(1) BA 101 Midterm 3

Torts

-a tort is a wrong inflicted on other people or their property -torts include all wrongs that are not a breach of contract Examples of torts include: -assault -slander -libel -product liability -fraud

Respect and how to get it

-acknowledge the actions of others -set standards not just for your staff, but for yourself -walk the talk- your actions will speak louder than your words -be trustworthy -give timely feedback -show respect

What are the two essential functions of a business plan?

1. Guiding the company by charting its future course and defining its strategy for following it 2. Attracting lenders and investors who will provide needed capital (multiple versions may exist)

Why create a business plan?

-although building a plan does not guarantee success, it does increase your chances of succeeding in business -a business plan is like a roadmap that serves as a guide on a journey through unfamiliar, harsh, and potentially dangerous territory. Don't attempt the trip without a map

What are some statistics on entrepreneurs?

-an estimated 25 million entrepreneurs in the US -88% of entrepreneurs driven by opportunity -57% of Americans see good opportunities to start a business -women are more likely than men to deliver innovative products of services

Intrapreneurship

-applying an entrepreneurial mindset within an established organization -a way to simulate innovation in large, established organizations -the intrapreneur acts as an "inside entrepreneur" who focuses in innovation and creativity while operating within the goals and environment of an organization

Ho do entrepreneurs avoid the pitfall of failure?

-know your business in depth -prepare a business plan -manage financial resources -understand financial statements -learn to manage people effectively -set your business apart from the competition

United Nations (UN)

-maintains international peace and security -develops friendly relations among nations -cooperates in solving international problems -promotes respect for human rights

Describe General Partnerships

-mutual agency -unlimited liability -share risk/wealth equally

a new look at management

-new ideas in business management -corporate social responsibility (CSR)

Describe Limited Partnerships

-no mutual agency -provision for limited liability for some -do not share the risk/wealth equally

Describe Preferred Stock

-no vote -first claim on income (a preferred dividend) -first claim on assets after debt

ethics start at the top

-organizational ethics start at the top -managers can help instill corporate values in employees -trust between workers and managers must be based on fairness, honesty, openness and moral integrity

Business in the global market

-over 90% of companies doing business globally believe its important for employees to have international experience -US organizations (like UPS, MLB, NBA, NFL) are also expanding abroad

What good does the Limited Liability Company (LLC) keep?

-pass through taxation (sole proprietorship) -flexibility (sole proprietorship) -limited liability (corporation)

World Trade Organization (WTO)

-police force for the world training system -97% of world trade are members of the WTO

Leadership

-process of influencing and inspiring others to work to achieve a common goal and them giving them the power and freedom to achieve it -entrepreneurs must take on many roles in their companies, but none is more important that that of leader -entrepreneurial teams may better meet leadership needs

Financial Forecasts

-projected financial statements -monthly for one year -quarterly for the next two years -Income statement -balance sheet -cash flow -capital expenditures

Determinants of Culture

-religion -political philosophy -economic philosophy -education -language -social structure

What are the challenges of Sole Proprietorship?

-risk and personal exposure -credibility (only as good as yours) -raising additional capital

From the Ben and Jerry's video, what are the characteristics of a corporation?

-separate legal entity -limited liability -limited stockholder power -unlimited life -easy access to capital -stockholders may lose control -government regulation -double taxation

forces affecting global trade

-sociocultural -economic and financial -legal and regulatory -physical and environmental

Planning Answers Fundamental Questions How can we get to our goal from here?

-strategic planning -tactical planning -operational planning -contingency planning

The globalization of markets

-the globalization of markets refers to the merging of historically distinct and separate and separate national markets into one large global marketplace -In many markets today, the tastes and preferences of consumers in different nations are converging upon some global norm -examples of this trend include Coca Cola, Starbucks, McDonald's, Apple iPhones

private enterprise

-the market turns self-interest into social good -to work, a system has to have: -private property -freedom of choice -right to keep profits -fair competition -the government has to ensure these factors exists. why and how?

problems with business

-the power of business vs consumer -the actions of business vs consumer -the public reaction -the reaction of the government

Kennedy's Basic Rights of Consumers

-the right to safety -the right to be informed -the right to choose -the right to be heard

Legal and regulatory forces

-there is no global or international system of laws -laws may be inconsistent -US businesses must follow US laws while conducting global business

three financial forecasts

-three forecasts -pessimistic -most likely -optimistic -realistic -Include assumptions on which forecasts are based

four vital tasks of a leader

1. HIRE the right employees and constantly improve their skills 2. BUILD an organizational culture and structure that enables the company to reach its potential 3. COMMUNICATE the vision and the values of the company and create an environment of trust 4. MOTIVATE workers to higher levels of performance

On average, new products account for _____% of companies' sales. __________ is an important source of building a competitive advantage.

40% Creativity

According to the survey from the video, what percent of adults in the U.S have considered starting their own businesses? -50% -64% -81% -72%

72%

How many adults in the US have considered starting their own business? What characteristics do they have?

72% -willingness to take initiative -preference for moderate risk -confidence in their ability to succeed -self-reliance -perseverance

How many boxes are there on the Business Model Canvas to fill out? -9 -12 -15 -5

9

According to the Global Entrepreneurship Monitor (GEM) 2016 U.S Report, there is an estimate of how many entrepreneurs in the United States? -25 million -10 million -15 million -20 million

25 million

What are the other types of corporations (not domestic, foreign, and alien)?

B Corporations Benefit Corporations Social Purpose Corporations

___________ is a billionaire who donated $2.5 billion to philanthropy.

Bill Gates

Problem solving techniques

Brainstorming: produce and idea or way of solving a problem by holding a spontaneous group discussion without criticism PMI: listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column

______________ can be defined as a violation of a valid contract where the injured party goes to court to enforce the contract and (sometimes) collect damages.

Breach of Contract

This government agency dealt with Skechers' false claims on their shoe advertisements -FBI -SEC -FDA -FTC

FTC

Skechers

FTC: "Skechers deceived consumers with shoe ads"

Legal nonpayment of financial obligation

Chapter 7- Liquidation and erases debt Chapter 11- restructure and repay Chapter 13- repayment plan personal bankruptcy

Top Management

Chief Executive Officer (CEO) -Introduces change into an organization Chief Operating Officer (COO) -Implements CEO's changes Chief Financial Officer (CFO) -obtains funds, plans budgets, collects funds, etc. Chief Information Officer (CIO) -gets the right information to the right people so decision can be made

The country with the highest number of trademark application is -India -US -Brazil -China

China

A (n) __________ is a regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchanges among members.

