Business Review Questions 1.2-1.3

What are the advantages and disadvantages of ethical behavior and CSR?

Advantages are the image and reputation of a business, release the pressure of hate groups, good working environement for employees, helping the world. Disavantages are high compliance costs that can lower profits, forced to use materials that are specialized and may reduce profit.

Differentiate between strategic objectives and tactical objectives?

Strategic Objectives are longer terms goals of a business while Tactical Objectives are short term goals that affect a section of the organization, they are specific goals that guide the daily functioning of certain sections of the organization.

What are social enterprises?

revenue-generating business with social objectives at the core of their operations. They can be for-profit or non-profit, but all profit or surplus are reinviested for that social purpose rather than being distributed to shareholders and owners.

How does the evolving role and nature of CSR impact on business aims and objectives?

CST impacts the roles of business aims and objectives, as they are always in the thought process of the business and influence the way they operate.

Distinguish between cooperatives, microfinance providers and public-private partnership.

Cooperatives- for profit social enterprises that are owned and run by members Microfinance Providers- Provide loans to individuals or groups with no acess to more convential banking services PPP- Gov works together with the private sector to jointly provide certain goods and services

What is meant by ethical objectives and corporate social responsiblity (CSR)

Ethical objectives are objectives that comply with ethical norms in the society in which a company operates, setting these ethical objectives is what needs to be done for the organization to be socially responsible.

Why is there a need for organizations to change objectives?

It depends on external and internal factors. Ixternal factors like the corporate culture, type and size of business, age of business, crisis management. And External factors like pressure groups, governement restrictions and the state of economy.

Why is the concept of limited liability important for investors?

Limited liability means the business entity and individual are separate so shareholders to not stand to lose any personal belongings if business goes to debt.

How do mission and vision statements differ from one another?

Mission statements state what the business is and does and specifies it's purpose. A vision statement states that the business wants to become in the future.

Distinguish between non-profit organizations and non-governmental organiaztions?

Non-profit organizations use the extra funds for the company, moeny can't leave and owners cant draw extra profits. NGO is indepdent of the governemnt and deal with social issues.

Compare and contrast the benefits of a partnership with those of those of a sole trader.

Partnership the liability and responsibilities are shared. Sole trader gets all the profit, makes all decisions and doesnt need to run them by anyone, they can have silent partners where they fund activities of business but don't take part in decision making.

What is the difference between a private limited company and a public limited company?

Private limited company, shareholders are limited to friends and family while Public limited company has it's shares out in the exchange marker and they can be br bought by anyone.

Distinguish between the private sector and the public sector.

Private sector is owned and controlled bu private businesses and individuals and main goal is to make profit, while public sector is government run and it brings essential goods ans services.

Why are aims and objectives important to business organizations?

They provide the organization with a plan and goals. They guide and unify management and workforce.

Why do objectives have changing significance in different situations?

Things can change rapidly in a business, so original objectives may not be helpful anymore with the change in the business.

What does it mean to set SMART objectives?

objectives that are: specific measurable achievable realistic time constrained