Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
37 Cards in this Set
- Front
- Back
|
Business |
Individuals or organizations who try to earn a profit by providing products that satisfy people's needs |
|
|
Profit |
The difference between what it costs to make and sell a product, and what a customer pays for it. a. it is the primary goal of the business b. it is the reward for the risks that they take c. to achieve and maintain profitability |
|
|
Product |
A good or service with tangible (physical) and intangible (non-physical) characteristics that provide satisfaction and benefits |
|
|
The people and Activities of Business |
a. Management- the coordination of employees actions to achieve the firm's goals b. Marking- includes all the activities designed to provide goods and services the satisfy consumers' needs and wants c. Finance- refers to all activities concerned with obtaining money and using it effectively |
|
|
Economics |
The study of how resources are distributed for the production of goods and services within a social system a. Natural (land) resources b. Human (labor) resources c. Financial (capital) resources |
|
|
Economic System |
How a particular society distributes its resources to produce goods and services. **A central issue of economics is how to fulfill an unlimited demand for goods and services in a world with a limited supply of resources** |
|
|
Communism |
Described by Karl Marx as a society in which the people, without regard to class, own all the nations resources |
|
|
Socialism |
the government owns and operates basic industries... postal service, telephone, utilities, transportation, healthcare, banking, and some manufacturing but individuals own most businesses |
|
|
Capitalism |
individuals own and operate the majority businesses that provide goods and services |
|
|
Pure Capitalism |
(free-market system)-All decisions are made without government intervention |
|
|
Modified Capitalism |
Government intervenes and regulates businesses to some extent |
|
|
Mixed Economies |
Made up of elements from more than one economic system |
|
|
The forces of Supply and demand |
Demand- the number of goods and services that consumers are willing to buy at different prices Supply- the number of products that businesses are willing to sell at different prices at a specific time |
|
|
Equilibrium |
The point where marketers are willing to sell at and where consumers are willing to buy at the price |
|
|
Expansion (Economic Cycle) |
The economy is growing and people are spending more money |
|
|
Peak- Economy (Economic Cycle) |
Working at its maximum (low unemployment) |
|
|
Contraction (Economic Cycle) |
a slowdown of the economy characterized by decline in spending |
|
|
Trough (Economic Cycle) |
economy is working at its minimum (high unemployment) |
|
|
Gross domestic product |
the sum of all goods and services produced in a country during the year |
|
|
Budget Deficit |
the condition in which a nation spends more than it takes in taxes |
|
|
Budget surplus |
Nation takes in more in taxes than it spends |
|
|
Fundamental goals of bussiness |
Tries to earn a profit by providing a product that benefits people’sneeds |
|
|
Four types of economic systems |
Communism, Socialism, Capitalism , Mixed Economies |
|
|
Federal governments role in the American economy |
Regulatesbusiness to preserve competition and protect consumers and employees |
|
|
Business ethics |
the principles and standards that determine acceptable conduct inbusiness organizations |
|
|
Code of ethics |
the formalized rules that a company expects of its employees |
|
|
Social responsibility |
a business's obligation to maximize its positive impact and minimize its negative impact on society |
|
|
Ethical issue |
an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical |
|
|
Levels of management |
1. top management - CEO 2. middle management- Department managers 3. First-line management- supervisors |
|
|
Sole professorships |
businesses owned and operated by one individual |
|
|
partenerships |
a form of business organization defined by the Uniform Partnership Act an association of two or more persons who carry on as co-owners of a business for profit |
|
|
Corporations |
A legal entity, created by the state, whose assets and liabilities are separated from its owners |
|
|
Management Functions: Planning |
the process of determining the organizations objectives and deciding how to accomplish them |
|
|
Management Functions: organizing |
the structuring of resources activities to accomplish objectives in the efficient and effective manner |
|
|
Management Functions: staffing |
the hiring of people to carry out the work of the organization and includes downsizing |
|
|
Management Functions: directing |
motivating and leading employees to achieve organizational objectives |
|
|
Management Functions: controling |
the process of evaluating and correcting activities to keep the organization on course |
