Chapter 1-4 ,7,8 Flashcards
0
Q
Goods
A
Tangible products; ex. Items
1
Q
Business
A
Activity that seeks to provide good while operating a profit
2
Q
Services
A
Intangible products; ex. Healthcare
3
Q
Entrepreneur
A
A person who risks time and money to start a business
4
Q
Profit
A
The amount of money a business earns above and beyond what it spends for salaries and other expenses
5
Q
Revenue
A
The total amount of money a business takes in
6
Q
Loss
A
When expenses are more than received
7
Q
Quality of Life
A
General well-being of society in terms of its political freedom
8
Q
Standard of living
A
Amount of goods you can buy with the money you have
9
Q
Stakeholders
A
All the people who stand to gain or lose by the activities of a business
10
Q
Outsourcing
A
Contracting with other companies to do functions of the firm
11
Q
Insourcing
A
Foreign companies bringing forth tasks to the U.S
Sig- helps create jobs
12
Q
Non-Profit Organization
A
Goals do not include making a personal profit
13
Q
Factors of Production
A
The resources used to create wealth;
1. Land 2.labor 3.capital 4.entrepeneurship and 5.knowledge
14
Q
Productivity
A
The amount of output you generate given the amount of input
15
Q
E-commerce
A
Buying and selling goods over the Internet.
16
Q
Database
A
An electric storage file for information
17
Q
Identity Theft
A
Obtaining someone’s information for illegal purposes
18
Q
Empowerment
A
Giving frontline workers responsibility
19
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Demography
A
Statical study of the human population
20
Q
Climate change
A
Movement if temperature
21
Q
Greening
A
A trend toward saving energy
22
Q
Economics
A
The study of how society chooses to employ resources to produce goods and distribute them amongst individuals
23
Q
Macroeconomics
A
Looks at the operation of a nations economy as a whole
24
Microeconomics
Looks at the behavior of people and organizations in particular markets
25
Resource Development
Study of how to increase resources and to create the conditions that will make better use of those resources
26
Invisible hand
The process that turns self directed gain into social and economic benefits for all ((dubbed by Adam Smith))
27
Capitalism
An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit
28
Supply
The quantity of products that manufacturers or owners are willing to sell at different prices in a specific time
29
Market price
Determined by supply and demand
30
Perfect competition
The degree of competition in which there are many sellers in a market and none is large enough to dictate the price of the product
Ex: agriculture
31
Monopolistic competition
A large number of sellers produce very similar products that buyers nevertheless perceive as different
Ex: hotdogs
32
Oligopoly
A degree of competition in which just a few sellers dominate the market
Ex: airlines
33
Monopoly
Only one seller controls the total supply of a product or service and sets the price
34
Socialism
An economic system based on the premise that some, if not most, basic business should be owned by the government so that profits can be more evenly distributed among the people
35
Brain drain
The loss of the best and brightest people to other coubtries
36
Communism
An economic and political system in which the government makes almost all economic decisions and owns almost all the major factors of production
37
Free market economics
The market largely determines what goods and services get produced, who gets them, and how the economy grows
38
Command economies
Economic systems in which the government largely decides what goods and services will be produced, who will get them, and how the economy will grow
39
Gross domestic product (GDP)
The total value of final goods and services produced in a country in a given year
40
Unemployment rate
The number of civilians at least 16 years of ages who are unemployed but attempted to find a job within the past 4 weeks
41
Inflation
A general rise in goods and services over time
42
Frictional unemployment
Those who have quit work and have yet to find a new job
43
Structural unemployment
Caused by businesses restructuring themselves
44
Cyclical unemployment
Due to the recession or business cycle
45
Seasonal unemployment
Demand varies over the uears
46
Disinflation
Price increases slowly
47
Deflation
Prices are declining
48
Stagflation
When the economy is slowing but the prices are still going up
49
Consumer price index (CPI)
Monthly statistics that measure the pace of inflation and deflation
50
Producer price index (PPI)
Measures prices at a wholesale level
51
Business cycle
The periodic rises and falls that occur in economics over time
52
Recession
Two or more consecutive quarters of decline in the GDP
53
Depression
A severe recession, usually accompanied by deflation
54
Fiscal policy
The federal governments efforts to keep the economy stable by increasing or decreasing taxes or government spending
55
National Debt
The sum of government deficits over time