Common Market

What are the types of stock?

Common Stock and Preferred Stock

Which of the following is NOT correct about subsidies? -no answers are correct -Subsidies allows domestic producers to gain export markets -Subsidies allows domestic producers to compete against low-cost foreign import -Consumers pay less with subsidies

Consumers pay less with subsidies

Controlling: Making Sure it Works Control Function

Control Function -measures performance relative to planned objectives -rewards people for work well done -takes necessary corrective action

What managers do (controlling)

Controlling -measuring results against corporate objectives -monitoring performance relative to standards -rewarding outstanding performance -taking corrective action when necessary

__________ is a dispute between the government and an individual and is punished by fines and / or imprisonment.

Criminal Law

__________ is the act of obtaining needed services, ideas, or content by soliciting contributions of a large group of people, and especially from an online community, rather than traditional employees or suppliers.

Crowdsourcing

One of the problems with business that may arise if left unchecked and unregulated is the actions of __________ vs __________.

business consumer

ethics defined

business ethics- the accepted principles of right or wrong governing the conduct of businesspeople ethical dilemmas occur when: -there is no agreement over what the accepted principles are -none of the available alternatives seem ethically acceptable many accepted principles are codified into laws: -tort laws (governing product liability) -contract laws (contracts and breaches of contracts) -Intellectual property law (protection of intellectual property) -antitrust law (governing competitive behavior) -securities law (issuing and selling securities) Behaving ethically goes beyond staying within the law.

Free Trade Advantages

comparative advantage- a country should sell the products it produces most efficiently and buy from other countries the products to cannot produce as efficiently absolute advantage- a country has a monopoly on producing a specific product or is able to produce it efficiently than all other countries

Common Markets

common market- a regional group of countries with a common external tariff, no internal tariffs and coordinated laws to facilitate exchange among members -the European Union (EU), Mercosur, the ASEAN, and the COMESA are common markets

Systematic Innovation

consists in the purposeful and organized search for changes, and in the systematic analysis of the opportunities such changes might offer for economic or social innovation -many successful innovations exploit changes

Explain the innovative failure of new coke

don't mess with a cultural iron

An LLC gets rid of __________ and __________ from the disadvantages that corporations hold.

double taxation corporate structure

the Sarbanes - Oxley Act of 2002

establishes new or enhanced standards for all US public company boards, management, and public accounting firms the Sarbanes - oxley act is also known as: -the public company accounting reform -Investor protection Act of 2002 -SOX -Sarbox

If a business is following all the laws and regulations, it still might not be acting

ethically

a definition of ethics

ethics- the standards of moral behavior. behaviors that are accepted by society as right versus wring

the globalization debate Is the shift toward a more integrated and interdependent global economy a good thing?

four areas of disagreement: 1) jobs and income 2) labor policies and ecological environment 3) national sovereignty and culture 4) the world's poor

franchising

franchising- a contractual agreement whereby someone with a good idea for a business sells others the rights to use the name and sell a product/service in a given area -franchisors need to be careful to adopt their product to the countries they serve -Yum! Brands, home of KFC, Taco Bell, and Pizza Hut, learned that food preferences differ all around the world

how does this happen?

fraud triangle a deliberate deception to secure unfair or unlawful gain

All of the following are effects of the Dodd-Frank Wall Street Reform and Consumer Protection Act, EXCEPT -Higher taxes on all Fortune 500 corporations -Comprehensive regulation of financial markets -Consumer protection reforms -Tightened regulation of Credit Rating Agencies

Higher taxes on all Fortune 500 corporations

________ warranty is legally imposed on seller/disclaimed.

Implied

Planning Answers Fundamental Questions What is the situation now?

SWOT Analysis: a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats

Feasibility Analysis addresses what question?

Should we proceed with this business idea?

Which of the following is CORRECT about patent trolls? -They acquire patents to get access to new markets -They acquire patents to develop new products -They acquire patents without the desire to actually develop the products and earn a profit from litigations -All answers are correct

They acquire patents without the desire to actually develop the products and earn a profit from litigations

Roots of Unethical Behavior what would motivate managers to behave in an unethical manner?

Why do some managers behave unethically? There are no simple answers, but some generalizations: -Personal Ethics Code: will have a profound influence on behavior as a businessperson -Do not realize they are behaving unethically: by failing to ask the right questions -Organization's culture: de-emphasizes ethics and considers primarily economic consequences -Unrealistic performance goals: encouraging and legitimizing unethical behavior -unethical leadership: encouraging and tolerating behavior that is ethically suspect

A feasibility analysis is not the same as __________. Instead it serves as a __________, screening out ideas that lack the potential for building a successful business __________ an entrepreneur commits the necessary resources to building a business plan.

a business plan filter before

One of the top ten reasons a business will fail is -owners know their business in depth -none of the above -a declining market -financial resources are well managed

a declining market

regulation

a law that controls the way a business can operate

What is culture? what do we mean by group and society?

a society is a group of people who share a common set of values

Which problem(s) about corporations were mentioned in the video "The Corporation"? -all answers are correct -the are specifically structured to focus on their bottom line before anything else even the public good -stockholders of corporations are highly concentrated -they do no concern themselves with communities and the environment

all answers are correct

Which statement is based on financial projections? -profit and loss statement -cash flow statement -all answers are correct -balance sheet

all answers are correct

Why do governments impose tariffs? -to increase the cost of imported goods -to increase government revenues -to protect domestic producers -all answers are correct

all answers are correct

All of the following are part of the "How to Write a Business Plan" 5 top tips except -keep it brief get rid of the fluff -be creative -all answers are part of the 5 top tips -be realistic

all answers are part of the 5 top tips

Which of the following are elements of the fraud triangle -all of the above -opportunity -pressure -rationalization

all of the above

Which of the following are generalizations of the root of unethical behavior -Organization's culture -unethical leadership -unrealistic performance goals -all of the above

all of the above

All of the following are examples of a Tort except -fraud -assault -all answers are correct -slander

all answers are correct

Companies use contract manufacturing to -avoid heavy start-up costs -all answers are correct -Temporarily meet an unexpected increase in orders -Experiment in a new market

all answers are correct

In order for the Private Enterprise system to work, it has to have -fair competition -private property -freedom of choice -freedom of choice -right to keep profits -all answers are correct

all answers are correct

What are the ethical issues that international business may face in developing countries? -environmental regulations -human rights -corruption -employment practices -all answers are correct

all answers are correct

Which of the following is TRUE about preferred stockholders? -they do not have voting rights -In case of bankruptcy, they have first claim on assets after debt -all answers are correct -they have first claim on income- a preferred dividend

all answers are correct

Which of the following is an advantage of an LLC? -single taxation -control over business decisions -limited liability -all answers are correct

all answers are correct

If one owner of a partnership makes a bad decision that ends up in the business being sued, then -that person faces liability -the partnership is dissolved -all partners are protected -they all lose their stock -all partners face unlimited liability.

