Reading...
Play button
Play button
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;
67 Cards in this Set
- Front
- Back
|
What's the objective of business?
|
To create value
|
|
|
What are the determinants of value?
|
Timing, quantity, and opportunity cost associated with expected future benefits
|
|
|
What are the types of capital?
|
Human capital (people), real capital (assets), and financial capital (equity and debt)
|
|
|
Define revenue
|
the total amount of money a business takes in during a given period by selling goods and services
|
|
|
Define profit
|
the amount of money a business earns above and beyond what it spends for salaries and other expenses
|
|
|
Define loss
|
When a business's expenses are more than its revenue
|
|
|
Define expenses
|
What a business spends on salaries and supplies and overhead
|
|
|
Define risk
|
the chance an entrepreneur takes of losing time and money on a business that may not prove profitable
|
|
|
Value Chains
|
A subset of processes from the entire value system that firm chooses to focus on through its business model
|
|
|
Business Systems
|
Methodical procedure or process, used as a delivery mechanism for providing specific goods or services to customers in a well defined market.
|
|
|
Business System
|
A business model specifies where the firm is positioned in the value system; the larger system that includes the value chains of upstream suppliers and downstream channels and customers.
|
|
|
Relationship of risk and return
|
The bigger the risk, the bigger the return
|
|
|
Macroeconomics
|
looks at the operation of a nation's economy as a whole
|
|
|
Microeconomics
|
looks at the behavior of people and organizations in markets for particular products or services
|
|
|
GDP
|
the total value of final goods and services produced in a country in a given year
|
|
|
GDP
|
C+I+NX+G
|
|
|
unemployment
|
people 16 and above trying to find jobs in the last four weeks and are unable to acquire one
|
|
|
Inflation
|
A general rise in the prices of goods and services over time
|
|
|
demand
|
the quantity of products that people are willing to buy at different prices at a specific time
|
|
|
supply
|
the quantity of products that manufacturers or owners are willing to sell at different prices at a specific time
|
|
|
Market equilibrium
|
where supply and demand meet
|
|
|
free-market economy
|
the market determines which goods and services should be produced
|
|
|
socialism
|
some basic businesses should be controlled by the government so as to distribute wealth more evenly
|
|
|
communism
|
government takes almost complete control over all economic decisions and companies
|
|
|
mixed economies
|
economic system in which some allocation of resources is made by the market and some by the government
|
|
|
fiscal policy
|
the federal's governments efforts to keep the economy stable by increasing or decreasing taxes or government spending
|
|
|
monetary policy
|
the management of the money supply and interest rates by the federal reserve bank
|
|
|
comparative advantage theory
|
theory that states that a country should sell to other countries those products that it produces most effectively and efficiently, and buy the ones it doesnt
|
|
|
imports
|
what a country buys from other countries
|
|
|
exports
|
what a country sells to other countries
|
|
|
balance of payments
|
the difference between the money coming into a country and the money leaving a country plus money flows coming into or leaving a country due to tourism, military expenditures, foreign aid, and foreign investment
|
|
|
exchange rate
|
the value of one nation's currency relative to the value of another
|
|
|
foreign currency
|
money from another country
|
|
|
managed exchange rates
|
the government tries to manage the exchange rate
|
|
|
floating exchange rate
|
currencies float in accordance with supply and demand
|
|
|
fixed exchange rate
|
a currency value is pegged to another counrtry's currency
|
|
|
protectionism
|
the use of government regulations to limit the import of goods and services
|
|
|
dumping
|
selling products in a foreign country at a lower price than those charged in the producing countries
|
|
|
offshore outsourcing
|
the process whereby one firm contracts with other companies in other countries to do all or some of it functions
|
|
|
direct foreign investment
|
the buying of permanent property and businesses in foreign nations
|
|
|
liscensing
|
a global strategy in which a firm allows a foreign company to produce its product in exchange for a fee.
|
|
|
compliance based
|
compliance-based ethics code is avoiding breaking a rule or law, and sees anything that has not been defined by a rule or law as right when there simply may have been no reason yet to create the rule or law.
|
|
|
integrity based
|
an integrity-based ethics code encourages people to think for themselves, and work towards a set of principles by using what they think is right or wrong.
|
|
|
Foreign Corrupt Practices Act
|
criminalized paying foreign government or business leaders to get business
|
|
|
Sole proprietorship
|
a business that is owned and usually managed by one person
|
|
|
partnerships
|
know general and limited
|
|
|
general partner
|
an owner who has unlimited liability and is active in managing the firm
|
|
|
limited partner
|
an who invests money but does not have liability for losses beyond investment or managerial duties
|
|
|
C Corporation
|
A state-chartered legal entity with authority to act and have liability separate from its owners
|
|
|
S corporation
|
A unique government creation that looks like a corporation but is taxes like sole proprietorships and parnetships
|
|
|
cooperative
|
a business owned and controlled by the people who use it- producers, consumers, or workers with similar needs who pool their resources for mutual gain
|
|
|
leveraged buyout (LBO)
|
an attempt by employees, management or a group of investors to purchase an organization primarily through borrowing
|
|
|
entrepreneurship
|
accepting the risk of starting and running a business
|
|
|
business law
|
the rules, statutes, codes, and regulations that provide a legal framework for the conduct of business and that are enforceable by court action
|
|
|
statutory law
|
state and federal constitutions, legislative enactments, treaties of the federal government, and ordinances-in short written law
|
|
|
common law
|
the body of law that comes from decisions handed down by the courts, aka unwritten law
|
|
|
tort law
|
laws against wrongful acts that cause injury to another person's body, property or reputation
|
|
|
civil law
|
covers noncriminal acts like marriage
|
|
|
criminal law
|
defines crime, establishes punishments, and regulates the investigation and prosecution of people accused of committing crimes
|
|
|
sales law (uniform commercial code)
|
a comprehensive commercial law, adopted by every state of the us, that covers sales law and other commercial laws
|
|
|
contract law
|
set of laws that specify what constitutes a legally enforceable agreement
|
|
|
Sherman Antitrust Act 1890
|
forbids contracts or conspiracies in restraint of trade, and the creation of actual monopolies or attempts to monopolize any part of trade or commerce
|
|
|
bankruptcy
|
the legal process by which a business or government entity or person is unable to meet financial obligations and is relieved of those obligations by a court that divides assets among creditors, allowing creditors to get at least a part of what is due and freeing the debtor to be anew
|
|
|
reorganization
|
?
|
|
|
patent
|
gives inventor exclusive rights for 20 years from date of application
|
|
|
copyright
|
protects a creator's rights to materials such as books, articles, photos, paintings, and cartoons
|
|
|
trademark
|
a legally protected name, symbol or design that identifies the goods or services of a seller from their competitors
|
