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Global Business
Business Trends, Business Ownership and Marketing (McGraw Hill Business Book Chapters 1,2,3,5,13)
139
Business
Undergraduate 2
02/20/2013

Additional Business Flashcards

 


 

Cards

Term
loss
Definition
When a business's expenses are more then it's revenue
Term
outsourcing
Definition
Contracting with other companies (often in other countries) to do some or all of the functions of a firm.
Term
productivity
Definition
The amount of output you generate given compared to the amount of input used
Term
services
Definition
Intangible products such as educations, health care, insurance, recreation, and travel
Term
identity theft
Definition
The obtaining of an individuals personal information, such as social security, credit card numbers, for illegal purposes
Term
technology
Definition
Everything from phones and copiers to computers, medical imaging devices, personal digital assistants and the various software programs that make business processes more effective, efficient and productive.
Term
demography
Definition
The statistical study of the human population with regard to its size, density and other characteristics such as age, race, gender, and income.
Term
goods
Definition
Tangible products such as computers, food, clothing, cars and appliances.
Term
standard of living
Definition
The amount of goods and services people can buy with the money they have.
Term
profit
Definition
The amount of money a business makes above and beyond what it spends to operate.
Term
E-commerce
Definition
The buying and selling of goods over the internet.
Term
greening
Definition
The trend toward saving energy and producing products that cause less harm to the environment.
Term
stakeholders
Definition
All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.
Term
quality of life
Definition
The general well being of a society in terms of its political freedom, natural environment, education, health-care, safety, amount of leisure and rewards that add to the satisfaction and joy that other goods and services provide.
Term
revenue
Definition
The total amount of money a business takes in during a given period by selling goods and services.
Term
entrepreneur
Definition
A person who risks time and money to start a business.
Term
business
Definition
Any activity that seeks to provide goods and services to others while operating at a profit.
Term
empowerment
Definition
Giving frontline workers the responsibility, authority, freedom, training and equipment they need to respond quickly to customer requests.
Term
database
Definition
An electronic storage file for information.
Term
climate change
Definition
The change in temperature up or down over time.
Term

factors of production

 

(think LLCEK)

Definition
The resources used to create wealth: land, labor, capital, entrepreneurship and knowledge.
Term
business environment
Definition
The surrounding factors that either help or hinder the development of businesses.
Term
risk
Definition
The chance an entrepreneur takes of losing time and money on a business that may not be profitable.
Term
non-profit organization
Definition
An organization whose goals do not include making a personal profit for its owners and organizers.
Term
exchange rate
Definition
The value of one nations currency relative to the currencies of other countries.
Term
devaluation
Definition
Lowering the value of a nations currency relative to other currencies.
Term
exporting
Definition
Selling products to another country.
Term
importing
Definition
Buying products from another country.
Term
free trade
Definition
The movement of goods and services among nations without political or economical barriers.
Term
Comparative Advantage Theory
Definition
Theory that states that a country should sell to other countries those products that it produces most effectively and efficiently and buy the products they cant produce as effectively or efficiently from other countries.
Term
absolute advantage
Definition
The advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries.
Term
trade surplus
Definition

When a country exports more then it imports.

 

(favorable balance of trade)

Term
trade deficit
Definition

When a country imports more then it exports.

 

(unfavorable balance of trade)

Term
dumping
Definition
Selling products in a foreign country for less than the producing countries price.
Term
tariff
Definition
A tax imposed on imports.
Term
import quota
Definition
A limit on the number of products in certain categories that a nation can import.
Term
embargo
Definition
A complete ban on the import or export of a certain product, or the stopping of all trade with a particular country.
Term
licensing
Definition
A global strategy in which a firm (the licensor) allows a foreign company (the license) to produce its product in exchange for a fee (a royalty).
Term
joint venture
Definition
A partnership in which two or more companies (often from different countries) join to undertake a major project.
Term
foreign subsidiary
Definition
A company owned in a foreign country by another company, called the parent company.
Term
multinational corporation
Definition
An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management.
Term

North American Free Trade Agreement

(NAFTA)

Definition
Agreement that created a free-trade area among the United States, Canada and Mexico.
Term

World Trade Organization

(WTO)

Definition
The international organization that replaced the General Agreement on Tariffs and Trade, and was assigned the duty to mediate trade and disputes among nations.
Term
strategic alliance
Definition
A long term partnership between two or more companies established to help each company build competitive market advantages.
Term
common market
Definition

A regional group of countries that have a common tariff, no internal tariffs and a coordination of laws to facilitate exchange; also called a trading bloc.

