Term
| The key to business successes is |
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Definition
| Increase customer satisfaction and Reduce operational Cost |
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Term
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Definition
| the organized effort of individuals to produce and sell, for profit, goods and services tat satisfy society's nneds |
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Term
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Definition
| land labor capital knowledge entrepreneursip |
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Term
| what are the four major resources of business |
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Definition
Material resources (supplies, equipment, plant)
human resources (employees/contractors)
Financial resources (keep business running)
information (decision mking) |
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Term
| What are the three Classifications of business |
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Definition
manufacturing-make
Service-provide
Marketing Intermediaries-shops & e-commerce |
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Term
| How is an economy measured by |
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Definition
productivity-doing more with less-avg. level of out-put per worker per hour
gross domestic product-gdp-total dollar value of goods and services produced by all people within a country |
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Term
| what are the four business cycles |
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Definition
prosperity-low unemployment/high income & purchases
recession-two consecutive quarters of decline of g.d.p.
depression-3 or more consecutive quarters of g.d.p. decline
recovery-the movement of economy from depression/recession to prosperity |
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Term
| what are the 2 economic policies the government uses to adjust the economy |
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Definition
fiscal policies-president & congress- tax structure influence savings and expenditures change the levels of government spending
monetary policies-federal reserve-determines interest rates |
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Term
| what are the 4 types of competition |
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Definition
pure competitin-many buyers and sellers-byers ad selers acept going price
Monopolistic competition: many buyers/relative large number of sellers-sellers differentiate products to increase sales
oligopoly-few sellers/mny buyers-sellers hve considerable control over price-barriers of entry high($$$$)
monopoly-one seller/many buyers-complete control over price |
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Term
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Definition
exporting-selling and shipping of raw material or products to other nations
importing-purchasing of raw material or products of other nations and bringing them to one's own cuntry
balance of trade-value of exports - value of imports |
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Term
| nations advantage for international trade |
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Definition
absolute advantage-the ability to be the sole producer of a specific product because of the countries location
Comparative advantage-the ability to produce a specific product more efficiently then any other products |
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Term
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Definition
| tariffs-a tax levied on a particular foreign product entering a country. |
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Term
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Definition
| dumping-the exportaton of large quantities of a product at a price lower then production cost |
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Term
| 6 types of trades and restrictions |
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Definition
import quota-limit the amount of goods imported.
embargo-halt trading of a product or country
foreign-exchange restricton of the amount of foreign currency tat can be purchased or sold...limiting imports
currency devaluation-importing currency is worth less ten other currency
cultural barriers-impede acceptance of products from a foreign country |
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Term
| what are the reasons for trade restrictions |
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Definition
to equalize a nation's balance of trade
to protect new or weak domestic industries
to protect national security
to protect te health of citizens
to protect domestic jobs
to retaliate for another nation's trade restrictions |
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Term
| 8 methods of entering international business |
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Definition
licensing-contractual agreement which one firm permits another to produce and market its product and brand name in return for royalties.
exporting-home country produces product and ships it to foreign markets for sell
joint ventures-a partnership is formed with a county or foreign industry for specific goal or time period
totally owned facilities domestic owns facilities in foreign country
strategic alliance-partnerships formed to create a competitive advantage on a world wide basis
trading companies-provides a link between buyers and seller nations
countertrade-international barter transaction in goods and services are exhanged for goods and services
multinational firms domestic firms located in many nations...world wide scale |
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Term
| 3 factors influencing managerial ethics |
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Definition
individual-values,work background, family status,personality
organizational-top level management philosophy, the firm's rward system, job dimensions
environmental-competition,economic conditions, social/cultural institutions |
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Term
| 3 forms of busiess ownerships |
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Definition
sole proprietorship
partnership
corporation |
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Term
| advantages of sole proprietorships |
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Definition
ease of start-up
retention of all profits
flexibility
secrecy
tax advantage |
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Term
| disadvantages of sole proprietorships |
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Definition
unlimited liability
limited managemant skills
lack of money
employee retention
lack of continuity |
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Term
| advantages of partnerships |
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Definition
ease of start-up
consolidate capital and credit of partners
personal interest
combine skills and knowledge
retention of profits
tax advantage |
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Term
| disvantages of partnerships |
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Definition
unlimited liability
frozen investments
management disagreements
lack of continuity |
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Term
| advantages of corporation |
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Definition
limited liability
ease of raising captial
specialzed management
perpetual life
ease of ownership transfer |
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Term
| disadvantages of corporations |
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Definition