all partners face unlimited liability.

vision

an encompassing explanation of why the organization exists and where it's trying to go. its more than a goal

copyright

an exclusive right that protects the creators of original works of authorship such as literary, dramatic, musical, and artistic works Copyright (C) 2013 Kelly King

Why did Ben & Jerry go public? -to bring in talents -all answers are correct -to raise the company's ethics -to raise capital in order to expand

to raise capital in order to expand

A company focusing on the key activities it is best at and outsourcing the rest is described in the lecture as a: -value chain -global initiative -revenue model -no answer text provided

value chain

Diverse entrepreneurs are

young women minority-owned immigrant part-time

why all the regulation?

greed, bankruptcy, and the demise of the economy (and perhaps the American Dream)

Importing and Exporting

importing: buying products from another country exporting: selling products to another country The US is the largest importing and the second largest exporting nation in the world

Government's other roles

in addition to the rule of law, governments: -manage money (monetary policy) -take money out of markets (taxing consumers) -put money into markets (government spending) regulate industries (administrative law)

Rather thank telling employees exactly what to do, managers today tend to give their employees enough __________ to make their own informed decisions about how best to please ___________.

independence customers

Contingency Planning

preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives. -organizations of all kinds need contingency plans for unexpected events -here first responders at Washington's Reagan National Airport participate in a drill with volunteers who are pretending to be victims

What is crowdsourcing?

is the practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people, and especially from an online community, rather than from traditional employees or suppliers

A business that has a philanthropy program engages in this activity because

it wants to in order to give back

generalized trademark

primary meaning of the generalized trademark becomes the product or service itself examples: -Aspirin -Q-tip -Kleenex

World Bank

promotes economic development

joint ventures

joint venture- a partnership in which two or more companies join to undertake a major project the benefits of joint ventures: -shared technology and risk -shared marketing and management expertise -entry into markets where foreign companies are often not allowed unless goods are produced locally

All of the following are causes of the Enron scandal, EXCEPT -all of the above -lack of education -conflict of interest -lack of truthfulness -enron's culture

lack of education

All of the following are characteristics of Leaders except: -leaders create a vision -leaders are change agents -leaders take risks -leaders direct

leaders direct

Elements of a Contract

legal purpose consideration voluntary agreement

Contracts

legally enforceable agreements between two or more parties Breach of Contract: a violation of a valid contract where the injured party goes to court to enforce contract and (sometimes) collect damages Agency: acts on behalf of another (in other's interest

__________ is when a firm provides the rights to sell its products and use its trademark to an another firm.

licensing

Licensing

licensing- when a firm (licensor) provides the right to manufacture its product or use its trademark to a foreign company (licensee) for a fee (royalty) licensing can benefit a firm by: -gaining revenues it wouldn't have otherwise generated -spending little or no money to produce or market their products

International Monetary Fund (IMF)

maintains order in the international monetary system

The four functions of management

management functions: -planning -organizing -leading -controlling

___________ make(s) hiring decisions on supervisory positions.

middle management

copyright for sound recordings

musical or other audio works is a sound recording copyright symbol (P)

Capital Requirements

must have an estimate of how much start-up capital is required to launch the business

___________ is considered a disadvantage of a partnership because it exposes all other partners to a risk of poor business decision by a single partner.

mutual agency

Manager A believe that his company should pay a bribe to government officials because other companies also do so. Which ethical approach does Manager A take in this situation? -righteous moralist -naive immoralist -friedman doctrine -straw men

naive immoralist

Which of the following is not a determinant of culture? -political philosophy -economic philosophy -religion -education -no answers are correct

no answers are correct

What is an Acquisition?

one firm buys another -Horizontal (two in the same industry) -Vertical (distribution channel: suppliers/distributors) -conglomerate (unrelated business)

What is Entrepreneurship?

one who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize

Domestic Corporation

operate in state in which it was incorporated

Foreign Corporation

operate in states other than their state of incorporation

having it made somewhere else

outsourcing- a process by which a firm contracts with other companies to do some or all of its functions -US firms have outsourced payroll functions, accounting and manufacturing for years -with the growth of global markets, companies have been shifting to offshore outsourcing- outsourcing with other countries

Entrepreneurs are determined by their __________. (by _____ they are not _____ they are)

personal characteristics by who they are not what they are

Which of the building blocks of the Business Model Canvas deals with how the business will make money? -customer relationships -customer segments -revenue model

revenue model

the law standards set by society to govern behavior

standards set by society to govern behavior 1) Common Law: the law judges establish while deciding disputes 2) Statutory Law: laws enacted by a federal or state legislature 3) Administrative Law: regulations passed by state and federal administrative agencies

Explain the innovative failure of Concorde

technically superior jet. Elegant. world famous. an innovative and business disaster

Which macro factor(s) enable(s) the trend toward greater globalization? -technology and culture homogenization -technology and lower international trade barriers -culture homogenization -lower international trade barriers -technology

technology and lower international trade barriers

personal bankruptcy changes

the 2005 personal bankruptcy law changes include requiring people with income at certain levels to pay some or all of their financial obligations

Business law

the legal and regulatory environment

The Naive Immoralist

the naive immoralist asserts a manager of multinational that actions are ethically justified if everyone else is doing the same thing -Lemmings, known for following the reader regardless of circumstance; lemmings don't swim

Bankruptcy

the primary purposes of the law of bankruptcy are to: -give an honest debtor a "fresh start" in life by relieving the debtor of most debts, and; -repay creditors in an orderly manner to the extent that the debtor has property available for payment

strategic alliances

strategic alliance- a long-term partnership between two or more companies established to help each company build competitive market advantages -they don't typically share costs, risks, managements or profits -strategic alliances provide broad access to markets, capital and technical expertise

