Business #1

Front 1

profit

Back 1

Rewards for businesspeople who take the risks involved to offer goods and services to customers

Front 2

not-for-profit organization

Back 2

Organization that has primary objectives such as public service rather than returning a profit to its owners

Front 3

factors of production

Back 3

Four basic inputs for effective operation: natural resources, capital, human resources, and entrepreneurship

Front 4

natural resources

Back 4

All production inputs that are useful in their natural states, including agricultural land, building sites, forests, and mineral deposits

Front 5

capital

Back 5

Production inputs consisting of technology, tools, information, and physical activities

Front 6

human resources

Back 6

production inputs consisting of anyone who works, including both the physical labor and the intellectual inputs contributed by workers

Front 7

entrepreneurship

Back 7

Willingness to take risks to create and operate a business

Front 8

private enterprise system or capitalism

Back 8

Economic system that rewards firms for their ability to identify and serve the needs and demands of customers

Front 9

competition

Back 9

Battle among businesses for consumer acceptance

Front 10

competitive differentiation

Back 10

Unique combination of organizational abilities, products, and approaches that sets a company apart from competitors in the minds of consumers

Front 11

entrepreneur

Back 11

Person who seeks a profitable opportunity and take the necessary risks to set up and operate a business

Front 12

consumer orientation

Back 12

Business philosophy that focuses first on determining unmet consumer wants and needs and then designing products to satisfy those needs

Front 13

brand

Back 13

Name, term, sign, symbol, design or some combination that identifies the products of one firm and differentiate them from competitors’ offerings

Front 14

relationship management

Back 14

Collection of activities that build and maintain ongoing, mutually beneficial ties with customers and other parties

Front 15

strategic alliance

Back 15

Partnership formed to create a competitive advantage for the businesses involved

Front 16

diversity

Back 16

Blending individuals of different genders, ethnic backgrounds, cultures, religions, ages, and physical and mental abilities to enhance a firm’s chances of success

Front 17

outsourcing

Back 17

Using outside vendors to produce goods or fulfill services and function that were previously handled in house or in country

Front 18

offshoring

Back 18

Relocation of business processes to lower cost locations overseas

Front 19

nearshoring

Back 19

Outsourcing production or services to locations near a firm’s home base

Front 20

vision

Back 20

Ability to perceive marketplace needs and what an organization must do to satisfy them

Front 21

business ethics

Back 21

Standards of conduct and moral values regarding right and wrong actions in the work environment

Front 22

Sarbanes-Oxley Act of 2002

Back 22

Federal legislation designed to deter and punish corporate and accounting fraud and corruption and to protect the interests of works and shareholders through enhanced financial disclosures, criminal penalties on CEOs and FROs who defraud investigators, safeguards for whistleblowers, and establishment of a new regulatory body for public accounting firms

Front 23

conflict of interest

Back 23

Situation in which an employee must choose between a business’s welfare and personal gain

Front 24

integrity

Back 24

Adhering to deeply felt ethical principles in business situations

Front 25

loyalty vs. truth

Back 25

Businesspeople expect their employees to be loyal and to act in the best interests of the company. But when the truth about a company is not favorable, an ethical conflict can arise.

Front 26

whistleblowing

Back 26

Employee’s disclosure to company officials, government authorities, or the media of illegal, immoral, or unethical practices committed by an organization

Front 27

code of conduct

Back 27

Formal statement that defines how an organization expects its employees to resolve ethical issues

Front 28

social responsibility

Back 28

Business’s consideration of society’s well-being and consumer satisfaction, in addition to profits

Front 29

social audit

Back 29

Formal procedure that identifies and evaluates all company activities that relate to social issues such as conservation, employment practices, environmental protection, and philanthropy

Front 30

green marketing

Back 30

A marketing strategy that promotes environmentally safe products and production methods

Front 31

corporate philanthropy

Back 31

Effort of an organization to make a contribution to the communities in which it earns profits

Front 32

product liability

Back 32

The responsibility of manufacturers for injuries and damages caused by their products

Front 33

consumerism

Back 33

Public demand that a business consider the wants and needs of its customers in making decisions

Front 34

discrimination

Back 34

Biased treatment of a job candidate or employee

Front 35

Equal Employment Opportunity Commission

Back 35

This commission was created to increase job opportunities for women and minorities and to help end discrimination based on race, color, religion, disability, gender or national origin in any personnel action

Front 36

demand

Back 36

Willingness and ability of buyers to purchase goods and services

Front 37

supply

Back 37

Willingness and ability of sellers to provide goods and services

Front 38

microeconomics

Back 38

Study of small economic unites, such as individual consumers, families, and businesses

Front 39

macroeconomics

Back 39

Study of a nation’s overall economic issues, such as how an economy maintains and allocates resources and how a government’s policies affect the standards of living of its clients

