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188 terms
Terms | Definitions |
|---|---|
 business | organization that provides goods or services to earn profits. |
| profit | difference between a business's revenues and its expenses. |
| external environment | everything outside an organization's boundaries that might affect it |
| factors of production | resources used in the production of goods and services -- labor, capital, entrepreneurs, physical resources, and information resources. |
| economic system | a nation's system for allocating its resources among its citizens. |
| labor (human resources) | physical and mental capabilities of people as they contribute to economic production. |
| capital | funds needed to create and operate a business enterprise |
| entrepreneur | individual who accepts the risks and opportunities involved in creating and operating a new business |
| planned economy | economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions |
| communism | political system in which the government owns and operates all factors of production |
| market economy | economy in which individuals control production and allocation decisions through supply and demand |
| market | mechanism for exchange between buyers and sellers of a particular good or service |
| capitalism | system that sanctions the private ownership of the factors of productions and encourages entrepreneurship by offering profits as an incentive |
| privatization | process of converting government enterprises into privately owned companies |
| socialism | planned economic system in which the government owns and operates only selected major outsources of production |
| demand | the willingness and ability of buyers to purchase a good or service |
| supply | the willngness and ability of producers to offer a good or service for sale |
| private enterprise | economic system that allows individuals to pursue their own interests without undue governmental restriction |
| competition | vying among business for the same resources or customers |
| perfect competition | market or industry characterized by numerous small firms producing an identical product |
| monopolistic competition | market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors |
| monopoly | market or industry in which there is only one producer that can therefore set the prices of it products |
| natural monopoly | industry in which one company can most efficiently supply all needed goods or services |
| standard of living | the total quantity of goods and services produced by an economic system during a given period |
| gross domestic product (GDP) | total value of all goods and services produced within a given period by a national economy through domestic factors of production |
| gross national product (GNP) | total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located |
| real GDP | gross domestic product (GDP) adjusted to account for changes in currency values and price changes |
| purchasing power parity (PPP) | the principle that exchange rates are set so that the prices of similar products in different countries are about the same |
| inflation | occurs when widespread price increases occur throughout an economic system |
| unemployment | the level of joblessness among people actively seeing work in an economic system |
| recession | a period during which aggregate output, as measured by GDP, declines |
| depression | a prolonged and deep recession |
| ethics | beliefs about what is right or wrong and good or bad in actions that affect others |
| ethical behavior | behavior conforming to generally accepted social norms concerning beneficial and harmful actions |
| unethical behavior | behavior that does not conform to generally accepted social norms concerning beneficial and harmful actions |
| business ethics | ethical or unethical behaviors by employees in the context of their jobs |
| managerial ethics | standards of behavior that guide individual managers in their work |
| social responsibility | the attempt of a business to balance its commitments to groups and individuals in its environment, including customers, other businesses, employees, investors, and local communities. |
| organizational stakeholders | those groups, individuals, and organizations that are directly affected by the practices of an organization and who therefore have a stake in its performance |
| whistle-blower | employee who detects and tries to put an end to a company's unethical, illegal, or socially irresponsible actions by publicizing them. |
| insider trading | illegal practice of using special knowledge about a firm for profit or gain |
| Small Business Administration (SBA) | government agency charged with assisting small business |
| small business | independently owned business that has relatively little influence in its market. |
| business plan | documents in which an entrepreneur summarizes her or his business strategy for a proposed new venture and how that strategy will be implemented |
| franchise | arrangement in which a buyer (franchisee) purchases the right to sell the good or service of the seller (franchiser) |
| venture capital company | group of small investors who invest money in companies with rapid growth potential |
| sole proprietorship | business owned and usually operated by one person who is responsible for all its debts |
| unlimited liability | legal principle holding owners responsible for paying off all debts of a business |
