HFT4224 Exam 1 FSU
The Purpose of Business - answer The social responsibility of business is to increase its
profits -Milton Friedman, which can lead to crony capitalism
The Merits of Capitalism - answer1. Increasing the world's standard of living
2. Free markets lead to free people
3. Innovative encouragement
4. Generates Wealth
Conscious Capitalism - answerA way to bring back the heroic spirit of free enterprise
First Awakening - answerFounder of whole foods, business is based on voluntary
exchange, used to think business worked through exploitation and coercion, business
can provide win-win outcomes with benefits to all parties involved
Co-op Movement - answerBest way to reform capitalism because it is based on
cooperation instead of compassion, less expensive and more socially just, little room for
entrepreneurial creativity, less focus on how to improve quality of products and services
Second Awakening - answerThe flood at wholefoods, the stakeholders have potential to
form close relationships, reopen due to commitment in loyalty
Stakeholders - answer1. Customers
2. Employees
3. Suppliers
4. Shareholders
More Awakenings - answerBusiness is a tool to find a higher purpose and can
contribute to the greater good of society, time is too short, find guides for life
Karl Marx Video - answerAlienation at work, system of valued judgements, we are really
materialistic and wasteful, no perfect system, capitalists get rich, profit is a fancy word
for exploitation
Alienation - answerA feeling of disconnection of what you do all day and who you really
are and what you feel you can really contribute to existence
Capitalism - answerA system of free enterprise and free people
20th century extended intellectual war between - answer1. free enterprise capitalism
2. Communism
, Free Enterprise Capitalism - answerFree markets and free people, which success led to
improving quality of our lives and created prosperity for billions of people
Human Creatvity - answerRoot of all economic progress
Ethics - answerSystem of determining what is right or wrong
Morals - answerSubjective self, understanding of what is right or wrong, along with
personal affiliations (religion)
Capitalism Under Attack - answerMany businesses have operated with a low level of
consciousness (wholistic), and have become overly concerned with profit maximazation
Low Consciousness in Business leads to: - answer1. Trade-off Thinking
2. Failure to see impacts of actions
3. Increase in self-interest motivated decisions
4.Low public confidence in business
Adam Smith - answerOutlines an ethics based on our ability to empathize one's self-
interst
Karl Marx - answerCapitalism = inherently exploitative of wowrkers
Profit Maximixation - answerProfits = necessary, classical economics, historical
necessity
The Myth of Profit Maximization Origins: - answer1. narrow view of humans nature
2. inadequate explanation of the causes of business success
Fiduciary Responsibilty - answer=Profit Maximization
The Effects of Crony Capitalism - answerThe collusion of unethical business leaders
and unethical government officials, uses the coercive power of government to rig
markets, uses the wealth of business to "buy" politicians
Crony Capitalism - answerintrinsically unethical and poses a threat to our well-being
and freedom
Free Enterprise Capitalism is: - answer1. Noble (elevate existence)
2. Good (creates value and expanded upper and middle class)
3. Ethical (voluntary exchange)
4. Heroic (helps reduce poverty)
Capitalism - answerHas lifted more people out of poverty than any other force in history
through voluntary exchange
The Purpose of Business - answer The social responsibility of business is to increase its
profits -Milton Friedman, which can lead to crony capitalism
The Merits of Capitalism - answer1. Increasing the world's standard of living
2. Free markets lead to free people
3. Innovative encouragement
4. Generates Wealth
Conscious Capitalism - answerA way to bring back the heroic spirit of free enterprise
First Awakening - answerFounder of whole foods, business is based on voluntary
exchange, used to think business worked through exploitation and coercion, business
can provide win-win outcomes with benefits to all parties involved
Co-op Movement - answerBest way to reform capitalism because it is based on
cooperation instead of compassion, less expensive and more socially just, little room for
entrepreneurial creativity, less focus on how to improve quality of products and services
Second Awakening - answerThe flood at wholefoods, the stakeholders have potential to
form close relationships, reopen due to commitment in loyalty
Stakeholders - answer1. Customers
2. Employees
3. Suppliers
4. Shareholders
More Awakenings - answerBusiness is a tool to find a higher purpose and can
contribute to the greater good of society, time is too short, find guides for life
Karl Marx Video - answerAlienation at work, system of valued judgements, we are really
materialistic and wasteful, no perfect system, capitalists get rich, profit is a fancy word
for exploitation
Alienation - answerA feeling of disconnection of what you do all day and who you really
are and what you feel you can really contribute to existence
Capitalism - answerA system of free enterprise and free people
20th century extended intellectual war between - answer1. free enterprise capitalism
2. Communism
, Free Enterprise Capitalism - answerFree markets and free people, which success led to
improving quality of our lives and created prosperity for billions of people
Human Creatvity - answerRoot of all economic progress
Ethics - answerSystem of determining what is right or wrong
Morals - answerSubjective self, understanding of what is right or wrong, along with
personal affiliations (religion)
Capitalism Under Attack - answerMany businesses have operated with a low level of
consciousness (wholistic), and have become overly concerned with profit maximazation
Low Consciousness in Business leads to: - answer1. Trade-off Thinking
2. Failure to see impacts of actions
3. Increase in self-interest motivated decisions
4.Low public confidence in business
Adam Smith - answerOutlines an ethics based on our ability to empathize one's self-
interst
Karl Marx - answerCapitalism = inherently exploitative of wowrkers
Profit Maximixation - answerProfits = necessary, classical economics, historical
necessity
The Myth of Profit Maximization Origins: - answer1. narrow view of humans nature
2. inadequate explanation of the causes of business success
Fiduciary Responsibilty - answer=Profit Maximization
The Effects of Crony Capitalism - answerThe collusion of unethical business leaders
and unethical government officials, uses the coercive power of government to rig
markets, uses the wealth of business to "buy" politicians
Crony Capitalism - answerintrinsically unethical and poses a threat to our well-being
and freedom
Free Enterprise Capitalism is: - answer1. Noble (elevate existence)
2. Good (creates value and expanded upper and middle class)
3. Ethical (voluntary exchange)
4. Heroic (helps reduce poverty)
Capitalism - answerHas lifted more people out of poverty than any other force in history
through voluntary exchange
