BUS 100 Study Guide - Midterm Guide: Stem Cell, Environmental Justice, Global Warming

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23 Aug 2016
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Use this study guide, along with your blogs, and our classroom discussions and activities to prepare for the midterm exam. You should also review the key terms and concepts for each chapter assigned up to the day of the exam, and be able to use them in answering short answer and essay questions. The midterm exam will consist of multiple choice questions, short answer, and short essays. Ownership theory of the firm; arguments for its validity. A theory that holds that the purpose of the firm is to maximize the long-term return for its shareholders. Make the most money it can for shareholder who own stock in the company. Stakeholder theory of the firm; arguments for its validity theory that holds that the purpose of the firm is to create value for society. Ex: create professional development for their employees, innovative new products for their customer. Descriptive argument : managers direct employee"s energy toward stakeholder, not just owner.