| general partnership | business with two or more owners who share in both the operation of the firm and the financial responsibility of its debts |
| limited partnership | type of partnership consisting of limited partners and a general (or active) partner |
| limiter partner | partner who doesn't share in a firms management and is liable for its debts only to the limits of said partner's investment. |
| general (active) partner | partner who actively manages a firm and who has unlimited liability for its debts |
| corporation | business that is legally considered an entity separate from its owners and is liable for its own debts; owners' liabilities extend to the limits of their investments. |
| limited liability | legal principle holding investors liable for a firm's debts only to the limits of their personal investments in it |
| closely held (private) corporation | corporation whose stock is held by only a few people and is not available for sale to the general public |
| publicly held (public) corporation | corporation whose stock is widely held and available for sale to the general public |
| S Corporation | hybrid of a closely held corporation and a partnership, organized and operated like a corporation but treated as a partnership for tax purposes |
| limited liability corporation (LLC) | hybrid of a publicly held corporation and a partnership in which owners are taxed as a partners but enjoy the benefits of limited liabilty. |
| multinational (transitional) corporation | form of corporation spanning national boundaries |
| stockholder | owner of shares of stock in a corporation |
| corporate governance | roles of shareholders, directors, and other managers in corporate decision making and accountability |
| board of directors | governing body of a corporation that reports to its shareholders and delegates power to run its day-to-day operations while remaining responsible for sustaining its assets |
| officers | top management team of a corporation |
| chief executive officer (CEO) | top manager who is responsible for the overall performance of a corporation |
| strategic alliance | strategy in which two or more organizations collaborate on a project for mutual gain |
| joint venture | strategic alliance in which the collaboration involves joint ownership of the new venture |
| merger | the union of two corporations to form a new corporation |
| acquisition | the purchase of one company by another |
| divestiture | strategy whereby a firm sells one or more of its business units |
| import | product made or grown abroad but sold domestically |
| export | product made or grown domestically by shipped and sold abroad |
| globalization | process by which the world economy is becoming a single interdependent system |
| NAFTA (north american free trade agreement) | agreement to gradually eliminate tariffs and other trade barriers among the US, Canada, and Mexico |
| EU (european union) | organization for economic, social, and security cooperation among European nations |
| WTO (world trade organization) | organization through which member nations negotiate trading agreements and resolve disputes about trade policies and practices |
| outsourcing | the practice of paying suppliers and distributers to perform certain business processors or to provide needed materials or services |
| management | process or planning, organizing, leading, and controlling an organization's resources to achieve its goals |
| planning | management process of determining what an organization needs to do and how best to get it done |
| organizing | management process of determining how best to arrange an organization's resources and activities into a coherent structure |
| leading | management process of guiding and motivating employees to meet an organization's objectives |
| controlling | management process of monitoring an organization's performance to ensure that it is meeting its goals |
| 9 lines about Chna | China, the worlds most densely populated country, has emerged as an important market and now boasts the world's third-largest economy, behind only the EU and USA. Although its per-capita income remains low, the sheer number of potential consumers makes it an important market. india, though not part of Pacific Asia, is also rapidly emerging as one of the globe's most important economies. |
| middle manager | manager responsible for implementing the strategies and working toward the goals set by top managers |
| first-line (operational) manager | manager responsible for supervising the work of employees |
| decision-making | skills in defining problems and selecting the best courses of action |
| goal | objective that a business hopes and plans to achieve |
| strategy | broad set of organizational plans for implementing the decisions made for achieving organizational goals |
| mission statement | organization's statement of how it will achieve its purpose in the environment in which it conducts its business |
| long-term goal | goal set for an extended time, typically five years or more into the future |
| short-term goal | goal set for the very near future |
| corporate strategy | strategy for determining a firms overall attitude toward growth and the way it will manage its businesses or product lines |
| business (competitive) strategy | strategy at the business-unit or product-line level, focusing on improving a firm's competitive position |
| functional strategy | strategy by which managers in specific areas decide how best to achieve corporate goals through productivity |
