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129 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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Natural Resources (Factor of Production)
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all production inputs that are useful in their natural states.
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Capital (Factor of Production)
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includes technology, tools, information, and physical facilities.
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Human resources (Factor of Production)
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the workers
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Entrepreneurship (Factor of Production)
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the willingness to take risks to create and operate a 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 customers.
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Basic Capitalistic Rights
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Private property, competition, profits, freedom of choice.
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brand
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name, term, sign, symbol, design, or some combination that identifies the products of one firm and differentiates them from the competition.
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Outsourcing
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using outside vendors to produce goods or fulfill services and functions that were previously handled in-house or in-country.
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Revenue
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Sales
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Gross Profit
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Difference between sales and costs.
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Gross Profit Margin
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Ratio of gross profit $ to sales . (%)
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Mark Up
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the percentage price is increased over costs. (%)
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Income
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Profit
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Asset
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anything of value that the company owns.
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Liability
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money the company owes.
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Equity
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difference between assets and liability.
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Business Ethics
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the standards of conduct and moral values involving right and wrong actions arising in the work environment.
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Sarbanes-Oxley Act of 2002
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established new rules and regulations for securities trading and accounting practices.
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Conflict 0f Interest
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situation in which an employee must make a decision about a business's welfare versus personal gain.
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Whistle Blowing
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employee's disclosure to company officials, govt authorities, or the media of illegal, immoral, or unethical practices committed by an organization.
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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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Recycle
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reprocessing of used materials for reuse. Green marketing.
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Corporate Philanthropy
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an act of an organization making a contribution to the communities in which it makes a profit
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Consumerism
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public demand that a business consider the wants and needs of its consumers in making decisions.
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Discrimination
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biased treatment of a job candidate or employee.
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EEOC
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Equal Employment Opportunity Commission
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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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Ethical Issue with Accounting
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Cooking the books
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Ethical Issue in HR
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discrimination, sexual harassment.
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Ethical Issue in Sales and Marketing
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price fixing, false advertising
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Ethical Issue in Manufacturing/Production
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Pollution
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Ethical Issue in Intellectual Property
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Copyright Infringement.
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Economics
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Social Science that analyzes the choices people and govts make in allocating scarce resources.
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Microeconomics
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study of small economic units, such as individual consumers, families, and businesses.
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Macroeconomics
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study of a nation's overall economic issues, such as how an economy maintains and allocates resources and how a government's policies affects the standards of living of its citizens.
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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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Graph of the amount of a 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, regardless of demand.
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Equilibrium Price
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the prevailing market price of which you can buy an item.
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Types of competition
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Pure (Fishing and agriculture)
Monopolistic (Retailing) Oligopoly (steel and cars) Monopoly (Microsoft) |
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Planned Economy
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govt controls determine biz ownership, profits, and resource allocation.
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Mixed Market Economy
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draws from both types of economics. (Most countries in reality). Has a trend of privatization.
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recession
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cyclical economic contraction that lasts for six months or longer.
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productivity
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relationship between the number of units produced and the number of human and other production inputs necessary to produce them.
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Output
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Goods and services produced
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Input
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human/natural resources, capital
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Gross Domestic Product (GDP)
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sum of all goods and services produced within a country's boundaries during a specific time period, such as a year.
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Inflation
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rising prices caused by a combination of excess consumer demand and increases in the costs of raw materials, component parts, human resources, and other factors of production.
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Core inflation rate
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removes energy and food production prices.
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Consumer Price Index (CPI)
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measures the monthly average change in prices of goods and services.
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Monetary Policy
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govt actions to increase or decrease the money supply and change banking requirements and interest rates to influence bankers' willingness to make loans.
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Fiscal Policy
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government spending and taxation decisions designed to control inflation, reduce unemployment, improve the general welfare of citizens, and control economic growth.
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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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National Debt
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Includes budget deficit and all of the borrowing from treasury bills, notes, and bonds to investors.
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Small Business
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firm that is independently owned and operated, is not dominant in its field, and meets industry-specific size standards for income or number of employees.
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Home-based businesses
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Make up half of small businesses.
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Business Plan
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Written document that provides an orderly statement of a company's goals, the methods by which it intends to achieve those goals, and the standards by which it will measure achievement.
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Small Business Administration (SBA)
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federal agency that aids small businesses by providing management training and consulting, financial assistance, and help securing govt contracts. Guarantees Microloans up to $35,000.
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Small Biz Investment Companies (SBIC)
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For Venture Capitalists
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Business Incubator
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organization that provides temporary low-cost, shared facilities to small start-up ventures.
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Franchising
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contractual agreement that specifies the methods by which a dealer can produce and market a supplier's good or service.
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Sole Proprietorship
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form of biz ownership in which the company is owned and operated by one person.
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Partnership
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form of business ownership in which the company is operated by two or more people who are co-owners by voluntary legal agreement.
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Corporations
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business that stands as a legal entity with assets and liabilities separate of its owners.
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Domestic, Foreign, Alien Corporations
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State, Out of State, Out of country
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Stockholders
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person or organization who owns shares of a stock in a corporation.
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Board of directors
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elected governing body of a corporation. (Inside and outside directors)
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Not-for-profit Corporations
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firms pursuing objectives other than returning profits to owners.
