FINALS_1 Flashcards
(153 cards)
1
Q
Also known as firm, it provides products or services desired by customers
A
BUSINESS
2
Q
To serve the needs of consumers by owners who seek to make profits
A
GOAL OF BUSINESS
3
Q
4 RESOURCES USED
TO PRODUCE
PRODUCTS OR
SERVICES
A
- Natural Resources
- Human Resources
- Capital
- Entrepreneurship
4
Q
5 KEY STAKEHOLDERS
IN BUSINESS
A
- Owner
- Creditor
- Employee
- Suppliers
- Customers
5
Q
4 BUSINESS
ENVIRONMENTS
A
- Social Environment
- Industry Environment
- Economic Environment
- Global Environment
6
Q
3 KEY TYPES OF
BUSINESS DECISION
A
- Management decision
- Marketing decision
- Finance decision
7
Q
Firms are responsible for satisfying their owners.
A
RESPONSIBILITY TO
STOCKHOLDERS
8
Q
Firms are responsible for meeting their financial
obligations and should communicate openly if they face
financial struggles
A
RESPONSIBILITY TO
CREDITORS
9
Q
Firms’ production processes can harm the environment
and contribute to issues like air and land pollution
A
RESPONSIBILITY TO
ENVIRONMENT
10
Q
Firms must demonstrate care to strengthen its
relationship with residents and enhance public image
A
RESPONSIBILITY TO
COMMUNITY
11
Q
3 FACTORS AFFECTING
ECONOMIC GROWTH
A
- Total Production and Aggregate Expenditures
- Gross Domestic Product
- Unemployment Levels
12
Q
2 TYPES OF INFLATION
A
Cost-push inflation and Demand-pull Inflation
13
Q
This determines the cost of borrowing money which
affects firm’s expenses and revenue.
A
INTEREST RATE
14
Q
These are the two main factors that affect price determination.
A
SUPPLY AND DEMAND
15
Q
A government influence on businesses that lowers and
raises interest rates.
A
MONETARY POLICY
16
Q
A government influence on businesses that mandates
personal income taxes, corporate taxes, excise taxes and
budget deficits.
A
FISCAL POLICY
17
Q
STEPS IN CONDUCTING
INTERNATIONAL
BUSINESSES
A
Importing > Exporting > Direct Foreign Investment
(DFI) > Outsourcing > Strategic Alliances
18
Q
A barrier to international business that removed trade
barriers between US, Mexico and Canada to enable easier cross-border trade.
A
NAFTA (1993)``
19
Q
A barrier to international business that reduced tariffs
across 117 countries and led to the creation of the World Trade Organization (WTO).
A
GENERAL AGREEMENT
ON TARIFFS AND
TRADE (GATT)
20
Q
An organization with 140+ member countries and
governs facilitation of global trade.
A
WORLD TRADE
ORGANIZATION (WTO)
21
Q
A barrier to international business that eliminated trade
barriers, adopted euro, reducing trade restrictions and currency exchange risks.
A
EUROPEAN UNION (EU)
22
Q
The year where European Union (EU) expanded and
included eastern European countries.
A
2004
23
Q
A barrier to international business that originates from a
country, reducing restrictions on foreign investment and
offered incentives to attract businesses and local job creation.
A
FOREIGN DIRECT
INVESTMENT (FDI)
24
Q
An ongoing trade policy conflict which states that while
free trade boosts production and creates job in some
regions, it may lead to job losses in others.
A
JOB CREATION VS JOB
LOSS
25
An ongoing trade policy conflict which states that some
firms gain an edge through lax environmental laws and
weak labor protections.
UNFAIR COMPETITIVE
ADVANTAGES
26
An ongoing trade policy conflict regarding protests and
lengthy governmental disputes.
PROTESTS AND
DISPUTES
27
A type of business ownership that is easy to start with
minimal legal requirements but has personal liability due
to owner’s responsibility for all debts
SOLE
PROPRIETORSHIP
28
A type of business ownership that benefits with
increased funding and shared losses but has shared
profits and unlimited liability.
PARTNERSHIP
29
A type of business ownership that has limited liability,
access to capital and easy transfer of ownership but has
high organizational costs and double taxation.
