Exam 1

STUDY
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Terms in this set (...)

16. Current assets
Short-term resources such as cash, investments, account receivables, and inventory
Accounts receivables
Money owed to a business by credit customers (purchase made on credit)
RFID users
(Radio Frequency Identification Technology) tags used to track products, used by companies to optimize inventory
Trade credit
Money an organization owes to suppliers for goods and services (credit from suppliers)
Line of credit
An arrangement by which a bank agrees to lend a specified amount of money to the organization upon request
Collateral
What is used to back a secured loan that the bank can claim if the borrow doesn't repay the loans
Principal
Amount of money borrowed for a loan (insterested is charged on the principal)
Prime rate
The interest rate commercial banks charge their best customers for short-term loans
Floating interest rate
Variable interest rate on commercial loans (not fixed)
Another name for long-term assets
Fixed assets (buildings, equipment,etc.)
Lease
Paying a fee for usage rather than owning the asset
Risk versus length of project
The longer the project is expected to last, the greater its potential risk
Bonds
Debt instruments that larger companies sell to raise long-term funds (loan cash in exchange for interest payments)
Preferred stock/primary advantage
Corporate ownership that gives the stockholders preference in the distribution of the company's profit (advantage- safer than common stock)
1. Primary goal of business
Earn a profit
Intangible product
A service, when people or machines provide or process something of value to customers (dry cleaning, doctors visit, movie, event, accountant, etc.)
Benifits businesses give to community
Provide a product that will satisfy people's wants and needs
Similarities profit and nonprofit businesses
Both must engage in management, marketing, and financial activities to reach their goals
Stakeholders
Groups that have stake in the success and outcomes of a business (customers, employees, investors,government, regulators, and the community)
Functions of managers
(Developing plans, coordinating employees actions to achieve the fims goals, organizing people to work efficiently) functions of planning, organizing, leading, and controlling
Functional of marketing
They gather information and conduct research to determine what customers want (product, price, place (distribution), and promotion)
Promotion
Advertising, personal selling, sales promotion (coupons), and publicity- used to communicate the benefits and advantages of their products to customers and increase sales
If a business loses money who loses the most
The owner has the most to lose if the business fails financially
Labor
(Human Resources) the physical and mental abilities that people use to produce goods and services
Another name for financial resources
Capital
Communism
A society in which people, without regard to class, own all the nation's recourses (government owned)
Socialism
Economic system in which the government owns and operates basic industries (utilities) but individuals own most businesses
Capitalism
Free enterprise -individuals own and operate the majority's of businesses that's provide goods and services
Demand
The number of goods and services that customers are willing to buy at different prices at a specific time
Supply
Number of products that businesses are willing to sell at different prices at a spicific time
Discounts prices effect on demand
The lower the prices the higher the demand will be
Types of businesses in a Monopoly
Utility companies, and the government
Monopolistic competetion
Fewer businesses than in pure-competetion environment and the differences amoung the goods are small
Oligopoly
Very few businesses selling a product (individual businesses have control over their products price because they sell large portion of product in market)
Inflation
A condition characterized by a continuing rise in prices (harmful for buyers)
Budget deficit
Condition in which a nation spends more than it takes in from taxes
2. Business ethics
The principles and standards that determine acceptable conduct in business organizations
Social responsibility
A business's obligation to maximize its positive impact and minimize its negative impact on society
Most difficult to restore after ethical scandal
Trust amount individuals and in business relationships
Bribes
Payments, gifts, or special favors intended to influence the outcome of a decision (benefits an individual or company at expense of other stakeholders)
Insider trading
The buying or selling of stock by insiders who posses material that is still not public (conflict of interest)
#1 area of misconduct observed in workplace
Abusive behavior
Amendments that protects advertising- tobacco and alcohol
First amendment- right to freedom of expressions
Plagerism
Presenting someone else's work as your own a without mentioning the source (ethical issue)
Code of ethics
Formalized rules and standpards that describe what the company expects of it said employees
Whistleblowing
Occurs when an employee exposes an employers wrongdoing to outsiders, such as the media or government regulatory agencies
Studies show link between social responsibly and...
Profit (improved business preformance)
Agency that enforces Laws for workplaces safety
OSHA - Occupational Safety and Health Administration
Greenwashing
Creating a positive green association for non-green products