Shared Flashcard Set

Details

Intro Business Final Exam
final exam terms
287
Business
Not Applicable
04/01/2013

Additional Business Flashcards

 


 

Cards

Term
business failure
Definition
When a business closes with a financial loss to a creditor
Term
business termination
Definition
When a business ceases operation for any reason
Term
Competitive Advantage
Definition
The facet of a business that is better than the competition's. A competive advantage can be built from many different factors
Term
Creative Destruction
Definition
The replacement of existing products, processes, ideas, & businesses w/ new, better ones
Term
Downsizing
Definition
The practice of reducing the size of a firm's workforce
Term
Intellectual Capital
Definition
The valuable skills and knowledge that employees of a business possess
Term
Marketing Concept
Definition
The business philosophy of discovering what consumers want & then providing the good/service that will satisfy their need
Term
Service Sector
Definition

Businesses that provide services rather than tangible goods

 

Term
Small Business
Definition

A business is generally considered small if it is independently owned, operated, and financed;

has fewer than 100 employees; has little impact on its industry

Term
articles of incorporation
Definition
A document describing the business that is filed w/ the state in which a business is formed
Term
Articles of Partnership
Definition
The contract between partners of a business that defines obligations & responsibilities of the business owners
Term
C Corporation
Definition

The contract between partners of a business that defines obligations and responsibilities of the business owners. 

Term
Closely held corporation
Definition
A corporation owned by a limited group of people. Its stock is not traded publicly
Term
Corporation
Definition
A business structure that creates an entity separate from its owner & managers
Term
entrepreneurship
Definition

The process of identifying opportunities for which marketable needs exist and assuming the risk of creating an organization to satisfy them.

Term
entrepreneurship process
Definition
The stage of a business's life that involves innovation, a triggering event, & implementation
Term
Environmental Factors
Definition
Forces that occur outside of the business that affect the business & its owner
Term
General Partnership
Definition
A business structure in which the business owners share the management & risk of the business
Term
Growth
Definition

Achievement of a critical mass in the business, a point at which an adequate living is provided for the owner and family, with enough growth remaining to keep the business going.

Term
Implementation
Definition
The part of the entrepreneurial process that occurs when the organization is formed
Term
Joint Venture
Definition
A partnership that is created to complete a specific purpose & is limited in duration
Term
Limited Partnership
Definition
A business structure in which one or more of the owners may be granted limited liability as long as one partner is designated as a general partner w/ unlimited liability
Term
Limited-Liablity
Definition
A relatively new type of corporation that taxes owners as partners yet provides a more flexible structure than an S corporation
Term
Maturity
Definition
The stage of the organization when the business is considered well established
Term
Need to achieve
Definition
The personal quality, linked to entrepreneur-ship, of being motivated to excel & choose situations in which success is likely
Term
Nonprofit Corporation
Definition
A tax-exempt corporation that exists for a purpose other than making a profit
Term
partnership
Definition
An association of 2 or more persons to carry on as co-owners of a business for profit
Term
public corporations
Definition
A corporation that sells shares of stock to the public and is listed on a stock exchange
Term
S Corporation
Definition
A special type of corporation in which the owners are taxed as partners
Term
Small Business Management Process
Definition
The ongoing process of owning & operating an established business
Term
Sole Proprietorship
Definition
A business owned & operated by one person
Term
Triggering Event
Definition

A specific event or occurence that sparks the entrepreneur to proceed from thinking to doing

 

