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129 terms

Final Exam

STUDY
PLAY
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