56
Keynesian Economic Theory
The theory that a government policy of increasing spending and cutting taxes could stimulate the economy in a recession
57
Monetary Policy
The management of the money supply and interest rates by the Federal Reserve
58
Importing
Buying products from another country
59
Exporting
Selling products to another country
60
Free trade
The movement of goods and services along nations without political or economic barriers
61
Comparative Advantage Theory
A country should sell to other countries those products that it produces the best and to buy from other countries products they aren't as goods in producing
62
Absolute advantage
The advantage that exists when a country has a monopoly on producing a product more than others
63
Balance of trade
The total value of a nations exports compared to its imports over a particular period
64
Trade surplus
A favorable balance of trade; when exports exceeds imports
65
Trade deficit
An unfavorable balance of trade; imports exceed exports
66
Balance of payments
The difference between money coming into the country and money leaving the country.
Remember: money flows from other things too such as tourism, foreign aid, foreign investments, etc
67
Dumping
Selling products in a foreign country at lower prices that the producing country
68
Licensing
A firm allows a foreign company to produce its product for a royalty fee
69
Contract manufacturing
Private label goods a company attached its name to. A type of outsourcing
70
Joint venture
2 or more companies undertake a project
71
Strategic alliance
A long term partnership between 2 or more companies to have competitive market advantages
72
Foreign direct investments (FDI)
The buying if permanent property and businesses in foreign nations
73
Foreign subsidiary
Company owned by another company. Aka the parent company
74
Multinational corporation
A company that manufactures in many different countries
75
Sovereign wealth funds
Funds controlled by government holding large stakes
76
Exchange rate
The value of one nation's currency relative to another nation's currency
77
Devaluation
Lowering the value of a nations currency relative to other currencies
78
Countertrading
Forms of bartering goods or services
Ex. Pepsi trades drinks for Russian vodka
79
Trade protectionism
Government regulations that limit imports
80
Tariffs
Tax imposed on imports
81
Import quota
A limit on the number of products in certain categories that a nation can import
82
Embargo
A complete ban on the import or export of a certain product
83
General Agreement on Tariffs and Trade (GATT)
In 1948, an international forum for negotiating mutual reductions in trade restrictions
84
World trade organization (WTO)
replaced the GATT and was assigned to mediate trade disputes
85
Common market
A regional group of countries that have a common external tariff
86
North American free trade agreement (NAFTA)
Created a free trade area among the United States, Canada, and Mexico
87
Ethics
Standards of moral behavior accepted by society as right vs wrong
88
Compliance-based ethics codes-
ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers
89
Integrity-based ethics codes
Ethical standards that define the organization's guiding values. Stresses shared accountability between employees
90
Whistleblowers
Insiders who report illegal or unethical behavior
91
Corporate social responsibility (CSR)
A business's concern for the welfare of society
92
Corporate philanthropy
The dimension of social responsibility that includes charitable donations
93
Corporate social initiatives
Enhanced forms of corporate philanthropy directly related to the company's competencies
94
Corporate responsibility
The dimension of social responsibility that refers to the position a firm takes on in social and political issues
95
Insider trading
An unethical activity in which insiders use private company information to further their own fortunes or fortunes of family and friends
96
Social audit
A systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs
97
Sole proprietorship
A business that is owned and usually managed by one person
98
Partnership
A legal form of business with 2 or more owners
99
Corporation
A legal entity with authority to act and have liability apart of its owners
100
Unlimited liability
The responsibility of business owners for all of the debts from its owners
101
General partnership
All owners share divided debt and responsibility
102
Limited partner
An owners who invests money in the business but does not have any management responsibility for losses beyond the investment
103
Limited liability
The responsibility of a business's owners for losses only up to the amount they invest
Ex: shareholders
104
Master limited partnership (MLP)
A partnership that acts like a corporation (is traded on a stock exchange) but is taxed like a partnership, this avoiding corporate income tax
105
Limited liability partnership (LLP)