Term
Unlimited Liability
Definition
the potential for an owner to lose more than has been invested in a business
Term
Business Ethics
Definition
The rules of moral values that guide decision making- your understanding of the difference between right & wrong
Term
Code of ethics
Definition
The tool w/ which the owner of a business communicates ethical expectations to everyone associated w/ the business
Term
Mission Statement
Definition
A description of the reason why an organization exists
Term
Social Responsibility
Definition
The obligation of a business to have a positive effect on society on four levels- economic, legal, ethical, & philanthropic
Term
Strategic Plan
Definition
A long-term planning tool used for viewing a business & the environments in which it operates in broadest terms
Term
SWOT analysis
Definition
The step of strategic planning in which the managers identify the internal strengths & weaknesses of a business & the oportunities & threats that exist outside of the business
Term
balance sheet
Definition
A financial document that shows the assets, liabilities, & owner's equity for a business
Term
Break-even Point
Definition
The point at which sales & costs are equal & a business is neither making nor losing money
Term
Cash Flow Statement
Definition
a financial document that shows the amount of money a business has on hand at the beginning of a time period, reciepts coming into the business, & money going out of the business during the same period
Term
Executive Summary
Definition
A condensed abstract of a business plan used to spark the reader's interest in the business & to highlight crucial information
Term
Profit-and-Loss Statement
Definition
A financial document that shows sales revenues, expenses, & net profit or loss
Term
Sources & Uses of funds
Definition
A financial document used by start-up businesses that shows where capital comes from & what it will be used for
Term
business-format franchising
Definition
A type of franchising in which the franchisee adopts the franchisor's entire method of operation
Term
disclosure statement
Definition
Information that franchisors are required to provide potential franchisees
Term
due diligence
Definition
The process of thoroughly investigating the accuracy of information before signing a franchise (or any other) agreement
Term
Franchise
Definition
A contractual license to operate an individually owned business as part of a larger chain
Term
Franchise Agreement
Definition
The legal contract that binds both parties involved in the franchise
Term
Franchise fee
Definition
The one-time payment made to become a franchisee
Term
Franchisee
Definition
The small business-person who purchases the franchise so as to sell the product or service of the franchisor
Term
Franchisor
Definition
The parent company that develops a product or business process & sells the rights to franchisees
Term
Product-distribution franchising
Definition
A type of franchising in which the franchisee agrees to purchase the products of the franchisor or to use the franchisor's name
Term
royalty fees
Definition
The ongoing payments that franchisees pay to franchisors-usually a % of gross sales
Term
Balance-sheet Methods of Valuation
Definition
A method of determining the value of a business based on the worth of its assets
Term
Business Brokers
Definition
A business intermediary that brings sellers of their businesses together with potential buyers
Term
Due Diligence
Definition
The process of fact finding to determine the total condition of a business being considered for purchase
Term
Goodwill
Definition
The intangible asset that allows businesses to earn a higher return than a comparable business w/ the same tangible assets might generate
Term
Income-statement Methods of Valuation
Definition
A method of determining the value of a business based on its profit potential
Term
Intangible Assets
Definition
Assets that have value to a business but are not visible
Term
Noncomplete Cause
Definition
A provision often included in a contract to purchase a business that restricts the seller from entering the same type of business within a specified area for a certain amount of time
Term
tangible assets
Definition
Assets owned by a business that can be seen & examined
Term
Capital Intensive
Definition
A business that depends greatly upon equipment & capital for its operations
Term
Corridor Principle
Definition
The idea that opportunities become available to an entrepreneur only after the entrepreneur has started a business
Term
Customer Intimacy
Definition
Maintaining a long-term relationship w/ customers through superior service that results in a competitive advantage
Term
e-business
Definition
A business that shares information, maintains customer relationships, & conducts transactions by means of telecommunications networks
Term
home-based business
Definition
A popular type of business that operates from the owners home, rather than from a seperate location
Term
independent contractor
Definition
A person who is not employed by a business & unlike employees, is not eligible for a benefit package
Term
Labor Intensive
Definition
A business that is more dependent on the services of people than on money & equipment
Term
Operational Excellence
Definition
Creates a competitive advantage by holding down costs to provide customers w/ the lowest priced products
Term
product leaders
Definition
A business that creates a competitive advantage based on providing the highest-quality products possible
Term
product life cycle
Definition
Stages that products in a marketplace pass through over time
Term
Window of Opportunity
Definition
A period of time in which an opportunity is available
Term
Accounting
Definition
