluated as right or wrong,ethical or unethical.
- Fear of not remaining anonymous
- Feared retaliation form supervisor or management
- Did not believe action would be taken.
-
Ethical Issues Categories
- Conflict or Interest-when a person chooses to advance their own personal interest or those of others.
- Fairness and Honesty-heart of business ethics;general values of decision makers
- Communications-False and misleading
- Business Relationship-must be ethical towards their customers
-
Entrepreneurship
The process of creating and managing a business to achieve a desired objective.
-
Small business
any independently owned and operated business that is not dominant in its competitive area and employs fewer than 500 people.
-
Advantages of owning a small business
- Independence
- Freedom of choice
- the option of working at home
-
Primary Forms of business organizations
- Sole Proprietor-is a business owned and operated by one individual
- Partnership-is an association of two or more persons who carry on as co-owners of a business for profit.
- Corporation-Legal entity,created by the state,whole assets and liabilities are seperate from its owners.domestic,foreign,alien,private
-
Advantages of franchise
- Management training
- Brand name appeal
- national advertising
- Proven products and business formats
-
Disadvantages of Franchise
- Fees and profit sharing
- Strict adherence to standardize operations
- Restrictions on purchasing
- limited product line
- marker saturation
-
Non-profit organization
- provides products,especiallyservices, for some purposes other than profits.
- Salvation Army
- colleges and universities
-
Social Responsibility
- Environmental-animal rights, pollution, global warming
- community-responsibility to the general welfare of the community.
-
Measuring the economy
Gross domestic product-the sum of all goods and services produced in a country during a year.
-
Code of Ethics
- Formalized rules and standards that describe what a company expects of its employees.
- Whistleblowing-when a employee exposes a emplyers wrongdoing to outsiders.
|
|