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BUS 110
First Exam
61
Business
Undergraduate 3
09/14/2013

Additional Business Flashcards

 


 

Cards

Term
Business
Definition
The organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs
Term
A business must combine what four resources effectively in order to be successful?
Definition
  1. Human Resources
  2. Material Resources
  3. Informational Resources
  4. Financial Resources
Term
Free Enterprise
Definition
The system of business in which individuals are free to decide what to produce, how to produce it, and at what price to sell it
Term

Manufacturing Business

vs.

Service Business

Definition
  • Process various materials into tangible goods, such as delivery trucks, towels, and computers
  • Produce services, such as haircuts, legal advice, or tax preparation
Term
Economics
Definition
The study of how wealth is created and distributed
Term
Capitalism
Definition
Is an economic system in which indiciduals own and operate the majority of businesses that provide goods and services
Term
Command Economy
Definition
An economic system in which the government decides what goods and services will be produced, how they will be produced, for whom available goods and services will be produced, and who owns and controls the major factors of production
Term
Important Economic Indicators that Measure a Nation's Economy
Definition
  1. Gross domestic product (GDP)
  2. Inflation
  3. Deflation
  4. Unemployment Rate
  5. Consumer price index (CPI)
  6. Producer price index (PPI)
Term
Gross Domestic Product (GDP)
Definition
The total dollar value of all goods and services produced by all people within the boundaries of a country during a one-year period
Term
Inflation
Definition
A general rise in the level of prices
Term
Deflation
Definition
A general decrease in the level of prices
Term
Unemployment Rate
Definition
The percentage of a nation's labor force unemplyed at any time
Term
Consumer price index (CPI)
Definition
A monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area
Term
Producer price index (PPI)
Definition
An index that measures prices that producers receive for their finished goods
Term
Competition
Definition
Essentially a rivalry amoung businesses for sales to potential customers
Term
The four types of competition:
Definition
  1. Perfect
  2. Monopolistic
  3. Oligopoly
  4. Monopoly
Term
Perfect (or pure) Competition
Definition
The market situation in which there are many buyers and sellers of a product, and no single buyer or seller is powerful enough to affect the price of that product
Term
Monopolistic Competition
Definition
Is a market situation in which there are many buyers along with a relatively large number of sellers
Term
Ologopoly [Competition]
Definition
Is a market (or industry) situation in which there are few sellers
Term
Monopoly [Competition]
Definition
Is a market (or industry) with only one seller, and there are barriers to keep other firms from entering the industry
Term
Discuss what you must do to be successful in the world of business
Definition
  • Develop a plan, or a road map, that ensures that you have the necessary skills and the knowledge the job requires to become a better employee or manager
  • By studying business, one may also decide to start their own business and become a better consumer and investor
Term
Potential Risks and Rewards of a Business
Definition
  • Profit earned by a business becomes the property of its owners
  • Profit is the reward business owners receive for producing goods and services that customes want
  • Risk for the owners is that they have to pay employees, suppliers, and lenders before they pay themselves
  • Risk of losing whatever they invested into the business - money, effort, and time
Term
Summarize the factors that affect the business environment and the challenges that American businesses will encounter in the future
Definition
  • The way a business operates is affected by the competitive environment, global ", technological ", and economic environment
  • Because of this business has a number of opportunities for improvement and challenges for the future
Term
Profit
Definition
Is what remains after all business expenses have been deducted from sales revenue
Term
Stakeholders
Definition
Is used to describe all the different people or groups of people who are affected by the policies, decisions, and activities made by an organization
Term
Microeconomics
Definition
The study of the decisions made by indiciduals and businesses
Term
Macroeconomics
Definition
The study of the national economy and the global economy
Term
Economy
Definition
The way in which people deal with the creation and distribution of wealth
Term
Factors of Production
Definition
Resources used to produce goods and services
Term
Entrepreneur
Definition
A person who risks time, effort, and money to start and operate a business
Term
