General Business 140

Front 1

Business

Back 1

organization that provides goods or services to earn profits

Front 2

Profits

Back 2

difference between a business's revenues and its expenses

Front 3

External Environment

Back 3

everything outside an organization's boundaries that might affect it

Front 4

Domestic Business Environment

Back 4

the environment in which a firm conducts its operations and derives its revenues

Front 5

Global Business Environment

Back 5

the international forces that affect a business

Front 6

Technological Environment

Back 6

ways by which firms create value for their constituents

Front 7

Polotical-Legal Environment

Back 7

the relationship between business and government

Front 8

Sociocultural Environment

Back 8

the customs, morals,values, and demographic characteristics of a society in which an organization functions

Front 9

Economic Environment

Back 9

relevant conditions that exist in the economic system in which a company operates

Front 10

Economic System

Back 10

resources used in the production of goods and services

Front 11

Labor

Back 11

physical and mental capabilities of people as thye contribute to economic production

Front 12

Capital

Back 12

funds needed to create and operate a business enterprise

Front 13

Entrepreneur

Back 13

individual who accepts the risks and oppurtunities involved in creating a new business venture

Front 14

Physical Resources

Back 14

tangible items that organizations use in the conduct of their business

Front 15

Information Resources

Back 15

data and other information used by businesses

Front 16

Planned Economy

Back 16

economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions

Front 17

Market Economy

Back 17

economy in which individuals control production and allocation decisions through supply and demand

Front 18

Communism

Back 18

political system in which the government owns and operates all factors of production

Front 19

Market

Back 19

mechanism for exchange between buyers and sellers of a particular good or service

Front 20

Capitalism

Back 20

system that sanctions the private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive

Front 21

Mixed Market Economy

Back 21

economic system featuring characteristics of both planned and market economics

Front 22

Privatization

Back 22

process of converting government enterprises into privately owned companies

Front 23

Socialism

Back 23

planned economic system in which the government owns and operates only selected major sources of production

Front 24

Demand

Back 24

the willingness and ability of buyers to purchase a good or service

Front 25

Supply

Back 25

the willingness and ability of producers to offer a good or service for sale

Front 26

Law of Demand

Back 26

principle that buyers will purchase more of a product as its price drops and less as its price increases

Front 27

Law of Supply

Back 27

principle that producers wil offer more of a product for sale as its prices rises and less as its price drops

Front 28

Demand and Supply Schedule

Back 28

assessment of the relationships among different levels of demand and supply at different price levels

Front 29

Demand Curve

Back 29

graph showing how many units of a product will be demanded at different prices

Front 30

Supply Curve

Back 30

graph showing how many units of a product will be supplied at different prices

Front 31

Market-Price

Back 31

profit-maximizing price at which the quantity of goods dema nded and the quantity of goods supplies are equal

Front 32

Surplus

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situation in which quantity supplied exceeds quantity demanded

Front 33

Shortage

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situation in which quantity demanded exceeds quantity supplied

Front 34

Private Enterprise

Back 34

economic system that allows individuals to pursue their own interests without undue government restriction

Front 35

Competition

Back 35

vying among businesses for the same resources or customers

Front 36

Perfect Competition

Back 36

market or industry characterized by numerous small firms producing an identical product

Front 37

Monopolistic Competition

Back 37

market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors

Front 38

Oligopoly

Back 38

market or industry characterized by a handful of sellers with the power to influence the prices of their products

Front 39

Monopoly

Back 39

market or industry in which there is only one producer that can therefore set the prices of it products

Front 40

Natural Monopoly

Back 40

industry in which one company can most efficiently supply all needed goods or services

Front 41

Economic Indicator

Back 41

a statistic that helps assess the performance of an economy

Front 42

Business Cycle

Back 42

short-term pattern of economic expansions and contractions

Front 43

Aggregate Output

Back 43

the total quanity of goods and services produced by an economic system during a given period

Front 44

Standard of Living

Back 44

the total quantity and quality of goods and services people can purchase with the currency used in their economic system

Front 45

GDP

Back 45

total value of all goods and services produced within a given period by a national economy through domestic factors of production

Front 46

GNP

Back 46

total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located

Front 47

GDP Per Capita

Back 47

gross domestic product divided by total population

Front 48

Real GDP

Back 48

GDP adjusted to account for changes in currency values and price charges

Front 49

Nominal GDP

Back 49

GDP measured in current dollars or with all compenents valued at current prices

Front 50

Purchasing Power Parity

Back 50

the principle that exchange rates are set so that the prices of similar products in different countries are about the same

Front 51

Productivity

Back 51

a measure of economic growth that compares how much a system produces with the resources needed to produce it

