Exam Review Sheet

Topics you will be expected to know (be able to list, define, and apply)
CH 1 Introduction
4 Basic Models of the BGS Relationship
Socio-economic Systems
Economics: Definition (3 parts), Issues: equality vs efficiency
Comparative Systems -- Capitalism
- Chart elements (Motivation, Property, Direction, Resource allocation, Policed by,
Government involvement) and institutions (self-interest, private property, free
enterprise, free market, competition, limited government) .
- Know roles and impact of each institution (e.g., role of private property in Capitalism).
Social institutions and the social contract: economy, government and culture and how they interact
CH 3 Business Power
Levels of power – surface and deep
Spheres of power—economic, technological, political, legal, cultural, environmental, individual
Terms: Power, Legitimacy, Social contract
Dominance Theory
Countervailing Forces Model
Elitism vs Pluralism
CH 4 Critics of Business
Changing views: Greeks and Romans, Medieval, Modern
Populism, Progressivism, Socialism
CH 10 Government Regulation
History of government involvement (4 main periods) and changing role over time. How has our system
changed (economy, government, culture) 1776-1976?
Reasons for regulation; 2 Types:
1. Economic
2. Social
CH 5 Corporate Social Responsibility
Definitions of CSR
3 basic elements (market, mandated, voluntary—three levels)
Arguments for and against
General Principles of CSR (8 elements)
CSR and Financial Performance
CH 7 Business Ethics
Different approaches to understanding what is right and wrong:
Conventional/Ethics (relative) vs Principles/Morals (absolute)
Sources of Ethics: Community; and Morals: Religion, Philosophy, Law
Theory of amorality vs moral unity; moral/amoral/immoral behavior: definitions and examples
The relationship between ethics, morals, and the law (overlapping circles)
Corporate Political Influence
Current political environment - 3 factors changing politics
Model of Public Policy Process and its implications
Business involvement in politics
- lobbying, definition, characteristics
- influencing the electoral process.
- Citizen’s United
Analogy of the Commons - characteristics, solutions, applications
Concept of a threshold level, carrying capacity
Control Options
Corporate governance -- who controls the corporation?
Model of Corporate Governance
Changes in Governance: separation of ownership and control,
Criticisms of the board: intended vs actual models of governance