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BUS 201 Final exam > Business terms > Flashcards

Business terms Flashcards

1
Q

What is a business?

A

An organization that produces or sells goods or services to make a profit

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2
Q

What is profit?

A

What remains after a business expenses have been subtracted from its revenues

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3
Q

What is a non profit organization?

A

Organizations that used funds they generate from government grants or from the sale of goods or services to provide services to the public

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4
Q

What is an economic system?

A

The way in which a nation allocates its resources among its citizens

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5
Q

What is factors of production?

A

The resources used to produce goods and services, labour, capital, and natural resources

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6
Q

What is capital?

A

It is the funds required to start a business and to keep it from operating and growing

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7
Q

What are the 3 types of economic systems?

A

Command economy and market economy

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8
Q

What is a command economy?

A

Government controls all/most factors of production to make all/most production and allocation decisions

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9
Q

What is a market economy?

A

Individuals control most factors of production and make all/most production decisions

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10
Q

What is a market?

A

A mechanism for exchange between the buyers and sellers of a good or service

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11
Q

What is a mixed market economy?

A

Where elements of both a command and market economy are present

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12
Q

What is a input market?

A

When firms buy the resources they need in the production of goods and services

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13
Q

What is an output market?

A

When firms supply goods and services in response to demand on the part of the consumers

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14
Q

What is capitalism?

A

An economic system in which markets decide what, when, and who to produce

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15
Q

What is privatization?

A

The transfer of activities from the government to the private sector

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16
Q

What is deregulation?

A

Reduction in the number of laws affecting business activity

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17
Q

Why do governments promote competition?

A

It is crucial to the market economy
Without restrictions, large companies with vast resources could cut its prices and drive smaller firms out of the market

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18
Q

What is revenue taxes?

A

Government provides revenue to fund various services and programs

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19
Q

What is the external environment

A

It is everything outside a organization/business that might affect them

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20
Q

What is aggregate output?

A

A way to tell if an economic system is growing. It is the total quantity of goods and services produced by an economic system

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21
Q

What are the 4 phases of the business cycle

A

Peaks
Recession
Trough
Recovery

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22
Q

What is GDP

A

The total value of goods and services

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23
Q

What is the formula for GDP per capita

A

Dividing GDP by total population of a country

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24
Q

What is the balance of trade

A

The economic value of all the products that a country exports minus the economic value of its imported products

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25
Q

What is national debt

A

The amount of money the government owns its creditors

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26
Q

How is inflation measured?

A

CPI measures the typical products purchased by consumers living in urban areas

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27
Q

What is frictional unemployment?

A

people are out of work temporarily while looking for a new job

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28
Q

What is Seasonal unemployment

A

people are out of work because of the seasonal nature of their jobs

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29
Q

What is Cyclical unemployment

A

people are out of work because of a downturn in the business cycle

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30
Q

What is structural unemployment

A

people are unemployed because they lack the skills needed to perform available jobs

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31
Q

What is Fiscal Policies

A

the collection and spending of government revenues

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32
Q

What is a horizontal merge

A

When companies in the same industry merge

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33
Q

What is a vertical merge

A

When one of the companies in the merger is a supplier or customer to the other,

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34
Q

What is a friendly takeover

A

the acquired company welcomes the acquisition, perhaps because it needs cash or sees other benefits in joining the acquiring firm

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35
Q

What is a hostile takeover

A

the acquiring company buys enough of the other company’s stock to take control, even though the other company is opposed to the takeove

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36
Q

What is an option that companies can use to fight off a takeover?

A

By using a poison pill

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37
Q

What is a divestiture

A

when a company decides to sell part of its existing business operations to another corporation

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38
Q

What is a spinoff

A

when a company might set up one or more corporate units as a new, independent company because a business unit might be more valuable as a separate company

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39
Q

What are some reasons a strategic alliance could occur

A

To help spread the risk of a project across both companies
To get something of value from their partner (whether that be technological or financial)

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40
Q

What are business ethics

A

refers to the ethical or unethical behaviors by a business’s managers or employees.

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41
Q

What are managerial ethics

A

standards of behavior that guide individual managers in their work

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42
Q

What is conflict of interest

A

when activity benefits an employee at the expense of the employer.

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43
Q

What are the 3 steps needed to judge if a behaviour is ethical or unethical

A

Gather the relevant factual information
Determine the most appropriate moral values
Make an ethical judgment based on the rightness or wrongness of the proposed activity or policy.

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44
Q

What is managerial capitalism

A

states that a company’s only responsibility is to make as much money as possible for shareholders as long as laws are not broken

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45
Q

What are organizational stakeholders

A

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

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46
Q

What is the social return investment of stakeholders?

A

used for helping companies understand manage and communicate their social value for their stakeholders

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47
Q

What are the consumer rights?

A

-The right to safe products
-The right to be informed about all relevant aspects of a product
-The right to be heard
-The right to choose what they buy
-The right to be educated about purchases
-The right to courteous service

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48
Q

What is collusion?

