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433 Cards in this Set
- Front
- Back
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Market Price |
the price at which the quantity demanded is exactly equal to the quantity supplied |
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Service Economy |
an economy in which more effort is devoted to the production of services than to the production of goods |
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Free Enterprise |
the system of business in which individuals are free to decide what to produce, how to produce it, and at what price to sell it |
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Productivity |
the average level of output per worker per hour |
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Supply |
the quantity of a product that producers are willing to sell at each of various prices |
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Gross Domestic Product GDP |
the total dollar value of all goods and services produced by all people within the boundaries of a country during a one-year period |
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Perfect (or Pure) Competition |
the market situation in which there are many buyers and sellers of a product, and no single buyer or seller is powerful enough to affect the price of that product |
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Economics |
the study of how wealth is created and distributed |
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Deflation |
a general decrease in the level of prices |
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Consumer Products |
goods and services purchased by individuals for personal consumption |
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Sustainability |
creating and maintaining the conditions under which humans and nature can exist in productive harmony while fulfilling the social, economic, and other requirements of present and future generations |
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Unemployment Rate |
the percentage of a nation's labor force unemployed at any time |
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Monetary Policies |
Federal Reserve's decisions that determine the size of the supply of money in the nation and the level of interest rates |
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Microeconomics |
the study of the decisions made by individuals and businesses |
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Federal Deficit |
a shortfall created when the federal government spends more in a fiscal year than it receives |
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Standard of Living |
a loose, subjective measure of how well off an individual or a society is, mainly in terms of want satisfaction through goods and services |
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Oligopoly |
a market (or industry) in which there are few sellers |
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Business |
the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs |
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Monopolistic Competition |
a market situation in which there are many buyers along with a relatively large number of sellers who differentiate their products from the products of competitors |
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Producer Price Index PPI |
an index that measures prices that producers receive for their finished goods |
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Mixed Economy |
an economy that exhibits elements of both capitalism and socialism |
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Economy |
the way in which people deal with the creation and distribution of wealth |
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Specialization |
the separation of a manufacturing process into distinct tasks and the assignment of the different tasks to different individuals |
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Stakeholders |
all the different people or groups of people who are affected by an organization's policies, decisions, and activities |
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Product Differentiation |
the process of developing and promoting differences between one's products and all competitive products |
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Factory System |
a system of manufacturing in which all the materials, machinery, and workers required to manufacture a product are assembled into one place |
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Consumer Price Index CPI |
a monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area |
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Barter |
a system of exchange in which goods or services are traded directly for other goods or services without using money |
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Inflation |
a general rise in the level of prices |
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Entrepreneur |
a person who risks time, effort, and money to start and operate a business |
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Macroeconomics |
the study of the national economy and the global economy |
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Competition |
rivalry among businesses for sales to potential customers |
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Demand |
the quantity of a product that buyers are willing to purchase at each of various prices |
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Recession |
two or more consecutive three-month periods of decline in a country's GDP (Gross Domestic Product) |
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Depression |
a severe recession that lasts longer than a typical recession and has a larger decline in business activity when compared to a recession |
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Market Economy |
an economic system in which businesses and individuals decide what to produce and buy, and the market determines quantities sold and prices |
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Social Media |
the online interaction that allows people and businesses to communicate and share ideas, personal information, and information about products or services |
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Profit |
what remains after all business expenses have been deducted from sales revenue Sales Revenue - Business Expenses |
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Monopoly |
a market (or industry) with only one seller, and there are barriers to keep other firms from entering the industry |
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Capitalism |
an economic system in which individuals own and operate the majority of businesses that provide goods and services |
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Command Economy |
an economic system in which the government decides what goods and services will be produced, how they will be produced, for whom available goods and services will be produced, and who owns and controls the major factors of production |
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Domestic System |
a method of manufacturing in which an entrepreneur distributes raw materials to various homes, where families process them into finished goods to be offered for sale by the merchant entrepreneur |
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Invisible Hand |
a term created by Adam Smith to describe how an individual's personal gain benefits others and a nation's economy |
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Business Cycle |
the recurrence of periods of growth and recession in a nation's economic activity |
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Factors of Production |
resources used to produce goods and services |
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Fiscal Policy |
government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending |
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National Debt |
the total of all federal deficits |
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Cultural (or Workplace) Diversity |
differences among people in a workforce owing to race, ethnicity, and gender |
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Happiness |
love |
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Whistle-blowing |
informing the press or government officials about unethical practices within one's organization |
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Social Responsibility |
the recognition that business activities have an impact on society and the consideration of that impact in business decision making |
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Code of Ethics |
