Business Education: Corporate Ethics & Social Responsibility

3. Business denotes busi-ness,
that is the state of being busy –
any activity in which one keeps
himself busy. But the economic
term of business refers to work,
efforts, and acts of people or
human busy in connection with
the production of wealth.

4. Business is the sum of total
activities which are
connected with the
production or purchase and
sale of goods and services
with the main objective to
earn profit.

6.  A business (also known as
an enterprise, a company, or
a firm) is
an organizational entity and legal
entity made up of
an association of people, be
they natural, legal, or a mixture
of both who share a common
purpose and unite in order to

7. and organize their collectively
available skills or resources to
achieve specific declared goals and
are involved in the provision
of goods and services to consumers
 A business can also be described
as an organization that provides
goods and services for human

8. A company or association of persons can be
created at law as legal person so that the
company in itself can accept limited liability for
civil responsibility and taxation incurred as
members perform (or fail) to discharge
their duty within the publicly declared "birth
certificate" or published policy.
Because companies are legal persons, they
also may associate and register themselves
as companies – often known as a corporate
group. When the company closes it may need
a "death certificate" to avoid further legal
obligations.

9. Businesses serve as conductors of
economic activity, and are prevalent
in capitalist economies, where most of
them are privately owned and
provide goods and
services allocated through
a market to consumers and customer
s in exchange for other goods,
services, money, or other forms of
exchange that hold intrinsic economic
value.

10. Businesses may also be
social nonprofit enterprises or state-
owned public enterprises operated by
governments with specific social and
economic objectives.
A business owned by multiple private
individuals may form as an incorporated
company or jointly organized as a
partnership. Countries have different laws
that may ascribe different rights to
the various business entities.

11. The word "business" can refer to a
particular organization or to an
entire market sector (for example, "the
finance business" is "the financial
sector") or to all economic sectors
collectively ("the business sector").
Compound forms such as
"agribusiness" represent subsets of the
concept's broader meaning, which
encompasses all activity by suppliers
of goods and services.

12. Typically private-sector
businesses aim to maximize
their profit, although in some
contexts they may aim to
maximize their sales revenue or
their market share.
Government-run businesses
may aim to maximize some
measure of social welfare.

15. Business is an economic activity of
production and distribution of
goods and services. It provides
employment opportunities in
different sectors like banking,
insurance, transport, industries,
trade etc. it is an economic activity
corned with creation of utilities
for the satisfaction of human
wants.

16. It provides a source of income
to the society. Business results
into generation of employment
opportunities thereby leading
to growth of the economy. It
brings about industrial and
economic development of the
country.

18. The basic activity of any
business is trading. The
business involves buying
of raw material, plants
and machinery,
stationary, property etc.

19. On the other hand, it sells
the finished products to the
consumers, wholesaler,
retailer etc. Business makes
available various goods
and services to the
different sections of the
society.

21. Business is not a single time
activity. It is a continuous process
of production and distribution of
goods and services. A single
transaction of trade cannot be
termed as a business. A business
should be conducted regularly in
order to grow and gain regular
returns.

22. Business should continuously
involve in research and
developmental activities to
gain competitive advantage. A
continuous improvement
strategy helps to increase
profitability of the business
firm.

24. Profit is an indicator of
success and failure of
business. It is the
difference between
income and expenses of
the business.

25. The primary goal of a business
is usually to obtain the highest
possible level of profit through
the production and sale of
goods and services. It is a
return on investment. Profit
acts as a driving force behind
all business activities.

26. Profit is required for survival,
growth and expansion of the
business. It is clear that every
business operates to earn profit.
Business has many goals but
profit making is the primary goal
of every business. It is required to
create economic growth.

28. Risk is defined as the effect of
uncertainty arising on the
objectives of the business. Risk
is associated with every
business. Business is exposed to
two types of risk, Insurable and
Non-insurable. Insurable risk is
predictable.

29. a)Taxes
b)Changeinthevolumeofexpectedsales
c)Costofsuppliesandequipment
d)Overheadcosts
e)Salaries
f)Costofgoodsandservicesoffered

30. a) Changes in trends and tastes
of customers.
b) Impact of the local economy
on customer base.
c) Any unexpected action taken
by your competitors.

31. The calculation and
management of the risk is vital
to ensure the success of a
business firm.
Insurance and Risk
management helps in
minimizing the risk associated
with the business.

