• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/223

Click to flip

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;

223 Cards in this Set

  • Front
  • Back
Business
an organization that provides goods or services to earn profit.
Profit
the difference between a business's revenues and its expenses.
External Environment
everything outside an organization's boundaries that might affect it.
Domestic Business Environment
the environment in which a firm conducts its operations and drives its revenues.
Global Business Environment
the international forces that affect a business
Technological Environment
all the ways by which firms create value for their constituents.
Political-Legal Environment
the relationship between business and government.
Sociocultural Environment
the customs, mores, values, and demographic characteristics of the society in which an organization functions.
Economic Environment
relevant conditions that exist in the economic system in which a company operates.
Economic System
a nations system for allocating its resources among its citizens.
Factors of Production
resources used in the production of goods and services-labor, capital, entrepreneurs, physical resources, and information resources.
Labor (Human Resources)
physical and mental capabilities of people as they contribute to economic production.
Capital
funds needed to crate and operate a business enterprise.
Entrepreneur
individual who accepts the risks and opportunities involved in creating and operating a new business venture.
Physical Resources
tangible items that organizations use in the conducts of their businesses.
Information Resources
data and other information that businesses use.
Planned Economy
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.
Communism
political system in which the government owns and operates all factors of production.
Market Economy
economy in which individuals control production and allocation decisions through supply and demand.
Market
mechanism for exchange between buyers and sellers of a particular good or service.
Capitalism
system that sanctions the private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive.
Mixed Market Economy
economic system featuring characteristics of both planned and market economies.
Privatization
process of converting government enterprises into privately owned companies.
Socialism
planned economic system in which the government owns and operates only selected major sources of production.
Demand
the willingness and ability of buyers to purchase a good or service.
Supply
the willingness and ability of producers to offer a good or service for sale.
Law of Demand
principle that buyers will purchase (demand) more of a product as its price drops and less as its prices increases.
Law of Supply
principle that producers will offer (supply) more of a product for sale as its price rises and less as its price drops.
Demand and Supply Schedule
assessment of the relationships among different levels of demand and supply at different price levels.
Demand Curve
graph showing how many units of product will be demanded (bought) at different prices.
Supply Curve
graph showing how many unites of a product will be supplied (offered for sale) at a different price.
Market Price (Equilibrium Price)
profit-maximizing price at which the quantity of goods demanded and the quantity of good supplied are equal.
Surplus
situation in which quantity supplied exceeds quantity demanded.
Shortage
situation in which quantity demanded exceeds quantity supplied.
Private Enterprise
economic system that allows individuals to pursue their own interests without undue governmental restriction.
Competition
vying among businesses for the same resources or customers.
Perfect Competition
market or industry characterized by numerous small firms producing an identical product.
Monopolistic Competition
market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors.
Oligopoly
market or industry characterized by a handful of (generally large) sellers with the power to influence the prices of their products.
Monopoly
market or industry in which there is only on producer that can therefore set the prices of its products.
Natural Monopoly
industry in which one company can most efficiently supply all needed goods or services.
Economic Indicator
a statistic that helps assess the performance of an economy.
Business Cycle
short-term pattern of economic expansions and contractions.
Aggregate output
the quantity of goods and services produced by an economic system during a given period.
Standard of Living
the total quantity and quality of goods and services people can purchase with the currency used in their economic system.
Gross Domestic Product (GDP)
total value of all goods and services produced within a given period by a national economy through domestic factors of production.
Gross National Product (GNP)
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.
Real GDP
gross domestic product (GDP) adjusted to account for changes in currency values and price changes.
Nominal GDP
gross domestic product (GDP) measured in current dollars or with all components valued at current prices.
Purchasing Power Party
the principle that exchange rates are set so that the prices of similar products in different countries are about the same.
Productivity
a measure of economic growth that compares how much a system produces with the resources needed to produce it.
Balance of Trade
the economic value of all the products that a country exports minus the economic value of all the products it imports.
National Debt
the amount of money that government owes its creditors.
Stability
condition in which the amount of money available in an economic system and the quantity of good and services produced in it are growing at about the same rate.
Inflation
occurs when widespread price increases occur throughout an economic system.
Consumer Price Index (CPI)
a measure of the prices of typical products purchases by consumers living in urban areas.
Unemployment
the level of joblessness among people actively seeking work in an economic system.
Recession
a period during which aggregate output, as measured by GDP, declines
Depression
a prolonged and deep recession.
Fiscal Policies
policies that a government uses to direct how it collects and spends revenue.
Monetary Policies
policies that a government uses to control the size of its money supply.
