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144 Cards in this Set
- Front
- Back
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business
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all profit-seeking activities and enterprises that provide goods and services necessary to an economic system
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profits
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rewards for businesspeople who take the risks involved to offer goods and services to customers
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factors of production
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natural resources, capital, human resources, entrepreneurship
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give an example of natural resouces
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land, building sites, forests, mineral takes
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give an example of capital
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technology, tools, information, and physical facilities
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give an example of human resources
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anyone who works
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give an example of entrepreneurship
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the willingness to take risks to create and operate business
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private enterprise system
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economic system that rewards firms for their ability to identify and serve the needs and demands of their customers
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competition
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battle among businesses for consumer acceptance
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capitalism
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another name for the free enterprise system
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competitive differentiation
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unique combo of organizational abilities, products and approaches that set a company apart from competitors
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entrepreneur
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person who seeks a profitable opportunity and takes the necessary risks to set up and operate business
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what are the six eras in business
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colonial, industrial revolution, industrial entrepreneurs, production, marketing, and relationship
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what is the main charactaristic of the Colonial era?
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primarily agricultural
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what is the main charactaristic of industrial entrepreneur era
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mass production by semi-skilled workers, aided by machines
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what is the main charactaristic of industrial entrepreneurs
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advances in technology, increased demand for manufactured goods,
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what is the main charactaristic of production era?
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emphasis on producing more goods faster, leading to assembly lines
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what is the main charactaristic of marketing era
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consumer orientation, seeking to understand and satisfy needs and preferences of customers
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what is the main charactaristic of relationship era?
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benefits derived from deep, ongoing links with individual customers, employers, suppliers and other businesses
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transaction management
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concentration on products that will hopefully turn a profit when customers buy enough
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brand
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name, term, or symbol to identify the product
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partnership
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affiliation between 2+ companies that help each other achieve common goals
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strategic alliance
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partnership formed to create a competitive advantage for the businesses involved
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diversity
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blending those with different religious, cultures, ethnic backgrounds and ages
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outsourcing
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using outside vendors to create goods or services that were previously handled in-country or in-house
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offshoring
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relocation of business processes to lower-cost operations overseas
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nearsourcing
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outsourcing production or services to locations nears the firm's home base
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critical thinking
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the ability to analyze and assess information to pinpoint problems
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creativity
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the capacity to develop novel solutions to perceived organization problems
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Sarbanes-Oxley Act
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an act meant to deter and punish corporate and accounting fraud and protect the interest of workers and shareholders
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busienss eithics
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the standards of conduct and moral values governing actions and decisions in the work environment
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conflict of interest
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when a businessperson is faced with a situation in which an action benefiting on person or group has the potential to harm another
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loyalty versus truth
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when an employee is expected to be loyal but they know that the practices of the company are not always ethical
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whistle-blowing
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employee's disclosure to company officials, government authorities, or the media of illegal or unethical practices
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code of conduct
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formal statement that defines how the organization expects employees to resolve ethical issues
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social responsibility
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business's consideration of society's well-being and consumer satisfaction, in addition to profits
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social audits
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formal procedures that identify and evaluate all company activities that relate to social issues
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corporate philanthropy
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companies who give back to the communities in which they earn profits
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recycling
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processing of used materials for reuse
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green marketing
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the promotion of environmentally friendly products and production methods
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what are examples of corporate philanthropy
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donations of cash, equipment, products and volunteer efforts
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what are the 4 consumer rights?
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-the right to be heard
-the right to choose -the right to be safe -the right to be informed |
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consumerism
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public demand that a business consider the wants and needs of its customers in making decisions.
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product liability
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refers to the responsibility of manufacturers for injuries and damages caused by their products
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OSHA
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The Occupational Safety and Health Administration
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what are the responsibilities to employees?
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workplace safety, quality of life issues, equal opportunity and freedom from age discrimination and sexual discrimination
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family leave
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businesses with 50+ employees must provide unpaid leave for birth, adoption, or to care for a seriously ill relative
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What does EEOC stand for?
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Equal Employment Opportunity Commission
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What is the EEOC?
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increases job opportunities for women and minorities, helps end discrimination against race, color, religion, disability, etc
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sexual harassment
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unwelcome and inappropriate actions of a sexual nature in the workplace
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sexism
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discrimination against members of either sex
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economics
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social science that analyzes the choices people and governments make in allocating scarce resources
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microeconomics
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stufy of small economic units such as individual consumers and families
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macroeconomics
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study of a nation's overall economic issues
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demand
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willingness and ability of buyers to purchase goods and services
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supply
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willingness and ability of sellers to provide goods and services
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demand curve
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a graph of the amount of product that buyers will purchase at different prices
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supply curve
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shows the relationship between different prices and the quantities that sellers will offer for sale
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equilibrium price
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the prevailing market price at which you can buy an item
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pure competition
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when no single participant has a significant influence on the price
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monopolistic competition
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large numbers of buyers and sellers exchange well-differentiated products so each participant has some control over the price
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oligopoly
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when relatively few sellers compete and startup costs keep out new competitors
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monopoly
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when a single seller dominates trade in a good or service for which buyers can find no close substitutes
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deregulation
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restrictions on monopolies to create more competition and better service
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communism
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all property is shared equally by the people, under the direction of the government
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socialism
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government ownership and operation of major industries such as healthcare and communications
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mixed market economics
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economic systems that draw from capitalism and planned economies
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privatization
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changing government owned and operated industries to privately held businesses
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recession
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a cyclical economic contraction that lasts 6 mos. or longer
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recovery stage
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the economy emerges from recession and consumer spending picks up
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productivity
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he relationship between goods & services produced each year and the inputs needed to produce them
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what is the equation for total productivity?
