Terms in this set (101)
Any organization that provides goods and services in an effort to earn a profit.
Money that remains after a business has paid for the expenses of running the business.
Businesses that spend more money than they earn
A person who organizes and operates a business, taking great financial risks.
The relationship between the price of a good or service and the benefits that it offers its customers.
Standard of living
quantity and quality of goods and services available to an individual or society
Quality of life
the degree of overall satisfaction that a person gets from life
Business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain.
Factors of production
Four fundamental elements- natural resources, capital, human resources, and entrepreneurship- that businesses need to achieve their objectives.
The setting in which business operates. The five key components are: economic environment, competitive environment, technological environment, social environment, and global environment.
Any tools—especially computers, telecommunications, and other digital products—that businesses can use to become more efficient and effective.
Business transactions conducted online, typically via the Internet
Characteristics of a population (age, sex and race), often used to determine changes in the make-up of a population.
An international economic and political movement designed to help goods and services flow more freely across international boundaries.
General Agreement on Tariffs and Trade
An international trade agreement that has taken bold steps to lower tariffs and promote free trade worldwide.
A financial and social system of how resources flow through society, from production, to distribution, to consumption.
The study of the choices that people, companies, and governments make in allocating society's resources.
The study of "big picture" issues in an economy, including competitive behavior among firms, the effect of government policies, and overall source allocation issues
Study of a single factor of an economy - such as individuals, households, businesses, & industries - rather than an economy as a whole.
Government decisions about how to influence the economy by taxing and spending.
Federal Reserve decisions that shape the economy by influencing interest rates and the supply of the money.
Overage that occurs when revenue is higher than expenses over a given period of time.
Shortfall that occurs when expenses are higher than revenue over a given period of time
The sum of all the money that the federal government has borrowed over the years and not yet repaid.
The amount of money in a country or economy.
Anything generally accepted as a medium of exchange, a measure of value, or a means of payment
M1 money supply
Includes all currency plus checking accounts and traveler's checks.
M2 money supply
includes all of M1 money supply plus most savings accounts, money market accounts, and certificates of deposit
Open market operations
Buying & selling government securities to change the supply of money
The rate of interest that the Fed charges when it loans funds to the bank.
A rule set by the Fed, which specifies the minimum amount of reserves a bank must hold, expressed as a percentage of the bank's deposits.
An economic system - also known as the private enterprise or free market system - based on private ownership, economic freedom, and fair competition.
quantity of products that producers are willing to offer for sale at different market prices
A graph of the relationship between the price of a good and the quantity supplied
quantity of products that consumers are willing to buy at different market prices.
A graph of the relationship between the price of a good and the quantity demanded
The point at which the quantity demanded and the quantity supplied meet
Economics that embody elements of both planned and market-based economic systems.
Gross domestic product
The total value of all final goods and services produced within a nation's physical boundaries over a given period of time.
the percentage of people in the labor force over age 16 who do not have jobs and are actively seeking employment.
The periodic contraction and expansion that occur over time in virtually ever economy.
Consumer price index
a measure of inflation that evaluates the change in the weighted average price of goods and services that the average consumer buys each month.
Producer price index
a measure of inflation that evaluates the change over time in the weighted-average wholesale prices.
the basic relationship between the production of goods and services and the resources needed to produce them calculated via the following equation : output/input = productivity
the opportunity of giving up the second-best choice when making a decision.
The ability of an individual, firm, or country to produce more of a good or service than competitors using the same amount of resources.
The ability of a country to produce a good at a lower cost than another country can.
Balance of trade
A basic measure of the difference in value between a nation's exports and imports, including both goods and services
Overage that occurs when the total value of a nation's exports is higher than the total value of its imports
Shortfall that occurs when the total value of a nation's exports is higher that the total value of its exports
Balance of payments
A measure of the total flow of money into or out of a country.
a measurement of the value of one nation's currency relative to the currency of other nations
International trade that involves the barter of products for products rather than for currency
contracting with foreign suppliers to produce products, usually at a fraction of the cost of domestic production
Buying products domestically that have been produced or grown in foreign nations.
Selling products in foreign nations that have been produced or grown domestically.
authority granted by a domestic firm to a foreign firm for the rights to produce and market its product or to use its trademark/patent rights in a defined geographical area
A specialized type of foreign licensing in which a firm expands by offering businesses in other countries the right to produce and market its products according to specific operating requirements
When firms either acquire foreign firms or develop new facilities from the ground up in foreign countries
A country's physical facilities that support economic activity.
National policies designed to restrict international trade, usually with the goal of protecting domestic businesses.
taxes levied against imports.
limitations established by the government on certain goods that can enter the country during a particular time span
A complete ban on international trade of a certain item, or a total halt in trade with a particular nation
the unrestricted movement of goods and services across international boarders
A international cooperative of 187 member countries, working together to reduce poverty in the developing world.
International Monetary Fund
An international organization of 187 member nations that promotes international economic cooperation and stable growth.
(North American Free Trade Agreement) a trade agreement signed by Canada, the United States and Mexico that eliminated trade barriers and investment restrictions over a fifteen-year period starting in 1994.
A set of beliefs about the right and wrong, good and bad.
The application of right and wrong, good and bad, in a business setting.
A decision that involves a conflict of values; every potential course of action has some significant negative consequences
Code of ethics
A formal, written document that defines the ethical standards of an organization and gives employees the information they need to make ethical decisions across a range of situations
An organization's obligation to contribute to society.
employees who report their employer's illegal or unethical behavior to either the authorities or the media
Any groups that have a stake -- or a personal interest -- in the performance and actions of an organization
A social movement that focuses on four key consumer rights
The strategy of deliberately designing products to fail in order to shorten the time between purchases
Federal legislation passed in 2002 that sets higher ethical standards for public corporations and accounting firms.
Marketing partnerships between businesses and nonprofit organizations, designed to spike sales for the company and raise money for the nonprofit.
Business contributions to the community through the actions of the business itself rather than donations of money and time.
Developing and promoting environmentally sound products and practices to gain a competitive edge
A systematic evaluation of how well a firm is meeting its ethics and social responsibility goals
The transmission of information between a sender and a recipient.
Any interference that causes the message you send to be different from the message your audience understands
Communication that does not use words
Attentive listening that occurs when the listener focuses his or her complete attention on the speaker
The various ways in which a message can be sent, ranging from one-on-one in-person meetings to Internet message boards.
Sentence construction in which the subject performs the action expressed by the verb.
Sentence construction in which the subject does not do the action expressed by the verb; rather the subject is acted upon. Passive voice tends to be less effective for business communication
A business owned and managed by one person.
A voluntary agreement under which two or more people act as co-owners of a business for profit.
A firm of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.
Limited liability company
A form of business ownership that offers both limited liability to its owners and flexible tax treatment.
Board of directors
The individuals who are elected by stockholders of a corporation to represent their interest.
A corporate restructuring in which one firm buys another
A corporate restructuring that occurs when two formerly independent business entities combine to form a new organization.
The transfer of total or partial ownership of some of a firm's assets to investors or to another company.
People who risk their time, money, and other resources to start and manage a business.
A small segment of a market with fewer competitors than the market as a whole- tend to be quite attractive to small firms.
An agency of the federal government designed to maintain and strengthen the nations economy by aiding, counseling, assisting, and protecting the interests of small businesses
A formal document that describes a business concept, outlines core business objectives, and details strategies and timelines for achieving those objectives