Details Title: BUS 101 10-pg handout Description: first test Total Flash Cards: 184 Created: 09/30/2009 14:59:05		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Business Flashcards
Cards in this set: Term Business Definition organization that provides goods or services to earn profits Term profit Definition difference between a business's revenues and its expenses Term external environment Definition everytihng outside an organizations boundaries that might affect it Term economic system Definition a nation's system for allocating its resources among its citizens Term factors of production Definition resources used in the production of goods and services - labor, capital, entrepreneurs, physical resources, and information resources Term labor (human resources) Definition physical and mental capabilities of people as they contribute to economic production Term capital Definition funds needed to create and operate a business enterprise Term entrepreneur Definition indvidual who accepts the risks and oppurtunities involved in creating and operating a new business venture Term planned economy Definition economy that relies on a centralized government to control all of most factors of production and to make all or most production and allocation decisions Term communism Definition political system in which the government owns and operates all factors of production Term market economy Definition economy in which individuals control production and allocation decisions through supply and demand Term market Definition mechanism for exchange between buyers and sellers of a particular good or service Term capitalism Definition system that sanctions the private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive Term privatization Definition process of converting government enterprises into privately owned companies Term socialism Definition planned economic system in which the goovernment owns and operates only selcted major sources of production Term demand Definition willingness and ability of buyers to purchace a good or service Term supply Definition the willingness and ability of producers to offer a good or service for sale Term private enterprise Definition economic system that allows individuals to pursue their own interests without undue governmental restriction Term competition Definition vying among businesses for the same resources or customers Term perfect competition - give example Definition market or industry characterized by numerous small firms producing an identical product ex (gas stations) Term monopolistic competition - give example Definition market or industry characterized by numerous buyers and relatiely numerous sellers trying to differentiate their products from those of competitors (auto industry) Term monopoly - give example Definition market or industry in which there is only one producer that can therefore set the prices of its products (freshman housing) Term natural monopoly Definition industry in which one company can most efficiently supply all needed goods or services Term standard of living Definition the total quantity and quality of goods and services people can purchace with the currency used in their economic system - varies in the world Term gross domestic product (GDP) Definition total value of all goods and services produced within a given period by a national economy through domestic factors of production (no under the table) Term gross national product (GNP) Definition total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located Term real GDP Definition gross domestic product (GDP) adjusted to account for changes in curency values and prices changes Term purchasing power parity Definition the principle that exchange rates are set so that the prices fo similar products in different countries are about the same Term inflation Definition occurs when widespread price increases occur throughout an economic system Term unemployment Definition the level of joblessness among people actively seeking wok in an economic system Term recession Definition a period furing which aggregate output, as measured by GDP, declines Term depression Definition a prolonged and deep recession Term ethics Definition beliefs about what is right or wrong and good or bad in actions that affect others Term ethical behavior Definition behavior conforming to generally accepted social norms concerning beneficial and harmful actions Term unethical behavior Definition behavior that does not conform to generally accepted socail norms concerning beneficial and harmful actions Term business ethics Definition ethical or unethical behaviors by employees in the context of their jobs Term managerial ethics Definition standards of behavior that guide indiviual managers in their work Term social responsibility Definition the attempt of a business to balance its commitments to groups and individuals in its environment, including, customers, other businesses, employees, investors, and local communiites Term organizational stakeholders Definition those groups, individuals, and organizations that are directly affected by the practices of an organization and who therfore have a stake in its performance Term whistle-blower Definition employee who detects and tries to put an end to a company's unethical, illegal, or socially irresponsible actions by publicizing them Term insider trading Definition illegal practice of using special knowledge about a firm for profit or gain Term small business administration (SBA) Definition government agency charged with assisting small businesses Term small business Definition independently owned business that has relatively little influence in its market Term business plan Definition document in which an entrepreneur summarizes her or his business strategy for a proposed new venture and how that strategy will be implemented Term