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Business Terms
The Wall Street Journal Glossary of Terms-Introduction to Business
34
Business
Undergraduate 1
04/04/2010

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Term
absolute advantage
Definition
when a country has a monopolay on producing a product or is able to produce it at a cost below that of all other countriess
Term
advertising
Definition
paid, nonpersonal communication through various media by organizations and individuals who ae in some way identified in the advertising message
Term
affirmative action
Definition
employment activities designed to "right past wrongs" endured by women and minorities
Term
annual report
Definition
a yearly statement of the financial condition and progress of an organization covering a one-year period
Term
balance sheet
Definition
financial statemet which reports the financiall position of a firm on a specific date. a balance sheet is composed of assets, liabilities and owner's equity
Term
blue chip stock
Definition
stocks of high-quality companies
Term
brand
Definition
a name, symbol, or design (or combination of these) that identifies the goods and services of one seller or group of sellers and distinguishes them from those of competitors
Term
brand awareness
Definition
combination of factor such as awareness, loyalty, perceived quality, the feeling and images, and any other emotion people associate with a brand name
Term
brand equity
Definition
combination of factors such as awareness, loyalty, perceived quality, the feeling and images, and any other emotion people associated with a brand name
Term
budget
Definition
a financial plan that allocates resources based on projected revenues
Term
business plan
Definition
a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competitors, and the resources and qualifications of the owners
Term
capitalism
Definition
an economic system in which all or most ot the means of production and distribution are privately owned and operated for profit
Term
cognitive dissonance
Definition
consumer doubts after the purchase about whether or not the purchase was the best product at the best price
Term
collective bargaining
Definition
the process whereby union and management representatives reach a negotiated labor-management agreement
Term
commodity exchange
Definition
securities exchange which specializes in the buyin and selling of precious metals and minerals and agricultural goods
Term
income stock
Definition
stocks that offer a high dividend
Term
information superhighway
Definition
the network of computers and telecommunications equipment that links people throughout the world into one unified communications systems
Term
insider trading
Definition
the use of knowledge or information that a person gains through his or her position that allows the person to benefit from fluctuations in stock prices
Term
intangible assets
Definition
items that are not included in the current and fixed assets categories
Term
integrated marketing
Definition
the merging of all organizational efforts to please customers, employees, and otherĀ  stakeholders
Term
job rotation
Definition
job enrichment strategy involving moving employees from one job to another
Term
joint venture
Definition
a partnership in which companies (often from two or more different countries) join
Term
laissez-faire (free-reign) leadership
Definition
leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives
Term
leveraged buyout
Definition
an attempt by employees, management, or a group of investers to purchase an organization primarily through borrowing
Term
line of credit
Definition
the amount of unsecured short-term credit a bank will lend a borrower that is agreed to ahead of time
Term
management by objectives
Definition
a system of goal setting and implementation that involves a cycle of discussion, review, and evaluation of objectives
Term
managing diversity
Definition
building systems and a culture that unite different people in a common persuit without undermining their diversity
Term
managerial accounting
Definition
the provision of information and analysis to managers within the organization to assist them in decision making
Term
mass customization
Definition
the design of custom-made products and promotions, including advertising
Term
merger
Definition
the result of two firms forming one company
Term
multiculturalism
Definition
process of optimizing the contribution of people from different cultures
Term
multinational corporation
Definition
an organization that does manufacturing and marketing in many different countries
Term
mutual fund
Definition
an organization that buys stocks and bonds and then sells shares in those securities to the public
Term

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