Ben Cohen and Jerry Greenfield decided to enter a partnership because it allowed them to combine __________ and __________, opening up more opportunities than if each operated separate businesses as single proprietors.

talent resources

the righteous moralist

the righteous moralist claims that a multinational's home country standards of ethics are the appropriate one's for companies to follow in foreign countries -this approach is common among managers from developed countries, especially USA

the Enron Story

"the Enron scandal is the most significant corporate collapse in the US since the failure of many savings and loan banks during the 1980s. This scandal demonstrates the need for significant reforms in accounting and corporate governance in the US as well as for a close look at the ethical quality of the culture of business generally and of business corporations in the US." Kirk Hansen-Markkula Center for Applied Ethics

Ethics and Social Responsibility

"the corporation" -a documentary -biased -controversial -compels people to take a position externalities -the corporation: externalities and labor issues Ch 4 Externalities vs Sustainability the costs of doing business... the Hole

protecting your ideas

(1) what it covers (2) Time required (3) cost copyright 1) works of original authorship 2) about 2 weeks 3) about $35 trademark 1) logos, names, phrases 2) 6-12 months 3) $900-$1,500 design patent 1) look of an original product 2) up to 2 years 3) $5,000-$20,000 utility patent 1) how an original product works 2) 2-5 years 3) $5,000-$20,000 business method patent 1) a business process 2) 2-5 years 3) $5,000-$20,000

Whose to blame?

-"Bad Apple"- the notion that blame for unethical behavior rests with a few unsavory individuals (difficult for organizations to influence ethical decision making) -"Bad Barrel"- views that people are not inherently ethical or unethical, but are influenced by the corporate culture surrounding them (more organizational control)

Describe B Corporations, Benefit Corporations, and Social Purpose Corporations

-"through their products, practices, and profits, businesses should aspire to do no harm and benefit all" -with a sustainable future objective -there are 500 in the US today -Patagonia is an example of a B Corporation

ethical perspectives

-"to educate a person in mind and not in morals is to educate a menace to society." -Theodore Roosevelt -"it has become dramatically clear that the foundation of corporate integrity is personal integrity." -Sam DiPiazza -"a people that values its privileges above its principles soon loses both." -Dwight Eisenhower

Judiciary

-Branch of Government- which settles disputes through application of law -trial courts- the disputes is first heard (Fed=US District; State=circuit, Superior=Common Peas; Specific State Courts=Probate or small claims) -applied courts- the dispute can be heard again if lower court errors

Some Ugly Examples

-Enron -World Com -Tyco These scandals cost investors billions of dollars. The share prices of the affected companies collapsed and shook public confidence in the nation's securities markets.

For every 3,000 new product ideas...

-FOUR make it to the development stage -TWO are actually launched -ONE becomes a success in the market

Cross-industry agencies

-Federal Trade Commission (FTC) -false and deceptive advertising and promotion -Consumer Product Safety Commission (CPSC) -Occupational Safety and Health Administration (OSHA) -Equal Employment Opportunity Commission (EEOC) -Environmental Protection Agency (EPA)

industry specific agencies

-Food and Drug Administration (FDA) -Interstate Commerce Commission (ICC) -Federal Communications Commission (FCC) -Federal Energy Regulatory Commission (FERC) -Federal Aviation Administration (FAA) -Federal Highway Administration (FHA) -Securities and Exchange Commissions (SEC) speaking of government intervention, recently, the FDA was doing vaping crackdown

strategies for entering global markets

-Licensing (least amount of commitment, control, risk and profit potential) -Exporting -Franchising -Contract Manufacturing -International Joint Ventures and Strategic Alliances -Foreign Direct Investment (most amount of commitment, control, risk and profit potential)

McDonald's in 100 cultures

-McDonald's has more that 34,000 restaurants in over 118 countries -maintains varying menus around the world due to the different preferences of its customers -attracts top-level college graduates to be trained for management spots

The Emergence of Global Institutions

-World Trade Organization (WTO) -International Monetary Fund (IMF) -World Bank -United Nations (UN)

What are the corporate regulations?

-a corporation is a separate entity: there is no single individual that is responsible (makes the government nervous) -Securities and Exchange Commission (SEC) -sell of stock/financial reporting -full disclosure -due diligence...has to be thorough in finding and reporting information

patents

-a set of exclusive rights, typically 17 years, granted to an inventor in exchange for detailed public disclosure of an invention -an invention is a solution to a specific technological problem and is a product or process -patents are a form of intellectual property -typically, a granted patent application must include one or more claims that define the invention -the exclusive right granted to a patentee in most countries is the right to prevent others, or at least try to prevent others, from commercially making, using, selling, importing, or distributing a patented invention without permission patent trolls: a company or person that acquires a lot of patents without the desire to actually develop the products

Subsidies

-a subsidy is a government payment to a domestic producer -subsidies help domestic producers: -compete against low-cost foreign imports -gain export markets -consumers typically absorb the costs of subsidies -for example, Japanese subsidy of wheat farmers (consumers pay ~100% more for wheat than average international price) -for example, US subsidy of wheat was $2.24 B in 2015

Describe a business plan

-a systematic evaluation of a venture's chances for success -a way to determine the risks facing a venture -a game plan for managing a business successfully -a tool for comparing actual and target results -an important tool for attracting capital -a "road map" for the venture

Tariffs

-a tax levied on imports, raising the cost of imported products relative to domestic products why do governments impose tariffs? -tariffs increase government revenues -tariffs provide protections to domestic producers against foreign competitors by increasing the cost of imported foreign goods -tariffs force consumers to pay more for certain imports Tariffs are pro-producer and anti-consumer, and tariffs reduce the overall efficiency of the world economy

Causes of the Enron Problem

-conflict of interest between the two roles played by the CPA firm author Anderson, as auditor but also as consultant to Enron -lack of attention shown by members of the Enron board of directors to the off-books financial entities with which Enron did business -lack of truthfulness by management about the health of the company and its business operations -Enron's culture was influenced by senior executives that protected their reputations and their compensation- as the most successful executives in the US when some business and trading ventures began to perform poorly, they tried to cover up their failures

Intellectual Property

-copyright- authors have exclusive rights to documents -trademark- symbols used by firms to identify -patent- investors get exclusive rights to inventions (17 years)

Trading Resources

-countries with abundant natural resources (like Venezuela or Russia) need technological resources from other countries (like Japan) -global trade allows countries to produce what they make best and buy what they need from others free trade: the movement of goods and services among nations without political or economic barriers

Marketing Applied-Promotion

-creating awareness -creating an image -reaching the target market -value and purpose -"connection" with your market and building loyalty -measuring success

cultural relativism

-cultural relativism is the belief that ethics are culturally determined and that firms should adopt the ethics of the cultures in which they operate -"When in Rome, do as the Romans do"

What are characteristics of entrepreneurs?

