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73 Cards in this Set
- Front
- Back
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Interpersonal skills
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The ability to deal effectively with individual employees, other managers, and ppl outside the firm.
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Technical skills
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The skill required to accomplish a certain kind of work being done in an org. Although managers may not actually perform tech tasks they should be able to train employees and answer tech questions
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Conceptual skills
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The ability to think abstractly in order to see the big picture. Conceptual skills help managers understand how the various parts of an org. Or idea fit together
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Four kinds of resources necessary for a business to be organized
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HMFI, human, material, financial, informational
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Human resources
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People who furnish their labor for wages
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Financial resources
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The capital required to pay employers, purchase materials, and keep business operating.
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Material resources
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The resources included for the startup and manufacturing processes.
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Informational resources
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The resource that tells managers how well the other three resources are being combined and used.
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Stakeholder
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All the people who are directly affected by the policies, decisions and activities made by and org.
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Economics
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The study of how wealth is created and distributed. Product of The choices of individuals .
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Microeconomics
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The study of the individuals, business' or specific sectors within an economy. E.G. Apple, the housing sector
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Microeconomics
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The study of the decisions mde by individuals and individual businesses and sectors.
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Business
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The organized effort of individuals to produce and sell, for profit, the goods nd services that satisfy a societies wants and needs.
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Profit
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What remains after after all business expenses have been deducted from the sales revenue.
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Types of business
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Manufacturing, service, and intermediaries
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Manufacturing industries
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Manufacture raw materials into tangible goods. Dell, apple, microsoft
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Service industries
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Produce and provide services to their customers. Eg haircuts, tax firms, vestment firms
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Itermediaries
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Companies that buy goods from manufacturers and then resell them for profit. Eg wal mart best buy et
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Types of economic systems
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Capitalistic, social, communistic mixed
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Factors of production
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land and resources, labor, capital,entrepreneurship
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Laissez-faire economics
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Term used by Adam smith, godfather of campitalism to describe a free market economy with little or no government intervention
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The invisible hand
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Term used by Adam Smith in the wealth of Nations to describe how an individual's own personal gain benefits others and a nations economy.
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Land and Resources
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Factor of Production: Elements used in the production process to make appliances, automobiles, etc.
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Factors of Production
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The resources necessary to produce goods and services.
L&R,L,C,E |
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Labor
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Factor of Production: the time and effort that we use to produce goods and sercvices. Managers, employees.
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Capital
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Factor of Production: The money, facilities, equipment, and machines used in the operation of organizations.
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Entrepreneurship
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The definition of entrepreneurship is a process through which the activity in which individuals identify opportunities, allocate resources, and create value. This creation of value is often through the identification of unmet needs or through the identification of opportunities for change. Seeing problems as opportunities, Entrepreneurs risk their time, money, and other resources to start a businesses or services that offer solutions to these problems.
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Two types of economic systems
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Capitalism & Command economies
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Questions that determine a nations economy
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-what goods and services- and how much of each will be produced?
-How will these goods and services be produced? - For whom will these goods and services be produced? -Who owns and who controls the major factors of production? |
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Capitalism
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An economic system in which individuals own and operate the majority of businesses that provide goods and services.Based off principal: Society's interests are best served when individuals are allowed to pursue their own self interest.
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Capitalism's fundamentals
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1. The creation of wealth is the concern of individuals not the government.
2. Private individuals must own private property and resources used to create goods and services 3. Economic freedom ensures the existence of competitive markets that allows buyers and sellers to enter the market as they choose 4. The role of government should be limited to the defense against foreign enemies, ensuring internal order, and furnishing pub works and education. |
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Consumer products
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goods and services purchased by individuals for personal use or comsumption
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Market economy (freemarket)
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an economic system in which businesses and individuals decide what to produce and how much, and the market determines prices and quantities sold.
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Socialism
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The key industries are owned and controlled by the government. Transportaion, utilities, communications, banking. Major factors of production controlled by the government.
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Communism
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A classless society whose citizens own and operate all of the economic resources based on their skills. Emphasis is based on the demands of government rather that individuals.
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Measuring Economic Performance
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-Unemployment
-Gross Domestic Product - Inflation -Consumer price index -Producer price index |
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GDP
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The total dollar value of all the goods and services produced by all the people within they boundary of any one country during a 1 year period
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Inflation
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the general rise in the level of prices
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Deflation
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the general decrease in the level of prices
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Unemployment Rate
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the percent of a nations workforce that is jobless
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Measurements of economic health
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Balance of Trade- total value of nation's exports minus it's imports.
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Bank Credit
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A statistic that measures the lending activity of financial institutions
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Corporate profits
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The total amount of profits made by corporations over a selected time
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New housing starts
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the total number homes started during a specific time period
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Prime Interest Rate
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The lowest interest rate that banks charge their most credit-worthy customers
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Business Cycle
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the recurrence of fluctuation in growth and recession of a nations economy
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4 Business Stages of the Business Cycle
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Peak- Prosperity
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Recession
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two or more quarters of decline in a country's GDP. Since WW2 business cycles have averages 3-5 years from PEAK to TROUGH, and recessions have averaged 11 months
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Depression
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a severe recession that lasts longer than a typical recession
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Trough
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The low point of a recession or depression
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Monetary Policy
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The Federal Reserve's decisions that determine the size, supply, and level of interests within a country
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Fiscal Policy
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Governmental decisions on tax structure and government spending
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Federal Deficit
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A shortfall created when the government spends more than it recieves
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National debt
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the total of all federal deficits produced over all the years of borrowing
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Types of Competion
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1. Perfect- Many: Produce
2. Monopolistic: Many: Clothing, cereals 3. Oligopoly:Few: automobiles, cereals, airlines 4:One: Software protected by copyright, many public utilities 4. Monopoly |
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supply
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the quantity of a product that producers are willing to sell at each of various prices
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demand
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the quantity of a product that buyers are willing to purchase at each of various prices
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market price
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the price at which the quantity demanded equals that of the quantity produced
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product differentiation
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the process of developing and promoting differences between one's product and all similar products
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natural or protected monopoly
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an industry that requires a huge investment in capital and within which any duplication would be wastely. EG Water Gas Electric Companies
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Legal monopoly
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governmental issuance of a license,copyright or patent for a limited time that protects the owners of a written material from infringement by those who did not share the time, money, or other resources in developing that specific product.
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Standard of living
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a loose subjective term of how well off an individual or society is. Mainly through terms of want satisfaction through goods and services.
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Barter
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a system of exchange in which goods and services are exchanged directly for other goods and services
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Domestic System
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a method of manufacturing in which an entrepreneur distributes raw materials to various homes to be processed into finished goods and the offered for sale by the entrepreneur
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Factory system
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a system of manufacturing in which all materials, machinery, and workers required to manufacture a product are assembled in one place
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specialization
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the separation of a manufacturing process into distinct tasks and assignment of those tasks to specific individuals
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e-business
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the organized efforts of individuals to provide and sell products or services that satisfy a society's wants and needs through the internet
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service economy
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an economy where more effort is devoted to the production of services than to the production of goods
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Environments that affect business'
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1. Competitive environment
2. The global environment 3. The technological environment 4.The economic environment |
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sustainability
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meeting the needs of the present without compromising the ability of future generations to meet their own needs
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service economy
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an economy where more effort is devoted to the production of services than to the production of goods
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Environments that affect business'
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1. Competitive environment
2. The global environment 3. The technological environment 4.The economic environment |
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sustainability
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meeting the needs of the present without compromising the ability of future generations to meet their own needs
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