a guide to acceptable and ethical behavior as defined by the organization |
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Economic Model of Social Responsibility |
the view that society will benefit most when business is left alone to produce and market profitable products that society needs |
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Equal Employment Opportunity Commission EEOC |
a government agency with the power to investigate complaints of employment discrimination and the power to sue firms that practice it |
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Ethics |
the study of right and wrong and of the morality of the choices individuals make |
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Sarbanes-Oxley Act of 2002 |
provides sweeping (new) legal protection for employees who report corporate misconduct |
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Caveat Emptor |
a Latin phrase meaning "let the buyer beware" |
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Minority |
a racial, religious, political, national, or other group regarded as different from the larger group of which it is a part and that is often singled out for unfavorable treatment |
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Social Audit |
a comprehensive report of what an organization has done and is doing with regard to social issues that affect it |
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Affirmative Action Program |
a plan designed to increase the number of minority employees at all levels within an organization |
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Socioeconomic Model of Social Responsibility |
the concept that business should emphasize not only profits but also the impact of its decisions on society |
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Business Ethics |
the application of moral standards to business situations |
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Pollution |
the contamination of water, air, or land through the actions of people in an industrialized society |
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Hard-core Unemployed |
workers with little education or vocational training and a long history of unemployment |
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Consumerism |
all activities undertaken to protect the rights of consumers |
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Foreign-Exchange Control |
a restriction on the amount of a particular foreign currency that can be purchased or sold |
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Import Quota |
a limit on the amount of a particular good that may be imported into a country during a given period of time |
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Trade Deficit |
a negative balance of trade |
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Balance of Payments |
the total flow of money into a country minus the total flow of money out of that country over some period of time Total Flow $ into country - $ out of country |
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Licensing |
a contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation |
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Strategic Alliance |
a partnership formed to create competitive advantage on a worldwide basis |
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Embargo |
a complete halt to trading with a particular nation or in a particular product |
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International Business |
all business activities that involve exchanges across national boundaries |
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Balance of Trade |
the total value of a nation's exports minus the total value of its imports over some period of time Total Value Exports - Total Value Imports |
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Countertrade |
an international barter transaction |
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World Trade Organization WTO |
powerful successor to GATT (General Agreement on Tariffs and Trade)that incorporates trade in goods, services, and ideas |
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Comparative Advantage |
the ability to produce a specific product more efficiently than any other product |
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Import Duty Tariff |
a tax levied on a particular foreign product entering a country |
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Exporting |
selling and shipping raw materials or products to other nations |
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Trading Company |
provides a link between buyers and sellers in different countries |
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Multilateral Development Bank MDB |
an internationally supported bank that provides loans to developing countries to help them grow |
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General Agreement on Tariffs and Trade GATT |
an international organization of 159 nations dedicated to reducing or eliminating tariffs and other barriers to world trade |
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Absolute Advantage |
the ability to produce a specific product more efficiently than any other nation |
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Bill of Lading |
document issued by a transport carrier to an exporter to prove that merchandise has been shipped |
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Multinational Enterprise |
a firm that operates on a worldwide scale without ties to any specific nation or region |
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Dumping |
exportation of large quantities of a product at a price lower than that of the same product in the home market |
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Currency Devaluation |
the reduction of the value of a nation's currency relative to the currencies of other countries |
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International Monetary Fund IMF |
an international bank with 188 member nations that makes short-term loans to developing countries experiencing balance-of-payment deficits |
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Economic Community |
an organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies |
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Letter of Credit |
issued by a bank on request of an importer stating that the bank will pay an amount of money to a stated beneficiary |
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Nontariff Barrier |
a nontax measure imposed by a government to favor domestic over foreign supplies |
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Export-Import Bank of the United States |
an independent agency of the U.S. government whose function is to assist in financing the exports of American firms |
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Draft |
issued by the exporter's bank, ordering the importer's bank to pay for the merchandise, thus guaranteeing payment once accepted by the importer's bank |
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Importing |
purchasing raw materials or products in other nations and bringing them into one's own country |
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Corporate Officers |
the chairman of the board, president, executive vice presidents, corporate secretary, treasurer, and any other top executive appointed by the board of directors |
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Merger
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the purchase of one corporation by another |
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Dividend |
a distribution of earnings to the stockholders of a corporation |
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Board of Directors |
the top governing body of a corporation, the members of which are elected by the stockholders |
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Tender Offer |
an offer to purchase the stock of a firm targeted for acquisition at a price just high enough to tempt stockholders to sell their shares |
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Syndicate |
a temporary association of individuals or firms organized to perform a specific task that requires a large amount of capital |
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Limited Partner |
a person who invests money in a business but has no management responsibility or liability for losses beyond the amount he or she invested in the partnership |
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Limited Liability |
a feature of corporate ownership that limits each owner's financial liability to the amount of money that he or she has paid for the corporation's stock |