A

When companies make something more expensive than it is

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49
Q

What are whistleblowers?

A

employees that speak out against the unethical, illegal, or socially irresponsible practices that their company has performing

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50
Q

What is insider trading

A

Using confidential information to gain from the purchase or sale of stock

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51
Q

What are the 4 stances to social responsibility?

A

Obstructionist stance
Defensive stance
Accommodative stance
Proactive stance

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52
Q

What is an obstructionist stance?

A

Business do as little as possible to to solve social or environmental problems

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53
Q

What is a defensive stance?

A

when businesses do everything required of them legally but nothing more

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54
Q

What is an accommodative stance?

A

When businesses that meet the legal and ethical requirements but go further beyond if asked

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55
Q

What is a social audit

A

A systematic analysis of how a firm is using their funds earmarked for social responsibility goals and how effective these expenditures have been

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56
Q

What is a proactive stance?

A

When businesses and companies that go out of their way to make a positive impact on their communities

57
Q

What are the 3 ways to start a small business?

A

Buying an Existing business
Start one from scratch
Buy a franchise

58
Q

What is a franchising agreement?

A

Outlines the duties and responsibilities of each party

59
Q

What is a sole proprietorship?

A

A business owned and operated by one person

60
Q

What are the advantages of a sole proprietorship?

A

Simplified legal system
Profit losses are deducted from the income of the proprietorship which are the earned from personal sources, rather from the business

61
Q

What is a general partnership?

A

A partner actively involved in managing the firm and have unlimited liability

62
Q

What is a corporation?

A

A business that is a separate legal entity, responsible for its own debts. Owners are liable for the amount they invested into the business

62
Q

What are shareholders?

A

Investors that buy shares of ownership in the form of stocks

62
Q

Who are the real owners of a business?

A

Shareholders

63
Q

What is the board of director?

A

the governing body of a corporation

64
Q

What are the main responsibilities of the board of directors

A

to ensure the corporation runs in the best interest of the shareholders

65
Q

What are inside directors and what are their responsibilities?

A

Employees of the company and have primary responsibility for the corporation
Usually are the top managers, presidents and executive vice presidents

66
Q

What is a cooperative?

A

A business run by the people who use it, and they share profits based on how much they use it, not how much money they invested into it

67
Q

What is a disadvantage of a cooperative

A

Benefits members receive from the cooperative depend on how much they use the cooperatives service, so members do not have a strong reason to invest money into the corporation

67
Q

What is globalization?

A

The process in which the world economy is becoming a single interdependent system

68
Q

What are imports?

A

Products or goods that are grown aboard but sold domestically

69
Q

What are exports?

A

Products or goods that are made domestically but shipped aboard

70
Q

What are some barriers to international trade?

A

Social and cultural differences, economic differences, legal and political differences

70
Q

What is a quota?

A

Restrictions imposed by one nation on the total number of products that can be

71
Q

What is embargo?

A

A government order forbidding exportation or importation of a particular product

72
Q

What is a tariff?

A

What is a tariff?

72
Q

What does tariff do?

A

Directly affects prices of products, raising the price of import to consumers
Raise money for the government
Increase government revenue

73
Q

What is a subsidy?

A

A government payment given to domestic businesses to help it compete with existing firms

74
Q

What is protectionism?

A

Protecting domestic businesses at the expense of free market competition

75
Q

What are local content laws?

A

Laws that require products that are sold in a country to be made partly in their country

76
Q

What are business practice laws?

A

Laws or regulations governing business practices in given countries

77
Q

What is a cartel?

A

An association of producers whose purpose is to control supply practices in given countries

78
Q

What does dumping mean?

A

Selling a product for less abroad than in the producing nation

79
Q

What does efficiency mean?

A

achieving the greatest level of output with a given amount of input

80
Q

What are the 5 steps to planning?

A

Goals are established for the organization
Managers identify if a gap exists between the companies desired position and where they actually are
Managers develop plans to achieve the desired objective
Plans are implemented
The effectiveness of the plan is assessed

81
Q

What are the types of managers?

A

Top managers, middle managers, first line managers

82
Q

What are the duties of a top manager?

A

Responsible to the board of directors and shareholders of the firms performance and effectiveness
Set general policies, formulate strategies, oversee significant decisions, and represent the company in its dealings with other business and government

83
Q

What are the duties of a middle manager?

A

Responsible for implementing strategies, policies, and decisions made by top managers

84
Q

What are the duties of a first line manager

A

Responsible for supervising the work of employees who report to them
Ensure employees understand and are properly trained in company policies and procedures

85
Q

What are the roles of a human resource manager?

A

Hire, train, evaluate performances decide how they should be compensated, and work with labor unions

86
Q

What are the duties of a operations manager?

A

Responsible for a companies system for creating goods and services
Responsible for production, inventory, and quality control

87
Q

What are the roles of a information manager?

A

Responsible for designing and implementing various systems to gather, process, and disseminate information.

