Intro to Business Exam #1 (chapter 1-8)

corporate social responsibility

companies actively manage their impact on society, the economy, and the environment

stakeholders

any person, group, or organization that has an interest in a business, project, or decision, or can be affected by its outcome

communism

government or public owns all businesses, land, and resources

socialism

the public, the government, or the workers jointly own and control the "means of production"

capitalism

economic system where private individuals or businesses own the tools, factories, and equipment, and run them to make a profit

mixed economy

private businesses make most economic choices, while the government provides rules, taxes, and public services

whistleblowers

an insider—usually an employee—who exposes illegal, unethical, or fraudulent activity happening inside a business or organization.

written code of ethics

it guides decision-making in hard choices, builds trust with clients and partners, prevents legal trouble, and creates a shared culture of honesty and accountability across an organization or profession

budget deficit

occurs when total government spending exceeds total revenue over a specific period

federal trade commission

independent agency of the United States government established in 1914 to protect consumers and enforce civil antitrust law

who does the us have trade deficit with

china, mexico, vietnam

exchange rate

price of one country's currency when traded for another.

quota

a fixed limit or proportional share placed on the amount, number, or value of something that is allowed, expected, or required

embargo

an official government-imposed ban or restriction on trade, commerce, or shipping with a specific country, organization, or port

cartel

OPEC

social + cultural barriers of trade

language barriers, values + social norms, communication styles

joint venture

two or more parties combine their resources, expertise, and capital to accomplish a specific project or business goal while remaining legally independent

joint alliance

collaborative partnership between independent organizations working toward shared goals

why would a business pick a corporation

to protect owners from personal liability, raise outside capital by issuing stock, gain corporate tax advantages, and establish long-term brand credibility

porters 5 competitive forces

competitive rivalry, threat of new entrants, bargaining power of buyers, bargaining power of suppliers, and the threat of substitutes

roadblocks to execution

resistance to change

5 elements of controlling

control environment, risk assessment, control activities, information and communication, and monitoring

why did tesla adopt flat organization

for creativity