DSST: Introduction to Business
Terms in this set (117)
Father of Capitalism
Negative balance of trade = More inports than exports
No competition, controls pricing, one dominating supplier in an industry
Several producers making similar products, no perfect substitute goods, each can set own prices within limits, mix of large and small companies
Few producers, little differentiation in product and price, occurs in markets with high barriers to entrance, like technology
Many companies share same market and none have power to dominate and set market price
Traditional Economic System
Planned Government System
Government Controlled, complete control in communist countries, social and utility control in socialist countries
Capitalist System and all decisions made by individuals
Combination of planned and market systems controlled by both citizens and government
Break Even Analysis
Points at which the company will break even, depending on the price
Chain of Command
Sense of Satisfaction gained from working together
Oldest Type of Market Gauge
U.S. Dow Jones
Oldest stock exchange in the world
Amsterdam Stock Exchange
Principle of indemnity
The policy holder can not profit from insurance
A gigantic discount retail complex that combines the features of Supermarkets, Department stores, and specialty stores under one roof
Mainly based on statistics with small amount paid over the course of a year.
Savings and Loan Crisis
A program that allows employees to decide with in a certain range, when to begin and end each work day.
FIFO vs LIFO
First in First Out
Last in First Out (Reduces Losses in times of inflation)
Father of Scientific Management
Charging a relatively high price when a product first enters the market.
An accounting statement that shows a firm's status on the last day of an accounting period
An accounting statement that summarizes a company's revenues, cost of goods sold, expenses, and net profit or loss over a period of time.
Set of steps and goals
Price, Product, Place, Promotion
Recognizes companies for performance excellence
(Hands off approach) Occurs when government does not interfere in the economic system
A leadership approach in which a manager does not share decision-making authority with subordinates
Occurs when a nation has a monopoly on a product or can produce it at the lowest possible cost
Acid Test Ratio
A measure of a firm's ability to pay current debts from its most liquid, or quick assets - cash and near-cash items
All-risk physical damage or multiple-line coverage
Added fire insurance that embraces all risks except those that the policy specifically excludes
Allied lines or extended coverage
A feature that can be added to a fire insurance policy to encompass financial loss caused by such hazards as riot and civil commotion, hail, wind, falling objects, land vehicles, water, smoke and possibly vandalism and malicious mischief.
(Consolidation( Occurs when one firm combines with others to form an entirely new company; former identities are relinquished.
A process in which an impartial third party called an arbitrator makes the decision to settle a grievance
A discount given to encourage trade credit debtors to pay their balances before they are due
An economic system in which the government controls the factors of production
Occurs when a nation is better equipped to produce one product or service than other nations
All forms of financial payments to employees: salaries and wages, benefits, bonuses, profit sharing, and awards of goods or services.
computer-aided design (CAD)
A process that uses highly specialized computer graphics programs to create three-dimensional models of products on a computer screen.
computer-aided manufacturing (CAM)
A manufacturing system in which computers direct, control, and monitor production equipment to perform all the steps required to perform a task.
computer-integrated manufacturing (CIM)
A system in which all production-related activities, from product design through manufacturing, are controlled by a computer.
The downward transfer of formal authority from one person to another.
A computer chips memory doubles every 18 months
is the process of setting and achieving goals through the execution of five basic functions that use human, financial, material and informational resources.
Planning, organizing, staffing, directing and controlling
Pyramid (Top, Middle, First-Line or Supervisory)
The management function that attempts to attract good people to an organization and keep them
The management function concerned with (1) assembling and allocating resources necessary to achieve the organization's objectives, (2) establishing the authority relationships of the organization, and (3) creating the organizational structure.
The management function that provides leadership, builds a good working climate, and arranges the opportunity for motivation
The line management function of establishing standards, measuring actual performance to see weather the standards have been met, analyzing the results and taking corrective action if required.
Span of control
the number of subordinates under a manager
a philosophy of organization and management that concentrates authority within an organization structure
is a philosophy of organizing and management that disperses authority within an organization structure
Compensation that is not wages, salaries or bonus
a manager shares decision-making authority with subordinates
Penalties such as fines, suspensions or termination
Job sharing or twinning
is a program that permits two part-time workers to divide one full-time job
is a program that permits employees to fulfill their work obligation in less than the traditional five-day workweek.
a process by which an impartial person acceptable to both sides in a labor dispute encourages them to communicate, bargain, and work toward a satisfactory compromise.
the process of dividing a total market into subgroups with similar characteristics
the particular customer group at which the company will aim its marketing activities
Product Life Cycle
The succession of phases including introduction, growth, maturity and decline of a product in its market
Those who sell products to other sellers of goods
Those who sell products to the ultimate consumer
A method of determining the number of units that must be sold at a given price to recover costs and make a profit
The total of fixed costs and variable costs
Costs that remain constant regardless of the number of units produced.
Costs that arise when the first unit is produced and that increase with production
A figure determined by multiplying price times the number of units sold
Introducing a product at a low price intended to capture the mass market for the good or service
Setting the price high to convey the image of quality
Selecting as prices amounts that fall just below an even number
A practice in which a company offers consumers a lower than unit price if a specific number of units are purchased.
Federal Reserve Requirement
A percentage of deposits that member banks must retain on deposit within their own walls or at the Federal Reserve Bank in their district. Fed holds 72%.
3-10% on demand deposits.
Discount rate = 3% interest
the unsecured promissory notes of large, financially sound corporations.
A person who analyzes the likelihood of loss and average amount of damage involved in pure risks and applying the law of averages, computes the premium that the insurance company should charge to assume the risk.
Loss prevention engineer (LPE)
An engineer who specializes in removing or reducing risk.
Cash Flow Statement
is a document that shows where a company's cash came from during an accounting period and how it was used in operations.
A private or civil wrong or injury committed against a person or property for which a court will award damages if the wronged party can submit adequate proof that the accused wrongdoer was guilty through either negligence or intent of committing the act in question.
Will of the citizens
A record of early English court rulings
Uniform Commercial Code (UCC)
is a comprehensive body of business law that encompasses various kinds of transactions.
A legally binding agreement between two or more parties obliging them to do or refrain from doing certain acts.
Balance of payments
the difference between a country's total payments to other countries and its total receipts from other countries.
The rate at which the money of one country is converted or exchanged for the money of another
Increasing the rate of exchange at which foreign currency will be traded for domestic currency
Selling the same product internationally below the price charged in one's home market for the purpose of disposing the excess production and maximizing total profits.
When good faith efforts between unions and employers fail to resolve the dispute or disputes between the parties, a legal impasse has occurred
general vs limited partners
General Partner AKA
Who funds small businesses?
What Gov agency handles deceitful advertising?
4 areas of social responsibility
What is the most OSHA typically will fine?
In 2010 what percentage of e commerce is expected to be total sales?
ISO 9001 deals with the requirements that organizations wishing to meet the standard must fulfill.
Environmental management system
What regulator insures bank deposits ?
Example of perfect competition
Example of monopolistic competition
OSHA Fines (Serious)
1,500 - 7000 dollars
E-commerce in 2010
2.5% of GDP
Know the process in which you assess and evaluate preparing financial statements is called ?
How long does it take to write a good business plant ?
What type of manager spends the majority of the day supervising ?