Stabilization Policy
government economic policy intended to smooth out fluctuations in output and unemployment and to stabilize prices.
Ethics
beliefs about what is right or wrong and good or bad in actions that affect others.
Ethical Behavior
behavior conforming to generally accepted social norms concerning beneficial and harmful actions.
Unethical Behavior
behavior that does not conform to generally accepted social norms concerning beneficial and harmful actions.
Business Ethics
ethical or unethical behaviors by employees in the context of their jobs.
Managerial Ethics
standards of behavior that guide individual managers in their work.
Social Responsibility
the attempt of a business to balance its commitments to groups and individuals in its environment, including customers, other businesses, employees, investors, and local communities.
Organizational Stakeholders
those groups, individuals, and organizations that are directly affected by the practices of an organization and who therefore have a stake in its performance.
Areas of Social Responsibility
Responsibility towards Environment, Customers, Investors, and Employees.
Greenwashing
using advertising to project a green image without adopting substantive environmentally friendly changes.
Consumerism
form of social activism dedicated to protecting the rights of consumers in their dealing with businesses.
Collusion
illegal agreement between two or more companies to commit a wrongful act.
Green Marketing
the marketing of environmentally friendly goods.
Whistel-Blower
employee who detects and tries to put an end to a company's unethical, illegal, or socially irresponsible actions by publicizing them.
Insider Trading
illegal practice of using special knowledge about a firm for profit or gain.
Obstructionist Stance
approach to social responsibility by which a company meets only minimum legal requirements in its commitments to groups and individuals in its social environment.
Defensive Stance
approach to social responsibility by which a company meets only minimum legal requirements in its commitments to groups and individuals in its social environment.
Accommodative Stance
approach to social responsibility by which a company, if specifically asked to do so, exceeds legal minimums in its commitments to groups and individuals in its social environment.
Proactive Stance
approach to social responsibility by which a company actively seeks opportunities to contribute to the well being of groups and individuals in its social environment.
Social Audit
systematic analysis of a firm's success in using funds earmarked for meeting its social responsibility goals.
Small Business Administration (SBA)
government agency charged with assisting small businesses.
Small Business
independently owned business that has relatively little influence in its market.
Entrepreneur
businessperson who accepts both the risks and the opportunities involved in creating and operating a new business venture.
Entrepreneurship
the process of seeking business opportunities under conditions of risk.
Business Plan
document in which an entrepreneur summarized her or his business strategy for a proposed new venture and how that strategy will be implemented.
Franchise
arrangement in which a buyer (franchisee) purchases the right to sell the good or service of the seller (franchiser).
Venture Capital Company
group of small investors who invest money in companies with rapid growth potential.
Small-Business Investment Company (SBIC)
government-regulated investment company that borrows money from the SBA to invest in or lend to a small business.
Small Business Development Center (SBDC) SBA
program designed to consolidate information from various disciplines and make it available to small businesses.
Sole Proprietorship
business owned and usually operated by one person who is responsible for all of its debts.
Unlimited Liability
legal principle holding owner's responsible for paying off all debts of a business.
General Partnership
business with two or more owners who share in both the operation of the firm and the financial responsibility for its debts.
Limited Partnership
type of partnership consisting of limited partners and a general (or active) partner.
Limited Partner
partner who does not share in a firm's management and is liable for its debts only to the limits of said partner's investment.
General (or active) Partner
partner who actively manages a firm and who has unlimited liability for its debts.
Master Limited Partnership
form of ownership that sells shares to investors who receive profits and that pays taxes on income from profits.
Cooperative
form of ownership in which a group of sole proprietorship's and/or partnerships agree to work together for common benefits.
Corporation
business that is legally considered an entity separate from its owners and is liable for its own debts; owners' liabilities extend to the limits of their investments.
Limited Liability
legal principle holding investors liable for a firm's debts only to the limits of their personal investments in it.
Tender Offer
offer to buy shares made by a prospective buyer directly to a target corporation's shareholders, who then make individual decisions about whether to sell.
Double Taxation
situation in which taxes may be payable both by a corporation on its profits and by shareholders on dividend incomes.
Closely Held (or private) Corporation
corporation whose stock is held by only a few people and is not available for sale to the general public.
Publicly Hold (or public) Corporation
corporation whose stock is widely held and available for sale to the general public.
S Corporation
hybrid of a closely held corporation and a partnership, organized and operated like a corporation but treated as a partnership for tax purposes.
Limited Liability Corporation (LLC)
hybrid of a publicly held corporation and a partnership in which owners are taxed as partners but enjoy the benefits of limited liability.
Professional Corporation
form of ownership allowing professionals to take advantage of corporate benefits while granting them limited business liability and unlimited professional liability.