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Closed Corporation |
a corporation whose stock is owned by relatively few people and is not sold to the general public |
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Domestic Corporation |
a corporation in the state in which it is incorporated |
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Partnership |
a voluntary association of two or more persons to act as co-owners of a business for profit |
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Stockholders |
a person who owns a corporation's stock |
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Preferred Stock |
stock owned by individuals or firms who usually do not have voting rights but whose claims on dividends are paid before those of common-stock owners |
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General Partner |
a person who assumes full or shared responsibility for operating a business |
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Foreign Corporation |
a corporation in any state in which it does business except the one in which it is incorporated |
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Hostile Takeover |
a situation in which the management and board of directors of a firm targeted for acquisition disapprove of the merger |
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Joint Venture |
an agreement between two or more groups to form a business entity in order to achieve a specific goal or to operate for a specific period of time |
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Open Corporation |
a corporation whose stock can be bought and sold by any individual |
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Not-for-profit Corporation |
a corporation organized to provide a social, educational, religious, or other service rather than to earn a profit |
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Stock |
the shares of ownership of a corporation |
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Alien Corporation |
a corporation chartered by a foreign government and conducting business in the United States |
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Unlimited Liability |
a legal concept that holds a business owner personally responsible for all the debts of the business |
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Common Stock |
stock owned by individuals or firms who may vote on corporate matters but whose claims on profits and assets are subordinate to the claims of others |
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Corporation |
an artificial person created by law with most of the legal rights of a real person, including the rights to start and operate a business, to buy or sell property, to borrow money, to sue or be sued, and to enter into binding contracts |
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S-corporation |
a corporation that is taxed as though it were a partnership |
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Proxy |
a legal form listing issues to be decided at a stockholders' meeting and enabling stockholders to transfer their voting rights to some other individual(s) |
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Proxy Fight |
a technique used to gather enough stockholder votes to control a targeted company |
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Sole Proprietorship |
a business that is owned (and usually operated) by one person |
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Limited-liability Company LLC |
a form of business ownership that combines the benefits of a corporation and a partnership while avoiding some of the restrictions and disadvantages of those forms of ownership |
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Stockholder |
a person who owns a corporation's stock |
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Small-business Development Centers SBDCs |
university-based groups that provide individual counseling and practical training to owners of small businesses |
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Small Business Administration SBA |
a governmental agency that assists, counsels, and protects the interests of small businesses in the United States |
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Small-business Investment Companies SBICs |
privately owned firms that provide venture capital to small enterprises that meet their investment standards |
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Business Plan |
a carefully constructed guide for the person starting a business |
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Franchise |
a license to operate an individually owned business as though it were part of a chain of outlets or stores |
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Small Business |
one that is independently owned and operated for profit and is not dominant in its field |
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Venture Capital |
money that is invested in small (and sometimes struggling) firms that have the potential to become very successful |
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Franchising |
the actual granting of a franchise |
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Franchisor |
an individual or organization granting a franchise |
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Service Corps of Retired Executives SCORE |
a group of business people who volunteer their services to small businesses through the SBA |
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Franchisee |
a person or organization purchasing a franchise |
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Small-business Institutes SBIs |
groups of senior and graduate students in business administration who provide management counseling to small businesses |
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Analytic Skills |
the ability to identify problems correctly, generate reasonable alternatives, and select the "best" alternatives to solve problems |
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Autocratic Leadership |
task-oriented leadership style in which workers are told what to do and how to accomplish it without having a say in the decision-making process |
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Participative Leadership |
leadership style in which all members of a team are involved in identifying essential goals and developing strategies to reach those goals |
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Organizing |
the grouping of resources and activities to accomplish some end result in an efficient and effective manner |
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Controlling |
the process of evaluating and regulating ongoing activities to ensure that goals are achieved |
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Leading |
the process of influencing people to work toward a common goal |
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Operations Manager |
a manager who manages the systems that convert resources into goods and services |
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Contingency Plan |
a plan that outlines alternative courses of action that may be taken if an organization's other plans are disrupted or become ineffective |
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Marketing Manager |
a manager who is responsible for facilitating the exchange of products between an organization and its customers or clients |
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Technical Skills |
specific skills needed to accomplish a specialized activity |
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Middle Manager |
a manager who implements the strategy and major policies developed by top management |
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Interpersonal Skills |
the ability to deal effectively with other people |
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Conceptual Skills |
the ability to think in abstract terms |
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Benchmarking |
a process used to evaluate the products, processes, or management practices of another organization that is superior in some way in order to improve quality |
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Objective |
a specific statement detailing what an organization intends to accomplish over a shorter period of time |
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Administrative Manager |
a manager who is not associated with any specific functional area but who provides overall administrative guidance and leadership |
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Strategic Planning Process |