Front 52

Balance of Trade

Back 52

the economic value of all products that a country exports minus te economic value of all the products it imports

Front 53

National Debt

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the amount of money the government owes all its creditors

Front 54

Stability

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condition in which the amount of money available in an aconomic system and the quantity of goods and services produced in it are growing at about the same rate

Front 55

Inflation

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occurs when widespread price increases occur throughout an economic system

Front 56

CPI

Back 56

a measured of the prices of typical products purchased by consumers living in urban areas

Front 57

Unemployment

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the level of joblessness among people actively seeking work in an economic system

Front 58

Recession

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a period in which aggregate output declines

Front 59

Depression

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a prolonged and deep recession

Front 60

Fiscal Policies

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policies used by a government regarding how it collects and spends revenue

Front 61

Monetary Policies

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policies used by a government to control the size of its money supply

Front 62

Stabilization Policy

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government economic policy intended to smooth out fluctuations in output and unemployment and to stabilize prices

Front 63

Ethics

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beliefs about what is right and wrong or good and bad in actions that affect others

Front 64

Ethical Behaviors

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behavior conforming in generally accepted social norms concerning beneficial and harmful actions

Front 65

Unethical Behaviors

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behavior that does not conform to generally accepted social norms concering beneficial and harmful actions

Front 66

Business Ethics

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ethical or unethical behaviors by employees in the context of their jobs

Front 67

Managerial Ethics

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standards of behavior that guide individual managers in their work

Front 68

Social Responsibilty

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the attempt of a business to balance its commitments to groups and individuals in its environment

Front 69

Organizational Stakeholders

Back 69

those groups that are directly affected by the practices of an organization and who therefore have a stake in its performance

Front 70

Consumerism

Back 70

form of social activism dedicated to protecting the rights of consumers in their dealings with businesses

Front 71

Collusion

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illegal agreement between two or more companies to commit a wrongful act

Front 72

`Whistle-Blower

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employee who detects and tries to put an end to a companys unethical, illegal, or socially irresponsible by publisizing them

Front 73

Insider Trading

Back 73

illegal practice of using special knowledge about a firm for a profit or gain

Front 74

Obstructionist Stance

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approach social responsibility that involves doing as little as possible and may involve attempts to deny or cover up violations

Front 75

Defensive Stance

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approach to social responsibility by which a company meets only minimum legal requirements in its commitments to groups and individuals in its social environment

Front 76

Accommodative Stance

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approach to social responsibility by which a company exceeds legal minimums in its commitments to groups and individuals in its social environment

Front 77

Proactive Stance

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approach to social responsibility by which a company actively seeks oppurtunities to contribute to the well-being of groups and individuals in its social environment

Front 78

Regulation

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the establishment of laws and rules that dictate what organizations can and cannot do

Front 79

Lobbying

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the use of persons or groups to formally represent an organization or group or organizations before political bodies

Front 80

PAC's

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special organizations created to solicit money and then distribute it to political candidates

Front 81

Legal Compliance

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the extent to which the organization conforms to local, state, federal and international laws

Front 82

Ethical Compliance

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the extent to which the members of the organization follow basic ethical standards of behavior

Front 83

Philanthropic Giving

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the awarding of funds or gifts to charities or other worthy causes

Front 84

Corporate Social Audit

Back 84

systematic analysis of a firm's success in using funds earmarked for meeting its social responsibility goals

Front 85

Smal Business Administration

Back 85

government agency charged with assisting small businesses

Front 86

Small Business

Back 86

independently owned business that has relatively little influence in its market

Front 87

Entrepreneur

Back 87

businessperson who accepts both the risks and oppurtunities involved in creating and operating a new business venture

Front 88

Entrepreneurship

Back 88

the process of seeking business oppurtunities under conditions of risk

Front 89

Established Market

Back 89

one in which many firms compete according to relatively well-defined criteria

Front 90

Niche

Back 90

a segment of a market that is not currently being exploited

Front 91

First-Mover Advantage

Back 91

any advantage that comes to a firm because it explains an opportunity before any other firm does

Front 92

Business Plan

Back 92

document in which the entrepreneur summarizes his or her business strategy for the proposed new venture and how that strategy will be implemented

Front 93

Franchise

Back 93

arrangement in which a buyer purchases the right to sell the good or service of the seller

Front 94

Venture Capital Company

Back 94

group of small investors who invest money in companies with rapid growth potential

Front 95

Small Busines Investment Company

Back 95

government regulated investment company that borrows money from the SBA to invest in or lend to a small business

Front 96

Small Business Development Center

Back 96

SBA program designed to consolidate information from various disciplines and make it available to small businesses