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Introduction to Business Review Chapters 1-5
Terms in this set (45)
Tries to earn a profit by providing products that satisfy people's needs.
Have both intangible and tangible characteristics that provide satisfaction and benefits.
The difference between what it costs to make and sell a product and what a customer pays for it.
Labor, the physical and mental abilities that people use to produce goods and services.
Supply and Demand
The number of products (supply) that business are willing to sell at different prices at a specific time.Demand is the number of goods and services that consumers are willing to buy at different prices at a specific time.
Rivalry among business for consumers' dollars.
A continuous rise in the prices.
A decline in production,employment and income.
The condition in which a % of the population wants to work but is unable to find jobs.
Gross Domestic Product (GDP)
The sum of all the goods and services produced in a country during a year.
A person who risks his or her wealth,time, and effort to develop for profit an innovative product or way of doing something.
Principles and standards that determine acceptable conduct in business organizations.
Obligation of a business to maximize its positive impact and minimize its negative impact on society.
Code of Ethics
Formalized rules and standards that describe what the company expects of its employees.
The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders.
The buying,selling and trading of goods and services across national boundaries.
The transferring of manufacturing or other tasks-such as data processing-to countries where labor and supplies are less expensive
Exporting / Importing
The sale of goods and services to foreign markets (exporting). Purchase of goods and services from foreign sources (importing).
Balance of Trade
Difference in value between its exports and imports.
The physical facilities that support a country's economic actives, such as railroads, highways, ports airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems
A tax levied by a nation on goods imported into the country
Quota/ Embargo/ Dumping
Limits the number of units of a particular product that can be imported into a country (quota). Prohibits trade in a particular product (embargo). When a business /country sells products less than what it cost to produce them.
North America Free Trade Agreement (NAFTA)
Agreement that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among Canada, the United States, and Mexico.
Licensing / Franchising
A trade agreement in which one company--the licensor--allows another company--the licensee--to use its company name, products, patents, brands, trademark, raw materials, and/or production processes in exchange for a fee or royalty. , - A form of licensing in which a company-the franchiser- agrees to provide a franchise the name, logo, methods of operation, advertising, products, and other elements associated w/ the franchiser's business, in return for a financial commitment and the agreement to conduct business in accordance with the franchiser's standard of operations.
A partnership formed to create competitive advantage on a worldwide basis.
A collection of data organized in a manner that allows access, retrieval, and use of that data.
An internal network similar to the Internet that is accessible only by authorized personnel; used to access.
Carrying out the goals of business through utilization of the internet.
Business to Business (B2B) / Customer to Customer(C2C)
Provides goods and services to other businesses (B2B). Individuals buying and selling goods to one another online (C2C).
Customer Relationship Management (CRM)
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
Sole Partnerships / Partnerships / Corporation
Businesses owned and operated by one individual (sole partnerships). An association of 2 or more persons to carry on a business for profit (partnerships). A legal entity, created by the state, whose assets and liabilities are separate from its owner (corporation).
General / Limited Partnership
Involves a complete sharing in the management of a business (general partnership). Has one general partner,who assumes unlimited liability, and at least one limited partner, whose liability is limited to his or her investment to business (limited partnerships).
Owned by many individuals and organizations who owns shares of the business.
Profits distributed in the form of cash payments.
Private / Public Corporation
Owned by just one or a few people who are closely involved in managing the business (private). Stock anyone may buy, sell, or trade (public).
Initial Public Offering (IPO)
Public corporation by selling stock so that it can be traded in public markets.
Board of Directors
Elected by stockholders to oversee the general operation of the corporation, sets long-range objectives of the corporation.
Limited Liability Company (LLC)
Ownership that provides limited liability and taxation like a partnership but places fewer restrictions on members.
Merger / Acquisition
The combination of two companies (usually corporations) to form a new business (merger). The purchase of one company by another, usually by buying its stock (acquisition).
The process of creating and managing,a business to achieve desired objectives.
Independently owned and operated and is not dominant in its competitive area doesn't employ more than 500 people.
Small Business Administration ( SBA)
Independent agency of federal government that offers managerial and financial assistance to small businesses.
Lack of funds to operate a business normally.
A precise statement of the rationale for the business and a step-by-step explanation of how it will achieve its goals.
Individuals in large firms who take responsibility for the development of innovations within the organization.
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