chapters 1-6 Flashcards
(111 cards)
1
Q
free enterprise
A
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
2
Q
cultural/workplace diversity
A
differences among people in a workforce owing to race, ethnicity, and gender
3
Q
business
A
the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society’s needs
4
Q
e-business
A
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
5
Q
profit
A
what remains after all business expenses have been deducted from sales revenue
6
Q
stakeholders
A
all the different people or groups of people who are affected by an organization’s policies, decisions, and activities
7
Q
economics
A
the study of how wealth is created and distributed
8
Q
microeconomics
A
the study of the decisions made by individuals and businesses
9
Q
macroeconomics
A
the study of the national economy and the global economy
10
Q
economy
A
the way in which people deal with the creation and distribution of wealth
11
Q
factors of production
A
resources used to produce goods and services
12
Q
entrepreneur
A
a person who risks time, effort, and money too start and operate a business
13
Q
capitalism
A
an economic system in which individuals own and operate the majority of businesses that provide goods and services
14
Q
invisible hand
A
a term created by Adam Smith to describe how an individual’s personal gain benefits others and a nation’s economy
15
Q
market economy
A
an economic system in which businesses and individuals decide what to produce and buy, and the market determines quantities sold and prices
16
Q
mixed economy
A
an economy that exhibits elements of both capitalism and socialism
17
Q
consumer products
A
goods and services purchased by individuals for personal consumption
18
Q
command economy
A
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
19
Q
productivity
A
the average level of output per worker per hour
20
Q
gross domestic product (GDP)
A
the total dollar value of all goods and services produced by all people within the boundaries of a country during a specified time period – usually a one-year period
21
Q
inflation
A
a general rise in the level of prices
22
Q
deflation
A
a general decrease in the level of prices
23
Q
unemployment rate
A
the percentage of a nation’s labor force unemployed at any time
24
Q
consumer price index (CPI)
A
a monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area
25
producer price index (PPI)
an index that measures prices that producers receive for their finished goods
26
business cycle
the recurrence of periods of growth and recession in a nation's economic activity
27
recession
two or more consecutive three-month periods of decline in a country's GDP
28
depression
a severe recession that lasts longer than a typical recession and has a larger decline in business activity when compared to a recession
29
monetary policies
Federal Reserve's decisions that determine the size of the supply of money in the nation and the level of interest rates
30
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
31
federal deficit
a shortfall created when the federal government spends more in a fiscal year than it receives
32
national debt
the total of all federal deficits
33
competition
rivalry among businesses for sales to potential customers
34
perfect/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
35
supply
the quantity of a product that producers are willing to purchase at each of various prices
36
demand
the quantity of a product that buyers are willing to purchase at each of various prices
37
market price
the price at which the quantity demanded is exactly equal to the quantity supplied
38
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
39
product differentiation
the process of developing and promoting differences between one's products and all competitive products
40
oligopoly
a market (or industry) in which there are few sellers
41
monopoly
a market (or industry) with one seller, and there are barriers to keep other firms from entering the industry
42
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
43
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 entrepreneur
44
factory system
a system of manufacturing in which all the materials, machinery, and workers required to manufacture a product are assembled in one place
45
specialization
the separation of a manufacturing process into distinct tasks and the assignment of different tasks to different individuals
46
service economy
an economy in which more effort is devoted to the production of services than to the production of goods
47
social media
the online interaction that allows people and businesses to communicate and share ideas, personal information, and information about products or services
48
sustainability
the ability to maintain or improve standards of living without damaging or depleting natural resources for present and future generations
49
ethics
the study of right and wrong and the morality of the choices individuals make
50
business ethics
the application of moral standards to business situations
51
plagiarism
knowingly taking someone else's words, ideas or other original material without acknowledging the source
52
sarbanes-oxley act of 2002
provides sweeping new legal protection for employees who report corporate misconduct
53
code of ethics
a guide to acceptable and ethical behavior as defined by the organization
54
whistle-blowing
informing the press or government officials about unethical practices within one's organization
55
social responsibility