franchise - example Definition arrangement in which a buyer purchases the right to sell the good or service of the seller Term venture capital company Definition group of small investors who invest money in companies with rapid growth potential Term sole proprietorship Definition business owned and usually operated by one person who is responsible for all of its debts Term unlimited liability Definition legal principle holding owners responsible for paying off all debts of a business Term general partnership Definition business with two or more owners who share in both the operation of the firm and the financial responsibility for its debts Term limited partnership Definition type of partnership consisting of limited partners and a general (or active) partner Term general (or active) partner Definition partner who actively manages a firm and who has unlimited liability for its debts Term corporation Definition business that is legally considered an entity separate from its owners and is liable for its own debts; owners' liabilities extend to the limits of their investments Term limited liability Definition legal principle holding investors liable for a firm's debts only to the limits of their personal investments in it Term closely held (or private) corporation Definition corporation whose stock is held by only a few people and is not available for sale to the general public Term s corporation Definition hybrid of a closely held corporation and a partnership, organized and operated like a corporation but treated as a partnership for tax purposes Term limmited liability corpoeration (LLC) Definition hybrid of a publicly held corporation and a partnership in which owners are taxed as partners but enjoythe benefits of limited liability Term multinational (or transnational) corporation Definition form of corporation spanning national boundaries Term stockholder (or shareholder) Definition owner of shares of stock in a coporation Term corporate governance Definition roles of shareholders, directors, and other managers in corporate decision making and accountability Term board of directors Definition governing body of a corporation that reports to its shareholders and delegates poer to run its day-to-day operations while remaining responsible for sustaining is assets Term officers Definition top management team of a corporation Term chief executive officer (CEO) Definition top manager who is responsible for the overall performance of a corporation Term strategic alliance Definition strategy in which two or more organizations collaborate on a project for mutual gain Term joint venture Definition strategic alliance in which the collaboration inolves joint ownership of the new venture Term merger Definition the union of two corporations to form a new corporation Term acquisition Definition the purchase of one company by another Term divestiture Definition strategy whereby a firm sells one or more of its business units Term import Definition product made or grown abroad but sold domestically Term export Definition product made or grown domestically but shipped and sold abroad Term globalization Definition process by which the world economy is becoming a single interdependent system Term North American Free Trade Agreement (NAFTA) Definition agreement to gradually eliminate tariffs and other trade barriers among the US, Canada, and Mexico Term European Union (EU) Definition organization for economic, social, and securtiy cooperation among Eurpean nations (stronger then NAFTA) Term World Trade Organization (WTO) Definition organization through which member nations negotiate trading agreements and resolve disputes about trade policies and practices Term outsourcing Definition the practice of paying suppliers and distributors to perform certain business processes or to provide needed materials or services Term management Definition process of planning, organizing, leading, and controlling and organization's resources to achieve its goals Term planning Definition management process of determining what an organization needs to do and how best to get it done Term organizing Definition management process of determining how best to arrange an organization's resources and activities into a coherent structure Term leading Definition management process of guiding and motivating employees to meet an organization's objectives Term controlling Definition management process of monitoring an organization's performance to ensure that it is meeting its goals Term top manager Definition manager reponsible for a firm's overall performance and effectiveness Term middle manager Definition manager reposnsible for implementing the strategies and working toward the goals set by top managers Term first-line manager Definition manager responsible for supervising the work of employees Term decision-making skills Definition skills in defining problems and selecting the best courses of action Term goal Definition objective that a business hopes and plans to achieve Term strategy Definition broad set of organizational plans for implementing the decisions made for achieving organizational goals Term mission statement Definition organization's statement of how it will achieve its purpose in the environment in which it conducts its business Term long-term goal Definition goal set for an extended time, typically five years or more into the future Term short-term goal Definition goal set for the very near future Term corporate strategy Definition strategy for determining a firm's overall attitude toward growth and the way it will manage its businesses or product lines Term business (or competitive) strategy Definition strategy, at the business-unit or product-line livel, focusing on improving a firm's competitive position Term functional strategy Definition strategy by which managers in specific areas decide how best to achieve corporate goals through productivity Term swot analysis Definition identification and analysis of organizational strenghths and weaknesses and environmental opportunities and threats as part of strategy formulation Term environmental analysis Definition process of scanning the business environment for threats and opportunities Term crisis managemnet Definition organization's methods for dealing with emergencies Term organizational structure Definition specification of the jobs to be done within an organization and the ways in which they relate to one another Term organization chart Definition diagram depicting a company's structure and showing employees where they fit into its operations Term chain of command Definition reporting realtionships within a company Term span of control Definition number of people supervised by one manager Term delegation Definition process through which a manager allocates work to subordinates Term flat organizational structure Definition characteristic of descentralized companies with relatively few layers of management Term tall organizational structure Definition characteristics of centralized companies with multiple layers of management Term centralized organization Definition organization in which most decision-making authority is delegated to level sof management at points below the top Term decentralized organization Definition organization in which a great deal of decision-making authority is delegated to levels of management at points below the top Term authority Definition power to make the decisions necessary to complete a task Term accountability Definition obligation employees have to their manager for the successful completion of an assigned task Term committee and team authority Definition authority granted to committees or teams involved in a firm's daily operations Term service operations (service production) Definition activities producing intangible and tangible products, such as entertainment, transportation, and education Term goods operations (goods production) Definition activities producing tangible products, such as radios, newspapers, buses, and textbooks Term operations (productions) Definition activities involved in making products - goods and services - for customers Term quality Definition the combination of "characteristics of a product or service that bear on its ability to satisfy stated or implied needs" Term quality control Definition the action of ensuring that operations produce products that meet specific quality standards Term supply chain (value chain) Definition flow of information, materials, and services that starts with raw-materials suppliers and continues adding value through other stages in the network of firms until the product reaches the end customer Term supply chain management (SCM) Definition principle of looking at the supply chain as a whole to improve the overall flow through the system Term leadership Definition the processes and behaviors used by someone, such as a manager, to motivate, inspire, and influence the behaviors of others Term decision making Definition choosing one alternative from among several options Term human resource management (HRM) Definition set of organizational activities directed at attracting, developing, and maintaining an effective workforce Term benefits Definition compensation other than wages and salaries Term sexual harassment Definition unwelcome sexual advances in the workplace Term quid pro quo harassment Definition form of sexual harassment in which sexual favors are requested in return for job-related benefits Term hostile work environment Definition form of sexual harassment deriving from off-color jokes, lewd comments, and so forth Term contingent worker Definition employee hired on something other than a full-time basis to supplement an organization's permanent workforce Term labor union Definition group of individuals working together to achieve shared job-related goals, such as higher pay, shorter working hours, more job security, greater benefits, or better working conditions Term labor relations Definition process of dealing with employees who are represented by a union Term marketing Definition the activity, set of institiutions, and processes for creating, communicating, delivering, and enhancing offerings that have value for customers, clients, partners, and society at large Term consumer goods Definition physical products purchased by consumers for personal use Term industrial goods Definition physical products purchased by companies to produce other products Term services Definition products having nonphysical features, such as information, expertise, or an activity that can be purchased Term substitute product Definition product that is dissimilar from those of competitors but that can fulfill the same need Term marketing plan Definition detailed strategy for focusing marketing efforts on consumers' needs and wants Term marketing mix Definition the combination of product, pricing, promotion, and place Term product Definition good, service, or idea that is marketed to fill consumers' needs and wants Term distribution (place) Definition part of the marketing mix concerned with getting products from producers to consumers Term promotion Definition aspect of the marketing mix concerned with the most effective techniques for communicating information about products Term target market Definition group of people that have similar whants and needs and can be expected to show interest in the same products Term market segmentation Definition process of dividing a market into categories of customer types or "segments" Term convenience good/convenience service Definition inexpensive good or service purchased and consumed rapidly and regularly Term specialty good/specialty service Definition expensive, rarely purchased good