HFT 4224 Exam 1 UPDATED Exam
Questions and CORRECT Answers
The purpose of a business - CORRECT ANSWER - The social responsibility of business
is to increase its profits -milton friedman, which can lead to crony capitalism
Conscious view - CORRECT ANSWER - Businesses should aim to satisfy all
stakeholders, not just shareholders
Crony Capitalism Video - CORRECT ANSWER - Free exchange of goods and services
Crony capitalism is immoral because the government has been bought off. Problems with crony
capitalism:
1.It is unfair
2.It is wasteful
3.It allows politicians to break the law
It is illegal to buy political influence in America
The merits of capitalism - CORRECT ANSWER - Increasing the worlds standard of living
Free markets lead to free people
Innovative encouragement
Generates wealth
Conscious capitalism - CORRECT ANSWER - A way to bring back the "heroic" spirit of
free enterprise
The first awakening - CORRECT ANSWER - Founder of whole foods. Business is based
on voluntary exchange
, Businesses can provide win-win outcomes
-Business is based on cooperation and voluntary exchange
-Free enterprise
The second awakening - CORRECT ANSWER - The flood on memorial day. The first
whole foods was under 8 feet of water. They were able to reopen because of all of their
stakeholders loyalty
Stakeholders - CORRECT ANSWER - Customers
Employees
Suppliers
Investors
More awakenings - CORRECT ANSWER - Business is a tool to find higher purpose
-For owners
-For employees
-For customers
Business can contribute to the greater good of society
Karl Marx Video - CORRECT ANSWER - Problems with capitalism:
-Modern world is alienated
-Modern world in insecure
-Workers get paid little, capitalists get paid a lot
-Capitalism is very unstable
-Karl Marx believed in this utopian society
Questions and CORRECT Answers
The purpose of a business - CORRECT ANSWER - The social responsibility of business
is to increase its profits -milton friedman, which can lead to crony capitalism
Conscious view - CORRECT ANSWER - Businesses should aim to satisfy all
stakeholders, not just shareholders
Crony Capitalism Video - CORRECT ANSWER - Free exchange of goods and services
Crony capitalism is immoral because the government has been bought off. Problems with crony
capitalism:
1.It is unfair
2.It is wasteful
3.It allows politicians to break the law
It is illegal to buy political influence in America
The merits of capitalism - CORRECT ANSWER - Increasing the worlds standard of living
Free markets lead to free people
Innovative encouragement
Generates wealth
Conscious capitalism - CORRECT ANSWER - A way to bring back the "heroic" spirit of
free enterprise
The first awakening - CORRECT ANSWER - Founder of whole foods. Business is based
on voluntary exchange
, Businesses can provide win-win outcomes
-Business is based on cooperation and voluntary exchange
-Free enterprise
The second awakening - CORRECT ANSWER - The flood on memorial day. The first
whole foods was under 8 feet of water. They were able to reopen because of all of their
stakeholders loyalty
Stakeholders - CORRECT ANSWER - Customers
Employees
Suppliers
Investors
More awakenings - CORRECT ANSWER - Business is a tool to find higher purpose
-For owners
-For employees
-For customers
Business can contribute to the greater good of society
Karl Marx Video - CORRECT ANSWER - Problems with capitalism:
-Modern world is alienated
-Modern world in insecure
-Workers get paid little, capitalists get paid a lot
-Capitalism is very unstable
-Karl Marx believed in this utopian society
