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Details Title: MGT 111 Description: Exam One: Ch. 1-3, 5-16, 20 Total Flash Cards: 363 Created: 01/16/2008 10:38:11	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term business Definition any activity that seeks to provide goods and services to others while operating at a profit Term business environment Definition surrounding factors that either help or hinder the development of business Term database Definition electronic storage file where info is kept Term demography Definition statistical study of the human population with regard to its size, density and other characteristics such as age, race, gender, and income Term empowerment Definition giving frontline works the responsibility, authority, and freedom to respond quickly to customers requests. Term entrepreneur Definition a person who risks time and money to start and manage a business Term factors of production Definition the resources used to create wealth:  land, labor, capital, entrepreneurship, and knowledge Term goods Definition tangible products such as computers, clothing, cars, and appliances Term identity theft Definition the obtaining of private information about a person, such a social security number and/or credit card number; and using that information for illegal purposes, such as buying things with it Term loss Definition when a business's expenses are more than its revenues Term nonprofit organization Definition an organization whose goals do not include making a personal profit for its owners or organizers Term outsourcing Definition assigning various functions, such as accounting, production, security, maintenance, and legal work, to outside organizations Term productivity Definition amount of output you generate given the amount of input Term profit Definition amount of money a business earns above and beyond what it spends for salaries and other expenses Term quality of life Definition general well-being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time, and everything else that leads to satisfaction and joy Term revenue Definition value of what is received for goods sold, services rendered, and other financial sources Term risk Definition chance of loss, degree of probability of loss and the amount of possible loss Term services Definition intangible products (i.e. products that acn't be held in your hand) such as education, health care, insurance, recreation, and travel and tourism Term stakeholders Definition all the people who stand to gain or lose by the policies and activities of a business Term standard of living Definition amount of goods and services people can buy with the money they have Term technology Definition everything from phones and copiers to computers, medical imaging devices, personal digital assistants and various software programs that make business processes more efficient and productive Term absolute advantage Definition advantage that exists when a country as a monopoly on producing a specific product or is able to produce it more efficiently than all other countries Term balance of payments Definition 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 common market Definition total value of a nation's exports compared to its imports over a particular period 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 from other countries those products that it cannot produce as effectively of efficiently 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; also called outsourcing Term countertrading Definition a complex form of bartering in which several countries may be involved, each trading goods for goods or sevices for service Term devaluation Definition lowering the vlaue of a nation's currency relative to other currencies Term dumping Definition selling products in a foreign country at lower prices than those charged in the producing country Term embargo Definition a complete ban on the import or export of a certain product or stopping all trade with a particular country Term exchange rate Definition value of one nation's currency relative to the currencies of other countries Term exporting Definition selling products to another country Term foreign direct investment Definition the buying of permanent property and businesses in foreign nations Term foreign subsidiary Definition a company owned in a foreign country by another company (called the parent company) Term free trade Definition the movement of goods and services among nations without political or economic barriers Term General Agreement on Tariffs and Trade (GATT) Definition a 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions Term importing Definition buying products from another country Term import quota Definition a limit on the number of products in certain categories that a nation can import Term joint venture Definition a partnership in which two or more companies (often from different countries) join to undertake a major project Term licensing Definition global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (a royalty) 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 agree that created a free trade area among the U.S., Canada, and Mexico Term strategic alliance Definition a long term partnership between two or more companies established to help each company build competitive market advantages Term tariff Definition a tax imposed on imports Term trade deficit Definition an unfavorable balance of trade; occurs when the valueo f a country's imports exceeds that of its exports Term trade protectionism Definition use of government regulations to limit the import of goods and services.  Advocates of trade protectionism believe that it allows domestic producers to survive and grow, producing more jobs 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 disputes among nations Term balance of trade Definition total value of a nation's exports compared to its imports over a particular period Term brain drain Definition loss of the best and brightest people to other countries Term business cycles Definition periodic rises and falls that occur in all economies over time Term capitalism Definition economic system in which all or most of the factors of production and distribution are privately owned and operated for profit Term command economies Definition economic systems in which the government largely decides what goods and services will be produced, who will get them, and how the economy will grow Term communism Definition an economic and political system in which the state (the government) makes almost all economic decisions and owns almost all the major factors of production Term consumer price index (CPI) Definition monthly statistics that measure that pace of inflation or deflation Term deflation Definition situation in which prices are declining Term demand Definition quantity of products that people are willing to buy at different prices at a specific time Term depression Definition a severe recession Term disinflation Definition a situation in which price increase are slowing (teh inflation rate is declining) Term economics Definition study of how society chooses to employ resources to produce goods and services and distribute them for  consumption among various competing groupos and individuals Term fiscal policy Definition federal government's efforts to keep the economy stable by increasing efforts to keep the economy stable by increasing or decreasing taxes or government spending Term free-market economies Definition economic system in which the market largely determines what goods and services get produced, who gets them and how the economy grows Term gross domestic product (GDP) Definition total value of final goods and services produced in a country in a given year Term inflation Definition general rise in the prices of goods and services over time Term invisible hand Definition phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefit for all Term macroeconomics Definition part of economics study that looks at the operation of a nation's