A partnership that limits partners risk of losing their personal assets to only their own acts and omissions
106
Conventional "c" corporation
A state chartered legal entity with authority to act and have liability separate grind its owners
107
S corporation
A unique government creation that looks like a corporation but is taxed like sole proprietorship and partnerships
108
Limited liability company
A company similar to a s corporation but without the requirements
109
Merger
Result of 2 firms forming one company
110
Acquisition
One company's purchase of the property and obligations of another company
111
Vertical merger
The joining of 2 companies involved in different stages of related businesses
Ex. Soft drink company buys an artificial sweetener company
112
Horizontal merger
The joining of 2 firms in the same industry
Ex. Soft drink company buys a mineral water company
113
Conglomerate merger
The joining of firms unrelated but offers benefits
Ex.soft drink company buys a snack food company
114
Cooperative
A business owned and controlled by the people who use it; producers, consumers, or workers with similar needs who pool their resources for mutual gain
115
Entrepreneurship
Accepting the risk of starting and running a business
116
Entrepeneurial team
A group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product.
117
Microoreneurs
Entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle
118
Affiliate marketing
An Internet based marketing strategy in which a business rewards Individuals or other businesses for each visitor or customer the affiliate sends to its website
Ex. Bloggers receive free clothes of clothing websites to get their brand out.
119
Enterprise zones
Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support
120
Business plan
A detailed written statement that describes the nature of the business, the advantages, the resources, and the qualifications.
121
Venture capitalists
Individuals of companies that invest in new businesses in exchange for partial ownership of this businesses
122
Small business administration (SBA)
A US government agency that advises and assists small businesses by providing management training and financial advice and loans
123
Management
The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources
124
Planning
A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives
125
Organizing
A management function that includes designing the structure of the organization and creating a system in each everyone and thing works together
126
Leading
Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve goals
127
Controlling
A management function that involves establishing clear standards to determine whether or not there is progression.
128
Vision
An encompassing explanation of why the organization exists and where it's trying to head
129
Mission statement
An outline of the fundamental purposes of an organization
130
Goals
The broad, long term accomplishments an organization wishes to attain
131
Objective
Specific short term statements detailing how to achieve the organization goals
132
SWOT ANALYSIS
S-trengths W-eaknesses O-ppurtunities T-hreats
A planning tool used to analyze an organizations
133
SWOT STRENGTHS TO VIEW
```
strengths- competencies
An acknowledged leader
Functional areas
Proven management
Cost advantages
Effective advertisinng
```
134
SWOT WEAKNESSES
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weaknesses- no strategic direction
Obsolete facilities
Subpar profitability
Lack of managerial depth and talent
Weak market image
Too narrow a product line
```
135
SWOT POTENTIAL OPPUTINITIES
Ability to serve additional customer groups
Expand product lines
Ability to transfer skills to new products
Falling trade barriers in attractive foreign markets
Complacency among rival firms
Ability to grow due to increasing in market demand
136
SWOT EXTERNAL THREATS
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Entry of lower cost foreign competitors
Rising sales on substitute product
Slower market growth
Costly requirements
Vulnerability to recession
Changing buyer needsj
```
137
Strategic planning
The process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals
138
Tactical planning
The process of developing short term statements about was is to be done
139
Operational planning
The process of setting work standards and schedules necessary to implement the company's tactical objectives
140
Contingency planning
The process of preparing alternative courses of action that may be used if the primary plans don't achieve meeting objectives
141
Decision making
Choosing among two or more alternatives
142
Problem solving
The process of solving the everyday problems that occur. Problem solving is less formal than decision making
143
Brainstorming
Coming up with as many solutions as possible in a short period of time
144
PMI
Plus and minus chart
145
Organizational chart
A visual device that shows relationships among people and divides the organization's work; it shows who reports to whom
146
Top management