33. Modernbusinessiscreativeand
dynamicinnature.Businessfirm
hastocomeoutwithcreativeideas,
approachesandconceptsfor
productionanddistributionof
goodsandservices.Itmeansto
bringthingsinfresh,newand
inventiveway.

35. The phase of business has
changed from traditional
concept to modern concept.
Now a day, business adopts a
consumer-oriented approach.
Customer satisfaction is the
ultimate aim of all economic
activities.

36. Modern business believes
in satisfying the customers
by providing quality
product at a reasonable
price. It emphasize not
only on profit but also on
customer satisfaction.

37. Consumersaresatisfiedonlywhen
theygetrealvaluefortheir
purchase.
Thepurposeofthebusinessisto
createandretainthecustomers.
Theabilitytoidentifyandsatisfy
thecustomersistheprime
ingredientforthebusinesssuccess.

39. Business is a socio-
economic activity. Both
business and society are
interdependent. Modern
business runs in the area
of social responsibility.

40. Businesshassomeresponsibility
towardsthesocietyandinturnit
needsthesupportofvarioussocial
groupslikeinvestors,employees,
customers,creditorsetc.bymaking
goodsavailabletovarioussectionsof
thesociety,businessperformsan
importantsocialfunctionandmeets
socialneeds.

41. Business needs
support of different
section of the society
for its proper
functioning.

43. Business organizations
are subject to government
control. They have to
follow certain rules and
regulations enacted by the
government.

44. Government ensures that
the business is conducted
for social good by keeping
effective supervision and
control by enacting and
amending laws and rules
from time to time.

45. A business most often forms
after the development of a
business plan. This plan
outlines the strategic
intentions and logistics in
making those intentions occur.

46. A business name must be registered with
the state, and this name is often referred to
as the "doing business as" or DBA name. A
business can operate with its own tax
identification number and tax liabilities, so
one of the pivotal steps in forming a
business is determining the legal structure
of the business and associated taxation
implications.

47. Different businesses require various
permits and licenses to operate legally.
Finally, a business has legal obligations in
regard to treatment of employees and the
conditions in which the employees work.
These legal obligations of a business
include properly assessing payroll taxes
on employees as well as the business itself.

49. The most basic business structure is
a sole proprietorship. The owner of
the business is the sole individual who
takes ownership of assets and debt
obligations.
Alternatively, multiple individuals
with shared duties can operate a
business, and this business structure
is a partnership.

50. A business may operate as a corporation.
Incorporating a business releases owners
of financial liability of business
obligations; however, a corporation has
unfavorable taxation rules for the owners
of the business.
For this reason, a fourth business
structure, called a limited liability
company, is available, which combines
the benefits of a partnership and
corporation.

52. Businesses include
everything from a small
owner-operated company,
such as a family
restaurant, to a
multinational
conglomerate, such as
General Electric. Larger

53. In this case, the
company is publicly
traded and has
reporting and
operating restrictions.
Alternatively, smaller
businesses may

54. Forms of business
ownership vary
by jurisdiction,
but several
common entities
exist:

55. A sole proprietorship, also
known as a sole trader, is
owned by one person and
operates for their benefit. The
owner operates the business
alone and may hire employees.

56. A sole proprietor has
unlimited liability for all
obligations incurred by the
business, whether
from operating
costs or judgments against
the business.

57. All assets of the business
belong to a sole proprietor,
including, for example,
computer infrastructure,
any inventory, manufacturing
equipment, or retail fixtures, as
well as any real
property owned by the sole

58. A partnership is a business
owned by two or more
people. In most forms of
partnerships, each partner
has unlimited liability for
the debts incurred by the
business.

59. The three most
prevalent types of for-
profit partnerships are:
general partnerships
 limited partnerships
limited liability
partnerships

60. The owners of
a corporation have limited
liability and the business has a
separate legal personality from
its owners. Corporations can be
either government-owned or
privately owned.

61. They can organize either for
profit or as nonprofit
organizations. A privately
owned, for-profit corporation
is owned by its shareholders,
who elect a board of
directors to direct the
corporation and hire its
managerial staff.

62. A privately owned, for-
profit corporation can be
either privately held by a
small group of individuals,
or publicly held, with
publicly
traded shares listed on
a stock exchange.