-desire for immediate feedback -high level of energy -competitiveness -future orientation-serial entrepreneurs -skilled at organizing -value achievement over money

Environmental Forces

-developing countries have transportation and storage systems that make international distribution difficult or impossible -often, technological capabilities are far from those in the US. which make for a tough business environment

Are you a Micromanager?

-do you have to be in control constantly? -do you often check on employees for quality control? -do you often check on subordinates throughout the day? -do you second-guess everything? -do you hold team meetings often? -do you rarely take vacations? -Is there a lot of turnover?

What bad doe the Limited Liability Company (LLC) get rid of?

-double taxation (corporation) -corporate structure (corporation) -unlimited liability (sole proprietorship)

Describe the Sole Proprietorship

-easy, quick, simple, and affordable -full control with minimal administration -adaptable

Ethics in International Business the most common ethical issues in business involve

-employment practices -human rights -environmental regulations -corruption -the moral obligation of multinational companies

How does the market affect entrepreneurs?

-entrepreneurs respond to shift in the market -they search for change, respond to it, and "exploit" it as an opportunity -risk is a part of the experience

Fraud

-fraud is a form of tort where someone "hurts" another by deception or manipulation -fraud is something said or done in a dishonest way to trick people An example: when a person promises you that you can make a lot of money through an investment, take your money, and the investment opportunity was a fake.

What is globalization?

-globalization refers to the integration and free movement of people, goods, services, and capital across national borders -expand revenue, reduce costs, stave off competition, balance risk, gain access to critical know-how, Avoid foreign sanctions, access to scarce resources the globalization of production and markets influence supply and demand

What do Entrepreneurs seek to do?

-have the opportunity to be creative -direct their drive to something for their benefit -control of their lives and provide the optimal situation for their families

Behave ethically To make sure that ethical issues are considered in business decision managers should do what?

-hire and promote people with a well-grounded sense of personal ethics -build an organizational culture that places a high value on ethical behavior -make sure that leaders not only articulate by also act in an ethical manner -put decision-making processes in place that require people to consider the ethical dimension of business decision -use ethics officers -put strong corporate governance processes in place

What is the world of the Entrepreneur like?

-in the US alone, entrepreneurs start more than 6 million businesses a year -Global Entrepreneurship Monitor (GEM) reports: -about 10% of US population is actively involved in trying to start a new business

Corruption: How is it bad? Is it ethical to make payments to government officials to secure business?

-in the US, the Foreign Corrupt Practices Act outlawed the practice of paying bribes to foreign government officials in order to gain business; however, it is permissible to pay bribe to a foreign government official in order to perform the service that is part of an official's normal responsibilities -the Organization for Economic Cooperation and Development (OECD) obliges members states to make the bribery to foreign public officials a criminal offense The Venezuelan Crisis -politics and the economy -effect on foreign investment

What is purposeful innovation?

-innovation creates wealth -Innovation does not have to be technical, nor does it have to be a "thing" -Innovation is about making a meaningful "contribution" through: -new value -different value -combining resources in a more productive way

A business plan

-is a reflecting of its creators -sometimes the primary benefit of preparing a plan is the realization that a business idea just won't work -the real value in preparing a plan is not as much in the plan itself as it is the process of creating it

What makes a great CEO Decision making skills of top CEO's

-keep global business issues in mind and be a citizen of the world -Identify and manage risks before they grow -change strategies with the times or if the status quo isn't working -be mindful of past decision and reflect on ways to grow -allow your team to make decision themselves

Ethical Perspectives What role does culture play with respect to ethics?

-values (right/wrong) -norms (rules/guidelines) -political/government system -economic position/policy -religious beliefs (moral principles) -social structure (group/individual, stratification) -education, gender, etc. -social responsibility (people and environment)

From the Ben and Jerry's video, what are the characteristics of a partnership?

-voluntary association -unlimited liability -mutual agency -limited life -limited access to money -partner keeps control -relatively unregulated -single taxation

Describe Common Stock

-voting rights (proxy) -residual claims to assets

As Managers

-your choices, your decision, your behavior; all give definition to the world you live in -as a manager, you shape the organization and the world your employees inhabit through: -employment agreement -structure of the job (task) -interpersonal interaction - common decency and respect

For every 3,000 new product ideas, how many actually become a success in the market? -none of the above -100 -1 -1,000

1

types of property

1) Real -real estate and everything permanently attached to it 2. Personal -everything else (tangible and intangible) 3. Intellectual -property generated by a person's creative activities (e.g., musical works, artwork, computer software)

What two questions does the feasibility analysis ask?

1. Are customers willing to purchase our goods or services? 2. Can we provide the products or services to customers at a profit?

three levels of ethical standards

1. It is not about the law 2. Organizational policies and procedures 3. The moral stance employees take when faced with decisions not governed by formal rules

trademark sounds

1. MGM's lion's roar 2. Tetris's "electronic Russian folk style tune" 3. Intel's 5 note ding 4. "D'Oh" spoke by Homer is owned by Fox 5. Looney Tunes Theme Song, owned by time Warner

What are the two areas of focus of Opportunity Analysis?

1. determining how attractive an industry is overall as a "home" for a new business 2. identifying possible niches as entrepreneurial business occupy profitably

What are the top 5 tips for a business plan?

1. keep it brief 2. get rid of the fluff 3. be realistic 4. be honest 5. be creative

What are the top 10 reasons businesses fail?

1. the math just doesn't work 2. owners who cannot get out of their own way 3. out-of-control growth 4. poor accounting 5. lack of cash cushion 6. operational mediocrity 7. operational inefficiencies 8. dysfunctional management 9. the lack of a succession plan 10. a declining market

the case of government intervention Why do governments intervene in trade?