economy as a whole Term market price Definition price determined by supply and demand Term microeconomics Definition part of economics study that looks at the behavior of people and organizations in particular markets Term mixed economics Definition economic systems in which some allocation of resources is made by the market and some by the government Term monetary policy Definition management of the money supply and interest rates Term monopolistic competition Definition market situation in which a large number of sellers produce products that are very similar but that are perceived by buyers as different Term monopoly Definition market in which there is only one seller for a product or service Term national debt Definition sum of government deficits over time Term oligopoly Definition form of competition in which just a few sellers dominate the market Term perfect competition Definition market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product Term producer price index (PPI) Definition an index that measures prices at teh wholesale level Term recession Definition two or more consecutive quarters of decline in teh GDP Term resource development Definition study of how to increase resources and to create the conditions that will make better use of those resources Term socialism Definition an economic system based on the premises that some, if not most, basic businesses should be owned by the government so that profits can be evenly distributed among the people Term supply Definition quantity of products that manufacturers or owners are willing to sell at different prices at a specific time Term unemployment rate Definition number of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks Term conventional (C) corporation Definition a state-chartered legal entity with authority to act and have liability separate from its owners Term corporation Definition a legal entity with authority to act and have liability separate from its owners Term franchise Definition right to use a specific business's name and sell its products or services in a given territory Term franchise agreement Definition an arrangement whereby someone with a good idea for a business sells that rights to use the business name and sell a product or service to others in a given territory Term franchisee Definition a person who buys a franchise Term franchisor Definition a company that develop a product concept and sells and others the rights to make and sell the products Term general partner Definition an owner (partner) who has unlimited liability and is active in managing the firm 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 liability Definition responsibility of a business's owners for losses only up to the amount they invest Term limited liability company Definition a company similar to an S corporation but without the special eligibility requirements Term limited liability partnership (LLP) Definition 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 limited partner Definition an owner who invests money in the business but does management responsibility or liability for losses beyond the investment Term limited partnership Definition partnership with one or more general partners and one or more limited partners Term partnership Definition a legal form of business with two or more owners Term S corporation Definition unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships Term sole proprietorship Definition a business that is owned, and usually managed, by one person Term unlimited liability Definition responsibility of business owners for all of the debts of the business Term business plan Definition a detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owners Term enterprise zones Definition specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support Term entrepreneurial team Definition a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product Term entrepreneurship Definition accepting the risk of starting and running a business Term incubators Definition centers that offer new businesses low-cost offices with basic business services Term intrapreneurs Definition creative people who work as entrepreneurs within corporations Term market Definition people with unsatisfied wants and needs who have both the resources and the willingness to buy Term micropreneurs Definition entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offer them a balanced lifestyle Term small business Definition a business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Adminstration) in terms of employees or annual receipts Term Small Business Adminstration (SBA) Definition a U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans Term autocratic leadership Definition leadership style that involves making managerial decisions without consulting others Term brainstorming Definition coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas Term conceptual skills Definition skills that involve the ability to picture the organization as a whole and the relationship among its various parts Term contigency planning Definition process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives Term controlling Definition a management function that involves establishing clear standards to determine whether or not an organization is progressing for doing a good job, and taking corrective action if they are not Term decision making Definition choosing among two or more alternatives Term enabling Definition giving workers the education and tools they need to make decisions Term external customers Definition dealers, who buy products to sell to others, and ultimate customers (or end customers), who buy products for their own personal use Term free-rein leadership Definition leadership style involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives Term goals Definition broad, long-term accomplishments an organization wishes to attain Term human relations skills Definition skills that involve communicaiton and motivation; they enable managers to work through and with people Term Internal customers Definition individuals and units within thhe firm that receive services from other individuals or unit Term knowledge management Definition finding the right info, keeping the info in a readily accessible place, and making the info known to everyone in the firm Term leading Definition creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organizations goals and objectives Term management Definition process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources Term middle management Definition level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling Term mission statement Definition outline of the fundamental purposes of an organization Term objectives Definition specific, short-term statements detailing how to achieve the organization's goals Term operational planning Definition process of setting work standards and schedules necessary to implement the company's tactical objectives Term organization chart Definition visual device that shows relationships among people and divides the organization's work; it shows who is accountable for the completion of specific work and who reports to whom Term organizing Definition management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything  work together to achieve the organization's goal and objectives Term participative (democratic) leadership Definition leadership style that consists of managers and employees working together to make decisions Term planning Definition management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives Term PMI Definition listing all the pluses for a solution in one column, all the minuses in another; and the implications in a third column Term staffing Definition management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives Term problem solving Definition process of solving the everyday problems that occur Term strategic planning Definition process of determing the major goals of the organization and the policies and strategies for obtaining