Exam 1: The Relationship Between Business and Society

Legitimacy requires belief,trust,and confidence in the business system.

The board of directors is responsible to the manager of the corporation.

A free enterprise system sees a limited role for government.

The study of business and society involves an exploration of what is "right" and/or "wrong" in terms of the social and ethical conduct of business.

How does a 'responsible enterprise system' differ from 'stakeholder capitalism'?

Utilitarianism is one form of rule-based theories.

Julio and Julie are planning to start a business providing holistic,herbal products to consumers.This is an exciting business opportunity which has considerable growth potential.Concerned,however,about assuming a personal level of responsibility for the financial outcome of the enterprise,they decide to structure the business through _____________.

In a proprietorship or partnership,the owners assume all responsibility for the firm,but they also receive all profits.

Compare and contrast (a) proprietorship,(b) partnership and (c) incorporation.

Virtue ethics emphasizes the situation that individuals find themselves in and focuses on what they are doing.

The belief in the rightness of an institution,in this case the appropriateness of our business system to supply the goods and services wanted by Canadian society,is called:

Legislative safeguards are imposed upon incorporation processes to create and preserve an atmosphere of public confidence,as well as to create protections for investors and creditors.

Most people agree on a universal way to approach ethics and therefore,there is widespread agreement as to the appropriate behaviour by business in society.

What is a responsible corporation?

The discussion of the business enterprise system in the Business and Society class today became heated when a debate broke out as to which capitalist system Canada should employ.Jamal argued that the Canadian government should apply a _________ model whereby economic decision making is left to those individuals or enterprises who own the means of production.A profit motivation,with limited government involvement,would create a competitive market system.Crystal agreed,but added that accountability to society by business was also important and therefore a _______ was better.

The responsible enterprise system and stakeholder capitalism both acknowledge that business has responsibility beyond making profit for shareholders.

There is a positive relationship between living standards and how positive society views business.As living standards increase,the more likely society will view business in a positive manner.

Why does business need society and society need business?

Francois is a shareholder in VNO Corporation and regularly attends annual shareholder meetings voting on policies that he feels are particularly relevant to the firm's social responsibilities.Francois is _________.

The 'greatest good for the greatest number' is a feature of consequentialist theories.