Ch. 3 Intro. to Business

What is a contract?

• A document that dictates how business should be conducted

• A legally binding agreement between two or more people or businesses

• A proposal to provide a good or service

• An order to remove or repair unsafe products in the market

What must be provided in consideration for a contract to be valid?

• A list of goods or services provided by a business

• A lease agreement to rent something

• Something of value must be promised in return

• A handbook that outlines expectations of employee behavior

What is the purpose of antitrust laws?

• To enforce workplace laws and regulations

• To promote fair competition and discourage monopolies

• To regulate how contracts are written, executed, and enforced

• To assure safe and healthful working conditions for employees

What does an employment contract describe?

• The steps and methods involved in the legal process

• The terms of employment between a business and an employee

• The rules of behavior based on a group's ideas about what is right and wrong

• The expectations of fair treatment of consumers

What is a trade secret?

• Any work created by company employees on the job that is owned by that company

• A document that dictates how business should be conducted

• Confidential information a company needs to keep private and protect from theft

• The steps and methods involved in the legal process

What does the term "insider trading" refer to?

• Trading based on public information for personal gain

• Using private company information to purchase stock for personal gain

• Legal trading of stocks during company announced windows

• Sharing company secrets with competitors

What is "false advertising"?

• Advertising with complete transparency

• Understating the features of products

• Overstating the features and benefits of products or making false claims about them

• Advertising products at their correct market value

What does "lying" mean in the context of this document?

• Telling the truth

• Making an untrue statement

• Exaggerating the truth slightly

• Being completely honest in all statements

What is "social responsibility"?

• Ignoring social, environmental, and economic issues

• Behaving with sensitivity to social, environmental, and economic issues

• Focusing solely on economic growth

• Prioritizing personal gain over societal needs

What does "corporate social responsibility" include?

• Only the financial actions taken by a business

• Actions taken by a business to reduce its workforce

• All the actions taken by a business to promote social good

• The personal responsibilities of a company's CEO