Introduction to Business

REFLECTIVE ESSAY

       The Introduction to Business module was an interesting and fun module to go through.The syllabus flowed very well and topics such as “Managing a Business”,  “Developing Marketing Strategies” and “Managing with Financial Information” were very easy to grasp and very informational. Topics such as these will definitely help me in the future. My favorite topic would have to be “Managing Employees” because it opened my eyes to the different types of attitudes and behaviors. This topic also helped me to understand the process of hiring employees. The class assignments and tutorial sheets also helped with my understanding of businesses while engaging with my classmates and learning in an effective manner.

            Besides that, the assignments enabled me to strengthen my ability to work with others. The oral presentation, for example, helped me to understand environmental and social issues faced in the world of business. This assignment also helped me to sharpen my public speaking skills. The final assignment would have to be the most interesting one. This is because of the amount of effort and work we had to put into it in order to make it successful. It helped me to look through the eyes of a businessman. The final assignment was a very interesting way to give me a brief outlook of how a business runs.

            In conclusion, this module was an effective way to provide a brief outline of the business world and it will certainly help me in my career.

                                                                                                            [ 243 words ]

           

         

PICTURES

Meera explaining the ways to advertise during our oral presentation

Me explaining the ways people advertise falsely during our oral presentation

You Shing continuing the methods people use to advertise falsely

Diyana explaining the reasons people advertise their products falsely

TUTORIAL QUESTIONS AND ANSWERS

Intro to Business Exercise 3.0

1. Define the term “ethics”. Does everyone view ethics or morality in the same way? Why or why not? Can you give an example to illustrate this?

Ethics are beliefs about things that are right or wrong. People do not view ethics or morality in the same way. This is because what is considered ethical in one society maybe considered unethical in another. For example, it is alright to practice gift giving in Asian countries but in most countries it is considered as bribing.

2. What is the difference between doing something “illegal” and something “unethical”? What (example of) behaviour is considered both illegal and unethical? Legal but unethical? Illegal but ethical?

When you do something illegal, it is against the law but when you do something unethical it is considered morally wrong. When the government allows a company to raise its price of its good just so the company is at an advantage. This is an example of legal but unethical. An example of something being illegal but unethical is when the company use their profit to help the homeless without anyone knowing.

3. What is global warming? What are its effects? If you are a business owner, what are some of the measures you can take to counter it? Suggest 2 strategies. (Note: you need to conduct research for this question)

Global warming occurs when the Earth’s temperature rises. This causes the melting of the polar ice caps that will lead to a drastic climatic change. If I was a business owner, I would reduce the number of machines that emit CFC gases. I would also install filters in the chimneys of my factories to prevent hazardous gases from being released into the air.

4. What is greenwashing? Explain and provide one example (other than the BP case).

Greenwashing is when a company projects a green image without being truly environmentally friendly. For example, Exxon Mobil has a reputation for environmental offenses but they pretend to be eco friendly.

5. Aman, Christian and Alice are the only sellers of architectural drawing materials in the market, and they recently agreed to raise the price of their products together by 25%. Describe the behaviour they are engaging in. Also, why is it illegal and unethical for them to do so?

They are engaging in pricing collusion. This is both illegal and unethical because it forces the customers to pay more for the same product.

6. What is dead peasant insurance? How does it work? Is it legal and ethical?

Peasant insurance is when a business buys insurance on employees and then gain profit when the employee dies. It is both illegal and unethical.

7. Explain the term “insider trading”. Also, in one short paragraph, describe the Martha Stewart insider trading case in your own words.

Insider trading is an act of buying and selling company shares by employees and managers to gain profit because they are aware of certain confidential information about the company. Her friend Sam Waksal told Martha Stewart that his company’s cancer drug had been rejected before it was made public. She was unaffected by this as she had her broker to sell her shares.

8. Sabrina has recently written a set of employee code of conduct for her business. Is the code alone sufficient to ensure ethical behaviours of her employees? Why or why not? If not, what can her do about it?

No, it is not. This is because the codes will not be followed unless she enforces it. This means that everyone, including herself, will have to abide by the code of ethics.

9. If you are running a business, which social responsibility approach would you adopt (obstructionist, proactive, etc.)? Why?

I would run an accommodative business. This is because I will exceed my legal and ethical requirements according to the situation. This means that I will have a balance in supporting nature and my business.

Intro to Business Exercise 7.0

1. What is accounting? Explain.

Accounting is a business tool that is used as a communication tool, decision making tool and a tool to discharge accountability.

2. Lejun is the owner of an architectural firm but he has no rudimentary knowledge in accounting (he has an accountant who looks after everything for him). Is this acceptable? Why or why not?

No, it is not acceptable because he can be cheated off his business’ money.

3. What information can you obtain from a Profit and Loss Statement? How can you use this report to assist you in making business decisions (use an example)? What is the other name of P&L statement?

The business report reports the revenue gained by the company as well as the resources. This report could help the company owners decide on whether new products should be introduced to boost profits or cutting the business’ expenses to reduce loses. It is also called a statement of income.

4. What is a Balance Sheet? Also explain the 3 main items reported in it (with suitable examples). What is the other name of balance sheet?

A balance sheet reports what a business owns and what it owes in a particular day. It contains the business’ assests, which help to generate revenue such as rent, liabilities which come from bank loans and the owner’s equity such as the starting capital. It is also called a statement of financial position.

5. What is the accounting equation (formula)? Shi Yi started her business on 1^st January 2011 with $1.5m of her own money and $0.8m of bank loan. Write out the equation for her business.

Assets = Liabilities + Owner’s Equity. $2.3m = $0.8m + $1.5m

6. Continuing from question 5, what if Shi Yi repaid half of the bank loan 2 months later? How will her business’ accounting equation look like? Lastly, at the end of 2011, her business makes 0.4m of profit. Again, how will her accounting equation look like?

$6.2m = $2.7m + $3.5m

7. Yin Jou wants to borrow $150,000 from Public Bank. She currently has $250,000 of assets (car, shares and cash) and liabilities (e.g. personal loans) of $226,500.  Based on this information, would you (as a loan officer) approve the loan? Why or why not?

No because she does not have enough money to pay for all her loans.

8. Herman runs a roti canai stall in Subang. His monthly rent and utility expenses are $2700. He sells each roti canai for $1.50 and it costs him $0.65 to make each. Calculate his break-even point. Why is this information important to him?

He has to sell about 3177 roti canai’s in order to pay for his rent and utility expenses in one month. This is important to know because it will influence his decision to continue running the business as is, add more items or stop the business completely.

ORAL PRESENTATION SLIDES

Business presentation g5 from Sürayyn Selvan