To prepare for the exam, make sure you understand and can explain all the terms, ideas, and persons (and their significance) listed below. If you can do this, you should be in good shape for the exam.
Ethics- a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the behavior of individuals and entire organizations.
Absolute/Prima Facie Duty- "prima facie" is translated as "at first glance". Aprima's face right is a right that can be outweighed by other considerations. It stands in contrast with absolute rights, which cannot be outweighed by anything. (think of the man who owed $, but had to save his father) Perfect/Imperfect Duties- "Obligations are perfect or imperfect "according to the degree of latitude they have with respect to time, place, object and manner" (think SPECIFICS/CLARITY) In general, perfect duties are those that are blameworthy if not met, as they are a basic required duty for a human being. Imperfect duties are those duties that are never truly completed. An example provided by Kant is the imperfect duty to cultivate one's own talents.
The difference in Kind/Degree- a difference in degree is when it is the same structure but different. A difference in kind is when it doesn't even relate, whole new topic.
Adam Smith- economist and philosopher who wrote what is considered the "bible of capitalism," The Wealth of Nations, in which he details the first system of political economy. Smith proposed that a nation's wealth should be judged not by this metric but by the total of its production and commerce today known as gross domestic product (GDP). He also explored theories of the division of labor, an idea dating back to Plato, through which specialization would lead to a qualitative increase in productivity.
Invisible Hand- guiding business owners to act, unwittingly in the interests of society by merely pursuing their own interests. Credit to Adam Smith Restricted Egoism- another form of ethical egoism. It also dictates that one must maximize one's long-term self-interest, but must do so while obeying the law. It is closely related to Milton Friedman's stockholder theory and is arguably one of the philosophical underpinnings of free market capitalism.
Stockholder Theory- presupposes that the self-interested motive of profit maximization on the part of company owners is sufficient for running companies that contribute to vital economies. The stockholder is a provider of capital, the owner, and the profiteer of a corporation. Their role is that of financial investors, in that they lend their current capital with expectations of the return of greater capital in the future. Can be seen as a corporate version of Adam Smith's doctrine of Managerial Capitalism- A change in the control of capitalist enterprises from owners (which predominated in Marx's day) to cont...