the establishment of an organization's major goals and objectives and the allocation of resources to achieve them |
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Planning |
establishing organizational goals and deciding how to accomplish them |
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Total Quality Management TQM |
the coordination of efforts directed at improving customer satisfaction, increasing employee participation, strengthening supplier partnerships, and facilitating an organizational atmosphere of continuous quality improvement |
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Strategic Plan |
an organization's broadest plan, developed as a guide for major policy setting and decision making |
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Top Manager |
an upper-level executive who guides and controls the overall fortunes of an organization |
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Communication Skills |
the ability to speak, listen, and write effectively |
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Motivating |
the process of providing reasons for people to work in the best interests of an organization |
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Tactical Plan |
a smaller scale plan developed to implement a strategy |
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Core Competencies |
approaches and processes that a company performs well that may give it an advantage over its competitors |
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Leadership |
the ability to influence others |
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Directing |
the combined processes of leading and motivating |
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Decision Making |
the act of choosing one alternative from a set of alternatives |
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First-line Manager |
a manager who coordinates and supervises the activities of operating employees |
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Mission |
a statement of the basic purpose that makes an organization different from others |
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SWOT Analysis |
the identification and evaluation of a firm's strengths, weaknesses, opportunities, and threats |
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Management |
the process of coordinating people and other resources to achieve the goals of an organization |
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Goal |
an end result that an organization is expected to achieve over a one- to ten-year period |
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Human Resources Manager |
a person charged with managing an organization's human resources programs |
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Financial Manager |
a manager who is primarily responsible for an organization's financial resources |
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Plan |
an outline of the actions by which an organization intends to accomplish its goals and objectives |
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Operational Plan |
a type of plan designed to implement tactical plans |
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Entrepreneurial Leadership |
personality-based leadership style in which the manager seeks to inspire workers with a vision of what can be accomplished to benefit all stakeholders |
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Problem |
the discrepancy between an actual condition and a desired condition |
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Problem Solving |
identifying the problem or opportunity, generating alternatives, selecting an alternative, and implementing and evaluating the solution |
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Inspection |
the examination of the quality of work-in-process |
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Computer-integrated Manufacturing CIM |
a computer system that not only helps to design products but also controls the machinery needed to produce the finished product |
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International Organization for Standardization ISO |
a network of national standards institutes and similar organizations from over 160 different countries that is charged with developing standards for quality products and services that are traded throughout the globe |
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Quality Circle |
a team of employees who meet on company time to solve problems of product quality |
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Just-in-time Inventory System |
a system designed to ensure that materials or supplies arrive at a facility just when they are needed so that storage and holding costs are minimized |
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Lean Manufacturing |
a concept built on the idea of eliminating waste from all the activities required to produce a product or service |
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Capital-intensive Technology |
a process in which machines and equipment do most of the work |
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Quality Control |
the process of ensuring that goods and services are produced in accordance with design specifications |
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Mass Production |
a manufacturing process that lowers the cost required to produce a large number of identical or similar products over a long period of time |
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Labor-intensive Technology |
a process in which people must do most of the work |
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Inventory Control |
the process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs |
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Six Sigma |
a disciplined approach that relies on statistical data and improved methods to eliminate defects for a firm's products and services |
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Scheduling |
the process of ensuring that materials and other resources are at the right place at the right time |
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Materials Requirements Planning MRP |
a computerized system that integrates production planning and inventory control |
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Form Utility |
utility created by people converting raw materials, finances, and information into finished products |
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Malcolm Baldrige National Quality Award |
an award given by the President of the United States to organizations judged to be outstanding in specific managerial tasks that lead to improved quality for both products and services |
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Analytical Process |
a process in operations management in which raw materials are broken into different component parts |
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Synthetic Process |
a process in operations management in which raw materials or components are combined to create a finished product |
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Computer-aided Manufacturing CAM |
the use of computers to plan and control manufacturing processes |
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Utility |
the ability of a good or service to satisfy a human need |
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Intermittent Process |
a manufacturing process in which a firm's manufacturing machines and equipment are changed to produce different products |
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Planning Horizon |
the period during which an operational plan will be in effect |
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Plant Layout |
the arrangement of machinery, equipment, and personnel within a production facility |
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Reshoring |
a situation in which U.S. manufacturers bring manufacturing jobs back to the United States |
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Product Line |
a group of similar products that differ only in relatively minor characteristics |
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Research and Development R&D |
a set of activities intended to identify new ideas that have the potential to result in new goods and services |
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Capacity |
the amount of products or services that an organization can produce in a given time |
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Automation |
the total or near-total use of machines to do work |
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Continuous Process |