Mulitnational (or transnational) Corporation
form of corporation spanning national boundaries.
Corporate Governance
roles of shareholders, directors and other managers in corporate decision making and accountability.
Stockholder (or shareholder)
owner of shares of stock in a corporation.
Board of Directors
governing body of a corporation that reports to its shareholders and delegates power to run its day-to-day operations while remaining responsible for sustaining its assets.
Offers
top management team of a corporation.
Chief Executive Offer (CEO)
top manager who is responsible for the overall performance of a coporation.
Strategic Alliance
strategy in which two or more organizations collaborate on a project for mutual gain.
Joint Venture
strategic alliance in which the collaboration involves joint ownership of the new venture.
Merger
the union of two corporations to form a new corporation.
Acquisition
the purchase of one company by another.
Divestiture
strategy whereby a firm sells one or more of its business units.
Spin-off
strategy of setting up one or more coporate units as new independent coporations.
Globalization
process by which the world economy is becoming a single interdependent system.
Import
product made or grown abroad but sold domestically.
Export
product made or grown domestically but shipped and sold abroad.
Distinctions based on wealth
high-income, upper middle-income, lower middle-income, and low-income countries.
North American Free Trade Agreement (NAFTA)
agreement to gradually eliminate tariffs and other trade barriers among the United States, Canada, and Mexico.
European Union (EU)
organization for economic, social and security cooperation among European nations.
Association of Southeast Asian Nations (ASEAN)
organization for economic, political, social, and cultural cooperation among Southeast Asian nations.
General Agreement of Tariffs and Trade (GATT)
international trade agreement to encourage the multilateral reduction or elimination of trade barriers.
World Trade Organization (WTO)
organization through which member nations negotiate trading agreements and resolve disputes about trade policies and practices.
Balance of Trade
economic value of all products a country exports minus the economics value of all products it imports.
Trade Deficit
situation in which a country's imports exceed its exports, creating a negative balance of trade.
Trade Surplus
situation in which a country's exports exceed int imports, creating a positive balance of trade.
Balance of Payments
the flow of all money into or out of a country.
Exchange Rate
rate at which the currency of one nation can be exchanged for the currency of another nation.
Euro
a common currency shared among most of the members of the European Union (excluding Denmark, Sweden, and the United Kingdom)
Absolute Advantage
the ability to produce something more efficiently than any other country.
Comparative Advantage
the ability to produce some products more efficiently than others.
National Competitive Advantage
international competitive advantage stemming from a combination of factor conditions, demand conditions, related & supporting industries, & firm strategies, structures & rivalries.
Outsourcing
the practice of paying suppliers and distributors to perform certain business processes or to provide needed materials or services.
Offshoring
the practice of outsourcing to foreign countries.
Exporter
firm that distributes and sells products to one or more foreign countries.
Importer
firm that buys products in foreign markets and then imports them for resale in its home country
International Firm
firm that conducts a significant portions of its business in foreign countries.
Multinational Firm
fim that designs, produces, and markets products in many nations.
Independent Agent
foreign individual or organization that agrees to represent an exporter's interests.
Licensing Arrangement
arrangement in which firms choose foreign individuals or organization to manufacture or market their products in another country.
Branch Office
foreign office set up by an internation or multinational firm.
Strategic Alliance
arrangement (also called joint venture) in which a company finds a foreign partner to contribute approximately half of the resources needed to establish and operate a new business in the partner's country.
Foreign Direct Investment (FDI)
arrangement in which a firm buys or establishes tangible assets in another country.
Quota
restriction on the number of products of a certain type that can be imported into a country.
Embargo
government order banning exportation and/or importation of a particular product or all products from that country.
Tariff
tax levied on imported products.
Subsidy
government payment to help a domestic business compete with foreign firms.
Protectionism
practice of protecting domestic business against foreign competition.
Local Content Law
law requiring that products sold in a particular country be at least partly made there.
Business Practice Law
law or regulation governing business practices in given countries.
Cartel
association of producers whose purpose is to control supply and prices.
Dumping
practice of selling product abroad for less than the cost of production.
Management
process of planning, organizing, leading, and controlling an organization's resources to achieve its goals.
Planning
management process of determining what an organization needs to do and how best to get it done.
Organizing
management process of determining how best to arrange an organization's resources and activities into a coherent structure.
Leading
management process of guiding and motivating employees to meet an organization's objectives.
Controlling
management process of monitoring an organization's performance to ensure that it is meeting its goals.
Top Manager
manager responsible for a firm's overall performance and effectiveness.
Middle Manager
manager responsible for implementing the strategies and working toward the goals set by top managers.
