BUSN chpt. 4-7

Stockholder

An owner of a corporation

Merger

A corporate restructuring that occurs when two formerly independent business entities combine to form a new organization.

internal focus of control

A deep-seated sense that the individual is personally responsible for what happens in his or her life.

Sole Proprietorship

A form of business ownership with a single owner who usually actively manages the company.

Robert Lane

A former CEO of Deere, a highly performance, highly ethical corporation, believes in the importance of senior management commitment to ethics, but he points out that the tone at the top must be reinforced by the actual behavior observed by suppliers, dealers, customers, and employees.

Consumerism

A social movement that focuses on four key consumer rights: 1- the right to be safe 2- the right to be informed 3- the right to choose, 4- the right to be heard.

Advantages of General Partnerships

Ability to pool financial resources, to share responsibilities and capitalize on complementary skills, ease of formation, possible tax advantages.

Stakeholders

Any groups that have a steak -or a personal interest- in the performance and actions of an organization.

Green Marketing

Developing and promoting environmentally sound products and practices to gain a competitive edge.

Universal Ethical Standards

Ethical norms that apply to all people across a broad spectrum of situations.

Social Responsability

The obligation of a business to contribute to society. The most socially responsible firms feature proactive policies that focus on meeting the needs of all their stakeholders- not just investors but also employees, customers, the broader community, and environment.

Communication

The transmission of information between a sender and a recipient.

vertical merger

a combination of firms at different stages in the production of a good or service.

horizontal merger

a combination of two firms that are in the same industry

Corporation

a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.

business plan

a formal document that describes a business concept, outlines core business objectives, and details stategies and timelines for achieving those objectives.

Code of Ethics

a formal, written document that defines the ethical standards of an organization and gives employees the information they need to make ethical decisions across a range of situations. Specific code of ethics vary greatly among organizations.

Ethics

a set of beliefs about right and wrong, good and bad.

A Partnership

a voluntary agreement under which two or more people act as co-owners of a business for profit.

Noise

any interference that causes the message you send to be different from the message your audience understands.

Intercultural Communication

communication among people with differing cultural backrounds

Venture Capital firms

companies that invest in start-up businesses with high growth potential in exchange for a share of ownership, which can sometimes be as high as 60%

Gender Bias

consists of words that suggest stereotypical attitudes toward a specific gender.

Sustainable Development

doing business to meet the needs of this generation without harming the ability of future generations to meet their needs.

Analyze your audience

expectations, education, and profession

Corporate Philanthropy

includes all business donations to nonprofit groups, including both money and products.

Cause-related Marketing

involves a partnership between businesses and nonprofit, designed to spike sales for the company and raise money for the nonprofit.

Sarbanes-Oxley Act

marketing partnerships between businesses and nonprofit organizations, designed to spike sales for the company and raise money for the nonprofit. It limits conflict interest issues by restricting the consulting services that accounting firms can provide for the companies they audit.

Employers

must comply with the laws that include equal opportunity, workplace safety, minimum-wage and over time requirements, protection from sexual harassment, and family and medical unpaid leaves.

Excellent communicators

not only influential but also well liked, efficient, and effective. They can boost your chance of success, while on the contrary can bury even the most talented people.

Acquisition

occurs when one firms buys another firm. The firm making the purchase is called the "acquiring firm" and the firm being purchased is called the "target firm"

Communication Barriers

physical, language body language, cultural

Ethics Resource Center

research that suggests that organizational culture has more influence than any other variable on the ethical conduct of individual employees

Market Niches

sparsely occupied spaces in the market that tend to have fewer competitors because they simply aren't big enough - or high profile enough - for large firms.

Business ethics

the application of right and wrong, good and bad, in a business setting.

Social Responsibility

the obligation of a business to contribute to society. Similar to ethics, the broad definition is clear, but specific implementation can be complex. Obviously, the number one goal of any business is long-term profits; without profits, other contributions are impossible.

Planned Obsolescence

the strategy of deliberately designing products to fail in order to shorten the time between purchases.

Ethical choices

they begin with ethical individuals. Your personal needs, your family, your culture, and your religion all influence your value system.

Disadvantages of General Partnerships

unlimited liability, potential for disagreements, lack of continuity

C corporation

when people use the term "corporation" without specifying which type. Requires filing articles of incorporation and paying filing fees.