The system within a business for converting raw data from source documents (like invoices, sales reciepts, bills & checks) into info that will help a manager make business decisions
Term
Accrual-basis Method
Definition
A method of accounting in which income & expenses are recorded at the time they are incurred rather than when they are paid
Term
Activity Ratios
Definition
Financial ratios that measure the speed w/ which various asset accounts are converted into sales or cash
Term
aging schedules
Definition
A listing of a firm's accounts recievable according to the length of time they are outstanding
Term
assets
Definition
Any resource that a business owns & expects to use to its benefit
Term
Average Collection Period
Definition
A measure of how long it takes a firm to convert a credit sale (internal store credit, not credit card sales) into a usable form (cash)
Term
Balance Sheet
Definition
A financial statement that shows a firm's assets, liabilities, & owner's equity
Term
Benchmarking
Definition
A comparision of a fim's financial rationto industry leaders
Term
Cash Budgets
Definition
A plan for short-term uses & sources of cash
Term
Cash flow
Definition
The sum of net income plus any noncash expenses, such as depreciation & amortization, or the difference between the actual amount of cash a company brings in & the actual amount of cash a company disburses in a given time period
Term
Cash-basis method
Definition
A method of accounting in which income & expenses are recorded at the time they are paid, rather than when they are incurred
Term
Cash-to-cash Cycle
Definition
The period of time from when money is spent on raw materials until it is collected on the sale of a finished good
Term
Common-size Financial Statement
Definition
A financial statement that includes a percentage breakdown of each item
Term
Current Ratio
Definition
A financial ratio that measures the # of times the firm can cover its current liabilities w/ its current assets
Term
Debt ratio
Definition
A leverage ratio that measures the proportion of a firm's total assets that is acquired w/ borrowed funds
Term
double-entry accounting
Definition
An accounting system in which every business transaction is recorded in an asset account & a liability or owner's equity account so that the system will balance
Term
financial ratios
Definition
Calculations that compare important finacial aspects of a business
Term
fixed asset turnover
Definition
An activity ratio that measures how efficiently a firm is using its assets to generate sales
Term
general ledger
Definition
A record of all financial transactions divided into accounts and usually compiled at the end of each month
Term
GAAP (Generally accepted accounting principles)
Definition
Standards established so that all busineses produce comparable financial statements
Term
Income statement
Definition
A financial statement that shows the revenue & expenses of a firm, allowing you to calculate the profit or loss produced in a specific period of time
Term
Industry Average Analysis
Definition
A comparision of a firm's financial rations to the industry averages
Term
Inventory Turnover
Definition
An activity ratio that measures the liquidity of the firm's inventory -- how quickly goods are sold & replenished
Term
Journal
Definition
A chronological record of all finacial transactions of a business
Term
Leverage ratios
Definition
Financial ratios that measure the extent to which a firm uses debt as a source of financing & its ability to service that debt
Term
liabilites
Definition
A debt owed by a business to another organization or individual
Term
liquidity ratios
Definition
Financial ratios used to measure a firm's ability to meet its short-term obligations to creditors as they come due
Term
Macro-aging schedule
Definition
A list of accounts recievable by age categoy
Term
micro-aging schedule
Definition
A list of accounts recievable showing each customer, the amount that custormer owes, & the amount that is past due
Term
net profit margin
Definition
A profitability ratio that measures the % of each sales dollar that remains as profit after all expenses, including taxes, have been paid
Term
owner's equity
Definition
The amount of money the owner of a business would recieve if all of the assets were sold & all of the liabilites were paid
Term
pro forma financial statements
Definition
Financial statements that project what a firm's financial condition will be in the future
Term
profitabiltliy ratios
Definition
Financial ratios that are used to measure the ability of a company to turn sales into profits & to earn profits on assets & owner's equity committed
Term
quick acid-test ratio
Definition
A financial ratio that indicates the firm's ability to meet its current obligation w/ the most liquid of its current assets
Term
return of assets
Definition
A profitability ration that indicates the firm's effectiveness in generating profits from its available assets; also known as return on investment
Term
return on equity
Definition
A profitability ratio that measures the return the firm earned on its owner's investments in the firm
Term
single-entry accounting
Definition
An accounting system in which the flow of income & expenses is recorded in a running log, basically like a checkbook
Term
statement of cash flow
Definition
A financial statement that shows the cash inflows & outflows of a business
Term
times interest earned
Definition
A leverage ratio that calculates the firm's abiltiy to meet its interest requirements
Term
total asset turnover
Definition
An activity ratio that measures how efficiently the firm uses all of its assets to generate sales; a high ratio generally refects good overall management
Term
trend analysis
Definition