CORPORATION
30
Method of obtaining ownership of an existing business
wherein people inherit or take over a family business
after working for some time.
ASSUMING
OWNERSHIP OF
FAMILY BUSINESS
31
Method of obtaining ownership of an existing business
wherein they are frequently sold due to financial issues,
retirement or owner death.
PURCHASING
EXISTING BUSINESS
32
Method of obtaining ownership of an existing business
where a company allows a business owner to use an
established company’s brand, trademark or system.
FRANCHISING
33
This ensures entrepreneurs address key functions and
serves as a checklist for success.
BUSINESS PLAN
34
This involves the utilization of human and other
resources such as machinery in a way that best fulfills
the goals and aspirations of the company.
MNANAGEMENT
35
A level of management pertaining to president, chief
executive officer (CEO), and vice president.
TOP (HIGH-LEVEL)
MANAGEMENT
36
A level of management pertaining to regional managers
and plant managers.
MIDDLE
MANAGEMENT
37
A level of management pertaining to supervisor and
account managers.
SUPERVISORY (FIRST-
LINE) MANAGEMENT
38
4 FUNCTIONS OF
MANAGERS
1. Planning
2. Organizing
3. Leading
4. Controlling
39
A function of managers that represent the preparation of
a firm or future business conditions.
PLANNING
40
Type of planning that identifies the firm’s main business
focus over a long-term period.
STRATEGIC PLANNING
41
Type of planning that normally focuses on a short-term
period, such as next year or so.
TACTICAL PLANNING
42
Type of planning that establishes the methods to be used
in the near future to achieve tactical plans.
OPERATIONAL
PLANNING
43
Type of planning that focuses on alternative plans for
various possible business conditions.
CONTINGENCY
PLANNING
44
A function of managers that involves the organization of
employees and other resources in a manner that is
consistent with the firm’s goals.
ORGANIZING
45
A function of managers that involves the monitoring and evaluation of tasks.
CONTROLLING / leading
46
This outlines responsibilities and relationships between
job positions, and ensures efficient job performance
through proper supervision.
ORGANIZATIONAL
STRUCTURE
47
In organizational structure, this determines the number
of employees managed by each manager.
SPAN OF CONTROLQ
48
In organizational structure, this determines the number
of layers from the top to the bottom of the structure.
ORGANIZATIONAL
HEIGHT
49
An organizational structure that contains only line positions and no staff positions
LINE ORGANIZATION
50
An organizational structure that includes both line and
staff positions and assigns authority from higher-level management to employees
LINE AND STAFF
ORGANIZATION
51
In an organization, they oversee activities of high-level
managers and may make decisions serving personal
interests, and ensure internal control and reporting system.
BOARD OF DIRECTORS
52
3 COMMON
COMMITTEES
FORMED IN THE FIRM
1. Compensation Committee
2. Nominating Committee
3. Audit Committee
53
In an organization, it supervises business and affairs to
serve shareholders and comply with law.
INTERNAL AUDITOR
54
Type of authority where most authority is held by the high-level managers.
CENTRALIZED
AUTHORITY
55
Type of authority where authority is spread among
several divisions or managers.
DECENTRALIZED
AUTHORITY
56
An of organizational structure that allows employees
from different divisions of the firm to interact
MATRIX
ORGANIZATION
57
An organizational structure that encourages employees
to think like entrepreneurs by giving them some
responsibility for offering suggestions about improving a
specific product or part of the production process.
INTRAPRENEURSHIP
58
An organizational structure that forces interaction
between employees and managers at different levels so
that employees have the opportunity to offer feedback to managers on an informal basis.
INFORMAL
ORGANIZATIONAL
STRUCTURE
59
Method of departmentalizing tasks in which tasks are
separated according to employee functions
DEPARTMENTALIZING
BY FUNCTION
60
Method of departmentalizing tasks in which tasks are
separated according to the produced product
DEPARTMENTALIZING
BY PRODUCT
61
Method of departmentalizing tasks in which tasks are
concentrated in a particular division to serve a specific area.