a manufacturing process in which a firm produces the same product(s) over a long period of time |
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Flexible Manufacturing System FMS |
a single production system that combines electronic machines and CIM |
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Operations Management |
all the activities required to produce goods and services |
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Design Planning |
the development of a plan for converting an idea into an actual product or service |
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Purchasing |
all the activities involved in obtaining required materials, supplies, components, and parts from other firms |
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Product Design |
the process of creating a set of specifications from which a product can be produced |
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Service Economy |
an economy in which more effort is devoted to the production of services than to the production of goods |
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Robotics |
the use of programmable machines to perform a variety of tasks by manipulating materials and tools |
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Computer-aided Design CAD |
the use of computers to aid in the development of products |
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Social Needs |
the human requirements for love and affection and a sense of belonging |
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Problem-solving Team |
a team of knowledgeable employees brought together to tackle a specific problem |
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Job Redesign |
a type of job enrichment in which work is restructured to cultivate the worker-job match |
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Telecommuting |
working at home all the time or for a portion of the work week |
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Empowerment |
making employees more involved in their jobs by increasing their participation in decision making |
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Piece-rate System |
a compensation system under which employees are paid a certain amount for each unit of output they produce |
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Hygiene Factors |
job factors that reduce dissatisfaction when present to an acceptable degree but that do not necessarily result in high levels of motivation |
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Job Sharing |
an arrangement whereby two people share one full-time position |
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Virtual Team |
a team consisting of members who are geographically dispersed but communicate electronically |
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Job Enlargement |
expanding a worker's assignments to include additional but similar tasks |
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Part-time Work |
permanent employment in which individuals work less than a standard work week |
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Scientific Management |
the application of scientific principles to management of work and workers |
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Theory Y |
a concept of employee motivation generally consistent with the ideas of the human relations movement; assumes responsibility and work toward organizational goals, and by doing so they also achieve personal rewards |
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Motivation Factors |
job factors that increase motivation, although their absence does not necessarily result in dissatisfaction |
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Theory Z |
the belief that some middle ground between type A and type J practices is best for American business |
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Morale |
an employee's feelings about the job, about superiors, and about the firm itself |
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Need |
a personal requirement |
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Goal-setting Theory |
a theory of motivation suggesting that employees are motivated to achieve goals that they and their managers establish together |
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Management by Objectives MBO |
a motivation technique in which managers and employees collaborate in setting goals |
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Esteem Needs |
our need for respect, recognition, and a sense of our own accomplishment and worth |
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Theory X |
a concept of employee motivation generally consistent with Taylor's scientific management; assumes that employees dislike work and will function only in a highly controlled work environment |
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Physiological Needs |
the things we require for survival |
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Reinforcement Theory |
a theory of motivation based on the premise that rewarded behavior is likely to be repeated, whereas punished behavior is less likely to recur |
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Cross-functional Team |
a team of individuals with varying specialties, expertise, and skills that are brought together to achieve a common task |
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Employee Ownership |
a situation in which employees own the company they work for by virtue of being stockholders |
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Self-managed Teams |
groups of employees with the authority and skills to manage themselves |
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Maslow's Hierarchy of Needs |
a sequence of human needs in the order of their importance |
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Motivation |
the individual internal process that energizes, directs, and sustains behavior; the personal "force" that causes you or me to behave in a particular way |
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Expectancy Theory |
a model of motivation based on the assumption that motivation depends on how much we want something and on how likely we think we are to get it |
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Job Enrichment |
a motivation technique that provides employees with more variety and responsibility in their jobs |
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Self-actualization Needs |
the need to grow and develop and to become all that we are capable of being |
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Team |
two or more workers operating as a coordinated unit to accomplish a specific task or goal |
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Motivation-Hygiene Theory |
the idea that satisfaction and dissatisfaction are separate and distinct dimensions |
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Safety Needs |
the things we require for physical and emotional security |
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Equity Theory |
a theory of motivation based on the premise that people are motivated to obtain and preserve equitable treatment for themselves |
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Behavior Modification |
a systematic program of reinforcement to encourage desirable behavior |
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Flextime |
a system in which employees set their own work hours within employer-determined limits |
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Human Resources Planning |
the development of strategies to meet a firm's future human resources needs |
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Replacement Chart |
a list of key personnel and their possible replacements within a firm |
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Salary |
a specific amount of money paid for an employee's work during a set calendar period, regardless of the actual number of hours worked |
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Compensation |
the payment employees receive in return for their labor |
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Cultural (or Workplace) Diversity |
differences among people in a workforce owing to race, ethnicity, and gender |
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Comparable Worth |
a concept that seeks equal compensation for jobs requiring about the same level of education, training, and skills |
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External Recruiting |
the attempt to attract job applicants from outside an organization |
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Compensation System |