2 types of arguments: political arguments- concerned with protecting the interests of certain groups within a nation (normally producers), often at the expense of other groups (normally consumers) economic arguments- typically concerned with boosting the overall wealth of a nation (benefit to both consumers and producers)

Which of the following statement is CORRECT? -A country should produce the product that it has a comparative advantage in -A country with absolute advantage should not trade -no answers are correct -A country with an absolute advantage can produce one product more efficiently than others but not all of them

A country should produce the product that it has a comparative advantage in

Social Structure

A society's social structure is its basic social organization. Two Dimensions to consider: 1. the degree to which the basic unit of social organization is the individual, as opposed to the group 2. the degree to which a society is stratified into classes or castes

Describe the Limited Liability Company (LLC)

combines the advantage of a corporation and sole proprietorship and gets rid of the disadvantages

Autocratic Leadership

Alan Mulally, former CEO of Ford Motor Company, managed to lead the US auto giant back to profitability after the recession- without government bailout. The reason for this success was the leadership style of the most authoritarian CEO that Ford has seen since Henry Ford.

Global Trade

Balance of Trade: the total value of a nation's exports compared to its imports measured over a particular period Trade Surplus (favorable): when the value of a country's exports is MORE than that of its imports Trade Deficit (unfavorable): when the value of a country's exports is LESS than that of its imports

What are the types of corporations?

Domestic Foreign Alien

Leadership or Management __________ take risks

Leaders

Decision Making- Finding the best alternative Decision Making

Decision Making: choosing among two or more alternatives Rational decision-making model 1. define the situation 2. describe and collect needed information 3. develop alternatives 4. decide which alternative is best 5. do what is indicated 6. determine whether the decision was a good one, and follow up

Criminal and Civil Law

Derived from three sources: 1) administrative law 2) statutory law 3) precedents Criminal Law: a dispute between the government and an individual -punished by fines and or imprisonment Civil Law: a dispute between two individuals -fine pay be imposed

Return on Investment

combining the previous two estimates to determine how much investors can exploit their investments to return

Leading: Providing Continuous Visions and Values Empowering Workers

Empowering Workers -progressive leaders give employees the authority to make decisions on their own without consulting a manager -customers' needs are handled quickly -manager's role becomes less of a boss and more of coach Enabling: giving workers the education and tools they need to make decision

Put failure into perspective for entrepreneurs

Entrepreneurs are NOT paralyzed by the prospect of failure. Failure is a natural part of the creative process. Successful entrepreneurs learn to fail intelligently.

__________ represents the standards of moral behavior. Behaviors that are accepted by society as right versus wrong.

Ethics

uniform commercial code

First published in 1952, it seeks to "harmonize" the law of commercial transactions in all 50 states. the UCC addresses such topics as: Warranties- Express: specifically defined by the seller Implied: legally imposed on seller/disclaimed

__________ refers to the movement of goods and services among nations without political or economic barriers.

Free Trade

What are the two types of partnerships?

General Partnerships and Limited Partnerships

__________ refers to the integration and free movement of people, goods, services, and capital across national borders

Globalization

declining barriers to trade and investment

International Trade: the sale of goods or services to another country Foreign direct investment (FDI): investment of resources in business activities outside the home country

Who should a manager thank?

Interns- doing lots of work for little money, they are the future of the company and industry Lawyers- many do pro bono work, even for nonprofit companies Support- mailroom, repair, and cleaning staff keep the office running day-to-day

A ___________ has the best parts of corporations and partnerships.

LLC

Leadership or Management __________ are change agents

Leaders

Leadership or Management __________ coach

Leaders

Leadership or Management __________ creates a vision

Leaders

Leading: Providing Continuous Visions and Values Leaders must

Leaders must: -communicate a vision and rally others around that vision -establish corporate values -promote corporate ethics -embrace change -stress accountability and responsibility Transparency: the presentation of the company's facts and figures in a way that is clear and apparent to all stakeholders

Leading: Providing Continuous Visions and Values Leadership Styles

Leadership Styles Autocratic Leadership: make managerial decisions without consulting others Participative or democratic leadership: managers and employees work together to make decision Free-rein leadership: managers set objectives and employees are relatively free to do whatever it takes to accomplish those objectives

What managers do (leading)

Leading -guiding and motivating employees to work effectively to accomplish organizational goals and objectives -giving assignments -explaining routines -clarifying policies -providing feedback on performance

Examples of Mission Statements

Life is Good: to spread the power of optimism Patagonia: build the best product, cause no unnecessary har, use business to inspire and implement solutions to the environmental crisis Nordstrom: to give customers the most compelling shopping experience possible Tesla: to accelerate the world's transition to sustainable energy -Starbucks: establish starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. -Microsoft: our mission and values are to help people and businesses through the world realize their full potential.

Which of the following is not a form of business? -Limited Liability Business (LLB) -Sole Proprietorship -Corporation -Partnership

Limited Liability Business (LLB)

__________ is a form of partnerships in which some partners may be subjected to limited liability.

Limited Partnership

Leadership or Management __________ control risk

Managers

Leadership or Management __________ create goals

Managers

Leadership or Management __________ direct

Managers

Leadership or Management __________ maintain the status quo

Managers

How are managers roles evolving?

Managers today: -tend to be collaborative -emphasize teams and team building -guide, train, support, motivate, and coach employees -need to be skilled communicators and team players -need to be globally prepared

During the 1990's, this multinational corporation came under scrutiny for child labor in its supply chain -Nike -Apple -Columbia Sportswear -Amazon

Nike

Which of the following is INCORRECT about corruption? -Not all countries are corrupted -Corruption is a major constraint to doing business -No answers are correct -Corruption is costly to the global economy

Not all countries are corrupted

Performance in Education

One way colleges and Universities measure their performance is to track the number of students who complete their degrees or who graduate within a certain number of years.

___________ de-emphasizes ethics and considers primarily economic consequences.

Organization's culture

What managers do (organizing)

Organizing -allocate resources, assigning tasks, and establishing procedures for accomplishing goals -preparing a structure (organization chart) showing lines of authority and responsibility -recruiting, selecting, training, and developing employees -placing employees where they'll be most effective

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

Passed in response to the financial crisis of 2008, the most significant changes to financial regulation in the US since the Great Depression 1) comprehensive regulation of financial markets 2) the consolidation of regulatory agencies 3) consumer protection reforms 4) tightened regulation of credit rating agencies

patent vs. trade secret

Patent -limited in time (patents last in general for up to 20 years) -registration costs -Immediate effect -requires compliance Trade Secret -others may be able to reverse engineer and discover secret -If discovered, anyone can have access to it and use it -more difficult to enforce than a patent -may be patented by someone else

What managers do (planning)

Planning -setting organizational goals -developing strategies to reach those goals -determining resources needed -setting precise standards

Decision Making- Finding the best alternative Problem Solving

Problem Solving: the process of solving the everyday problems that occur; less formal than decision making and usually calls for quicker action

Examples of key activities include: -all answers are correct -Production, problem solving and supply chain management -Revenue, value and pricing -physical, intellectual and human

Production, problem solving and supply chain management

What are the business entity options?

