Intro To Business Ch. 1-4

Front 1

Capital

Back 1

funds needed to create and operate a business enterprise

Front 2

Planned economy

Back 2

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 3

Market Economy

Back 3

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

Front 4

Market

Back 4

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

Front 5

Capitalism

Back 5

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

Front 6

Mixed Market Economy

Back 6

economic system featuring characteristics of both planned and market economies

Front 7

Law of Demand

Back 7

principle that buyers will purchase (demand) more of a product for sale as its price rises and less as its price drops

Front 8

Law of Supply

Back 8

principle that producers will offer (supply) more of a product for sale as its price rises and less as its price drops

Front 9

Market Price (Equilibrium price)

Back 9

profit-maximizing price at which the quantity of goods demanded and the quantity of goods supplied are equal

Front 10

Consumer Price Index (CPI)

Back 10

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

Front 11

Ethical Behavior

Back 11

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

Front 12

Social Responsibility

Back 12

the attempt of a business to balance its commitments to groups and in its environment, including customers, other businesses, employees, investors, and local communities

Front 13

Organizational Skateholders

Back 13

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

Front 14

Consumerism

Back 14

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

Front 15

Collusion

Back 15

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

Front 16

Whistle Blower

Back 16

employer who detects and tries to put an end to a company's unethical, illegal, or socially irresponsible actions by publicizing them

Front 17

Insider Trading

Back 17

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

Front 18

Regulation

Back 18

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

Front 19

Lobbying

Back 19

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

Front 20

Political Action Committees (PACs)

Back 20

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

Front 21

Small Business

Back 21

independently owned business that has relatively little influence in its market

Front 22

Entrepreneur

Back 22

1) individual who accepts the risks and opportunities involved in creating and operating a new business venture

2) business person who accepts both the risks and the opportunities involved in creating and operating a new business venture

Front 23

S Corporation

Back 23

hybrid of a closely held corporation and a partnership, organized, and operated like a corporation but treated as a partnership for tax purposes

Front 24

Multinational

Back 24

Firm- firm that designs, produces, and markets products in many nations

Corporation- form of corporation spanning national boundaries

Front 25

Sole Proprietorship

Back 25

business owned and usually operated by one person who is responsible for all of its debts

Front 26

General Partnership

Back 26

business with two or more owners who share in both the operation of the firm and the financial responsibility for its debts

Front 27

Limited Partnership

Back 27

type of partnership consisting of limited partners and a general (for managing) partner

Front 28

Cooperative

Back 28

form of ownership in which a group of sole proprietorships or partnerships agree to move together for common benefits

Front 29

Corporation

Back 29

business that is legally considered an entity seperate from its owners and is liable for its own debts; owners liability extends to the limits of their investments

Front 30

Limited Liability Corporation

Back 30

hybrid of a publicity held corporation and a partnership in which owners are taxed as partners but enjoy the benefits of limited liability

Front 31

Globalization

Back 31

Process by which the world economy is becoming a single interdependent system

Front 32

Import

Back 32

Product made or grown abroad but sold domestically

Front 33

Export

Back 33

Product made or grown domestically but shipped and sold abroad

Front 34

North American Free Trade Agreement (NAFTA)

Front 35

European Union (EU)

Back 35

Agreement among major European nations to eliminate or make uniform most trade barriers affecting group members

Front 36

Exchange Rate

Back 36

1) rate at which the currency of one nation can be exchanged for the currency of another nation

2) the value of one currency compared to the value of another

Front 37

National Competitive Advantage

Back 37

international competitive advantage stemming from a combination of factor conditions, demand conditions, related and supporting industries, and firm strategies, structures, and rivalries

Front 38

Outsourcing

Back 38

The practice of paying suppliers and distributors to perform certain business process or to provide needed material or services

Front 39

Offshoring

Back 39

The practice of outsourcing to foreign countries

Front 40

Strategic Alliance

Back 40

Agreement (also called joint venture) in which company finds a forgein partner to contribute approximately half of the resources needed to establish and operate a new business in the partner's country