the policies and strategies that determine employee compensation |
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Commission |
a payment that is a percentage of sales revenue |
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Orientation |
the process of acquainting new employees with an organization |
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Human Resources Management HRM |
all the activities involved in acquiring, maintaining, and developing an organization's human resources |
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Profit-sharing |
the distribution of a percentage of a firm's profit among its employees |
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Incentive Payment |
a payment in addition to wages, salary, or commissions |
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Employee Benefit |
a reward in addition to regular compensation that is provided indirectly to employees |
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Performance Appraisal |
the evaluation of employees' current and potential levels of performance to allow managers to make objective human resources decisions |
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Hourly Wage |
a specific amount of money paid for each hour of work |
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Lump-sum Salary Increase |
an entire pay raise taken in one lump sum |
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Internal Recruiting |
considering present employees as applicants for available positions |
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Job Analysis |
a systematic procedure for studying jobs to determine their various elements and requirements |
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Job Specification |
a list of the qualifications required to perform a particular job |
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Job Evaluation |
the process of determining the relative worth of the various jobs within a firm |
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Flexible Benefit Plan |
compensation plan whereby an employee receives a predetermined amount of benefit dollars to spend on a package of benefits he or she has selected to meet individual needs |
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Selection |
the process of gathering information about applicants for a position and then using that information to choose the most appropriate applicant |
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Skills Inventory |
a computerized data bank containing information on the skills and experience of all present employees |
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Wage Survey |
a collection of data on prevailing wage rates within an industry or a geographic area |
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Management Development |
the process of preparing managers and other professionals to assume increased responsibility in both present and future positions |
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Job Description |
a list of the elements that make up a particular job |
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Employee Training |
the process of teaching operations and technical employees how to do their present jobs more effectively and efficiently |
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Recruiting |
the process of attracting qualified job applicants |
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Cultural (Workplace) Diversity |
differences among people in a workforce owing to race, ethnicity, and gender |
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Consumer Buying Behavior |
the purchasing of products for personal or household use, not for business purposes |
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Marketing Strategy |
a plan that will enable an organization to make the best use of its resources and advantages to meet its objectives |
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Customer Relationship Management CRM |
using information about customers to create marketing strategies that develop and sustain desirable customer relationships |
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Relationship Marketing |
establishing long-term, mutually satisfying buyer-seller relationships |
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Customer Lifetime Value |
a measure of a customer's worth (sales minus costs) to a business over one's lifetime Sales - Costs |
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Marketing Mix |
a combination of product, price, distribution, and promotion developed to satisfy a particular target market |
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Market Segmentation |
the process of dividing a market into segments and directing a marketing mix at a particular segment(s) rather than at the total market |
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|
Market |
a group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase them |
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Buying Behavior |
the decisions and actions of people involved in buying and using products |
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Disposable Income |
personal income less all additional personal taxes |
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Marketing |
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large |
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Business Buying Behavior |
the purchasing of products by producers, resellers, governmental units, and institutions |
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Marketing Concept |
a business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allow the firm to achieve its objectives |
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Undifferentiated Approach |
directing a single marketing mix at the entire market for a particular product |
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Marketing Research |
the process of systematically gathering, recording, and analyzing data concerning a particular marketing problem |
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Possession Utility |
utility created by transferring title (or ownership) of a product to a buyer |
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Sales Forecast |
an estimate of the amount of a product that an organization expects to sell during a certain period of time based on a specified level of marketing effort |
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Form Utility |
utility created by converting production inputs into finished products |
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Place Utility |
utility created by making a product available at a location where customers wish to purchase it |
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Target Market |
a group of individuals or organizations, or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group |
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Market Segment |
a group of individuals or organizations within a market that share one or more common characteristics |
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Time Utility |
utility created by making a product available when customers wish to purchase it |
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Discretionary Income |
disposable income less savings and expenditures on food, clothing, and housing |
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Personal Income |
the income an individual receives from all sources less the Social Security taxes the individual must pay |
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Marketing Information System |
a system for managing marketing information that is gathered continually from internal and external sources |
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Utility |
the ability of a good or service to satisfy a human need |
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Marketing Plan |
a written document that specifies an organization's resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group |
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Millennials |
tech-savvy digital natives born after 1980 |
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Social Media Marketing |
the utilization of social media technologies, channels, and software to create, communicate, deliver, and exchange offerings that have value for an organization |
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Revenue Stream |
a source of revenue flowing into a firm |
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Cloud Computing |
a type of computer usage in which services stored on the internet is provided to users on a temporary basis |
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Cookie |