A comparision of a single firm's present performance w/ its own past performance, preferably for more than 2 years
Term
angel
Definition
A lender, usually a successful entrepreneur, who loans money to help new businesses
Term
Balloon Notes
Definition
A loan that requires the borrower to make small monthly payments (usually enough to cover the interest), with the balance of the loan due at maturity
Term
Certified development company
Definition
A nonprofit organization sponsored either by private interests or by state or local governments
Term
Debt Financing
Definition
The use of borrowed funds to finance a business
Term
Demand Note
Definition
A short-term loan that must be repaid (both principle & interest) in a lump sum at maturity
Term
dividends
Definition
Payments based on the net profits of the business & made to the providers of equity capital
Term
Equity Financing
Definition
The sale of common stock or the use of retained earnings to provide long-term financing
Term
Factoring
Definition
The practice of raising funds for a business through the sale of accounts recievable
Term
Fixed-rate loan
Definition
A loan whose interest rate remains constant
Term
Floor Planning
Definition
A type of business loan generally made for "big-ticket" items. The business holds the item in inventory & pays interest, but is actually owned by the lender until the item is sold.
Term
Initial Public Offering (IPO)
Definition
The first sale of stock of a business made available to public investors
Term
Installment loans
Definition
A loan made to a business for the purchase of fixed assets such as equipment & real estate
Term
Interest Rate
Definition
The amount of money paid for the use of borrowed funds
Term
Leverage
Definition
The ability to finance an investment through borrowed funds, increasing both the potential for return & the level of risk
Term
Line of Credit
Definition
An agreement that makes a specific amount of short-term funding available to a business as is needed
Term
Loan Security
Definition
Assurance to a lender that a loan will be repaid
Term
Long-term Assets
Definition
Assets that will not be converted into cash within one year
Term
Maturity
Definition
The length of time in which a loan must be repaid
Term
Policy Loans
Definition
A loan made to a business by an insurance company, using the business's insurance policy as collateral
Term
Principal
Definition
An amount of money borrowed from a lender
Term
SBA Express program
Definition
A relatively new loan program available through the SBA that simplifies the paperwork that has historically been required
Term
SBA Loan
Definition
A loan made to a small business through a commercial bank, of which a portion is guaranteed by the Small Business Administration
Term
Secured loan
Definition
A loan that requires collateral as security for the lender
Term
Short-term assets
Definition
Assets that will be converted into cash within one year
Term
Trade Credit
Definition
The purchase of goods from suppliers that do not demand payment immediately
Term
Unsecured loans
Definition
A short-term loan for which collateral is not required
Term
unsecured term loans
Definition
A loan made to an established business that has demonstrated a strong overall credit profile
Term
variable-rate loan
Definition
A loan whose interest rate changes over the life of the loan
Term
Antitrust Laws
Definition
Legislation that prohibits firms from combining in a way that would stifle competition withing that industry
Term
bankruptcy
Definition
A ruling granted by courts to release businesses or individuals from some or all of their debt
Term
brand
Definition
A name, term, symbol, design, or combination of these elements that clearly identifies and differentiates your products from those of your competitiors
Term
Breach of Contract
Definition
A violation of one or more terms of a contract by a party involved in the contract
Term
Compensatory damages
Definition
Money awarded by the courts to a party of the contract who has suffered a loss due to the actions of another party
Term
Contract
Definition
An agreement between two or more parties that is enforceable by law
Term
copyright
Definition
A form of protection for intellectual property provided to the creator of a literary, musical, or artistic work for a period of the creator's life plus 50 years
Term
injunction
Definition
A court order that prohibits certain activities
Term
intellectual property
Definition
Property that is created through the mental skills of a person
Term
patent
Definition
A form of protection for intellectual property provided to an inventor for a period of 17 years
Term
specific performance
Definition
A nonmonetary award granted by the courts to a party of the contract who has suffered a loss due to the actions of another party
Term
trademark
Definition
A form of protection for intellectual property provided to the owner for a brand name or symbol
Term
zoning laws
Definition
Local laws that control where and how businesses may operate
Term
Cognitive Dissonance
Definition
The conflict (i.e. remorse) that buyers feel after making a major purchase
Term
Evoked set
Definition
The group of brands or businesses that come to a customer's mind when she thinks of a type of product
Term
Individualized Marketing
Definition
Adjusting the marketing mix of a business to treat individual persons as separate target markets
Term
Market Research
Definition
The process of gathering information about consumers that will improve marketing efforts
Term
Market Segmentation
Definition
Breaking down populations of people into groups, or target markets
Term
Marketing Concept
Definition
The philosophy of a business in which the wants & needs of customers are determined before goods & services are porduced
Term
Marketing Strategy