First-Line Manager
manager responsible for supervising the work of employees.
Technical Skills
skills needed to perform specialized tasks.
Human Relations Skills
skills in understanding and getting along with people.
Conceptual Skills
abilities to think in the abstract, diagnose and analyze different situation, and see beyond the present situation.
Decision-making Skills
skills in defining problems and selecting the best courses of action.
Time Management Skills
skills associated with the productive use of time.
Strategic Management
process of helping an organization maintain an effective alignment with its environment.
Goal
objective that a business hopes and plans to achieve.
Strategy
broad set of organizational plans for implementing the decision made for achieving organizational goals.
Mission Statement
organization's statement of how it will achieve its purpose in the environment in which it conducts its business.
Long-Term Goal
goal set for an extended time, typically five years or more into the future.
Intermediate Goal
goal set for a period of one to five years into the future.
Short-Term Goal
goal set for the very near future.
Corporate Strategy
strategy for determining a firm's overall attitude toward growth and the way it will manage its businesses or product lines.
Business (or competitive) strategy
strategy, at the business-unit or product-line level, focusing on improving a firm's competitive position.
Functional Strategy
strategy by which managers in specific areas decide how best to achieve corporate goals through productivity.
Strategy Formulation
creation of a broad program for defining and meeting an organization's goals.
Strategic Goal
goal derived directly from a firm's mission statement.
SWOT Analysis
identification and analysis of organizational strengths and weaknesses and environmental opportunities and threats as part of strategy formulation.
Environmental Analysis
process of scanning the business environment for threats and opportunities.
Organizational Analysis
process of analyzing a firm's strengths and weaknesses.
Strategic Plan
plan reflecting decisions about resource allocations, company priorities, and steps needed to meet strategic goals.
Tactical Plan
generally short-term plan concerned with implementing specific aspects of a company's strategic plans.
Operational Plan
plan setting short-term targets for daily, weekly, or monthly performance.
Contingency Planning
identifying aspects of a business or its environment that might entail changes in strategy.
Crisis Management
organization's methods for dealing with emergencies.
Corporate Culture
the shared experiences, stories, beliefs, and norms that characterize and organization.
Organizational Structure
specification of the jobs to be done within an organization and the ways in which they relate to one another.
Organization Chart
diagram depicting a company's structure and showing employees where they fit into its operations.
Chain of Command
reporting relationships within a company.
Job Specialization
the process of identifying the specific jobs that need to be done and designating the people who will perform them.
Departmentalization
process of grouping jobs into logical units.
Profit Center
separate company unit responsible for its own costs and profits.
Product Departmentalization
dividing an organization according to specific products or services being created.
Process Departmentalization
the dividing of an organization according to production processes used to create a good or service.
Functional Departmentalization
the dividing of an organization according to groups' functions or activities.
Customer Departmentalization
the dividing of an organization to offer products and meet needs for identifiable customer groups.
Geographic Departmentalization
the dividing of an organization according to the areas of the country or the world served by a business.
Centralized Organization
organization in which most decision-making authority is held by upper-level management.
Decentralized Organization
organization in which a great deal of decision-making authority is delegated to levels of management at points below the top.
Flat Organizational Structure
characteristic of decentralized companies with relatively few layers of management.
Tall Organizational Structure
characteristic of centralized companies with multiple layers of management.
Span of Control
number of people supervised by one manager.
Delegation
process though which a manager allocates work to subordinates.
Responsibility
duty to perform an assigned task.
Authority
power to make the decisions necessary to complete a task.
Accountability
obligation employees have to their manager for the successful completion of an assigned task.
Line Authority
department directly linked to the production and sales of a specific product.
Staff Authority
authority based on expertise that usually involves counseling and advising line managers.
Staff Members
advisers and counselors who help the department in making decisions, but do not have the authority to make final decisions.
Committee and Team Authority
authority granted to committees or teams involved in a firm's daily operations.
Work Teams
groups of operating employees who are empowered to plan and organize their own work and to perform that work with a minimum of supervision.
Functional Structure
organization structure in which authority is determined by the relationships between group functions and activities.
Divisional Structure
organizational structure in which corporate division operate as autonomous businesses under the larger corporate umbrella.
Division
department that resembles a separate business in that it produces and markets its own products.
Matrix Structure
organizational structure created by superimposing one form of structure onto another.
International Organizational Structures
approaches to organizational structure developed in response to the need to manufacture, purchase, and sell in global markets.
Informal Organization
network, unrelated tot he firm's formal authority structure, of everyday social interactions among company employees.
Intrapreneuring
process of creating and maintaining the inoovation and flexibility of a small business environment within the confines of a large organization.