| SWOT analysis | identification and analysis of organizational strengths and weaknesses and environmental opportunities and threats as part of strategy formulation |
| environmental analysis | process of scanning the business environment for threats and opportunities |
| crisis management | organization's methods for dealing with emergencies |
| organizational structure | specification of the jobs to be done within an organization and the ways in which they relate to one another |
| organizational chart | diagram depicting a company's structure and showing employees where they fit into its operations |
| chain of command | reporting relationships within a company |
| span of control | number of people supervised by one manager |
| delegation | process through which a manager allocates work to subcordinates |
| flat organizational structure | characteristic of decentralized companies with relatively few layers of management |
| tall organizational structure | characteristic of centralized companies with multiple layers of management |
| centralized organization | organization in which most decision-making authority is held by upper-level management |
| decentralized organization | organization in which a great deal of decision-making authority is delegated to levels of management at points below the top. |
| authority | power to make the decisions necessary to complete a task |
| accountability | obligation employees have to their manager for the successful completion of an assigned task |
| committee and team authority | authority granted to committees or teams involved in a firm's daily operations |
| service operations (service production) | activities producing intangible and tangible products, such as entertainment, transportation, and education |
| goods operations | activities producing tangible products, such as radios, newspapers, buses and textbooks |
| operations (production) management | activities involved in making products-- goods and services-- for customers |
| quality | the combination of "characteristics of a product or service that bear on its ability to satisfy stated in implied needs |
| quality control | the action of ensuring that operations produce products that meet specific quality standards |
| total quality management (TQM) | the sum of all activities involved in getting high-quality goods and services in the marketplace |
| supply chain management (SCM) | principle of looking at the supply chain as a whole to improve the overall flow through the system |
| leadership | the processes and behaviors used by someone, such as a manager, to motivate, inspire, and influence the behaviors of others |
| decision making | choosing one alternative from among several options |
| human resources management (HRM) | set of organizational activities directed at attracting, developing, and maintaining an effective workforce |
| benefits | compensation other than wages and salaries |
| sexual harassment | unwelcome sexual advances in the workplace |
| quid pro quo harassment | form of sexual harassment in which the sexual favors are requested in return for job-related benefits |
| hostile work environment | form of sexual harassment deriving from off-color jokes, lewd comments, and so forth |
| contingent worker | employee hired on something other than a full-time basis to supplement an organization's permanent workforce |
| labor union | group of individuals working together to achieve shared job-related goals such as higher pay, shorter working hours, more job security, greater benefits, or better working conditions |
| labor relations | process of dealing with employees who are represented by a union |
| marketing | the activity, set of institutions, and processes for creating, communicating, delivering, and enhancing, offerings that have value for customers, clients, partners, and society at large |
| consumer good | physical products purchased by consumers for personal use |
| industrial good | physical products purchased by companies to produce other products |
| services | products having nonphysical features, such as information, expertise, or an activity that can be purchased |
| substitute product | product that is dissimilar from those of competitors but that can fulfill the same need |
| marketing plan | detailed strategy for focusing marketing efforts on consumers' needs and wants |
| marketing mix | the combination of product, pricing, promotion, and distribution strategies used to market products |
| product | good, service, or idea that is marketed to fill consumers' needs and wants |
| distribution (place) | part of the marketing mix concerned with getting products from producers to consumers |
| promotion | aspect of the marketing mix concerned with the most effective techniques for communicating information about products |
| target market | group of people that have similar wants and needs and can be expected to show interest in the same products |
| market segmentation | process of dividing a market into categories of customer types or "segments" |
| convenience good/ convenience service | inexpensive good or service purchased and consumed rapidly and regularaly |
| specialty good/specialty service | moderately expensive, infrequently purchased good or service |
| branding | process of using symbols to communicate the qualities of a product made by a particular producer |
| brand awareness | extent to which a brand name comes to mind when a consumer considers a particular product category |
