Entrepreneurs and Ethics

the wheeler lea act

bans unfair or deceptive acts or practices including false advertising

why are small important to the overall us company?

because it is what is controlling the government

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

the steps in the beginning of the entrepreneurial process include what, gathering what and what

planning... information and making decisions

small businesses are...

tended to produce more innovations than larger companies

competitive behavior

the federal government has enacted laws that state that companies may not engage in activities that are considered anti-competitive

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

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

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

entrepreneurs face many risks including

1. working long hours 2. having an uncertain income 3. being responsible for everything 4. you could lose everything

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

business failure

a business that files chapter 7 bankruptcy and loses money for creditors, the people who lent them money and their investment

small business

a company that is independently owned and operated. owners of small businesses often perform all of the business functions

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

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

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

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

lists of some large business giants that started out as small businesses

ford, walmart, starbucks, intel, ben and jerrys, ebay, mcdonalds, etc.

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

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

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.

a what plus a what equals a what

idea... market... opportunity

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

small businesses tend to produce more what than larger companies

innovations

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

the sherman act

makes it illegal for companies to monopolize trade

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

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

all individuals develop their what, which help them decide how to act in different situations

own set of ethical rules

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

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

ethics

set of moral principles or values that govern behavior

types of partnerships include

silent partner (grandma gives $ for the company) limited liability partnership

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

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