Sole Proprietorship Partnership Corporation Limited Liability Company

Objectives

Specific, short-term statements detailing how to achieve the organization's goals. they are often quantified with target numerics and/or dates.

Organizing: Creating a Unified System Getting and Keeping the Right People

Staffing: hiring, motivating, and retaining the best people available to accomplish the company's objectives -staffing is critical -many people are not willing to work at companies unless they are treated well with fair play -this becomes more challenging in times of high employment

Which type of law is enacted by a federal or state legislature? -Statutory Law -No answers are correct -Administrative Law -Common Law

Statutory Law

What is the order of the corporate governance structure?

Stockholders Board of Directors Top Management (CEO/COO/CFO) Middle Management (division head/plant manager) Supervisory

A(n) __________ is a hybrid of a quota and a tariff which imposes lower tariffs within the quota and higher tariffs over the quota.

Tariff rate quota

Organizing: Creating a Unified System Tasks and skills at different levels of management

Technical Skills: the ability to perform tasks in a specific discipline or department Human Relations Skills: communication and motivation they enable managers to work through and with people Conceptual Skills: the ability to picture the organization as a whole and the relationship among its various parts

Which of the following companies previously had someone as part of both top management and the board of directors? -Dell -no answers are correct -Tesla -Facebooks

Tesla

the most basic human relations skill

Thank You saying "thank you" has led to happier employees and greater profits for companies

According to ____________ as long as the business increases profits and stays within the law, it is acting socially responsible.

The Friedman Doctrine

philosophical approaches

The Friedman Doctrine Milton Friedman's basic position is that the only social responsibility of business is to increase its profits, as long as the company stays within the law and the rules of the games without deception or fraud. Freeman: A Stakeholder Theory Corporations are no longer simply 'profit-machines' which means that corporations cannot be thought of as being responsible to only one group, but must be seen to bear responsibilities to all of the individuals their actions affect, and upon whom their existence depends.

Goals

The broad, long-term accomplishments an organization wishes to attain.

contractual capacity

To be a legal contract, the parties must have a legal ability to enter into the contract- they must have contractual capacity. Individuals that lack the capacity to enter into a contract include those who are: -minors (under the age of 18) -mentally unstable, mentally incapable, or insane -Intoxicated -under duress or coercion

Levels of Management

Top Management (President, Vice Presidents) Middle Management (plant managers, division heads, brand managers) Supervisory - First Line (supervisors, foremen, department heads, section leaders) Nonsupervisory (employees)

Rank Management Skills needed by Level

Top Managers (technical, human relation skills, conceptual) ( 17 33 50 ) Middle Managers (technical, human relation skills, conceptual) ( 33 33 33 ) First-Line Managers (technical, human relation skills, conceptual) ( 50 33 17 )

Import Quotas and Voluntary Export Restraints

an import quota- a direct restriction on the quantity of goods imported into a country tariff rate quotas- hybrid of a quota and a tariff, lower tariffs within the quota, higher tariffs over the quota voluntary export restraints- quotas on trade imposed by the exporting country, typically at the request of the importing country's government

mission statement

an outline of the fundamental purposes of an organization including: -the organization's self-concept -Its philosophy -long-term survival needs -customer needs -social responsibility -nature of the product or service

trademark

any distinctive word, symbol, design, name, logo, slogan, or trade dress a company uses to identify the origin of a product or to distinguish it from other goods on the market -an unregistered trademark is identified by the symbol ^TM and a registered trademark uses the symbol R -trademarks can also cover symbols, shapes, colors and sounds (all part of a firm's "trade dress")

Alternative Dispute Resolution

arbitration -binding -non-binding mediaton -non-binding (always)

Entrepreneurs __________ paralyzed by the prospect of failure.

are not

Alien Corporation

are organized in one country and operate in another

The Control Process

are standards realistic? 1. establish clear standards 2. monitor and record performance 3. compare results against standards 4. communicate results 5. if needed, take corrective action

ethical dilemmas

ask yourself these questions: -Is it legal? -does the good outweigh the bad? -how will it make me fee about myself?

What are proforma statements based on?

based on financial projections: -balance sheet -cash flow statements -profit and loss statement

One difference between leaders and managers is that leaders __________ and managers __________.

coach direct

Contract Manufacturers

contract manufacturing- a foreign company produces private-label goods to which a domestic company then attaches its own brand name or trademark. a form of outsourcing contract manufacturing can be used to: -allow a company to experiment in a new market without incurring heavy start-up costs such as building a manufacturing plant -temporarily meet an unexpected increase in orders

All of the following are ways to avoid the pitfalls of failure except -prepare a business plan -copy exactly other successful businesses -understand financial statements -know your business in depth

copy exactly other successful businesses

A __________ grants an author exclusive rights to documents.

copyright

A business's concern for the welfare of society is called

corporate social responsibility

This can be defined as being a good corporate citizen who goes beyond the profit motivation of business -corporate social responsibility -sustainability -corporate governance -motive-driven

corporate social responsibility

What is product or service feasibility analysis?

determines the degree to which a product or service idea appeals to potential customers and identifies the resourced necessary to produce it

Strategic planning

determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals

Tactical Planning

developed detailed, short-term statements about what is to be done, who is to do what, and how it is to be done

Explain the innovative failure of Major motion pictures studios

did not see the potential of toy licensing until Star Wars. they learned a big lesson

What did Ben & Jerry worry about when Unilever acquired them? -profit -all answers are correct -differences in values -product quality

differences in values

Anti-dumping policies

dumping- selling goods in a foreign market below their cost of production, or selling foods in a foreign market at below their "fair" market value -a way for firms to unload excess production in foreign markets -a form of predatory behavior -profits from home markets to subsidize prices in a foreign markets -driving indigenous competitors out of the market, later raising prices