Definition
What the marketing efforts of a business are intended to accomplish & how the business will achieve its goals
Term
Mass Marketing
Definition
Treating entire populations of people as potential customers for specific products
Term
Niche Marketing
Definition
Segmenting populations of people into smaller target markets
Term
Primary Data
Definition
Marketing data that a business collects for its own specific purposes
Term
Production Concept
Definition
The philosophy of business that concentrates more on the product that the business makes than on customer needs
Term
Regressive Analysis
Definition
A forecasting method that predicts future sales by finding a relationship between sales & one or more variables
Term
relationship marketing
Definition
The philosophy of a business that concentrates on establishing a long-term buyer-seller relationship for the benefit of both parties
Term
sales forecast
Definition
The quantity of products a business plans to sell during a future time period
Term
secondary data
Definition
Marketing data that have been gathered, tabulated, and made available by an outside source
Term
segmentation variables
Definition
Characteristics or ways to group people that make them more likely to purchase a product
Term
target markets
Definition
A group of people who have a common want or need that your business can satisfy, who are able to purchase your product, and who are more likely to buy from your business
Term
time series analysis
Definition
A forecasting method that uses historical sales data to identify patterns over a period of time
Term
ABC classification
Definition
An inventory control system that classifies items based on the total dollar volume of sales each generates
Term
economic order quantity (EOQ)
Definition
A traditional method of controlling inventory that minimizes total inventory costs by balancing annual ordering costs w/ annual holding costs for an item
Term
holding costs
Definition
Expenses related to keeping inventory on hand
Term
inventory
Definition
Goods a business owns for the completion of future sales. Also, the act of counting the goods held in stock
Term
inventory cycle
Definition
The period of time from the point when inventory is at its highest until it is replenished
Term
just-in-time (JIT)
Definition
A Japanese approach to inventory management that aims to reduce order sizes and to time orders so that goods arrive as close to when they are needed as possible
Term
lead time
Definition
The period of time from order placement until the goods are recieved
Term
licensing agreement
Definition
An agreement in which the owner of intellectual property grants another person (or another company) permission to produce that product
Term
make-or-buy decision
Definition
The choice of whether to purchase parts & components or to produce them
Term
marketing mix
Definition
The factors that a business can change in selling products to customers -products, place, price & promotion
Term
materials requirements planning (MRP)
Definition
Inventory control system that depends on computers to coordinate product orders, raw materials in stock, and the sequence of production
Term
obsolescence
Definition
When products become outdated or fall out of fashion
Term
ordering costs
Definition
Expenses related to procuring inventory
Term
perpetual inventory system
Definition
An inventory system that indicates how many units of an item are on hand at any given time
Term
private-label manufacturing
Definition
Producing products under another company's name
Term
product
Definition
A tangible good, an intangible service, or a combination of these
Term
shrinkage
Definition
The loss of goods held in inventory due to theft or spoilage
Term
agents
Definition
An intermediary who brings buyers and sellers together and facilitates the exchange
Term
anchor stores
Definition
A large retail store that attracts people to shop at malls
Term
brokers
Definition
An intermediary who represents clients who buy or sell specialized goods or seasonal products
Term
distribution channel
Definition
The series of intermediaries a product passes through when going from producer to consumer
Term
dual distribution
Definition
The use of two or more channels to distribute the same product to the same target market
Term
effective buying index (EBI)
Definition
The amount of personal income after taxes  & deductions made by people in a specific geographic area
Term
escalation clause
Definition
A lease that varies according to the amount of inflation in the economy
Term
fixed layout
Definition
A type of layout for a manufacturing business in which the product stays stationary while workers & equipment are brought to it
Term
free-flow layout
Definition
A type of layout used by small retail stores that encourages customers to wander & browse through the store
Term
grid layout
Definition
A type of layout used by retail stores to move customers past merchandise arrranged on rows of shelves or fixtures
Term
gross lease
Definition
A lease in which the monthly payment made by the tenant remains the same & the landlord pays the operating expenses of the building
Term
indirect channels
Definition
A distribution channel in which the products pass through various intermediaries before reaching the consumer
Term
inshopping
Definition
The effect of more consumers coming into a town to purchase goods than leaving it to buy the same product
Term
leasehold improvements
Definition
Changes that make a property more valuable, such as painting, adding shelves, or installing new lighting
Term
loop layout
Definition
A type of retail layout with a predominant aisle running through the store that quickly leads customers to their desired department
Term
net lease
Definition