a small piece of software sent by a website that tracks an individual's internet use |
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Wiki |
a collaborative online working space that enables members to contribute content that can be shared with other people |
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Qualitative Social Media Measurement |
the process of accessing the opinions and beliefs about a brand and primarily uses sentiment analysis to categorize what is being said about a company |
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Podcasts |
digital audio or video files that people listen to or watch online on tablets, computers, MP3 players, or smartphones |
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Outsourcing |
the process of finding outside vendors and suppliers that provide professional help, parts, or materials at a lower cost |
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Inbound Marketing |
a marketing term that describes new ways of gaining attention and ultimately customers by creating content on a website that pulls customers in |
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Business-to-business Model B2B Model |
a model used by firms that conduct business with other businesses |
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Sentiment Analysis |
a measurement that uses technology to detect the moods, attitudes, or emotions of people who experience a social media activity |
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Business Model |
represents a group of common characteristics and methods of doing business to generate sales revenues and reduce expenses |
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Electronic Business e-business |
the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs through the facilities available on the internet |
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Social Media |
the online interactions that allow people and businesses to communicate and share ideas, personal information, and information about products and services |
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|
Green IT |
a term used to describe all of a firm's activities to support a healthy environment and sustain the planet |
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Malware |
a general term that describes software designed to infiltrate a computer system without the user's consent |
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Forum |
an interactive version of a community bulletin board that focuses on threaded discussions |
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|
Blog |
a website that allows a company to share information in order to not only increase the customer's knowledge about its products and services but also to build trust |
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Social Content Sites |
allow companies to create and share information about their products and services |
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Data Mining |
the practice of searching through data records looking for useful information |
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|
Social Game |
a multiplayer, competitive, goal-oriented activity with defined rules of engagement and online connectivity among a community of players |
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|
Quantitative Social Media Measurement |
using numerical measurements, such as counting the number of website visitors, number of fans and followers, number of leads generated, and the number of new customers |
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Crowdsourcing |
outsourcing tasks to a group of people in order to tap into the ideas of the crowd |
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|
Business-to-consumer Model B2C Model |
a model used by firms that focus on conducting business with individual consumers |
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|
Social Media Communities |
social networks based on the relationships among people |
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|
Key Performance Indicators KPIs |
measurements that define and measure the progress of an organization toward achieving its objectives |
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Media Sharing Sites |
allow users to upload photos, videos, and podcasts |
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|
Depreciation |
the process of apportioning the cost of a fixed asset over the period during which it will be used |
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|
Current Assets |
assets that can be converted quickly into cash or that will be used in one year or less |
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|
Certified Public Accountant CPA |
an individual who has met state requirements for accounting education and experience and has passed a rigorous accounting examination |
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|
Inventory Turnover |
a financial ratio calculated by dividing the cost of goods sold in one year by the average value of the inventory Cost of goods sold in 1 yr ÷ Avg Value of Inventory |
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Liquidity |
the ease with which an asset can be converted into cash |
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|
Net Sales |
the actual dollar amounts received by a firm for the goods and services it has sold after adjustment for returns, allowances, and discounts |
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|
Balance Sheet |
a summary of the dollar amounts of a firm's assets, liabilities, and owners' equity accounts at the end of a specific accounting period |
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|
Statement of Cash Flows |
a statement that illustrates how the company's operating, investing, and financing activities affect cash during an accounting period |
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|
Expert System |
a type of computer program that uses artificial intelligence to imitate a human's ability to think |
|
|
Return on Sales Profit Margin |
a financial ratio calculated by dividing net income after taxes by net sales Net Income after taxes ÷ Net Sales |
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|
Fixed Assets |
assets that will be held or used for a period longer than one year |
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|
Cost of Goods Sold |
the dollar amount equal to beginning inventory plus net purchases less ending inventory $ = Begin Inventory + Net Purchases - EndInventory |
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|
Retained Earnings |
the portion of a business's profits not distributed to stockholders |
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|
Database |
a single collection of data and information stored in one place that can be used by people throughout an organization to make decisions |
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|
Accounting Equation |
the basis for the accounting process: assets = liabilities + owners' equity Assets = Liabilities + Owner Equity |
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|
Operating Expenses |
all business costs other than the cost of goods sold |
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|
Knowledge Management KM |
a firm's procedures for generating, using, and sharing the data and information |
|
|
Decision-Support System DSS |
a type of software program that provides relevant data and information to help a firm's employees make decisions |
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Assets |
the resources that a business owns |
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|
Liabilities |
a firm's debts and obligations |
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|
Current Ratio |
a financial ratio computed by dividing current assets by current liabilities Assets ÷ Liabilities |
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|
Data |
numerical or verbal descriptions that usually result from some sort of measurement |
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|
Net Income |
occurs when revenues exceed expenses Revenue > Expenses |
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|
Gross Sales |
the total dollar amount of all goods and services sold during the accounting period Total $ = Goods + Services Sold |
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|
Annual Report |
a report distributed to stockholders and other interested parties that describes the firm's operating activities and its financial condition |
|
|
Double-entry Bookkeeping System |
a system in which each financial transaction is recorded as two separate accounting entries to maintain the balance shown in the accounting equation |
