Business-ethics-Lesson-3 (copy)

Business

An entity involved in providing goods and/or services to consumers; also known as enterprise, agency, or firm.

For-profit enterprises

Businesses that operate to earn profit.

Non-profit social enterprises

Organizations that use their surplus revenues to further social causes.

State-owned public enterprises

Businesses owned by the government targeting social and economic objectives.

Economy

A place or country where government-managed resources bring benefits to society.

Third World Countries

Often developing economies characterized by lower average income.

Barter System

Exchange of goods or services without money.

Problems of Barter

Includes lack of a common measure of value and double coincidence of wants may not exist.

Firms

Entities that produce commodities or services to meet market needs.

Government

Manages the economy, establishes laws, and provides essential services.

Households

Consume goods and services from firms and are categorized as consumers.

Money

Anything acceptable for purchasing goods and services.

Characteristics of Money

Acceptable, convertible, divisible, durable, homogenous, scarce, portable.

Scarcity of Resources

The limited availability of resources such as time and money.

Near Money

Assets that can be quickly converted into cash.

Bank Draft

An instrument guaranteeing payment from the issuing bank.

Bill of Exchange

A written order to make a payment at a later date.

Cheques

Instructions to banks to make a payment.

Credit/Debit Cards

Cards used to facilitate payments.

Ecommerce

Buying and selling via the internet.

Conglomerates

Parent companies with unrelated subsidiaries.

Cooperatives

Businesses owned by members who purchase shares.

Franchise

Agreement allowing a franchisee to sell a parent's product or service.

Multinationals

Global organizations managed from a main office.

Nationalized Industries

Businesses owned and controlled by the government.

Partnership Business

Association of partners sharing profits and liabilities.

Service Business

Provides services to consumers.

Merchandising Business

Sells goods.

Manufacturing Business

Produces goods.