88
Q

What are the duties of a marketing manager?

A

Responsible for getting products and services to buyers

89
Q

What are the duties of a financial manager?

A

Plans and oversees financial resources

90
Q

What does it mean by conceptual skills?

A

Refers to a person’s ability to think in the abstract, diagnose and analyze situations and see beyond the present situation

91
Q

What does organizational politics mean

A

Refers to the actions that people take as they try to get what they want

92
Q

What does escalation of commitment mean?

A

When manager makes a poor decision but still is committed in following through with that decision

93
Q

What does strategic management mean

A

Process of effectively aligning an organization with its external environment

94
Q

What are the 4 main purpose of goal setting?

A

Goal setting provides direction, guidance, and motivation for all managers
Goal setting helps firms allocate resources
Goal setting helps define corporate culture
Goal setting helps managers assess performance

95
Q

What is a vision statement

A

a statement indicating why an organization exists and what kind of organization it wants to be

96
Q

What is a mission statement?

A

A statement of how the organization will achieves its purpose

97
Q

Who sets strategic plans?

A

Top managers

98
Q

What are business level strategies?

A

Identifies the ways a business will compete in its chosen line of products or services.

99
Q

What are functional strategies?

A

Identify the basic course of actions each department purses so it contributes to the business overall goals

100
Q

What is a corporate level strategy?

A

Identifies the various businesses a company will be in and how the business will relate to each other

101
Q

What are some examples of growth strategies?

A

Market penetration, geographic expansion, product development,

102
Q

What is market penetration?

A

boosting sales of present products more by more aggressive selling in the firm’s current market

103
Q

What is a geographic expansion?

A

When companies expand operations into new geographic areas

104
Q

What is product development?

A

When companies develop improved products for current markets

105
Q

What does conglomerate diversification mean

A

Diversifying into products or markets that are no longer related to the firms business

106
Q

What does related diversification mean

A

Means adding new but related products or services to an existing business

107
Q

What are the 3 competitive strategies?

A

Cost leader, differentiation strategy, focus strategy

108
Q

What does cost leadership mean?

A

Becoming a low cost leader in an industry

109
Q

What does a differentiation strategy mean?

A

Being unique in its industry along with some dimensions valued by buyers

110
Q

What does focus strategy mean?

A

Selecting a market segment and serving the customers in that segment better than competitors

111
Q

What is a functional strategy

A

A basic course of action that each department follows to accomplish the business overall goals

112
Q

What is the market plan?

A

Identifies the marketing objectives stating what marketing will accomplish in the future

113
Q

What is a competitive strategy?

A

A plan to establish a profitable and sustainable competitive position

114
Q

What are marketing objectives?

A

Goals that the marketing plan intends to accomplish

115
Q

What are marketing strategies?

A

Identify the planned marketing programs

116
Q

What are the 4 P’s of the marketing mix?

A

Product
Pricing
Place
Promotion

117
Q

What is a product?

A

A good or service that fulfills a customers needs or wants

118
Q

What does product differentiation mean?

A

Making a product that will stand out from others

119
Q

What are marketing managers responsible for?

A

planning, organizing, leading and controlling the organizations marketing resources towards the organizations mission

120
Q

What does market segmentation mean

A

refers to dividing a market into categories of customer types or “segments

121
Q

What does product positioning mean

A

process of fixing, adapting and communicating the nature of the product itself

122
Q

What are the market segments?

A

Demographic, geographic, geo-demographic, psychographic, behavioural

123
Q

What is a demographic segmentation?

A

describe the characteristics of populations that may be considered in developing a segmentation strategy such as…. age, income, gender, race, religion, social class

124
Q

What is a geographic segmentation

A

Geographic variables are the geographical units that may be considered in developing a segmentation strategy such as…. weather, location,

125
Q

What is a psychographic segmentation

A

consumer characteristics that may be considered in developing a segmentation strategy such as… lifestyle, opinions, interests, attitudes

126
Q

What are behavioural segmentation?

A

dividing a market into groups based on consumer knowledge, use, or response to a product…

127
Q

What are some variables of behavioural segmentation?

A

Benefits sought
User status
Usage rate
Loyalty status
Occasion for use

128
Q

What is a market research?

A

The study of customers wants and needs, and how to best meet those needs and wants

129
Q

What is consumer behaviour?

A

The study of the decision process by which people buy and consume products

130
Q

What are the 4 major influences on consumer behaviour?

A

Psychological influences
Personal influences
Social influences
Cultural influences

131
Q

What are the 5 key stages when a consumer is buying a new product

A

Problem/need recognition
Information seeking
Evaluation of alternatives
Purchase decisions
Post purchase evaluation

132
Q

What is a industrial market?

A

business that buy goods to be converted into other products or that are used up during production

133
Q

What is a reseller market?

A

An organizational market consisting of intermediaries that buy and resell finished goods

134
Q
A

BUS 201 Final exam (1 decks)

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