Business Ethics & Franchise Concepts (Notes)

A set of 50 practice flashcards drawn from the notes covering ethics, systems of thought, and franchise concepts.

What is Ethics?

The study of what constitutes right or wrong behavior, a branch of philosophy focused on morality.

What is Morality?

Philosophy contemplates what is right and wrong, and explores how people should live.

What is Philosophy?

The study of the fundamental nature of knowledge, reality, and existence.

What is Duty-Based Ethics?

An ethical philosophy rooted in the idea that everyone has duties to others, derived from religious principles or other reasoning.

What does Derived mean in this context?

Comes from.

What do Duties mean in this context?

Responsibilities.

Duty-Based Ethics focuses on which aspect: outcomes or actions?

Actions (what you did) and why you did it, not the outcome.

In Duty-Based Ethics, how is Robin Hood’s action evaluated?

Stealing is morally bad even if the outcome is that people don’t starve.

In the charity donation example, why is the act morally problematic under Duty-Based Ethics?

The intention is for publicity and money, not for doing good; thus the action is morally wrong.

What is the Principle of Rights (Rights theory)?

A theory to determine ethicality based on how a decision affects the rights of others.

What is a Conflicting Rights Issue?

When a decision impacts which rights are stronger, such as who to fire.

What does Resolving Conflicts involve in this context?

Deciding whether to keep a chemical plant open by weighing jobs vs health.

What do rights theorists prioritize in Right to work vs Right to health?

The right to health over the right to work in many cases, leading to potential shutdowns.

What is Outcome-Based Ethics?

Ethics that focus on the impact of a decision on society; good outcome = morally good, bad outcome = morally bad.

What is Utilitarianism?

An ethical theory that aims for the greatest good for the greatest number.

What does Utility mean in Utilitarianism?

The usefulness of an outcome.

What is a key aim of Utilitarianism regarding harm?

Create the least amount of harm for the least number of people while helping the majority.

Give a factory expansion example from Utilitarianism.

Expanding a factory creates hundreds of jobs but causes pollution and harm to thousands.

In the factory example, what are the competing interests?

Hundreds of jobs versus health of thousands of people.

Describe a drug example used in Utilitarianism.

A drug that cures 85% but causes painful deaths in 15% of patients.

What is the Systematic Approach in ethics?

A five-step checklist to generate efficient and consistent results.

What is Step One in the Systematic Approach?

Inquiry.

What are the components of Step One?

Identify Parties Involved; Collect Facts; List Applicable Legal or Ethical Principles.

What is Step Two in the Systematic Approach?

Discussion.

What is Step Three in the Systematic Approach?

Decision.

What is Step Four in the Systematic Approach?

Justification.

What is Step Five in the Systematic Approach?

Evaluation.

In Step One, what does Identify Parties Involved mean?

Who will be impacted by the decision.

What does Collect Facts mean in Step One?

Gather information relevant to the decision.

What does List Applicable Legal or Ethical Principles mean in Step One?

Determine which laws or ethical principles apply.

What are Applicable Legal Principles?

Laws or rules that indicate what is legal or illegal.

What are Applicable Ethical Principles?

Ethical theories to determine which principles to apply.

What happens in the Discussion phase of Systematic Approach?

Compare outcomes of possible decisions using laws and ethics.

What is the purpose of the Decision phase?

Decide what you want to do.

What is the purpose of the Justification phase?

Explain why you made that decision.

What is the purpose of the Evaluation phase?

Look back on what you did and assess the results.

Give an example of the Inquiry phase from the notes (party involved).

Me, Student, Defense Attorney, Judge’s son.

What does the example say about possible outcomes in the DUI case?

Possible outcomes include Dismissal vs Not Dismissal.

What was the Decision in the DUI example?

Didn’t dismiss.

What was the Justification in the DUI example?

Illegal to dismiss.

Give an example of another Systematic Approach scenario (party involved).

Me, Defendant, Taxpayer’s money that was stolen, Elected Official, Mother.

What does the notes’ Discussion indicate for Example 2?

No Legal - Ethics.

What is a Franchise?

An arrangement in which the owner of intellectual property licenses others to use it in selling goods or services.

What is a Franchise Contract?

The contract that specifies the terms and conditions between franchisor and franchisee.

Who is the Franchisor?

The seller of the franchise and owner of the intellectual property.

Who is the Franchisee?

The purchaser of the franchise; user of the franchise; dealer/seller of the product.

What does a Franchise Contract specify?

The terms and conditions; rights and duties of franchisor and franchisee.

What is a Distributorship in franchising?

A manufacturer licenses a dealer to sell its product.

What is a Manufacturing Arrangement in franchising?

The franchisor transmits the formula to make the product to the franchisee.

What is a Chain-Style Business Operation?

The franchise operates under the franchisor’s trade name and follows standardized methods.

What is a Trade Name?

A name by which something is known in a particular trade.

What is Intellectual Property?

Property resulting from intellectual, creative processes.

What is a Trademark?

A symbol, word, or words that represent a company or product.

What is a Tradename?

A name by which something is known in a particular trade.

What is a License?

A permit to own or use something.

Why are licenses important in franchising?

They allow the IP owner to license others to use it in selling goods or services.

What overarching idea ties together the franchise concepts?

An owner licensed IP to others to use it to sell goods or services under a contract.