Entrepreneurs and Ethics
why are small important to the overall us company?
because it is what is controlling the government
the steps in the beginning of the entrepreneurial process include what, gathering what and what
planning... information and making decisions
competitive behavior
the federal government has enacted laws that state that companies may not engage in activities that are considered anti-competitive
the entrepreneur startup process
1. the entrepreneur- the driving force 2. the environment- includes all variables that affect everything that is not directly controlled by the entre 3. the opportunity- an idea that has commercial value 4. startup resources- pulling together the necessary people and capital to get the job done 5. the new venture organization- all of the components of the new venture come together
creative thinking includes
1. thinking outside the box 2. go from here to there, find a creative solution to a problem 3. work with unrelated items- looking at things in a new way
business failure
a business that files chapter 7 bankruptcy and loses money for creditors, the people who lent them money and their investment
code of ethics
a document that outlines the principles of conduct to be used when making decisions in an organization
opportunity
an idea that has commercial value
fda cosmetic act
bans the sale of impure falsely labeled, falsely guaranteed and unhealthful food, drugs, and cosmetics; enforced by the fda
discontinuance
businesses that disappear from tax rolls and public lists. these businesses are not always failures as some times they come back as other companies
the entrepreneur is the what that recognizes what pulls together resources to exploit that opportunity, and creates a company to what that opportunity in the marketplace
driving force... opportunity... resources... execute
lying about hours worked
employees are required by law to accurately record their hours worked for payroll reasons
being a what is much what than being a what. the reason is so because what
entrepreneur... riskier... professional manager... because starting and owning the company can be a rewarding experience. entrepreneurs can create successful and prosperous businesses with huge profits available
lists of some large business giants that started out as small businesses
ford, walmart, starbucks, intel, ben and jerrys, ebay, mcdonalds, etc.
40% of entrepreneurs only have a what
high school diploma
what and what have been great opportunities for entrepreneurs over the past few years
home based business and technology
a what plus a what equals a what
idea... market... opportunity
small businesses tend to produce more what than larger companies
innovations
professional managers
managers who are paid to perform management functions within a company. they receive salaries for the work that they do. they work for the business but they do not own them. senior, middle, and supervisory managers are all professional managers
partnerships do not...
need to be run and worked by both/ all of the owners
partnership is dependent...
on more than one party putting up the investment
partnerships
one or more parties run the business together. most often both put up the investment to start the business
truth lending act
protection against unfair lending practices; creditors are required to let consumers know how much they are paying in finance charges and interest
social responsibility
refers to the obligation that individuals or businesses have to help solve social problems, profit maximization, trustee management and social involvement
why do you think that small businesses create more?
small businesses often will take more risks since they do not have to answer to the shareholders. small businesses are often created by inventors and persons creating an idea or gadget
employee theft
stealing, bribing, embezzling, false expenses; employees who take part in these activities can threaten their careers
what percent of entrepreneurs have some college while only 33% have what college
27%... completed
nearly 47% of entrepreneurs are under the age of what when they start their businesses, and what percent are under the age of 25
35... 16%
according to the definition of the sba, what percent of all businesses in the u.s. are small businesses
98 percent
why would companies encourage employees to act more like entrepreneurs?
it will help produce more ideas for their company
why would you or why would you not want to be an entrepreneur?
its really risky and money can be lost along the way
clayton act
make it illegal to charge different prices to diffrent wholesale; bans customers from having to purchase a second good
the sherman act
makes it illegal for companies to monopolize trade
ethics
set of moral principles or values that govern behavior
types of partnerships include
silent partner (grandma gives $ for the company) limited liability partnership
small businesses are...
tended to produce more innovations than larger companies
examples of franchises
1. McDonalds 2. Gas Stations 4. Mail boxes 5. Jiffy lube 6. subway 7. 7-11
startup resources that an entrepreneur needs to include
1. capital$$$ 2. skilled labor 3. management expertise 4. legal and financial advice 5. a facility 6. equipment
reasons why people would want to be an entrepreneur
1. financial rewards 2. set their own hours 3. control over a business- no one tells you what to do 4. risk takers
entrepreneurs face many risks including
1. working long hours 2. having an uncertain income 3. being responsible for everything 4. you could lose everything
small business
a company that is independently owned and operated. owners of small businesses often perform all of the business functions
the wheeler lea act
bans unfair or deceptive acts or practices including false advertising
franchise
contractual agreement to use the name and sell the goods or services of an existing company
the national environment policy act
created the epa whose mission is to protect human health and safeguard the environment
consumer product safety comission
establishes a minimum safety level in consumer products; if a product is found to be defective, the cpsc has the authority to issue a recall; can require warning labels
the clean water act
gives the epa authority to set standards on the type and the quantity of pollutants that a company can discharge into bodies of water; makes it illegal to discharge any pollutant into navigable waters unless a permit is obtainained
the toxic substances control act
gives the epa the authority to track the 75,000 industrial chemicals that are produced in u.s. or that are imported in the u.s.; screens the chemicals and can require reporting on them if there is an environmental hazard
code of ethics are formal documents that are shared with all employees, some areas they cover include
honesty, security, political activities, financial practices, conflicts of interest, etc.
falsifying records
incorrectly or maliciously changing and lying or corporate documents. a supervisor who changes the inventory amounts
entrepreneurs tend to be more what than managers.
independent and motivated. entrepreneurs like the idea of making their own decisions and being their own bosses
like what, what must develop their own set of what to help them determine what. these ethics reflect the what
individuals... businesses... ethical beliefs... how to behave... company's belief on what is appropriate behavior
what is a key aspect of entrepreneurship- by definition innovation is what
innvation... finding new ways of doing things
entrepreneurship within a large or medium sized company is sometimes called what
intrepreneurship... intrapreneurs take risks, but not with their own investments
unlike professional managers, entrepreneurs what in their businesses and what all of it if their business fails
invest money... risk losing
all individuals develop their what, which help them decide how to act in different situations
own set of ethical rules
entrepreneurs
people who launch and run their own businesses. when they start out they must perform most all of the functions of the business, sales, marketing, accounting, staffing, building, etc.
sole proprietor
people who run the business single handedly. certain types of businesses work well to this form- medicine, stores, accounting
characteristics that most entrepreneurs share
persistent, honest, restless, goal-oriented, responsible, independent, etc.
trustee management
philosophy that managers and businesses had obligations to do more that just maximize profits
intellectual property
refers to the ownership of ideas, inventions, books, plays, movies, etc.
the clean air act
regulates air emissions and works to control air pollution in the 50 states; also deals with acid, rain, toxic substances and ozone depletion
sba
the small business association- government agency that lends money to small businesses, and provide some business assistance in starting up and running the business
over the years, many what have been enacted that directly relate to the issue of ethics in business. these laws apply to what, what, what, and what
various laws... competitive behavior... consumer protection... protect safety... environmental protection