Ex: European Union

Term
counter trading
Definition
A complex form of bartering in which several countries may be involved, each trading goods or services for equal goods or services.
Term
trade protectionism
Definition
The use of government regulations to limit the import of goods and services.
Term

General Agreement on Tariffs and Trade

(GATT)

Definition
A agreement made in 1948 that established an international forum for negotiating mutual reduction in trade restrictions.
Term
balance of payments
Definition
The difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows from other factors such as tourism, foreign aid, military expenditures and foreign investment.
Term
balance of trade
Definition
The total value of a nations exports compared to its imports measured over a particular period.
Term

Foreign Direct Investment

(FDI)

Definition
The buying of permanent property and businesses in foreign nations.
Term

Sovereign Wealth Funds

(SWF's)

Definition
Investment funds controlled by governments holding large stakes in foreign companies.
Term
contract manufacturing
Definition
A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark; part of the broad category of outsourcing.
Term
resource development
Definition
The study of how to increase resources and to create the conditions that will make better use of those resources.
Term
monetary policy
Definition
The management of the money supply and interest rates by the Federal Reserve Bank.
Term

Producer Price Index

(PPI)

Definition
An index that measures prices at the wholesale level.
Term
Keynesian Economic Theory
Definition
The theory that a government policy of increasing spending and cutting taxes could stimulate the economy in a recession.
Term
perfect competition
Definition
The degree of competition in which there are many sellers in a market and none are large enough to dictate the price of a product.
Term
deflation
Definition
A situation in which prices are declining.
Term
invisible hand
Definition
A phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all.
Term
mixed economies
Definition
Economic systems in which some allocation of resources is made by the market and some by the government.
Term
disinflation
Definition

A situation in which price increases are slowing.

(the inflation rate is declining)

Term
microeconomics
Definition
The part of economics study that looks at the behavior of people and organizations in particular markets.
Term
brain drain
Definition
The loss of the best and brightest people to other countries.
Term
macroeconomics
Definition
The part of economics study that looks at the operation of a nations economy as a whole.
Term
oligopoly
Definition
A degree of competition in which just a few sellers dominate the market.
Term
unemployment rate
Definition
The number of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks.
Term

Gross Domestic Product

(GDP)

Definition
The total value of final goods and services produced in a country in a given year.
Term
marketprice
Definition
The price determined by supply and demand.
Term
command economies
Definition
Economic system in which the government largely decides what goods and services will be produced, who will get them and how the economy will grow.
Term
inflation
Definition
A general rise in the prices of goods and services over time.
Term
supply
Definition
The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time.
Term
monopolistic competition
Definition
The degree of competition in which a large number of sellers produce very similar products that buyers nevertheless perceive as different.
Term
capitalism
Definition
An economic system in which all or most of the factors of production and distribution are privately owned and operated for a profit.
Term
economics
Definition
The study of how society uses resources to make goods and services and sell them.
Term
communism
Definition
An economic and political system in which the government makes almost all economic decisions and owns almost all the major factors of production.
Term
demand
Definition
The quantity of products that people are willing to buy at different prices at a specific time.
Term
monopoly
Definition
A degree of competition in which only one seller controls the total supply of a product or service, and sets the price.
Term
socialism
Definition
An economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be more evenly distributed among the people.
Term
stagflation
Definition
A situation when the economy is slowing but prices are going up anyhow.
Term
fiscal policy
Definition
Decisions government makes about taxes and spending to keep a stable economy.
Term
depression
Definition
A severe recession, usually accompanied by deflation.
Term
recession
Definition
Two or more consecutive quarters of decline in the GDP.
Term
national debt
Definition
The sum of government deficits over time.
Term
free-market economies
Definition
Economic systems in which the market largely determines what goods and services get produced, who gets them, and how the economy grows.
Term

Consumer Price Index

(CPI)

Definition
Monthly statistics that measure the pace of inflation or deflation.
Term
business cycles
Definition
The periodic rises and falls that occur in economies over time.
Term
sole proprietorship
Definition
A business that is owned and usually managed by one person.
Term
partnership
Definition
A legal form of business with two or more owners.
Term
corporation
Definition
A legal entity with authority to act and have liability apart from its owners (stockholders).
Term
unlimited liability
Definition
The responsibility of business owners for all of the debts of the business.
Term
general partnership
Definition
A partnership in which all owners share in operating the business and in assuming liability for the business's debts.
Term
limited partnership
Definition
A partnership with one or more general partners and one or more limited partners.
Term
general partner
Definition
An owner (partner) who has unlimited liability and is active in managing the firm.
Term
limited partner
Definition
An owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment.
Term
limited liability
Definition

The responsibility of a businesses owners for losses only up to the amount they invest; limited partners and shareholders have limited liability.