and using resources to achieve thos goals Term supervisory management Definition managerswho are directly responsible for supervising workers and evaluating their daily performance Term SWOT analysis Definition planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats Term tactical planning Definition process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done Term technical skills Definition skills that invovle the ability to perform tasks in a specific discipline or department Term top management Definition highest level of management, consisting of the president and other key company executives who develop strategic plans Term vision Definition encompassing explanation of why the organization exists and where it's trying to head Term benchmarking Definition comparing an organization's practices, processes,and products against the world's best Term bureaucracy Definition organization with many layers of managers who set rules and regulations and oversee all decisions Term centralized authority Definition organization structure in which decision-making authority is maintained at the top level of management at the company's headquarters Term chain of command Definition line of authority that moves from the top of a hierarchy to the lowest level Term core competencies Definition functions that the organization can do as well as or better than any other organization in the world Term cross functional self-managed teams Definition groups of employees from different departments who work together on a long-term basis Term decentralized authority Definition organization structure in which decision-making is delegated to lower-level managers more familiar with local conditions than headquarters management could be Term departmentalization Definition dividing of organizational functions into separate units Term economies of scale Definition situation in which companies can reduce their production costs if they can purchase raw materials in bulk Term flat organization structure Definition organization structure that has few layers of management and a broad span of control Term formal organization Definition structure that details lines of responsibility, authority, and position Term hierarchy Definition system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person Term informal organization Definition system of relationships and lines of authority that develops spontaneously as employees meet and form power centers Term inverted organization Definition organization that has contact people at the top and the chief executive officer at the bottom of the organization chart Term line organization Definition organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting ot only one supervisor Term line personnel Definition employees who are part of the chain of command that is responsible for achieving organizational goals Term assembly process Definition part of the production process that puts together components Term computer aided designed (CAD) Definition use of computers in the design of products Term computer aided manufacturing (CAM) Definition use of computers in the manufacturing of products Term computer integrated manufacturing (CIM) Definition uniting of computer-aided design with computer-aided manufacturing Term continuous process Definition production process in which long production runs turn out finished goods over time Term critical path Definition in a PERT network, the sequence of tasks that takes the longest time to complete Term enterprise resource planning Definition a computer applicaiton that enables multiple firms to manage all of their operations (finance, requirements planning, human resources, and order fulfillment) on the basis of a single, integrated set of corporate data Term facility layout Definition physical arrangement of resources (including people) in the production process Term facility location Definition process of selecting a geographic location for a company's operations Term flexible manufacturing Definition designing machines to do multiple tasks so that they can produce a variety of products Term form utility Definition value added by the creation of finished goods and services, such as the value added by taking silicon and making computer chips or putting services together to create a vacation package Term Gantt chart Definition bar graphs showing production managers what projects are being worked on and what stage they are in at given time Term intermittent process Definition production process in which the production run is short and the machines are changed frequently to make different products Term ISO 14000 Definition collection of the best practices for managing an organization's impact on the environment Term ISO 9000 Definition common name given to quality management and assurance standards Term just in time (JIT) inventory control Definition production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line Term lean manufacturing Definition production of goods using less of everything compared to mass production Term mass customization Definition tailoring products to meet the needs of individual customers Term materials required planning (MRP) Definition computer-based production management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place Term operations management Definition specialized area in management that converts or transforms resources (including human resources) into goods and services Term process manufacturing Definition part of the production process that physically or chemically changes materials Term production Definition creation of finished goods and services using the factors of production:  land, labor, capital, entrepreneurship, and knowledge Term production managment Definition term used to describe all the activities managers do to help their firms create goods Term program evaluation and review technique (PERT) Definition method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project Term purchasing Definition function in a firm that searches for quality material resources, finds the best suppliers, and negotiates the best price for goods and services Term quality Definition consistently producing what the customer wants while reducing errors before and after delivery to the customer Term six sigma quality Definition quality measure that allows only 3.4 defects per million opportunities Term statistical process control (SPC) Definition process of taking statistical samples of product components at each stage of the production process and plotting those results on a graph.  Any variances from quality standards are recognized and can be corrected if beyond the set standards Term stastical quality control (SQC) Definition process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning Term equity theory Definition idea that employees try to maintain equity between inputs and outputs compared to others in similar positions Term expectancy theory Definition Victor Vroom's theory that the amount of effort employees exert on a specific task depends on their expectations of the outcome Term extrinsic reward Definition something given to you by someone else as recognition for good work; can be pay increases, praise, and promotions Term goal-setting theory Definition idea that setting ambitious  but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions Term Hawthore effect Definition tendency for people to behave differently when they know they are being studied Term hygiene factors Definition Herzberg's theory of motivating factors, job factors that can cause dissatisfaction if missing ut that do not necessaily motivate employees if increased Term intrinsic reward Definition personal satisfaction you feel when you perform well and complete goals Term job enlargement Definition job enrichment strategy that involves combining a series of task into one challenging and interesting Term job enrichment Definition motivational strategy that emphasizes motivating the worker through the job itself Term job rotation Definition