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Intro to Business Midterm Study Guide
n/a
90
Business
12th Grade
01/06/2012

Additional Business Flashcards

 


 

Cards

Term
Ethics
Definition
moral principles by which people conduct themselves personally, socially, or professionally
Term
Business Ethics
Definition
rules based on moral principles about how businesses and employees ought to conduct themselves
Term
Code of Ethics
Definition
a set of guidelines for maintaining ethics in the workplace
Term
Sweatshop
Definition
a shop or factory in which workers are employed for long hours at low wages and under unhealthy conditions
Term
Conflict of Interest
Definition
a conflict between self-interest and professional obligation
Term
Social Responsibility
Definition
the duty to do what is best for the good of society
Term
4 Sectors One Owes Social Responsibility
Definition
Customers, Employees, Society, Creditors/Owners
Term
Philanthropy
Definition
the act of making charitable donations to improve the welfare of society
Term
Who is a philanthropist?
Definition
Bono made RED to raise money to fight AIDS in Africa
Term
FDA
Definition
Food and Drug Administration: a federal government agency that protects consumers from dangerous or mislabeled products
Term
Americans With Disabilities Act
Definition
bans discrimination against people with physical or mental disability
Term
Occupational Safety and Health Administration
Definition
sets and enforces work-related health and safety rules
Term
Equal Pay Act
Definition
requires that men and women are paid the same wages for doing equal work
Term
SOX
Definition
mandates truthful reporting of financials to protect shareholders and the general public from accounting errors and fraudulent practices
Term
What company got in trouble for publicizing false financial records?
Definition
Enron
Term
The Ethical Decision-Making Process
Definition
a. Identify the ethical dilemma
b. Discover alternative actions
c. Decide who might be affected
d. List the probably effects of the alternatives
e.Select the best alternative
Term
Sole Proprietorship
Definition
Business owned by one person
Term
Partnership
Definition
Business owned by two or more people who share its risks and rewards
Term
Corporation
Definition
Business that is registered by a state and operates apart from its owners
Term
Cooperative
Definition
Organization that is owned and operated by its members
Term
Nonprofit Organization
Definition
Organization that focuses on providing a service, but not to make a profit
Term
Franchise
Definition
Contractual agreement to use the name and sell the products or services of a company in a designated geographic area
Term
Six Types of Business Ownerships
Definition
Sole proprietorship, partnership, corporation, cooperation, franchise, and nonprofit organization
Term
Six Types of Businesses
Definition
Producers (gather raw goods), processors (change raw materials into more finished products), manufacturers (make finished products out of processed goods), retailers (purchase goods from wholesalers and sell them to consumers), intermediaries (move goods from one business to another), and wholesalers (distribute goods)
Term
Six Functions of Businesses
Definition
Production: the process of creating, expanding, manufacturing, or improving goods and services
Procurement: the buying and reselling of goods that have already been produced
Marketing: the process of planning, pricing, promoting, selling, and distributing ideas, goods, and services
Management: the process of achieving company goals by planning, organizing, leading, controlling, and evaluating the effective use of resources
Finance: the business or art of money and management
Accounting: involves maintaining and checking records, handling bills, and preparing financial reports for a business
Term
4 Management Functions
Definition
Planning: setting objectives and making long and short term plans for meeting the objectives
Leading: influencing, guiding, and directing people under one’s management to carry out their assigned tasks
Organizing: obtaining and coordinating resources so that a business’s objectives can be met
Controlling: setting standards for work, evaluating performance, and solving problems that prevent certain tasks’ completion
Term
3 Levels of Management
Definition
Top-level Manager: is responsible for setting goals and planning for the future as well as leading and controlling the work of others
Middle Manager: carries out the decisions of top management. They’re often responsible for various departments in business, such as the production, marketing, and accounting
Operational Manager: is responsible for the daily operations of a business.
Term
Organizational Chart
Definition
Show how the firm is structured and who is in charge of whom
Term
Line Authority
Definition
organizational structure in which managers on one level are in charge of those beneath them
Term
Line and Staff Authority
Definition
Organizational chart shows the direct line of authority as well as staff who advise the line personnel
Term
Centralized Organization
Definition
Puts authority in one place- with top management
Term
Decentralized Organization
Definition
Gives authority to a number of different managers (often evident in international businesses)
Term
Departmentalization
Definition
Divides responsibility among specific units, or departments
Term
3 Ways to Manage and Lead Others
Definition
Initiative: the ability to act and make decisions without the help or advice of others
Human Relations: the study of how people interact in the workplace and how communication can be improved
Integrity: an adherence to a code of ethical values such as honesty, loyalty, and fairness
Term
3 Types of Leadership
Definition
Autocratic Leadership: one person runs everything and makes all decisions without consulting others
Democratic Leadership: managers work with employees to make decisions but the leader makes the final decision
Free-Rein Leadership: requires the leader to set goals for mangers and employees and then leave them alone to get the job done (giving mangers and employees the power to run things and make decisions is called delegating)
Term
Human Resources
Definition
People employed in a business, commonly referred as personnel, who provide the skills, knowledge, labor, and experience needed to make a business productive
Term
Human Resources Management
Definition
The process of finding, selecting, training, and evaluating employees
Term
Compensation
Definition
Pay and benefits
Term
Salary
Definition
a fixed amount of pay each week/month/year
Term
Wage
Definition
hourly pay
Term
Recruitment
Definition
actively looking for qualified people to fill a job
Term
Reference
Definition
someone who comments on a job applicant’s character and qualifications for a job
Term
Background Check
Definition
the process of verifying certain information provided by a job applicant
Term
Promotion
Definition
Gives an employee a higher-level job with more authority, responsibility, and pay
Term
Transfer
Definition
A move to another job within the company, usually at the same level and pay
Term
Separation
Definition
Leaving the company for any reason, either voluntary (involves exit interview) or involuntary (layoff/termination) (turnover is the number of employees who leave an organization and are replaced over time)
Term
Financial Plan
Definition
outline financial facts of a new venture
"road map" to its future
Term
6 Reasons for Creating a Financial Plan
Definition
1) identify needed assets
2) describes amount of money needed to start/operate
3) what expenses businesses will incur and how to cover them
4) how businesses will document and report financials
5) forecasts finances to predict future profitability
6) how businesses will acquire money and expand
Term
Examples of Business Assets
Definition
cash, equipment, buildings, supplies, inventory, land
Term
Capital
Definition
money supplied by investors, banks, or owners of a business
Term
Difference between start up and operating capital
Definition
Start up: used to pay for various assets/expenses of a new venture/business (remodeling, security deposits, permits/licenses, supplies)
Operating: keep it running (payroll, rent, utility bills, bank fees)
Term
Why do business owners use a budget?
Definition
Guide to business' future, control spending, predict money business will need
Term
Accounting
Definition
systematic process of recording and reporting the financial position of a company/person
Term
What does an accountant do?
Definition
maintains and reviews records
Term
Big Four accounting firms
Definition
Princewaterhouse Coopers
Deloitte Touche Tohmatsu
Ernst and Young
KPMG
Term
What is the significance of GAAP?
Definition
universal way to prepare financial records
all businesses follow these guidelines to ease communication
Term
Asset
Definition
property or other items of value owned by a business
Term
Two types of assets
Definition
current: used up or converted to cash during normal cycle of business
fixed: items of value held for over a year
Term
What is the difference between accounts receivable and accounts payable?
Definition
receivable: total amount of money owed to a business (current asset)
payable: short term liability, what you owe
Term
Accounting Equation
Definition
Assets = Liabilities + Owner's Equity