Front 40

equilibrium price

Back 40

Prevailing market price at which you can buy an item

Front 41

pure competition

Back 41

Market structure in which large numbers of buyers and sellers exchange homogeneous products and no single participant has a significant influence on price

Front 42

planned economy

Back 42

Government controls determine business ownership, profits, and resource allocation to accomplish government goals rather than those set by individual firms

Front 43

socialism

Back 43

Economic system characterized by government ownership and operation of major industries such as communication

Front 44

communism

Back 44

Economic system in which all property would be shared equally by the people of a community under the direction of a strong central government

Front 45

mixed economy

Back 45

Economic system that draws from both types of economies

Front 46

recession

Back 46

Cyclical economic contraction that lasts for six months of longer

Front 47

productivity

Back 47

Relationship between the number of units produced and the number of human and other production inputs necessary to produce them

Front 48

GDP (Gross Domestic Product)

Back 48

Sum of all goods and services produced within a country’s borders during a specific time period

Front 49

inflation

Back 49

Rising prices caused by a combination of excess of consumer demand and increases in the costs of raw materials, component parts, human resources, and other facts of production

Front 50

deflation

Back 50

Opposite of inflation, when prices continue to fall

Front 51

Consumer Price Index (CPI)

Back 51

Measurement of the monthly average change in prices of goods and services

Front 52

monetary policy

Back 52

Government actions to increase or decrease the money supply and change banking requirements and interest rates to influence bankers willingness to make loans

Front 53

fiscal policy

Back 53

Government spending and taxation decisions designed to control inflations, reduce unemployment, improve the general welfare of citizens, and encourage economic growth

Front 54

exports

Back 54

Domestically produced goods and services sold in other countries

Front 55

imports

Back 55

Foreign goods and service purchased by domestic customers

Front 56

absolute advantage

Back 56

Company can maintain a monopoly or that in can produce at a lower cost than any competitor (ex. China and silk production)

Front 57

comparative advantage

Back 57

Company can supply its products more efficiently and at a lower price than it can supply other goods, compared with the outputs of other countries (India and software development)

Front 58

balance of trade

Back 58

Difference between a nations exports and imports (trade surplus/deficit)

Front 59

balance of payments

Back 59

Overall money flows into and out of a country (surplus or deficit)

Front 60

budget

Back 60

Organizations plan for how it will raise and spend money during a given period of time (surplus and deficit)

Front 61

budget

Back 61

Organization’s plan for how it will raise and spend money during a given period of time (surplus and deficit)

Front 62

exchange rate

Back 62

Value of one nation’s currency relative to the currencies of other countries

Front 63

devaluation

Back 63

Reduction in a currency’s value relative to other currencies or to a fixed standard

Front 64

infrastructure

Back 64

Basic systems of communication, transportation, and energy facilities

Front 65

tariff

Back 65

Tax imposed on imported goods

Front 66

quotas

Back 66

Limit set on the amounts of particular products that can be imported

Front 67

dumping

Back 67

Selling products abroad at prices below production costs or below typical prices in the home market to capture market share from domestic competitors

Front 68

embargo

Back 68

Total ban on importing specific products or a total halt to trading with a particular country

Front 69

World Trade Organization (WTO)

Back 69

Monitors GATT agreements and mediates international trade disputes

Front 70

World Bank

Back 70

Organization established by industrialized nations to lend money to less developed countries

Front 71

International Monetary Fund

Back 71

Organization created to promote trade, eliminate barriers, and make short-term loans to member nations that are unable to meet their budgets

Front 72

North American Free Trade Agreement (NAFTA)

Back 72

Agreement among the U.S., Canada, and Mexico to break down tariffs and trade restrictions

Front 73

Countertrade

Back 73

Barter agreement whereby trade between two or more nations involves payment made in the form of local products instead of currency

Front 74

Franchise

Back 74

Contractual agreement in which a franchise gains the right to produce and/or sell the franchisor’s products under that company’s brand name if they agree to certain operating terms

Front 75

Foreign Licensing Agreement

Back 75

International agreement in which one firm allows another to produce or sell its product, use its trademark, patent, or manufacturing processes, in a specific geographical area in return for royalties and other compensation

Front 76

Subcontracting

Back 76

International agreement that involved hiring local companies to produce, distribute, or sell goods or services in a specific country or geographical region

Front 77

Joint Venture

Back 77

Partnership between companies formed for a specific undertaking

Front 78

Global Strategy

Back 78

Offering a standardized, worldwide product and selling it in essentially the same manner throughout a firm’s domestic and foreign markets

Front 79

Multidomestic Strategy

Back 79

Developing and marketing products to serve different needs and tastes of separate national markets