|
|
Management Information System MIS |
a system that provides managers and employees with the information they need to perform their jobs as effectively as possible |
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|
Data Processing |
the transformation of data into a form that is useful for a specific purpose |
|
|
Generally Accepted Accounting Principles GAAPs |
an accepted set of guidelines and practices for U.S. companies reporting financial information and for the accounting profession |
|
|
Current Liabilities |
debts that will be repaid in one year or less |
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|
Long-term Liabilities |
debts that need not be repaid for at least one year |
|
|
Revenues |
the dollar amounts earned by a firm from selling goods, providing services, or performing business activities |
|
|
Managerial Accounting |
provides managers and employees with the information needed to make decisions about a firm's financing, investing, marketing, and operating activities |
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|
Audit |
an examination of a company's financial statements and the accounting practices that produced them |
|
|
Executive Information System EIS |
a computer-based system that facilitates and supports the decision-making needs of top managers and senior executives by providing easy access to both internal and external information |
|
|
Intangible Assets |
assets that do not exist physically but that have a value based on the rights or privileges they confer on a firm |
|
|
Statistic |
a measure that summarizes a particular characteristic of an entire group of numbers |
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|
Financial Accounting |
generates financial statements and reports for interested people outside an organization |
|
|
Statement of Financial Position |
a summary of the dollar amounts of a firm's assets, liabilities, and owners' equity accounts at the end of a specific accounting period |
|
|
Net Loss |
occurs when expenses exceed revenues |
|
|
Income Statement |
a summary of a firm's revenues and expenses during a specified accounting period |
|
|
Information |
data presented in a form that is useful for a specific purpose |
|
|
Financial Ratio |
a number that shows the relationship between two elements of a firm's financial statements |
|
|
Gross Profit |
a firm's net sales less the cost of goods sold Net Sales - Cost of Goods Sold |
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|
Accounting |
the process of systematically collecting, analyzing, and reporting financial information |
|
|
Owners' Equity |
the difference between a firm's assets and its liabilities |
|
|
Statement of Financial Position Balance Sheet |
a summary of the dollar amounts of a firm's assets, liabilities, and owners' equity accounts at the end of a specific accounting period |
|
|
Electronic Funds Transfer System EFT System |
a means of performing financial transactions through a computer terminal |
|
|
Corporate Bond |
a corporation's written pledge that it will repay a specified amount of money with interest |
|
|
Collateral |
real estate or property pledged as security for a loan |
|
|
Capital Budget |
a financial statement that estimates a firm's expenditures for major assets and its long-term financing needs |
|
|
Trustee |
an individual or an independent firm that acts as a bond owner's representative |
|
|
Zero-base Budgeting |
a budgeting approach in which every expense in every budget must be justified |
|
|
Equity Capital |
money received from the owners or from the sale of shares of ownership in a business |
|
|
Speculative Production |
the time lag between the actual production of goods and when the goods are sold |
|
|
Chief Financial Officer CFO |
a high-level corporate executive who manages a firm's finances and reports directly to the company's chief executive officer CEO or president |
|
|
Financial Management |
all the activities concerned with obtaining money and using it effectively |
|
|
Debenture Bond |
a bond backed only by the reputation of the issuing corporation |
|
|
Initial Public Offering IPO |
occurs when a corporation sells common stock to the general public for the first time |
|
|
Debit Card |
a card that electronically subtracts the amount of a customer's purchase from her or his bank account at the moment the purchase is made |
|
|
Serial Bonds |
bonds of a single issue that mature on different dates |
|
|
Cash Budget |
a financial statement that estimates cash receipts and cash expenditures over a specified period |
|
|
Mortgage Bond |
a corporate bond secured by various assets of the issuing firm |
|
|
Check |
a written order for a bank or other financial institution to pay a stated dollar amount to the business or person indicated on the face of the check |
|
|
Investment Banking Firm |
an organization that assists corporations in raising funds, usually by helping to sell new issues of stocks, bonds, or other financial securities |
|
|
Convertible Bond |
a bond that can be exchanged, at the owner's option, for a specified number of shares of the corporation's common stock |
|
|
Registered Bond |
a bond registered in the owner's name by the issuing company |
|
|
Prime Interest Rate |
the lowest rate charged by a bank for a short-term loan |
|
|
Financial Leverage |
the use of borrowed funds to increase the return on owners' equity |
|
|
Banker's Acceptance |
a written order for a bank to pay a third party a stated amount of money on a specific state |
|
|
Risk-return Ratio |
a ratio based on the principle that a high-risk decision should generate higher financial returns for a business and more conservative decisions often generate lower returns |
|
|
Promissory Note |
a written pledge by a borrower to pay a certain sum of money to a creditor at a specified future date |
|
|
Securities Exchange |
a marketplace where member brokers meet to buy and sell securities |
|
|
Letter of Credit |
a legal document issued by a bank or other financial institution guaranteeing to pay a seller a stated amount for a specified period of time |
|
|
Secondary Market |
a market for existing financial securities that are traded between investors |
|
|
Private Placement |
occurs when stock and other corporate securities are sold directly to insurance companies, pension funds, or large institutional investors |
|
|
Debt Capital |
borrowed money obtained through loans of various types |
|
|
Short-term Financing |
money that will be used for one year or less |
|
|
Sinking Fund |
a sum of money to which deposits are made each year for the purpose of redeeming a bond issue |
|
|
Long-term Financing |
money that will be used for longer than one year |
|
|
Cash Flow |
the movement of money into and out of an organization |
|
|
Line of Credit |
a loan that is approved before the money is actually needed |
|
|
Unsecured Financing |
financing that is not backed by collateral |
|
|
Factor |
a firm that specializes in buying other firms' accounts receivable |
|
|
Certificate of Deposit CD |
a document stating that the bank will pay the depositor a guaranteed interest rate on money left on deposit for a specified period of time |
|
|
Preferred Stock |
stock whose owners usually do not have voting rights but whose claims on dividends and assets are paid before those of common-stock owners |
|
|
Over-the-counter Market OTC Market |
a network of dealers who buy and sell the stocks of corporations that are not listed on a securities exchange |
|
|
Bond Indenture |
a legal document that details all the conditions relating to a bond issue |
|
|
Maturity Date |
the date on which a corporation is to repay borrowed money |
|
|
Trade Credit |
a type of short-term financing extended by a seller who does not require immediate payment after delivery of merchandise |
|
|
Term-loan Agreement |
a promissory note that requires a borrower to repay a loan in monthly, quarterly, semiannual, or annual installments |
|
|
Revolving Credit Agreement |
a guaranteed line of credit |
|
|
Financial Plan |
a plan for obtaining and using the money needed to implement an organization's goals and objectives |
|
|
Retained Earnings |
the portion of a corporation's profits not distributed to stockholders |
|
|
budget |
a financial statement that projects income, expenditures, or both over a specified future period |
|
|
Commercial Paper |
a short-term promissory note issued by a large corporation |
|
|
Primary Market |
a market in which an investor purchases financial securities (via an investment bank) directly from the issuer of those securities |
|
|
Certificate of Deposit |
a document stating that the bank will pay the depositor a guaranteed interest rate on money left on deposit for a specified period of time |