A lease in which the tenant pays a base monthly rent plus some or all real estate taxes of the building

Term
net-net lease
Definition

A lease in which the tenant pays a base monthly rent plus real estate taxes and insurance on the building.

Term
outshopping
Definition

The effect of more consumers leaving a town to purchase goods than entering it to buy the same product.

Term
percentage lease
Definition

A lease in which the tenant pays a base monthly rent plus a percentage of their gross revenue.

Term
Process Layout
Definition

A way to arrange a manufacturing business by placing all comparable equipment together in the same area.

Term
product layout
Definition

A way to arrange a manufacturing business by placing equipment in an assembly line.

Term
retailers
Definition

An intermediary who sells products to the ultimate consumer.

Term
triple-net lease
Definition

A lease in which the tenant pays a base monthly rent plus real estate taxes, insurance, and any other operating expenses incurred for the building.

Term
wholesalers
Definition

An intermediary who buys products in bulk from producers and resells them to other wholesalers or to retailers.

Term
breakeven point (BEP)
Definition

The point at which total costs equal total revenue and the business neither makes nor loses money.

Term
consumer credit
Definition

Credit extended by retailers to the ultimate customers for the purchase of products or services.

Term
demand curve
Definition

The number of units of a product that people would be willing to purchase at different price levels.

Term
fixed costs
Definition

Costs that do not change with the number of sales made.

Term
markup
Definition

The amount added to the cost of a product in setting the final price. It can be based on selling price or on cost.

Term
odd pricing
Definition

Psychological pricing strategy in which goods are priced at, say, $9.99 rather than $10.00 in the belief that the price will seem lower than it really is.

Term
penetration pricing
Definition

Setting the price of a new product lower than expected to gain fast market share.

Term
prestige pricing
Definition

Psychological pricing strategy used with goods whose quality is difficult to determine by inspection or for products about which consumers have little solid information.

Term
price elasticity of demand
Definition

The percentage change in quantity demanded for a product in response to a one percent change in price.

Term
price lining
Definition

Grouping product prices into ranges, such as low-, medium-, and high-priced items.

Term
price skimming
Definition

Setting the price of a new product higher than expected to recover development costs.

Term
psychological pricing
Definition

Setting the price of a product in a way that will alter its perception by customers.

Term
publicity
Definition

An aspect of public relations consisting of any message about your company communicated through the mass media that you do not pay for.

Term
reference pricing
Definition

Psychological pricing strategy common in retailing goods for which consumers have an idea of what the price “should be.”

Term
trade credit
Definition

Credit extended from one business to another.

Term
variable costs
Definition

Costs that change in direct proportion to sales.

Term

countertrade

 

 

 

 

 

 

Definition

The completion of a business deal without the use of money as a means of exchange. Barter is a common form of ountertrade.

Term
exporting
Definition

Selling goods or services in a foreign country.

Term
joint venture
Definition

An agreement in which two businesses form a temporary partnership to produce a product or service in a market that neither could satisfy alone.

Term
Licensing
Definition

The agreement that allows one business to sell the rights to use a business process or product to another business in a foreign country.

Term
strategic alliances
Definition

A partnership between two businesses (often in different countries) that is more informal than a joint venture.

Term
delegation
Definition

Granting authority and responsibility for a specific task to another member of an organization; empowerment to accomplish a task effectively.

Term
distress
Definition

The negative consequences and components of stress.

Term
leadership
Definition

The process of directing and influencing the actions of members within a group.

Term
management
Definition

 

The process of planning, organizing, leading, and controlling resources in order to achieve the goals of an organization.