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Merger
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combination of two or more firms to form one company
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Acquisition
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procedure in which one firm purchases the property and assumes the obligations of another.
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Collective (co-op)
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Owners join forces to operate all or part of the functions in their industry.
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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 a business.
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Classic Entrepreneurs
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person who identifies a business opportunity and takes the necessary risks to set up and operate a business.
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Serial Entrepreneurs
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person who starts one business, runs it, and then starts and runs additional businesses in succession.
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Social Entrepreneurs
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person who recognizes societal problems and uses business principles to develop innovative solutions.
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lifestyle entrepreneur
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person who starts a business to reduce work hours and create a more relaxed lifestyle.
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Seed Capital
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initial funding needed to launch a new venture
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Debt Financing
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borrowed funds that entrepreneurs must repay.
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equity financing
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funds invested in new ventures in exchange for part ownership.
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venture capitalists
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business firms or groups of individuals that invest in new and growing firms in exchange for an ownership share.
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Angel Investors
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wealthy individuals who invest directly in a new venture in exchange for an equity state.
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Enterprise Zones
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specific geographic areas designated for economic revitalization.
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Intrapreneurship
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process of promoting innovation within the structure of an existing organization.
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Skunkworks
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lets employees conceive an idea and then get the resources from the company to turn it into a commercial project.
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Pacing Programs
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company initiated projects that the company puts people and resources into.
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Management
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process of achieving organizational objectives through people and other resources.
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Top Management
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devote most of their time to developing long-range plans for their organization. (CEOs, CFOs, governors)
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Middle Management
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responsible for developing detailed plans and procedures to implement the firm's strategic plans. (Regional managers, division heads, directors, deans)
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Supervisory Management (First-line)
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directly responsible for assigning non-managerial employees to specific jobs and evaluating their performance.
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Technical Skills
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the manager's ability to understand and use the techniques, knowledge, and tools and equipment of a specific discipline or department. (important for first line managers)
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Human Skills
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Interpersonal skills that enable managers to work effectively with and through people.
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Conceptual Skills
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Determine a manager's ability to see the organization as a unified whole and to understand how each part of the organization interacts with other parts. (important for top managers)
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Planning
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process of anticipating future events and conditions and determining courses of action for achieving organizational objectives.
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Organizing
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the means by which managers blend human and material resources through a formal structure of tasks and authority.
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Directing
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guiding and motivating employees to accomplish organizational objectives.
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Controlling
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the function of evaluating an organization's performance to determine whether it is accomplishing its objective.
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Vision
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Perception of marketplace needs and the methods an organization can use to satisfy them.
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Strategic Planning
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the process of determining the primary objectives of an organization and then acting on and allocating resources to achieve those objectives.
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Tactical Planning
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involves implementing the activities specified by strategic plans.
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Operational Planning
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Creates the detailed standards that guide implementation of tactical plans.
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Contingency Planning
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allows forms to resume operations as quickly and smoothly as possible after a crisis while openly communicating to the public about what happened.
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Mission Statement
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written explanation of an organization's business intentions and aims.
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SWOT Analysis
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an organized approach to assessing a company's internal strengths and weaknesses and its external opportunities and threats.
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Objectives
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guide-points by which managers define the organization's desired performance in such areas as profitability, customer service, growth, and employee satisfaction.
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Competitive Differentiation
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the unique combination of a company's abilities and approaches that set it apart from competitors.
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Decision Making
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process of recognizing a problem or opportunity, evaluating alternative solutions, selecting and implementing an alternative, and assessing the results.
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Programmed Decision
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Involves simple, common and frequently occurring problems for which solutions have already been determined.
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Non-programmed Decision
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involves a complex and unique problem or opportunity with important consequences for the organization.
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Leadership
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ability to direct or inspire people to attain organizational goals.(empathy, self-awareness, objectivity)
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Autocratic Leadership
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Centered on the boss (Theory X)
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Democratic Leadership
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involves and EMPOWERS subordinates in making decisions.
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Empowerment
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Practice in which managers lead employees by sharing power, responsibility, and decision making with them.
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Free-rein leadership
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believe in minimal supervision (theory Y)
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Corporate Culture
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organization's system of principles, beliefs, and values.
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Organization
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structured grouping of people working together to achieve common goals.
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Organization chart
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a visual representation of a firm's structure that illustrates job positions and functions.
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Departmentalization (5 types)
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process of dividing work activities into units within the organization. (product, geographic, customer, functional, process)
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Delegation
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the act of assigning work activities to subordinates.
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Span of management (span of control)
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the number of subordinates a manager supervises.
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Centralization
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retains decision making at lower levels.
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Decentralization
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locates decision making at lower levels.
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Line Organization
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establishes a direct flow of authority from the chief executive to subordinates. Clear Chain of command, Old and simple for quick decision making. Only for small businesses.
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Chain of command
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a set of relationships that indicates who directs which activities and who reports to whom.
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Line and staff organization
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combine the direct flow of authority of a line organization with staff departments that support line management.
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Committee Organizations
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a structure that places authority and responsibility jointly in the hands of a group of individuals rather than a single manager. (Nordstrom)
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Matrix Organization
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Links employees from different parts of the organization to work together on different projects. (NASA, P+G, Dow Chemical)
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