Term

Master Limited Partnership

(MLP)

Definition
A partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax.
Term

Limited Liability Partnership

(LLP)

Definition
A partnership that limits partners risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision.
Term

conventional corporation

(C)

Definition
A state-chartered legal entity with authority to act and have liability separate from its owners.
Term
S corporation
Definition
A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships.
Term

Limited Liability Company

(LLC)

Definition
A company similar to an S corporation, but without the special eligibility requirements.
Term
merger
Definition
The result of two firms forming one company.
Term
acquisition
Definition
One companies purchase of the property and obligations of another company.
Term
vertical merger
Definition
The joining of two companies involved in different stages of related businesses.
Term
horizontal merger
Definition
The joining of two firms in the same industry.
Term
conglomerate merger
Definition
The joining of firms in completely unrelated industries.
Term

Leveraged Buyout

(LBO)

Definition
An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing.
Term
franchise aggreement
Definition
An arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory.
Term
franchisor
Definition
A company that develops a product concept and sells other the rights to make and sell the products.
Term
franchise
Definition
The right to use a specific business's name and sell its products or services in a given territory.
Term
franchisee
Definition
A person who buys a franchise.
Term
marketing
Definition
The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients,partners, and society at large.
Term
marketing concept
Definition
A three-part business philosophy: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation.
Term

Customer Relationship Management

(CRM)

Definition
The process of learning as much as possible about customers and doing everything you can to satisfy them-or even exceed their expectations-with goods and services.
Term
marketing mix
Definition

The ingredients that go into a marketing program: product, price, place, and promotion.

 

(The 4 P's)

Term
product
Definition
Any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers, such as the brand.
Term
test marketing
Definition
The process of testing products among potential users.
Term
brand name
Definition
A word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors.
Term
promotion
Definition
All the techniques sellers use to inform people about and motivate them to buy their products or services.
Term
marketing research
Definition
The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions.
Term
secondary data
Definition
Information that has already been compiled by others and published in journals and books or made available online.
Term
primary data
Definition
Data that you gather yourself (not from secondary sources such as books or magazines - costing more money due to research costs done by you).
Term
focus group
Definition
A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues.
Term
environmental scanning
Definition
The process of identifying the factors that can affect marketing success.
Term
consumer market
Definition
All the individuals or households that want goods and services for personal consumption or use.
Term
business-to-business (B2B) market
Definition
All the individuals and organizations that want goods or services to use in producing other goods and services or to sell, rent, or supply goods to others.
Term
market segmentation
Definition
The process of dividing the total market into groups whose members have similar characteristics.
Term
target marketing
Definition
Marketing directed toward those groups (market segments) an organization decides it can serve profitably.
Term
geographic segmentation
Definition
Dividing a market by cities, counties, states, or regions.
Term
demographic segmentation
Definition
Dividing the market by age, income, and education level.
Term
psychographic segmentation
Definition
Dividing the market using the group's values, attitudes, and interests.
Term
benefit segmentation
Definition
Dividing the market by determining which benefits of the product to talk about.
Term
volume (or usage) segmentation
Definition
Dividing the market by usage (volume of use).
Term
niche marketing
Definition
The process of finding small but profitable market segments and designing or finding products for them.
Term
one-to-one marketing
Definition
Developing a unique mix of goods and services for each individual customer.
Term
mass marketing
Definition
Developing products and promotions to please large groups of people.
Term
relationship marketing
Definition
Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements.
Term
intermediaries
Definition
The middle link in a series of organizations that distribute goods from producers to consumers.
Term
cooperative
Definition
A business owned and controlled by the people who use it- producers, consumers, or workers with similar needs who pool their resources for mutual gain.
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