Term
motivation
Definition

The forces that act on or within a person that cause the person to behave in a specific manner.

Term
stress
Definition

Emotional states that occur in response to demands, which may come from internal or external sources.

Term
appeal process
Definition

A formal procedure allowing employees to seek review of a disciplinary measure at a higher level of management.

Term
at-will doctrine
Definition

Essentially means an employee hired for an indefinite period may be discharged for any or no reason, cause or no cause, unless specifically prohibited by law.

Term
benefit
Definition

Part of an employee’s compensation in addition to wages and salaries.

Term
bonus
Definition

A one-time reward provided to an employee for exceeding a performance standard.

Term
employee development
Definition

A planned effort to provide employees with the knowledge, skills, and abilities needed to accept new and more challenging job assignments within the company.

Term
employee handbook
Definition

Written rules and regulations informing employees of their rights and responsibilities in the employment relationship.

Term
employee orientation
Definition

The process of helping new employees become familiar with an organization, their job, and the people they will work with.

Term
employee training
Definition

A planned effort to teach employees more about their job so as to improve their performance and motivation.

Term
job analysis
Definition

The process of gathering all the information about a particular job, including a job description and the job specifications.

Term
job description
Definition

A written description of a nonmanagement position that covers the title, duties, and responsibilities involved for the job

Term
job specifications
Definition

The identification of the knowledge, skills, abilities, and other characteristics an employee would need to perform the job.

Term
performance appraisal
Definition

A process of evaluating an employee’s job-related achievements.

Term
profit-sharing plan
Definition

A plan in which employees receive additional compensation based on the profitability of the entire business.

Term
progressive approach
Definition

Discipline that is applied to employees in appropriately incremental and increasingly forceful measures.

Term
analytic systems
Definition

Manufacturing system that reduces inputs into component parts so as to extract products.

Term
backward scheduling
Definition

Scheduling that involves arranging production activities around the due date for the product.

Term
benchmarking
Definition

The process of comparing key points within your business with comparable points in another external entity.

Term
concurrent quality control
Definition

Quality control applied to work in progress.

Term
continuous process
Definition

A production process that operates for long periods of time without interruption.

Term
control systems
Definition

The means to monitor input, transformation, and output so as to identify problems.

Term
defect rate
Definition

The number of goods produced that are outside the company’s boundaries of acceptable quality.

Term
dispatching
Definition

Allocating resources and beginning the steps to produce a product.

Term
ergonomics
Definition

The study of the interaction between people and machinery.

Term
feedback
Definition

Communication tools to connect control systems to the processes of a business.

Term
feedback quality control
Definition

Inspecting and testing products after they are produced.

Term
feedforward quality control
Definition

Quality control applied to a company’s inputs.

Term
forward scheduling
Definition

Scheduling in which materials and resources are allocated for production when a job order comes in.

Term
inputs
Definition

All the resources that go into a business.

Term
intermittent process
Definition

A production process that operates in short cycles so that it can change products.

Term
ISO 9000
Definition

The set of standards that certifies that a business is using processes and principles to ensure the production of quality products.

Term
mass customization
Definition

A production process that allows products to be produced specifically for individual customers.

Term
outputs
Definition

The tangible or intangible products that a business produces.

Term
productivity
Definition

The measure of outputs according to the inputs needed to produce them; a way to determine the efficiency of a business.

Term
quality
Definition

How well a good or service meets or exceeds customers’ expectations, or the degree to which a product conforms to established tolerance standards.

Term
quality circles
Definition

The use of small groups of employees to analyze products and processes in an effort to improve quality.

Term
routing
Definition

Information showing the steps required to produce a product.

Term
sequencing
Definition

The order in which the steps need to occur to produce a product.

Term
six stigma
Definition

The tolerance range in which only 3.4 defects per million are allowed.

Term
statistical process control (SPC)
Definition

The use of statistical analysis to determine the probability of a variation in product being random or a problem.

Term
Synthetic systems
Definition

Manufacturing system that combines inputs to create a finished product or change it into a different product.

Term
tolerance range
Definition

The boundaries a manager sets in determining the acceptable quality of a product.

Term
transformation process
Definition

What a business does to add value to inputs in converting them to outputs.

Supporting users have an ad free experience!