Test Bank for An Introduction to Business Ethics 6th Edition By Joseph DesJardins (All Chapters, 100 Original Verified, A+ Grade) 2

INTRODUCTION TO BUSINESS ETHICS b b b




MODULE 1 b




BusinessbOrganizationsbexistbtobservebconsumers'bneeds,bandbinbreturn,btheybmakebprofitsbwhenbpeo
plebpatronizebtheirbproductsbandbservices.b

BUISINESSbORGANIZATIONS

• Entitybthatbaimsbtobearnbabprofitb
• ProductsbcanbbebTANGIBLEb(physicalbobjects)borbINTANGIBLEb(non-
physical/services)b

PROFITb

• Amountbofbmoneybremainingbafterballbcostbrelatingbtobabproductborbservicesbhavebbeen
bdeductedbfrombthebtotalbsalesborbrevenueb




BUSINESSESbCANbBEbCLASSIFIESbASbFOR-PROFITbORbNONPROFIT
FOR-PROFITb

• Aimsbtobmakebabprofitbtobsustainbthebbusiness
• Builtbtobservebthebbusinessbownersbbybdirectlyborbindirectlybsellingbgoodsborbservicesb

NONPROFITb

• Aimsbtobadvocatebandbimplementbactivitiesbforbwhichbitbnormallybraisesbfundsbfor,btobf
urtherbitsbobjectivesbsuchbasbprovidingbsocialbassistancebforbthebbettermentbofbsocietyb
• Builtbtobservebpublicbinterestb
• Sometimesbreferredbtobasbpartbofbcivilbsocietyborgb(Thirdbsectorbofbsociety,bwithbthebgo
vtbandbbusinessbasbthebfirstbandbsecond)b
• NObONEbcanbownbNPOsb
• Headedbbybgoverningbboardbofbtrusteesb
• Inbdevelopingbsectors,bthebNPOsbareboftentimesbreferredbasbNongovernmentbOrganiz
ationsb(NGOs)b
• NGOsb-bcomplementbgovtbinbdeliveringbsocialbservicesbtobpeoplebandbcommunitiesb

FORMS OF BUSINESS ORGANIZATIONS
b b b

SOLEbORbSINGLEbPROPIETORSHIPb

, • Ownedbandboperatedbbybanbindividualb
• Ownerbownsballbassetbandbprofitsbgeneratedb
• Totalbliabilitybforblossesbandbdebtsb
• Doesbnotbneedbabbigbcapital,bitbisboftenblimitedbtobthebowner'sbsavingsborbloanbforms.b

EXAMPLES:b

1. Sari-saribstore
2. OnlinebStore
3. FoodbCartbFranchiseb
4. FreelancebWorkb

PARTNERSHIPb

• Composedbofbtwoborbmorebindividualsbwhobpoolbtheirbresourcesb
• EachbownerbisbcalledbPARTNER
• Noblimitbtobnumberbofbpartners,bbutbneedsbpermissionbandbapprovalbofbotherbpartnersb
• Partnersbgetbtobenjoybthebprofitsbandblossesbtogetherb
• GENERALbPARTNERb:bunlimitedbliabilitybforbdebtsbandbobligationsb
• LIMITEDbPARTNERb:bonlybhasbliabilitybupbtobthebextentbofbtheirbcapitalbcontributions

CORPORATIONb

• FormedblegallybthroughbarticlesbofbincorporationbfiledbwithbthebSecuritiesbandbExchangebCo
mmissionb(SEC)b
• Atbleastb5bbutbnotbmorebthanb15bpersonsb
• AccordingbtobREVISEDbCORPORATIONbCODEbINb2019b-
bcorporations bwithbonlybonebstockholderbcanbbeborganizedb

• HASbOWNbLEGALbPERSONALITY,bDISTINCTbANDbSEPARATEbFROMbTHEbPERS
ONSbFORMINGbTHEbORGANIZATION
• Hasbsamebrights,bduties,bandbliabilitiesbasbabpersonb
• Canbhavebperpetualbexistencebunlessbotherwisebspecifiedbinbitsbarticlesbofbincorporationb


THEbCORPORATIONbCODEbOFbTHEbPHILIPPINESbCATEGORIZESbCORPORATIONbINTOb2bTY
PES:bSTOCKbANDbNONSTOCKb

• STOCKbCORPORATIONb
o Forbprofitborganization
o hasbcapitalbstockbthatbisbdividedbintobsharesbandbisbauthorizedbtobdistributebtobthebsha
reholdersbdividendsborballotmentsbofbthebsurplusbprofitsbonbthebbasisbofbsharesbheld.b

• NONSTOCKbCORPORATIONb
o Nobpartbofbitsbincomebisbdistributablebasbdividendsbtobitsbmembers,btrustees,borboffice
rsb
o allbthosebearnedbarebusedbtobfurtherbpromotebofbtheborganizationb
o formedbforbcharity,breligious,beducational,bprofessional

