Terms in this set (...)

Equilibrium price
The point at which supply and demand curves intersect on a schedule of supply and demand
Price Ceiling
A situation when the price charged is more than or less than the equilibrium price determined by market forces of demand and supply.
trade surplus
the amount by which the value of a country's exports exceeds the cost of its imports
An amount of something left over when requirements have been met; an excess of production or supply over demand
Prime rate
The lowest rate of interest at which money may be borrowed commercially
Marginal private cost
Is the change in the producer's total cost brought about by the production of an additional unit of a good or service
NAFTA: The North American Free Trade Agreement
Treaty that allows free trade between the United States, Canada, and Mexico
The process by which a country sells government-owned industries to private companies
The transfer of a major branch of industry or commerce from private to state ownership or control
The exclusive possession or control of the supply or trade in a commodity or service
A political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole
Command economies
An economy in which production, investment, prices, and incomes are determined centrally by a government
Monetary policy
Involves changing the interest rate and influencing the money supply.
Fiscal policy
Involves the government changing tax rates and levels of government spending to influence aggregate demand in the economy
Product's life cycle
Introduction: When the product is brought into the market. In this stage, there's heavy marketing activity, product promotion and the product is put into limited outlets in a few channels for distribution. Sales take off slowly in this stage. The need is to create awareness, not profits.

The second stage is growth. In this stage, sales take off, the market knows of the product; other companies are attracted, profits begin to come in and market shares stabilize.

The third stage is maturity, where sales grow at slowing rates and finally stabilize. In this stage, products get differentiated, price wars and sales promotion become common and a few weaker players exit.