difficult expense information
government regulations
double taxation
lack of secrecy |
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Term
| what are corporation fundamentals |
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Definition
stockholder rights-common stock,voting rights/may use a proxy-preferred stock non-voting rights
dividends-distribution of earnings
close corporation-stock owned by few people and not traded on te stock market
open corporation-stock is traded on the stock market |
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Term
| what are the types of partnerships |
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Definition
general partner-assumes full or shared responsibility in managing te business
manages the day to day business
can enter into contracts
each partner is taxed on their share of profits
limited partner-contributes capital to the business but is not an active manager
liability is limited up to the amount investment
compensation based on interest of capital invested, profit ratio or both |
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Term
| what is a merger....and acquisition |
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Definition
hostile merger-management gives up control, companymay be broken up,defense strategies are used
horizontal mergers-merger betweenfirms thatmk similar products
vertical mergers-mergers between fims that operate atdifferent but related levels
conglomerat mergers-mergr of unrelated industries |
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Term
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Definition
independently owned
operated for pofit
not dominant in their field |
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Term
| why do small business fail |
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Definition
lack of capital
lack of management skills
lack of technical skills |
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Term
| why is small business important to the economy |
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Definition
provides technical innovation-small firms prduce 2 1/2 times more tha large firms
providing employment-employees 1/2 of the nations work force
providing competition-challenges big corporations
filing needs-of society and other business |
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Term
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Definition
| A group of individuals...Organizations..orboth, tat need Products orservics in a given Ctegory.. and that have te ability, willingness and autority to purchase such products |
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Term
| 3 parts of a marketingconcept |
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Definition
1. customer orientation
2.service orienation
3. profit orientation |
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Term
| what are the five basic markets |
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Definition
1. consumer markets: Individual who make purchases for individual ue and not for profit.
2. industrial markets: (b to b)purchase kinds of products to use to make other products for resale or day to day operations
3. reseller markets buy in bulk from manufactures and then resell in odd lots to merchandisers
4. governmental markets: purchase goods and services to maintain internal operations(defense, schools, highways, public safety, etc.)
5. Institutional Markets not for profit Organizations(churches foundatos, Charites, etc.) |
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Term
| what are the four consumer Clasifictions |
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Definition
Convnience Products: an inexpensive, frequently purchased item
2. shopping product: buyers do more research and planning to purchase the product.
3. specialty product: a product that a buyer will make a detailed research ad pay a premium.
4. impulsive products: gum, certs, candy things near the register |
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Term
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Definition
1. product
2.physical distribution
3.promotion
4. price |
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Term
| what are the influences on the buying behavior decision process |
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Definition
1. person specific-demographic lifestyle situational
2. psychological-perception motives learning attitudes personality
3. social-family roles peer groups social class culture |
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Term
| what are the four stages of a product life cycle |
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Definition
1. introduction
2. growth
3. maturity
4. decline |
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Term
| what are the pricing methods |
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Definition
1. Demand based pricing: based on demand for product,same product/ different price at different locations
2. competition based pricing: cost and revenue are secondary consideration, main objective is to increase market share
3. cost based pricing; price based on where product is sold |
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Term
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Definition
promotion
distribution
retail store
manufactor offers $ to put product on shelves |
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Term
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Definition
promotion
customer
retailer going back to manufature for product to put on shelves |
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Term
| what are two examples of personal direct sales |
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Definition
1. order getters: a salesperson responsible in selling a firms product directly to a customer
2. order takers: sales staff that handles repeat sales and maintain positive customer relationships |
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Term
| who are the sales support personnel |
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Definition
1. missionary salesperson: manufacture representative tatvisit customers to educate and introduce new products
2. trade salesperson: trade representative going to a retail outlet and puts up signs encourage the purchase of milk regardless of brand
3. technical sales: sales person that helps a customer resolve a technical issue through the use of the sales product |
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Term
| what are the major transportation systems |
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Definition
1. railroads
2.trucks
3.airplanes
4. waterways
5. pipelines |
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Term
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Definition
| cost of storing the product |
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Term
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Definition
| sales lost because the product is not in inventory |
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Term
| what are some types of public relation tools |
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Definition
1. news release
2. feature article
3. captioned photograph
4. press conference |
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Term
| what are the functions of management information system |
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Definition
1. collecting-internal & external sources
2.processing data-statistics and summaries,measures and dispersion
3. storing and updating-manual as well as automatic
4. presenting-easy to read and under
stand |
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