| pricing | process of determining what a company will receive in exchange for its products |
| market share | a company's percentage of the total industry sales for a specific product type |
| wholesaler | intermediary who sells products to other businesses for resale to final customers |
| retailer | intermediary who sells products directly to customers |
| telemarketing | form of nonstore retailing in which the telephone is used to sell directly to consumers |
| physical distribution | activities needed to move a product efficiently from manufacturer to consumer |
| promotion | aspect of the marketing mix concerned with the most effective techniques for communicating information about and selling a product |
| advertising | promotional tool consisting of paid, non-personal communication used by an identified sponsor to inform an audience about a product |
| point of sale display | sales-promotion technique in which product displays are located in certain areas to stimulate purchase or to provide information on a product |
| information technology (IT) | the various appliances and devices for creating, storing, exchanging and using information in diverse modes, including visual images, voice, multimedia, and business data. |
| management information system (MIS) | computer system that supports managers by providing information - reports, schedules, plans, and budgets - that can be used for making decisions. |
| intellectual property | something produced by the intellect or mind that has commercial value |
| accounting | comprehensive system of collecting, analyzing, and communicating financial information |
| audit | systematic examination of a company's accounting system to determine whether its financial reports reliably represent its operations |
| Sarbanes-Oxley Act of 2002 (not selected provisions) | enactment of federal regulations to restore public trust in accounting practices by imposing new requirements on financial activities in public traded corporations (see top of pg 8) |
| accounting equation | assets = liabilities + owners' equity; used by accountants to balance data for the firm's financial transactions at various points in the year |
| asset | any economic resource expected to benefit a firm or an individual who owns it |
| liability | debt owed by a firm to an outside organization or individual |
| owner's equity | amount of money that owners would receive if they sold all of a firm's assets and paid all of its liabilities |
| financial statement | any of several types of reports summarizing a company's financial status to stakeholders and to aid in managerial decision making |
| balance sheet | financial statement that supplies detailed information about a firm's assets, liabilities and owners' equity |
| liquidity | ease with which an asset can be converted into cash |
| income statement (profit and loss statement) (P and L statement) | financial statement listing a firm's annual revenues and expenses so that a bottom line shows annual profit or loss |
| revenues | funds that flow into a business from the sale of goods or services |
| debt | a company's total liabilities |
| earnings per share | probability ration measuring the net profit that the company earns for each share of outstanding stock |
| prime rate | interest rate available to a bank's most credit worthy customers. |
| federal reserve system (the FED) | central bank of the united states, which acts as the government's bank, serves member commercial banks and controls the nation's money supply. |
| world bank | UN agency that provides a limited scope of financial services, such as funding improvements in underdeveloped countries |
| international monetary fund (IMF) | UN agency consisting of about 150 nations that have combined resources to promote stable exchange rates, provide temporary short -term loans, and serve other purposes. |
| stock | a portion of ownership of a corporation |
| common stock | the most basic form of ownership, including voting rights on major issues, in a company |
| dividend | payment to shareholders, on a per-share basis, out of the company's earnings |
| insider trading | illegal practice of using a special knowledge about a firm for profit or gain |
| securities | stocks, bonds, and mutual funds representing secured, or asset-based, claims by investors against issuers |
| securities markets | markets in which stocks and bonds are sold |
| stock exchange | an organization of individuals to provide an institutional auction setting in which stocks can be bought and sold. |
| interest | fee paid to a lender for the use of borrowed funds; like a rental fee |
| venture capital | private funds by wealthy individuals seeking investment opportunities in new growth companies |
| corporate bond | a formal pledge obligating the issuer (the company) to pay interest periodically and repay the principal and maturity |
| bankruptcy | court-granted permission for a company to not pay some or all debts |
| laws | codified rules of behavior enforced by a society |
| common law | body of decisions handed down by courts ruling on individual cases |
| statutory law | created by constitution or by federal, state, or local legislative acts |
| regulatory law | law made by the authorities or administrative agencies |
| deregulation | elimination of rules that restrict business activity. |
| top manager | manager responsible for a firm's overall performance and effectiveness |
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