This responsibility is at the bottom of the corporate responsibility triangle -economic responsibilities -philanthropic responsibilities -ethical responsibilities -legal responsibilities

economic responsibilities

exchange rates

exchange rates- the value of one nation's currency relative to the currencies of other countries HIGH value of the dollar- dollar is trading for more foreign currency; foreign goods are LESS expensive LOW value of the dollar- dollar is trading for less foreign currency; foreign goods are MORE expensive -currencies float in value depending on the supply and demand for them in the global market

Exporting

exporting: selling products to another country The US is the largest importing and the second largest exporting nation in the world -exporting provides a great boost to the US economy -It is estimated that every $1 billion in US exports generates over 7,000 US jobs

An agency acts on behalf of themselves and their own interests. T/F

false

Conditions in Bangladesh manufacturing facilities have significantly improved. T/F

false

Countries with abundant natural resources do not benefit from free trade. T/F

false

In Private Enterprise, the market turns social-interests into private goods. T/F

false

In a strategic alliance, two companies share risks and profits. T/F

false

Intrepreneurship is about taking the entrepreneurial mindset and using it outside of a well established organization. T/F

false

It is usually cheaper to acquire new customers than to continue selling to existing customers. T/F

false

Mediation can be either binding or non-binding. T/F

false

Regulation can be defined as a law that controls the way that a government can operate. T/F

false

The majority of companies doing business globally do not believe international experience is important for employees. T/F

false

When Empowerment doesn't work

fast-food restaurant employees often don't have the skill and experience to make empowerment work very well. Instead their managers generally have to supervise and direct them fairly closely

Which of the following products should companies trade secrets for instead of patenting them? -electronics -food recipe -time machine -pharmaceutical drugs

food recipe

Estimated Earnings

forecasted income statements

foreign direct investment (FDI)

foreign direct investment (FDI)- the buying of permanent property and businesses in foreign nations foreign subsidiary- a company owned in a foreign country by another company called the parent company (the most common form of FDI) -primary advantage: parent company maintains complete control over its technology of expertise -primary disadvantage: must commit funds and technology with foreign boundaries

government intervention

intervention -to ensure fair competition, private property, freedom of choice, right to keep profits -to promote economic health and social responsibility -to correct market failures and ethical lapses

Explain the innovative failure of Xerox

invested the mouse and graphical user interface and failed to invest in its potential opps

A feasibility analysis is a(n) __________ tool.

investigative

Ethical issues

self-dealing- managers feather their nest with corporate monies information manipulation- distort or hide information to enhance their personal situation anticompetitive behavior- actions aimed at harming actual or potential competitors opportunistic exploitation- of other players in the value chain in which the firm is embedded substandard working conditions- underinvest in working conditions or pay below market wages environmental degradation- directly or indirectly take actions that result in environmental harm corruption- companies pay brides to gain access to lucrative business contracts

Operational Planning

setting work standards and schedules necessary to implement the company's tactical objectives

If a corporation is formed, then the owners are known as -shareholders -partners -LLC members -stakeholders -dueling sole proprietors

shareholders

the role of technological change

since WWII, there have been 3 major advances: 1. communication- satellite, cell phone, internet 2. information processing- microprocessor 3. transportation- super freighters, jet aircraft, containerization

Partnerships owners' income are subjected to __________ taxation; whereas corporation owners' income are subjected to __________ taxation.

single double

Explain the innovative failure of Napster

so successful it went bust. It influenced Kazaa, whose founders went in to start Skype, and forced telecom companies to realize that their future revenues will not come from fixed line income but content delivery

What does an entrepreneur create?

something new something different Entrepreneurs change or transform

The P symbol is used for __________ .

sound recording copyright

What is NOT true about partnerships? -It is difficult to raise capital -the owners have unlimited liability -It requires voluntary association from the owners -the business can last as long as it earns profits (has an unlimited life)

the business can last as long as it earns profits (has an unlimited life)

What is innovation?

the tool of entrepreneurs where they exploit change as an opportunity to form a new business or service -entrepreneurs understand the innovation process

Drivers of Globalization

there are 2 macro factors underlying the trend toward greater globalization: 1. declining barriers to trade and investment 2. technological change

Instruments of Trade Policy How do governments intervene in international trade?

there are 7 main instruments of trade policy: 1) tariffs 2) subsidies 3) import quotas 4) voluntary export restraints 5) local content requirements 6) administrative policies 7) antidumping policies

Why are corporations subjected to strict government regulations? -all answers are correct -they are profit driven which can lead to unethical behaviors -they are separate legal entities which means no single individual is legally responsible for their misbehaviors -they make up a big part of the country's GDP

they are separate legal entities which means no single individual is legally responsible for their misbehaviors

Which of the following is NOT correct about common stockholders? -In case of bankruptcy, they have residual claims to assets -they have voting rights -they have first claim on income

they have first claim on income

A business plan is a "road map" for a venture. T/F

true

A business plan serves two essential functions, attracting lenders and investors, and guiding the company by charting its future course and defining its strategy. T/F

true

Business ethics can be defined as the accepted principles of right or wrong governing the conduct of business people. T/F

true

Even very smart people with lots of business experience can find it helpful to use the Business Model Canvas. T/F

true

Freeman's Stakeholder Theory states that corporations cannot be thought of as being responsible to only one group, but must be seen to bear responsibilities to all of the individuals their activities affect. T/F

true

Governments intervene in trade to protect the interests of certain groups and boost the overall wealth of a nation. T/F

true

One of the powerful things about the Business Model Canvas is that it is visual. T/F

true

Owners of a sole proprietorship have full control of the business with minimal administration. T/F

true

The Business Model Canvas can help you understand how a business actually works. T/F

true

The definition of an entrepreneur is: "Someone who creates a new business in the face of risk and uncertainty for the purpose of achieving profit and growth by identifying opportunities and assembling the necessary resources to capitalize on them." T/F

true

The first five building blocks of the Business Model Canvas are called the "front of the house", because they are the customer facing aspects of the business that are the easiest to observe and understand. T/F

true

The moral minimum is simply obeying the law. T/F

true

What is a Merger?

two companies in one

In order to be a legal contract, the parties must have a legal ability to enter into the contract and not be any of the following, except -mentally unstable or insane -under duress or coercion -Intoxicated -under the age of 21

under the age of 21

If a sole proprietor is found negligent of an action, then that person could face -limited liability -stock options -danger of dispute settlement -a gain in business assets -unlimited liability

unlimited liability