The fourth stage is decline. Here, sales drop, as consumers may have changed, the product is no longer relevant or useful. Price wars continue, several products are withdrawn and cost control becomes the way out for most products in this stage.
Cash Debit
How is cash that has been received posted
Sales Income Debit
Is the primary income account of merchandising and manufacturing firms. It is earned from selling goods to customers
Cash Credit
A type of short term loan provided to companies to fulfill their working capital requirement
Supplies Debit
An entry recording an amount owed, listed on the left-hand side or column of an account
Purchase Credit
A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. Also refers to an accounting entry that either decreases assets or increases liabilities and equity on the company's balance sheet
FICA tax
A United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, the disabled, and children of deceased workers
The National Labor Relations Board
To administer the rights and duties of workers. employers, and unions
Local Property Tax (Millage tax)
A levy on the value of a property. The tax is levied by the governing authority of the jurisdiction in which the property is located. This can be a national government, a federated state, a county or geographical region or a municipality
Defined contribution (DC) schemes
Occupational pension schemes where your own contributions and your employer's contributions are both invested and the proceeds used to buy a pension and/or other benefits at retirement
State Tax
Tax levied on income at the state level. State income taxes have their own set of deductions and credits that may be awarded for certain activities, such as contributing to a state-sponsored 529 plan
Unemployment insurance
A small source of income for workers who have lost their jobs through no fault of their own. Workers who quit or who are self-employed are generally not eligible for unemployment insurance and must provide their own rainy-day funds to cover situations where no work is available
Gather information that will be useful in defining the problem
The manager of a convenience store is concerned because the store appears to be losing sales to its competitors. What would be the appropriate first step in developing a strategy to attack this problem
Unlimited liability
A characteristic of sole proprietorship
Collective bargaining
Negotiations between union workers and their employers on issues of wages, benefits, and working conditions
Pie chart
The XYZ Company wants to illustrate the ratio of the number of its employees in each of its five departments to the total number of its employees. What spreadsheet chart would be most appropriate for showing this infomarion
Regular Pay
Wages calculated by multiplying regular hours with pay per hour
Total deductions
Taxes and fees taken out of a paycheck
Net pay
Total gross pay minus deductions out of a pay checks
Break even point
The production level where total revenues equals total expenses. example: 400 items purchased, 2000 production cost, retail price $5.
A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
If this product is being sold in the market with unlimited producers and unlimited consumers, what would most likely stop the producers from increasing profit by raising the retail price of the product
Personal Budget
A finance plan that allocates future personal income towards expenses, savings and debt repayment. Past spending and personal debt are considered when creating it.
Consumer Product Safety Commission
A federal regulatory agency that protects consumers by removing unsafe products already in the marketplace.
$1,909.00 = 2300/1.17
If cleaning supplies with a list price of $2,300 are sold at a 17 percent discount, how much do they actually cost after the discount is applied
Home equity line of credit
A loan in which the lender agrees to lend a maximum amount within an agreed period (called a term), where the collateral is the borrower's equity in his/her house (akin to a second mortgage)
Decreasing the discount rate to member banks
An action by the Federal Reserve System to most likely increase consumer spending
Gross domestic product
the total retail market value of all goods and service produced in a nation, usually stated in annual terms
ratio of profit to sales
a profitability ratio that measures the amount of net income earned with each dollar of sales generated by comparing the net income and net sales of a company
current ratio
a liquidity ratio that measures a company's ability to pay short-term and long-term obligations
Dun & Bradstreet, Inc
an important source of information on the credit rating of retail businesses
contract law
An agreement creating obligations enforceable by law. The basic elements of a contract are mutual assent, consideration, capacity, and legality
consumer protection law
designed to prevent businesses from engaging in fraud or unfair practices, to protect individuals from scam artists, and identity thieves and crooks
computer law: copyright
Under the provision of Copyright Ordinance 1962, works which fall into any of the following categories: literary, musical or artistic are protected by Copyright law. The definition of literary work was amended by Copyright Amendment 1992 to include computer software
Foundations of international business
It covers a wide range of topics such as the social/cultural, economic, political and legal aspects of the international business environment, the theories and institutions related to international trade and foreign investment, the world financial environment, the dynamics of international business-government
what affects the exchange rate
Aside from factors such as interest rates and inflation, the exchange rate is one of the most important determinants of a country's relative level of economic health. Exchange rates play a vital role in a country's level of trade, which is critical to most every free market economy in the world
trade barriers
are measures that governments or public authorities introduce to make imported goods or services less competitive than locally produced goods and services. Not everything that prevents or restricts trade can be characterized as it
trade agreements
is a wide ranging tax, tariff and trade treaty that often includes investment guarantees
Temporary employees
Are often less expensive and less committed to the job than full-time emplyees
direct selling
the marketing and selling of products directly to consumers away from a fixed retail location. ... Modern _____________ includes sales made through the party plan, one-on-one demonstrations, and other personal contact arrangements as well as internet sales
Reverse channels
this term describes the backward flow or process by which used goods, that will be used in the recycling and repurposing of those goods as raw materials, come from the consumer.
Indirect channels
A chain of intermediaries through which a product moves in order to be made available for purchase by a consumer. An ___________________ of distribution typically involves a product passing through additional steps as it moves from the manufacturing business via distributors to wholesalers and then retail stores.
Dual distribution
An intermediary (or go-between) is a third party that offers intermediation services between two trading parties. ______________________describes a wide variety of marketing arrangements by which the manufacturer or wholesalers use more than one channel simultaneously to reach the end user.
McGregor's Theory about management
In a Theory X organization, management is authoritarian, and centralized control is retained, (money motivated) whilst in Theory Y, the management style is participative: Management involves employees in decision making, but retains power to implement decisions.
Labor force
persons classified as unemployed or employed
product differentiation (or simply differentiation)
In economics and marketing, __________________________ is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's ow
Laws grouped into an organized form
procedural law
group of law that defines rights and duties
Case law
Law made when an appellate court endorses a rule to be used in deciding court cases
stare decisis
Doctrine requiring lower courts to adhere to existing case law in making decisions
procedural laws
a group of laws defining the methods for enforcing legal rights and decisions
enforced rules of conduct in a society
Common law
law based on the customs of a group
laws enacted by state legislatures or federal legislatures
power of the court to decide a case
legislative enactments by a city
administrative agencies
government bodies formed to carry out particular laws
basic fairness
Bill of Rights
the first ten amendments to the US Constitution