, • CLOSEbCORPORATION
o Sharesbofbstockbarebnotbavailablebonbstockbexchangeborbanybpublicbmarketb
o Cannotbmakebpublicbofferingbofbitsbstockb

• OPENbCORPORATION
o ListedbinbthebPhilippinebStockbExchangeb(PSE)b
o Gonebpublicbinbraisingbitsbcapitalb
o MakesbandbINITIALbPUBLICbOFFERINGbtobgetblistedbinbthebPSEbwherebitsbstocksb
arebtradedb

ADVANTAGESbOFbAbCORPORATIONbASbAbFORMbOFbBUSINESSbORGANIZATIONb

1. UNLIMITEDbLIFEb
2. CREDIBILITYb
3. EASEbOFbTRANSFERRINGbOWNERSHIPb
4. PROTECTINGbPERSONALbASSETSb

COOPERATIVEb

• Anbautonomousbandbdulybregisteredbassociationbofbpersons,bwithbabcommonbbondbofbinteres
t,bwhobhavebvoluntarilybjoinedbtogetherbtobachievebtheirbsocialbeconomic,bandbculturalbneeds
bandbaspirationsbbybmakingbequitablebcontributionsbtobthebcapital bacquired...

• RegulatedbbybthebCOOPERATIVEbDEVELOPMENTbAUTHORITYb
• Membershipbisbvoluntarybandbregisteredbthroughbitsbarticlesbofbcooperationb
• Joinbbybcontributingbmembershipbfeebandbbuildingbupbsharebcapitalbovertimeb

BUSINESS ORGANIZATIONS AND THEIR ENVIRONMENT
b b b b b




1. POLITICALbFACTORSb-
bThebsituationbinbabcountrybandbthebworldbinfluencesbhowbbusiness boperatebandbgrow

2. ECONOMICbFACTORSb-
bInflation,bpriceblevelbofbcommodities,binterestbrates,bdemandbandbsupply,bexchangebrates

3. SOCIOCULTURALbFACTORSb-
bPeople'sbattitudes,bbehaviors,bcustoms,bcultural bheritage,bbtraditions,bbeliefs,bandblifestyleb

4. TECHNOLOGICALbFACTORSb-badvancesbinbtechnologyb
5. ENVIRONMENTALbFACTORSb-
bEcological bfactors blikebstorms,bfloods,bdroughts. bwildfires,bvolcanicberuptions,bearthquakes

,bandbpollutionb
6. DEMOGRAPHICbFACTORSb-
bagebgroup,bgender,bincomebdistribution,bpopulationbsize,bgeographicalblocation,brace,bethni

city
7. REGULATORY/LEGALbFACTORSb-blegalbrulesbandbregulations

ECONOMIC SYSTEMS b b


ECONOMICS b

, • Studybofbhowbresourcesbusedbinbproductionbofbgoodsbandbservicesbarebdistributedbforbconsu
mptionbwithinbabsocialbsystemb

RESOURCESb

• includesbnatural,bhuman,bandbfinancialbresources
• sometimesbcalledbFACTORSbOFbPRODUCTIONb

ECONOMICbSYSTEMb

• describesbhowbsocietybdistributesbitsbresourcesbtobproducebgoodsbandbservicesb
• unlimitedbdemandbforbgoodsbandbservicesb
• challengebinbhowbtobmeetbthisbdemandbwithinbablimitedbsupply

•

•




THE PHILIPPINE COMPETITION ACT
b b b b




• Competitionbcanbpushbbusinessborganizationsbtobimprovebtheirbproductsborbservices
• THISbLAWbAIMSbTObMAINTAINbCOMPETITIONbINbTHEbMARKETbTObPREV
ENTbANTI-
COMPETITIVEbACTIONSbANDbTObPROHIBITbCERTAINbBUSINESSbPRACTI
CESbTHATbAREbCONSIDEREDbHARMFULbTObCONSUMERSb
• ThebPhilippinebCompetitionbActb(R.A.b10667)bcreatedbthebPhilippinebCommissionban
dbmandatedbtobenforcebthebactbforbpromotingbandbprotectingbmarketbcompetitionb


ROLES OF BUSINESS ORGANIZATIONS IN THE SOCIETY
b b b b b b

Primarybobjectivebisbtobdevelop,bproduce,bandbdistributebgoodsbandbservicesbtobthebmarketbinborderbtobge
neratebprofitsbb(PCAPOI)

1. PROVIDINGbGOODSbANDbSERVICESb
2. CREATINGbEMPLOYMENTbOPPORTUNITIESb
3. ADVANCINGbTHEbECONOMYb

-
bTheb1987bPhilippinebConstitutionbrecognizesbentrepreneurshipborbputtingbupbbusinessesbasbanbenginebof

beconomicbgrowthb




-
bArticlebXII,bSectionb1bhighlightsbthebrolebofbprivatebenterprisesbinbsupportingbequitablebdistributionbofbi

ncomebandbwealth,bsustainingbproductionbofbgoods,bandbservices,bandbexpandingbproductivity,btherefore
braisingbthebqualitybofblifeb