can tell if you're right when the two sides are equal
Term
What are financial statements and who is required to make them public?
Definition
Documents that summarize business transactions
Corporations are required to make them public
Term
Who reads/analyzes financial statements used in business? (5)
Definition
Stockholders, banks, employees, investment companies, owners read them to learn about a company's financial condition
Term
Three Main Financial Statements
Definition
income statement: net income/loss
balance sheet: report of balance or assets, liability, and owner's equity)
cash flows: money available at any time
Term
monopoly
Definition
a company that sells all or practically all of a product or service with little or no competition
Term
Natural Resources
Definition
raw materials from nature that are used to produce goods
Term
Economics
Definition
the study of how individuals and groups of individuals strive to satisfy their wants and needs by making choices
Term
capital resources
Definition
things used to produce goods and services such as buildings, materials, and equipment
Term
price
Definition
amount of money given or asked for when goods and services are bought or sold
Term
scarcity
Definition
a shortage of resources
Term
entrepreneur
Definition
an individual who undertakes the creation, organization, and ownership of a business
Term
entrepreneurial resources
Definition
people who recognized opportunities ans start businesses
Term
supply
Definition
amount of goods and services that producers will provide at various prices
Term
factors of production
Definition
the economic resources neccesary to produce a society's goods and services
Term
entrepreneurship
Definition
process of recognizing a business opportunity, testing it in the marker, and gathering the resources necessary to start and run a business
Term
economic systems
Definition
methods societies use to distribute resources
Term
labor resources
Definition
people who make the goods and services for which they are paid
Term
Recovery
Definition
number of jobs increase and consumers spend more so there is higher demand
Term
Recession
Definition
Number of jobs decrease and consumers spend less so there is lower demand
Term
GDP
Definition
Gross Domestic Product: compute the sum of goods ans services sold to businesses, consumers, the governments, and other companies
Term
Standard of Living
Definition
the level of material comfort as measured by the goods and services that are available
Term
Unemployment rate
Definition
the number of people who are able and willing to work but cannot find work during a given period
Term
Inflation
Definition
the general increase in the price of good and services (Buying power decreases)
Term
Deflation
Definition
general decrease in the price of goods and services (supply>demand, production cut, demand goes down)
Term
Four Economic Indicators
Definition
GDP
Standard of Living
Unemployment Rate
Rate of Inflation
Term
budget deficit
Definition
government spends more than it collects
(surplus: revenue exceeds spending)
Term
National Debt
Definition
total amount of money the government owes
Term
Four Stages of Business Cycle
Definition
Recovery
Prosperity
Recession
Depression
Term
Four Functions of Management
Definition
Planning: process of creating goals and objectives
Organizing: getting the resources arranged in an orderly and functional way to accomplish goals and objectives
Leading: providing direction and vision
Controlling: keeping the company on track and making sure goals are met
Term

Business Cycle

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Definition
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Term
Circular Flow of Economic Activity
Definition
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