Highest level of management consisting of the president and other key company executives who develop strategic plans
147
Middle management
The level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning
148
Supervisory management
Managers who are directly responsible for supervising workers and evaluating their daily performance
149
Technical skills
Skills that involve the ability to perform tasks in a specific discipline or department
150
Human relations skills
Skills that involve communication and motivation
151
Conceptual skills
Skills that involve the ability to picture the organization as a whole
152
Staffing
A management function that includes hiring, motivating, and retaining the best people
153
Transparency
The presentation of a company's facts and figured in a way that is clear for the stakeholders
154
Autocratic leadership
Making managerial decisions without consulting others
155
Participative (democratic) leadership
Consists of managers and employees working together to make decisions
156
Free reign leadership
Managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives
157
Enabling
Giving workers the education and tools they need to make decisions
158
Knowledge management
Finding the right information, keeping the information in an accessible place, and making information know to everyone
159
External customers
Dealers who buy products to sell to others, and ultimate customers, who buy products for their own personal use
160
Internal customers
Individuals and units within the firm that receive services from other units
161
economies of scale
the situation which companies can reduce their production costs if they purchase raw materials in bulk; the average cost of goods goes down as production levels increase
162
Fayol's Principles of Organization
Division of Labor
Hierarchy of Authority- (know who you report to)
Unity of Command- (1 and only 1 boss)
Subordination of individual interest to general interest- (goals as a TEAM)
Authority- (managers can give orders) ** whenever authority is exercised, responsibility arises.
Degree of Centralization- Specific and fixed responsibility to certain people in top management
Clear communication
Order
Equity- treat employees with respect
163
Max Weber's Principles
employees need to do what they are told
addition to Fayol:
- job descriptions
- written rules
- consistent procedures
- staffing and promotion based on QUALITY
164
hierarchy
one personal at the top with a rank from top to bottom of managers who are responsible to a person
165
chain of command
the line of authority that moves from the top of hierarchy to bottom
166
bureaucracy
an organization with many layers of managers who set rules and regulations and oversee all decisions
167
centralized authority
an organization structure in which decision-making authority is maintained at the top level of management
168
decentralized authority
an organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarter management could be
169
span of control
the optimal number of subordinates a manager supervises or should supervise
170
tall organization structure
an organizational structure in which there are various levels of managers
171
flat organization structure
an organizational structure that has few levels of management
172
departmentalization
the dividing of organizational functions into separate units
173
line organization
an organization that has direct 2-way lines of responsibility, with all people reporting to only one supervisor.
*** hard to use in large businesses
174
line personnel
employees who are part of the chain of command that is responsible for achieving organizational goals
175
staff personnel
employees who advise and assist line personnel
176
matrix organization
specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure
177
cross-functional self-managed teams
groups of employees who work together on a long-term basis.
178
networking
using communications technology and other means to link organizations and allow them to work together
179
real time
the present moment
180
virtual corporation
a temporary networked organization made up of replaceable firms that join and leave as needed
181
benchmarking
comparing an organization's practices,processes, and products against the world's best
182
core competencies
those functions that the organization can do as well as or as better than any other organization in the world
183
digital natives
young people who grew up on the internet
184
restructuring
redesigning an organization to be more effective
185
inverted organization
an organization that has contacted people at the top and the chief executive officer at the bottom
186
organizational (corporate) culture
widely shared values within an organization that achieves common goals and provide unity
187
formal organization
the structure that details lines of responsibility, authority, and position.
188
informal organization
the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority
