Final Exam

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Entrpreneur

A person who starts, owns, and manages a business

Sole Proprietoship

A business owned and managed by one person

Partnership

A bsuiness owned by tow or more people

Corporation

A business owned by a group of people and authorized by the state in which it is located to act as though it were a single person

Profit

Incentive, as well as the reward, for producing goods and services

Franchisee

Distributor of a franchised product/service

Franchisor

Parent company that provided the product/ service

World Trade Organization

International organization that creates and enforces the rules governing trade among countries

International Monetary Fund

Main purpose is to help countries that are facing serious financial difficulties in paying for their imports or paying back their loans.

North American Free Trade Agreement

America, Mexico, & Canada;
World's largest trading bloc

Import

Buying goods or services from another country

Export

Selling your products or services to another country

Tariff

Taxes on foreign goods to protect domestic industries

Embargo

A process in which the government bars companies from doing business with particular countries

Subsidiaries

A branch of an international firm

Parent Firm

Headquarters are located in home city

Dumping

Practice of selling goods in a foreign country at a price that is below cost or below what it sells in the home country

Foreign Investment

This occurs when firms of one country build new plants and facilities or buy existing businesses in another country

Barriers

Nontax methods of discouraging trade

Joint Venture

Two or more firms share the cost of doing business and the profit

Stratigic Alliance

Firms agree to cooperate on certain aspects of business while remaining competitors on other aspects

Supply

The number of like products that will be offered for sale at a particular time & certain price

Demand

The number of products that will be bought at a given time

Gross Domestic Product

An extremely desirable statistic to measure the economic growth.

Capitalism

Have the right to make a profit

Socialism

Govn't controls most of country's factors of production

Communism

Govn't controls all the country's factors of production

Recession

A decline in the GDP that continues for 6 months or more

Depression

A long and severe drop in the GDP

4 P's

Product
Price-what the customer gives to get the product
Place- Distribution
Promotion

Product Life Cycle Stages

Introduction
Growth (Competitors)
Maturity (Modify)
Decline

Retailers

Businesses that sell directly to final customers

Wholesalers

Businesses that buy products from businesses and sell them to other businesses

Mass Production

Assembly process that produces a large number of identical products

Flex Time

Still put in 8 hours work day, but you choose which hours

Job Sharing

2 people complete the job of 1 person

Salary

Compensation Plan

Wages

Time plan
Ex: 8.25/hour

American with Disabilities Act

As long as the disability does not affect work, they can be hired

Keogh Plan

Own your own business

401K

'for profit', match money that goes towards retirement plan

403B

Nonprofit companies

Lay Off

Not enough work for employee to do

Equal Pay Act

If 2 people are doing the same job, they have to be payed equally

Occupational Safety & Health Act

Insure safety in the work place

Social Security Act

Take money out of wages to help pay for elderly, disabled, & survivors

360 Feedback/Evaluation

Detailed questionnaire about a person's

Asset

Anything of value you own

Liability

An amount owed by the business

Accounts Receivable

A sale of goods which cash will be received at a later date
Ex: Items sold on a credit card

Income Statement

Profit & loss statement
Reports data for a specific period of time

Accounting Equation

Liabilities + Capital = Assets

Accounts Payable

Money a business owes for goods and services for all credit purchases

Balance Sheet

A financial statement that reports a business's assets, liabilities, & capital on a specific date or particular point in time

Cash Budget

Main source of money coming into company
Accounts payable vs. accounts reversible

Capital Budget

Fixed budgets;
working capital is the difference between current assets & liabilities

Depreciation

Gradual wear and tear over time of an asset due to age and use

Financial Records

Cash records & credit records

W-4

Main purpose is to let employer know how much & to take out of taxes

1 self

take out less taxes each paycheck

0 Self

Take out max taxes=Refund during tax season

W-2 Form

Must get this in by Jan 1st, summary of wages & taxes paid

Baby Boom

Had high birthrates

Baby Bust

Low birthrates followed baby boom

Glass Ceiling

Difficulty in being promoted due to your gender, race, national origin, color, religion

Sticky Floor Syndrome

Inability to move up from low paying jobs that require little skill & education

Comparable Worth

Paying workers equally for jobs with similar but not identical job requirements

Social Responsibility

Duty of a business to contribute to the well being of society

Certificate of Incorporation

An official document through which a state grants the power to operate as a corporation

Monopoly

Situation created when only one company provides or service without competition from another company

Sanction

A milder form of embargo that bans specific business ties with a foreign country

Exchange Rate

The value of one country's currency expressed in the currency of another

Balance of Payments

Accounting statement in which all international transactions are recorded;
Consists of current and capital account

Target Market

Groups of customers with very similar needs to whom the company can sell its product.

Trademark

A distinguishing name, symbol, or special mark placed on a good or service that is legally reserved for the sole use of the owner

Marketing Mix

The blending of all decisions that are related to the four elements of marketing

Markup

The amount added to the cost of a product to determine its selling price

Consumer Goods

Products produced for sale to individual and families for personal use

Marketing Concept

Keeping the needs of the consumer uppermost in mind during the design, production, and distribution

Productivity

Producing the largest quantity in the least time by using efficient methods and modern equipment.

Convenience Goods

Inexpensive items that consumers purchase regularly without a great deal of thought

Industrial Goods

Products designed for use by another business

Cafeteria Plan

A benefit program in which employees can select the benefits that meet their personal needs

Benefits

Forms of compensation and services that a company provides to employees in addition to salaries and wages

Compensation

The money and other benefits people receive for work

Civil Rights Act

Can't not be hired because of race, religion, or sex

Fair Labor Standards Act

Prescribes standards for wages and overtime pay

Capital

What a business is worth after subtracting liabilities from assets;
A measure of the credit applicant's current financial worth or ability to pay based on assets

Fixed Assets

Expensive assets that are expected to last a long time

Costs of Goods Sold

The cost to produce a product or buy it for resale;
Inventory

Operating Expensive

The costs of operating a business

Capital Goods

Buildings, tools, machines and other equipment that are used to produce other goods but do not directly satisfy human wants

Copyright

Sole right given to another author by the federal government to reproduce, publish, and sell literary or artistic work for the life of the author plus 70 years

Patent

An agreement in which the federal government gives an inventor the sole right for 20 years to make, use, and sell an invention

Zoning

Regulations that specify which land areas may be used for homes and which areas may be used for different types of businesses

Product Liability

If a defective product injures someone, the injured party can sue the producer of the product

Building Codes

Codes that regulate physical features or structures

Information Liability

Responsibility fro physical or economic injury arising from incorrect data or wrongful use of data

Cookies

Files of information about a user that some websites create and store on the user's own computer

Bankruptcy

A legal process that allows selling assets to pay off debts

Sherman Anti Trust Act

Discourages monopolies by outlawing business agreements among competitors that might promote monopolies

Wheeler Lea

This law made unfair or deceptive acts or practices, including false advertising, unlawful

Robinson Patman Act

Prevents price discriminations

Interstate Commerce

Businesses operations and transactions that cross state lines, such as products that are produced in one state and sold in another state

Intrastate Commerce

Businesses transacted within a state

Clayton Act

Aimed at discouraging monopolies;
Forbids corporations from acquiring ownership rights in other corporations if the purpose is to create a monopoly or to discourage competition

Private Property

Items of value that individuals can own, use, and sell

Utility

The ability of a goods or service to satisfy a want

Unsought Goods

Products that many customers will not shop for because they do not have a strong need for a product

Quota

Limits placed on the quantity or value of units permitted to enter a country

Command Economy

An economic system in which the method for determining what, how, and for whom goods and services are produced is decided by a central planning authority

Discount

Reductions taken from the price of the product to encourage customers to buy

Data Processing Center

A business that processes data for other businesses for a fee

Decline Stage

A time period when a new product is introduced that is much better or easier to use than the old one, and customers begin to switch from the old product to the new product

European Union

A trading bloc consisting of the 15 European countries

Enhanced Product

A product that offers different features and options for the consumer

Extended Product

A product that includes additional features that are not part of the physical product but increase its usability

Economic Growth

Occurs when a country's output exceeds its population growth

Economic Wants

The desire for scarce material goods and services

Generation X

People in the post baby boom generation

Growth Stage

Stage of the product life cycle when several brands of new product are available

High Text Culture

A culture in which communication occurs through non verbal signs and indirect suggestions

Job Description

A list of the basic tasks that make up a job

Low Context Culture

A culture in which people communicate directly and explicitly

Non Tariff Barriers

Barriers other than tariffs that restrict imports

Operating Budget

A plan showing projected sales, costs, expenses, and profits for the ongoing business

Outsourcing

Hiring an outside firm to perform specialized tasks for a business

Retained Earnings

Profits that are put aside to run a business

Venture Capital

Financing obtained from an investor or investment group that lends large sums of money to promising new or expending small companies

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