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TP = Output/input
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what does GDP stand for?
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gross domestic product
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gross domestic product
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the sum of all goods and services produced within its boundaries
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what id GDP based on?
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the per-capita output of the country
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inflation
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rising prices caused by a combo of excess consumer demand and increase in the cost of raw materials
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core inflation
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the inflation rate of an economy after energy and food prices are removed
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demand-pull inflation
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excess consumer demand
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cost-push inflation
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rise in costs of factors of production
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hyperinflation
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soaring prices
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what does inflation do to money?
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de-value
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deflation
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when prices continue to fall
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what does CPI stand for?
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consumer price index
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what is the CPI?
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measures the monthly average change in prices of goods and services
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unemployment rate
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% of total workforce who are actively seeking work but are currently unemployed
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cyclical unemployment
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those who are out of work due to cyclical contraction of the economy
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seasonal unemployment
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not working during some months
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frictional unemployment
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temporarily not working
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structural unemployment
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not working due to no demand for skills
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monetary policy
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increases the money supply in an effort to cut the cost of borrowing
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restrictive monetary policy
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reduces the money supply to curb raising prices
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fiscal policy
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used to control inflation, reduce unemployment and improve the general standard of living
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budget
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organization's plan for how it will raise and spend money during a given period of time
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budget deficit
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when the government spends more money than it raises
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national debt
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the amount the that government has borrowed
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what is the total of the national debt?
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43 trillion
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monetary policy
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government actions to increase and decrease the money supply, change in banking requirements, interest rates
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expansionary monetary policy
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increases the money supply in an effort to cut the cost of borrowing
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restrictive monetary supply
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reduces the money supply to curb rising prices
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fiscal policy
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gov't spending and taxation to control inflation
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exports
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domestically produced goods that are sold in other countries
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imports
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foreign goods that are purchased by domestic customers
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absolute advantage
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ability to make a product at a lower cost than any other competitor
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comparative advantage
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when a product can be supplied more efficiently and at a lower price than it can supply other goods compared to the outputs of others
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balance of trade
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the difference between a nation's imports and exports
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balance of payments
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overall money flows in and out of a country
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exchange rate
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the rate that the currency rate is being traded for the currencies of other money.
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floating exchange rates
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currency traders create a market for the world's currencies based on each country's relative trade and investment properties
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devaluation
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the drop in currency value relative to another
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hard currencies
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currency that can be easily converted (euro, Yen)
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What is the most common language?
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Mandarin Chinese
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What is the second most common language?
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English
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infrastructures
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basics systems of communication, transportation, and energy facilities
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Foreign Corrupt Practices Act
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US companies are prohibited from bribing foreign officials, political candidates and government representatives in other countries
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tariffs
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taxes, surcharges and duties on foreign products
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quotas
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limit the amounts of particular products that countries can import during specified time periods.
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dumping
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exporting a product at below cost OR exporting at a lower cost than the home country's own value of the product
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embargo
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a total ban on importing
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exchange controls
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a form of administrative trade restriction
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what does GATT stand for
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General Agreement on Tariffs and Trade
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What is GATT
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an international trade accord- designed to reduce worldwide tariffs and other barriers
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what does WTO stand for?
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World Trade Organization
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What is the WTO?
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a 149 member international instution that monitors GATT agreements and mediates international trade disputes
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world bank
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funds projects that expand a nation's infrastructure
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what does IMF stand for?
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International Monetary Fund
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what is the IMF
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promotes trade through financial cooperation and eliminates barriers
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what does NAFTA stand for?
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North American Free Trade Agreement
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who is involved in NAFTA?
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Canada, Mexico, US
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what is NAFTA
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breaks down tariffs and restrictions between Canada, Mexico, and US
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who is our biggest trading partner
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canada
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what does CAFTA stand for?
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Central American Free Trade Agreement
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who is involved in CAFTA?
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US, Costa Rica, DR, El Salvador, Guatemala, Honduras, and Nicaragua
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what is CAFTA
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creates free trade within the countries involved
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EU
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the European Union - the best known example of a common marketplace
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countertrade
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trade that is funded by local products rather than currecy
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franchise
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a contractual agreement in which a wholesaler or retailer gains the rights to sell a the franchiser's products under the brand name.
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foreign licensing agreement
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one firm allows another to produce or sell its product in return for a royalty
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subcontracting
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involves hiring local companies to produce, distribute, or sell goods and services
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joint ventures
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allow companies to share risks, costs, profits, and management responsibilites
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overseas division
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a branch in another country
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MNC
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multinational corporation
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what is an NMC
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an organization with significant foreign operations
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global business strategy
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a firm that sells the same product in the same manner around the world
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multidomestic business strategy
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the firm treats each national market in a different way
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