the recognition that business activities have an impact on society and the consideration of that impact in business decision making
56
corporate citizenship
adopting a strategic approach to fulfilling economic, ethical, environmental, and social responsibilities
57
caveat emptor
a Latin phrase meaning "let the buyer beware"
58
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
59
socioeconomic model of social responsibility
the concept that business should emphasize not only profits but also the impact of its decision on society
60
consumerism
all activities undertaken to protect the rights of consumers
61
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
62
affirmative action program
a plan designed to increase the number of minority employees at all levels within an organization
63
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
64
hard- core unemployed
workers with little education or vocational training and a long history of unemployment
65
pollution
the contamination of water, air, or land through the actions of people in an industrialized society
66
recycling
converting used materials into new products or components for new products in order to prevent their unnecessary disposal
67
green marketing
the process of creating, making, delivering, and promoting products that are environmentally safe
68
social audit
a comprehensive report of what an organization has done and is doing with regard to social issues that affect it
69
international business
all business activities that involve exchanges across national boundaries
70
absolute advantage
the ability to produce a specific product more efficiently than any other nation
71
comparative advantage
the ability to produce a specific product more efficiently than any other product
72
exporting
selling and shipping raw materials or products to other nations
73
importing
purchasing raw materials or products in other nations and bringing them into one's own country
74
balance of trade
the total value of a nation's exports minus the total value of its imports over some period of time
75
trade deficit
a negative balance of trade
76
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
77
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
78
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
79
bill of lading
document issued by a transport carrier to an exporter to prove that merchandise has been shipped
80
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
81
strategic alliance
a partnership formed to create competitive advantage on a worldwide basis
82
trading company
provides a link between buyers and sellers in different countries
83
countertrade
an international barter transaction
84
multinational enterprise
a firm that operates on a worldwide scale without ties to any specific nation or region
85
import duty (tariff)
a tax levied on a particular foreign product entering a country
86
dumping
exportation of large quantities of a product at a price lower than that of the same product in the home market
87
nontariff barrier
a nontax measure imposed by a government to favor domestic over foreign suppliers
88
import quota
a limit on the amount of a particular good that may be imported into a country during a given period of time
89
embargo
a complete halt to trading with a particular nation or in a particular product
90
foreign-exchange control
a restriction on the amount of a particular foreign currency that can be purchased or sold
91
currency devaluation
the reduction of the value of a nation's currency that can be purchased or sold
92
General Agreement on Tariffs and Trade (GATT)
an international organization of nations dedicated to reducing or eliminating tariffs and other barriers to world trade
93
World Trade Organization (WTO)
powerful successor to GATT that incorporates trade in goods, services and ideas
94
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
95
export-import bank of the united states
an independent agency of the US government whose function is to assist in financing the exports of American firms
96
multilateral development bank (MDB)
an internationally supported bank that provides loans to developing countries to help them grow
97
International Monetary Fund (IMF)
an international bank that makes short-term loans to developing countries experiencing balance-of-payment deficits
98
sole proprietorship
a business that is owned (and usually operated) by one person
99
unlimited liability
a legal concept that holds a business owner personally responsible for all the debts of the business
100
partnership
a voluntary association of two or more persons to act as co-owners of a business for profit
101
general partner
a person who assumes full or shared responsibility for operating a business
102
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
103
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
104
stock
the shares of ownership of a corporation
105
stockholder
a person who owns a corporation's stock
106
closed corporation
a corporation whose stock is owned by relatively few people and is not sold to the general public
107
open corporation
a corporation whose stock can be bought and sold by any individual
108
domestic corporation
a corporation in the state in which it is incorporated
109
foreign corporation
a corporation in any state in which it does business except the one in which it is incorporated
110
alien corporation
a corporation chartered by a foreign government and conducting business in the united states
111
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