or service Term branding Definition process of using symbols to communicate the qualities of a product made by a particular producer Term brand awareness Definition extent to which a brand name comes to mind when a consumer considers a particular product category Term pricing Definition process of determining what a company will receive in exchange for its products Term market share Definition a company's percentage of the total industry sales for a specific product type Term wholesaler Definition intermediary who sells products to other businesses for resale to that consumer Term retailer Definition intermediary who sells products directly to consumers Term telemarketing Definition form of nonstore retailing in which the telephone is used to sell directly to consumers Term physical distribution Definition activities needed to move a product effeciently from manufacturer to consumer Term advertising Definition promotional tool consisting of paid, nonpersonal communication used by an identified sponsor to inform an audience about a product Term point of sale (POS) display Definition sales-promotion technique in which product displays are located in certain areas to stimulate purrchase or to provide information on a product Term information technology (IT) Definition the various appliances and devices for creating, storing, exchanging, and using information in diverse modes, including visual images, voice, multimedia, and business data Term management information system (MIS) Definition computer system that supports managers by providing information- reports, schedules, plans, and budgets - that can be used for making decisions Term intellectual property Definition something produced by the intellect or mind that has comercial value Term accounting Definition comprehensive system for collecting, analyzing, and communicating financial information Term audit Definition systematic examination of a company's accounting system to determine whether its financial reports reliably represent its operations Term Sarbanes-Oxley Act of 2002 Definition enactment of federal regulations to restore public trust in accounting practices by imposing new requirements on financial activities in publicly traded corporations Term accounting equation Definition Assets = Liabilities + Owners' Equity; used by accountants to balance data for the firm's financial transactions at various points of the year Term asset Definition any economic resource expected to benefit a firm or an individual who owns it Term liability Definition debt owed by a firm to an outside organization or individual Term owners' equity Definition amount of money that owners would receive if they sold all of a firm's assets and paid all of its liabilities Term financial statement Definition any of several types of reports summarizing a compnay's financial status to stakeholders and to aid in managerial decision making Term balance sheet Definition financial statement that supplies detailed information about a firm's assets, liablities, and owners' equity Term liquidity Definition ease with which an asset can be converted into cash Term income statement (profit-and-loss statement) Definition financial statement listing a firm's annual revenues and expenses so that a bottom line shows annual profit or loss Term revenues Definition funds that flow into a business from the sale of goods or services Term debt Definition a company's total liabilities Term earnings per share Definition profitabliity ratio measureing the net profit that the company earns for each share of outstanding stock Term prime rate Definition interest rate available to a bank's most creditworthy customers Term federal reserve system (FED) Definition central bank of the US which acts as the government's bank, serves member commercial banks, and controls the nation's money supply Term world bank UN Definition agency that provides a limited scope of financail services, such as funding improvements in underdeveloped countries Term internation monetary fund (IMF) Definition Un agency consisting of about 150 nations that have combined resources to promote stable exchanges, provide temporary short-term loans, and serve other purposes Term stock Definition a portion of ownership of a corporation Term common stock Definition the most basic form of ownership, including voting rights on major issues, in a company Term dividend Definition payment to shareholders, on a pershare basis, out of the company's earnings Term insider trading Definition illegal practice of using special knowledge about a firm for profit or gain Term securities Definition stocks, bonds, and mutual funds representing secured, or asset-based, claims by investors against issuers Term securities markets Definition markets in which stocks and bonds are sold Term stock exchange Definition an organization of individuals to provide in institutional auction setting in which stocks can be bought and sold Term interest Definition fee paid to a lender for the use of borrowed funds; like a rental fee Term venture capital Definition private funds by wealthy individuals seeking investment opportunities in new growth companies Term corporate bond Definition a formal pledge obligating the issuer (the company) to pay interest periodically and repay the principal at maturity Term bankruptcy Definition court-granted permission for a compnay to not pay some or all debts Term laws Definition codified rules of behavior enforced by a society Term common law Definition body of decision handed down by courts ruling on individual cases Term regulatory (administrative law) Definition law made by the authority of admisnistrative agencies Term statutory law Definition created by constitution(s) or by federal, state, or local legislative acts Term deregulation Definition elimination of rules that restrict business activity