63. Often referred to as a
"co-op",
a cooperative is a
limited-liability business
that can organize as
for-profit or not-for-

64. A cooperative differs
from a corporation in
that it has members,
not shareholders, and
they share decision-
making authority.

65. Cooperatives are typically
classified as
either consumer
cooperatives or worker
cooperatives.
Cooperatives are
fundamental to the
ideology of economic

66. A limited liability
partnerships, and other
specific types of business
organization protect their
owners or shareholders

67. from business failure by
doing business under a
separate legal entity with
certain legal protections. In
contrast, unincorporated
businesses or persons
working on their own are
usually not as protected.

68. A franchise is a system
in which entrepreneurs
purchase the rights to
open and run a
business from a larger

69. Franchising in the United
States is widespread and is a
major economic powerhouse.
One out of twelve retail
businesses in the United
States are franchised and 8
million people are employed
in a franchised business.

70. A company limited by
guarantee. Commonly
used where companies are
formed for noncommercial
purposes, such as clubs or

71. The members guarantee
the payment of certain
(usually nominal) amounts if
the company goes
into insolvent liquidation, but
otherwise, they have no
economic rights in relation
to the company.

72. This type of company is
common in England. A
company limited by
guarantee may be with
or without having share
capital.

73. A company limited by shares. The most
common form of the company used for
business ventures. Specifically, a limited
company is a "company in which the
liability of each shareholder is limited to
the amount individually invested" with
corporations being "the most common
example of a limited company."

74. This type of company is
common in England and
many English-speaking
countries. A company limited
by shares may be a:
 publicly traded
company or a
 privately held company

75. A company limited by
guarantee with a share capital.
A hybrid entity, usually used
where the company is formed for
noncommercial purposes,

76. but the activities of the
company are partly funded
by investors who expect a
return. This type of
company may no longer be
formed in the UK, although
provisions still exist in law
for them to exist.

77. A limited liability company. "A
company statutorily authorized
in certain states that is
characterized by limited liability,
management by members or

78. managers, and limitations on
ownership transfer", i.e.,
L.L.C. LLC structure has been
called "hybrid" in that it
"combines the characteristics
of a corporation and of a
partnership or sole
proprietorship".

79. Like a corporation, it has
limited liability for members of
the company, and like a
partnership it has "flow-
through taxation to the
members" and must be
"dissolved upon the death or
bankruptcy of a member"

80. An unlimited
company with or
without a share capital.
A hybrid entity, a
company where the

81. for the debts (if any) of
the company are not
limited. In this case
doctrine of a veil of
incorporation does not
apply.

83. Agriculture, such as the domestication of
fish, animals and livestock, as well
as lumber, oil and mining businesses that
extract natural resources and raw
materials, such as wood, petroleum, natural
gas, ores, plants or minerals.

84. Financialservicesbusinesses
includebanks,brokeragefirms,credit
unions,creditcards,insurance
companies,assetandinvestment
companiessuchasprivateequityfirms,

85. private equity funds, real estate
investment trusts, sovereign wealth
funds, pension funds, mutual
funds, index funds, and hedge
funds, stock exchanges, and other
companies that generate profits through
investment and management of capital.

86. Entertainment companies and mass
media agencies generate profits
primarily from the sale of intellectual
property.

87. They include film
studios and production houses, mass
media companies such as cable
television networks, online digital
media agencies, talent agencies, mobile
media outlets, newspapers, book and
magazine publishing houses.

88. Industrial manufacturers produce products,
either from raw materials or from component
parts, then export the finished products at
a profit. They include tangible goods such
as cars, buses, medical devices, glass,
or aircraft.

89. Real estate businesses sell, invest,
construct and develop properties,
including land,
residential homes, and other
buildings.

90. Retailers, wholesalers, and distributors act as
middlemen and get goods produced by
manufacturers to the intended consumers; they
make their profits by marking up their prices.
Most stores and catalog companies are
distributors or retailers.

91. Transportation businesses such
as railways, airlines, shipping
companies that deliver goods and
individuals to their destinations for
a fee.

92. Utilities produce public services such
as water, electricity, waste
management or sewage treatment.
These industries are usually operated
under the charge of a
public government.

93. Service businesses offer intangible
goods or services and typically charge
for labor or other services provided
to government, to consumers, or to
other businesses.

94. Interior decorators, beauticians,
hairstylists, make-up artists,
tanning salons, laundrymats,
dry cleaners, and pest
controllers are service
businesses.