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64 Cards in this Set
- Front
- Back
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goods
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tangible products
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services
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intangible products
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entrepreneur
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a person who risks time and money to start and manage a business
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revenue
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the total amount of money a business takes in during a given period by selling goods and services
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profit
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when the company earns more than it spent
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loss
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when a company's expenses are more than revenues
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risk
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the chance an entrepreneur takes of losing time and money on a business that may not prove profitable
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standard of living
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the amnt of goods and services ppl can buy with the money they have
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quality of life
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general well being of a society in terms of political freedom, natural environment, education, safety, leisure..ect
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stake holders
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all the ppl who stand to gain/lose by activities of a business
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outsourcing
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contracting with other companies in other countries to do some/all functions in a firm
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non profit organization
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an org whose goals dont include making a profit for the owners
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entrepreneurship
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equals more freedom and more risks
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5 FACTORS of production
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1. Land
2. Labor 3. Capital 4. Entrepreneurship 5. Knowledge Entrepreneurship and knowledge are most important for making wealth |
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business environment
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the surrounding factors that help/hinder a business
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5 Elements of a business environment
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1. The economic and legal envmnet
2. technological envment 3. competetive e-ment 4. social e-ment 5. global business e-ment |
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empowerment
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giving more employees the responsibility, authority, freedom and training they need to respond to customers requests
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demography
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the statistical study of human pop with regard to its sizre, density, age, race ECT
Ex: ppll 65 to 75 are richest demographic group in US |
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globalization
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world trade
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greening
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the trend of saving energy and produceing products that are less harmful to the environment
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economics
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the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals
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MACRo economics
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economics study that looks at the operation of a nations economy as a whole
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MICRO economics
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economics study that looks at te behavor of ppl and organizations in particular markets
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Adam smith believed..
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ppl will work if there is an incentive.. he is the FATHER of modern economics
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invisible hand
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when businesses go out to help themselves yet end up helping the economy too
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capitalism
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an economic system in which all or most of the factors of production and distribution are privately owned and operated for profit
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UNDER free market capitalism ppl have 4 basic rights
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1. the right to own private property
2. the right to own a business and keep all profits 3. the right to freedom of competition 4 the right to freedom of choice |
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equilibrium point
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where the supply and demand curves meet..
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perfect competition
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then there are many sellers and none is large enough to dictate price (apples)
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monopolistic competition
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lots of sellers make very similar products that buyers still perceive as diferent ( soda, computers)
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oligopoly
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a few sellers dominate the market, cus its expensive to start things
(aircraft, gasoline) |
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monopoly
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one seller controls the total supply of a product or service and sets the pric. Ex: electric power.
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Benefits of free markets
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encourages business to be more efficient, helps poor people become rich, allows competition
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Limitations of free markets
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managers have more wealth than lower level workers, ppl become greedy and lie about stock
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socialism
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most busineses are owned by govt so profits can be better distributed amg the ppl.
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benefits of socialism
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social equality, free college, free health care, more employee benefits
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negative sides of socialism
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doctors, lawyers ect LEAve cus of high taxes, less inventions, less innovation, unmotivated ppl
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COmmunism
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govt makes almost all economic decisions and owns almost all factors of production
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negative sides of communism
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shortages in food, ppl cant move change jobs or religions.. they r very controlled. businesses r unmotivated
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free market economy
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the market chooses what goods and services get produced
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command economy
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govt largely decided wat gets made
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mixed economy
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some choice by govt, some by the market
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gross domestic product (GDP)
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an economic indicator. the total value of final goods and services produced in a country in a given year.
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enemploymnt rate
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economic indicator - the number of civilians at least 16 who r jobless and looked for a job withing 4 weeks
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types of unemployment
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frictional: ppl who quit
cyclical: recession structural: mismatch of job seasonal: ex harversting crops. |
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stagflation
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prices rising in a slow economy
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consumer price index (CPI)
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monthly statistics that measure the pace of inflation/deflation
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producer price index (PPI)
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index that measures prices at a wholesale level
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busines cycle
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the periodic rises and falls that happen in economies over time
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fiscal policy
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federal govts efforts to keep economy stable by increasing/ decreasing taxes or govt spending
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Keynesian economic policy
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they theory that increasing govt spending and cutting taxes will stimulate economy out of a recession
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comparative advantage theory
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a country should sell stuff they are good at making and buy ones they r bad at making.
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absolute advantage
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a monopoly at making shit over other countries (oil, ect, coffee)
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dumping
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selling products at a lower price than u wud in ur own contry
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balance of payments
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the dif btween money coming in/ going out of a contry..from exporting and importing
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strategic alliances
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dont share prfits, unlike joint ventures
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foreign direct investments
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buying permanant propertyand bsineses in foriegn nations
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foreign subsidiary
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a form of foreign direct investment, parent company buys a business in another country and the subsidiary must follow laws of parent company.
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sovereign wealth funds (SWFs)
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investment finds controlled by govts holding large stakes in foreign companies.
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bartering
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the exhcange of merchandise or services FOr servies. no money traded
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countertrading
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a complex form of bartering
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general agreement on Tariffs and Trade (GATT)
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a 1948 agreement that made an international forum for making reductions in trade restrictions
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world trade org (WTO)
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the org that replaced GATT
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common market
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contries w/ common export and import tarifs to facilitate trade like the EU
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