Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
production.
Capital- the funds needed to create and operate a business enterprise.
Entrepreneur- the individual who accepts the risk and opportunities involved in creating
and operating a new business venture.
Physicals Resources- tangible items that organizations use in the conduct of their
businesses.
Information Resources- data and other information used by businesses.
b) Entrepreneurs is the most important factor due to the fact that they are the people who
accepts the risks and opportunities associated with creating and operating businesses.
They are the creative minds behind businesses today hence why I believe this is the most
important factor.
1-3: What is a demand curve? What is a supply curve? At what point do they intersect?
a) A demand curve is a graph that shows how many units of a product will be demanded
(bought) at different prices.
b) A supply curve is a graph that shows how much units of a product will be supplied
(offered for sale) at different prices.
c) The demand and supply curve intersect when the quantity of goods demanded and the
quantity of goods supplied are equal forming the equilibrium price (market price).
1-4: Why is inflation both good and bad? How does the government try to control it?
a) Inflation occurs when widespread price increases occur throughout an economic system.
Inflation reduces the purchase power of currency, and causes wages and production rise.
However, inflation causes interest rates higher and financially damages lenders who will
paid back in less valuable currency.
b) The government tries to control inflation by cutting taxes or spending more money.
Cutting taxes will encourage businesses to import more goods.
Chapter 2-Managing the Business
2-1: What factors determine an individuals ethics? For you, which factor has been most
significant?
a) The factors that determines an individuals ethics are:
Utility
b)
Rights
Justice and,
Caring
For me Rights would be most important; reason being that some workplaces treat their
employees bad and not giving them respect where is due. I believe that in order for an
employee to perform at his/her best is to give them respect.
2-2: When making decisions, who are the stakeholders that a business should consider?
When making decisions a business should consider:
a)
b)
c)
d)
e)
Local communities,
Its customers,
Its suppliers
Its employees and,
Its investors
2-3: What are the major areas of social responsibility with which businesses should be
considered?
The major areas of social responsibility are:
Obstructionist stance
Defensive stance
Accommodative stance, and
Proactive Stance
An example of a business that used a proactive is Nike. In 1991 Jeff Ballinger published a
report documenting the labor practices of Nike. After several publishes made by Jeff Ballinger,
Nike received a decrease in sales and a bad name for business. Since this incident, Nike became
the first sports company to publish a complete a list of the factories its contracts with, provided a
detailed 108-page report revealing conditions and pay in its factories and posts commitments
standards, and audit data as part of its corporate social responsibilities reports. Despite the poor
labor practices, the company conducted, they manage to turn it around by indicating sincere
commitment to improve social responsibilities.
An example of a company that took the obstructionist stance was Nestle. Several years
ago Nestle marketed their infant formula and sent out the wrong message with their product
According to (Murray, 2009), as a result of the marketing tactics, Nestle infant formula killed
more than 100 third world babies. They denied they never advocated bottle feeding over breast
feeding milk. Even though they used the wrong marketing tactics, they still should have admitted
their wrong doings.
REFERENCES
Meier, B. (1999, October 13). Philip Morris Admits Evidence Shows Smoking Causes Cancer .
Retrieved from The New York Times : http://www.nytimes.com/1999/10/13/us/philipmorris-admits-evidence-shows-smoking-causes-cancer.html
Murray, A. (2009). The Infant Formula Controversy.
Nisen, M. (2013, May 9). How Nike Solved Its Sweatshop Problem. Retrieved from Business
Insider: http://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5
University Alliance. (2013, July 29). Walmart Reports on Global Responsibility Efforts.
Retrieved from University of San Fransisco:
http://www.usanfranonline.com/news/supply-chain-management/walmart-reports-onglobal-responsibility-efforts/#.V_sL6ZMrLqM