What are the four basic economic questions that economic systems seek to address?
Definition
  1. What goods and services--and how much of each--will be produced?
  2. How will these goods and services be produced?
  3. For whom will these goods and services be produced?
  4. Who owns and who controls the major factors of production? 
Term
What are the distinguishing characteristics of capitalism in the United States?
Definition
  • Businesses provides goods and services
  • Government collects taxes
  • Household makes the purchases
Term
Two types of Command Economies
Definition
  1. Socialism
  2. Communism 
Term
Socialism
Definition
  • The key industriesare owned and controlled by the government
  • What and how to produce it are determined in accordance with national goals (based on projected needs and availability of resources)
Term
Communism
Definition
  • North Korea and Cuba
  • Emphasis is placed on the production of goods the government needs rather than the products that consumers may need
  • Frequent shortages of consumer goods
  • Workers have little choice of a job 
Term
Productivity
Definition
The average level of output per worker per hour
Term
Why is it important to occasionally evaluate a nation’s economic health?
Definition
Because it can be used to compare one economic statistic over different periods of time
Term
The seven common measures used to evaluate a nation's economic health
Definition
  1. Balance of trade
  2. Bank credit
  3. Corporate profits
  4. Inflation rate
  5. National income
  6. New housing starts
  7. Prime investment rate 
Term
Balance of Trade
Definition
The total value of a nation's exports minus the total value of its imports over a specific period of time
Term
Bank Credit
Definition
A statistic that measures the lending activity of commercial financial institutions
Term
Corporate Profits
Definition
The total amount of profits made by corporations over selected time periods
Term
Inflation Rate
Definition
An economicn statistic that tracks the increase in prices of goods and services over a period of time.  This measure is usually calculated on a monthly or annual basis.
Term
National Income
Definition
The total income earned by various segments of the population, including employees, self-employed individuals, corportations, and other types of income
Term
New Housing Starts
Definition
The total number of the new homes started during a specific period of time
Term
Prime Interest Rate
Definition
The lowest interest rate that banks charge their most credit-worthy customers
Term
Business Cycle
Definition
The recurrence of periods of growth and recession in a nation's economic activity
Term
Recession
Definition
Two or more consecutive three-month periods of a decline in a country's GDP
Term
Depression
Definition
A severe recession that lasts longer than a typical recession
Term
Monetary Policies
Definition
Federal Reserve decisions that determine the size of the supply of money in the nation and the level of interest rates
Term
Fiscal Policy
Definition
The government can influence the amount of savings and expenditures by altering the tax structure and changing the levels of government spending
Term
Federal Deficit
Definition
A shortfall created when the federal government spends more in a fiscal year than it receives
Term
National Debt
Definition
The total of all federal deficits
Term

Supply

(Perfect Competition)

Definition
The quantity of a product that producers are willing to purchase at each of various prices
Term

Demand

(Perfect Competition)

Definition
The quantity of a product that buyers are willing to purchase at each of various prices
Term

Equilibrium (Market) Price

(Perfect Competition)

Definition
The price at which the quantity demanded is exactly equal to the quantity supplied
Term
Standard of Living
Definition
A loose, subjective measure of how well off an individual or society is, mainly in terms of want satisfaction through goods and services
Term
Barter
Definition
A system of exchange in which goods or services are traded directly for other goods or services without using money
Term
Domestic System
Definition
A method of manufacturing in which an entrepreneur distributes raw materials to various homes, where families process them into finished goods to be offered for sale by the merchant entrepreneur
Term
Factory System
Definition
A system of manufacturing in which all the materials, machinery, and workers required to manufacture a product are assembled in one place
Term
Specialization
Definition
The seperation of a manufacturing process into distinct tasks and the assignment of the different tasks to different individuals
Term
Challenges Ahead
Definition
lMaintaining U.S. competitiveness in a globalized business environment.
lConserving natural resources and the environment.
lChanging demographics worldwide.
lCultural diversity
lTerrorism and extremism in the U.S.
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