BUS 600 Foundation of Business Management Assignment Chap 2&3 ideas

Making ethical choices is sometimes the hardest thing, especially when the choices decide either your business toward success or fail.
There are two major topics in the ethic curriculum:relativism and stakeholder analysis.
Relativism proposes that ethics are relative to the personal, social, and cultural circumstances.
1. Naive relativism--Business practices like sourcing of materials. For example, take company's stationary to home and use it.
2. Role relativism--distinguishes between our private selves and our public roles. For instance, tobacco industry knows smoking is harmful, however, they still sale products to make profit.
3. Social relativism--Labor related issues like gender discrimination at workplace, employee harassment,working conditions and child labor,forcing labor to work at below average salary.
4. Cultural relativism--In some countries, bribing powerful officials in order to get bids and tenders accepted and bribing competitor employees to get informational leaks is a serious ethical issue in business. In fact, it is a crime that is legally punishable in most countries today.
Stakeholder analysis ought to determine each of the affected parties' rights and responsibilities, evaluation of all the harms and benefits. The relationships among the many and varied stakeholders that have roles in business situations. These stakeholders include the market and non-market entities that affect a business. Ethical issues must be addressed by individuals, groups, corporations, and even nations in very different ways, and the consequences differ with each person or group involved.

Accounting
The purpose of accounting is to record all the activities will have impact the organization financially. To know a company, we need to understand three major financial statements:
1. Balance Sheet: The balance sheet basically record yearly assets, liabilities,and equity. It gives an idea of the financing structure of the company. It is the statement to look for company's assets.
2. Income statement: to see a company makes profit or not. it shows the flow of activity and transactions over a specific period. it maybe a month, a quarter or a year.
3. Cash Flow: to see a company's cash move to avoid liquidity problems. For instance, if a company has a lot of cash, then its liquidity is strong.
Accounting is to analysis yearly financial status in order to help board of directors to make decisions for investment and tax purpose.