DEPARTMENTALIZING
BY LOCATION
62
Method of departmentalizing tasks in which tasks are
separated according to the type of customer that
purchases the firm’s products.
DEPARTMENTALIZING
BY CUSTOMER
63
In production control, this requires selecting a supplier,
negotiating volume discounts, and possibly delegating production to suppliers.
PURCHASING
MATERIALS
64
In production control, this involves managing various
inventories at levels that minimize costs.
INVENTORY CONTROL
65
In production control, this determines the sequence of
tasks necessary to complete production.
ROUTING
66
In production control, this sets time periods for the tasks
required within the production process.
SCHEDULING
67
In production control, this is used to identify
improvements that need to be made in production process.
QUALITY CONTROL
68
Workers become more motivated when they feel they are allowed to participate.
HAWTHORNE STUDY
69
This theory suggests that people rank their needs into
five general categories: Physiological, Safety, Social,
Esteem, Self-actualization
MASLOW’S
HIERARCHY OF NEEDS
70
Common factors identified by dissatisfied workers are
working conditions, supervision, salary, job security and status.
Common factors identified by satisfied workers are
achievement, responsibility, recognition advancement and growth.
HERZBERG’S JOB
SATISFACTION STUDY
71
In theory X, employees dislike work responsibilities and
will avoid work if possible, while in theory Y, employees
are willing to work and prefer more responsibility.
THEORY OF X AND
THEORY OF Y
72
This theory on job satisfaction was based on the
Japanese style of allowing all employees to participate in
decision making.
THEORY Z
73
This suggests that an employee’s efforts are influenced
by the expected outcome for those efforts. (Salary,
Compensation, Recognition, Promotion)
EXPECTANCY THEORY
74
This suggests that compensation should be equitable, or
in proportion to each employee’s contribution.
EQUITY THEORY
75
This suggests that reinforcement can influence behavior.
Positive reinforcement equals positive results, negative
reinforcement equals negative results.
REINFORCEMENT
THEORY
76
This means they receive the right amount of
compensation based of their work and performance.
ADEQUATE
COMPENSATION
PROGRAM
77
Compensation program which pertains to raise or award based on performance.
MERIT-BASED
78
Compensation program which includes everyone
regardless of performance.
ACROSS-THE-BOARD
SYSTEM
79
Compensation program which pertains to objective-
based incentives.
INCENTIVE PLANS
80
This is a method of increasing job satisfaction by means
of allowing employees to work on their on workflow and Time frame.
FLEXIBLE WORK
81
This means that a consistent number of projects means
continuous works and stoppage of work can be
demotivating to employees.
JOB SECURITY`
82
Employees are more motivated when they play a bigger
role in the firm, either by being more involved in
decisions or by being assigned more responsibility.
EMPLOYEE
INVOLVEMENT
PROGRAM
83
An employee involvement program to expand the jobs assigned to employees.
JOB ENLARGEMENT
84
An employee involvement program that allows a set of
employees to periodically rotate their job assignments.
JOB ROTATION
85
An employee involvement program that allows
employees the power to make more decisions.
EMPOWERMENT
86
An employee involvement program that promotes
collaboration and socialization.
TEAMWORK
87
This involves planning to satisfy a firm’s needs for
employees, and consists of three tasks – forecasting, job analysis and recruitment.
HUMAN RESOURCE
PLANNING
88
A task of HR planning that pertains to an advance count
on how many employees needed in a specific time and work.
FORECASTING
89
A task of HR planning that pertains to identifying the job
and work needed and employee qualifications.
JOB ANALYSIS
90
A task of HR planning that pertains to choosing the right
person to do the job.
RECRUITMENT
91
Type of recruitment that seeks to fill open positions with
persons already employed by the firm.
INTERNAL
RECRUITING
92
Type of recruitment that is an effort to fill positions with
applicants from outside the firm.
EXTERNAL
RECRUITING
93
A type of compensation package that can be expressed
per hour, per pay period, or per year and is fixed over a particular time period.
SALARY
94
A type of compensation package that allows employees
to purchase the firm’s stock at a specific price.
STOCK OPTIONS
95
A type of compensation package that pertains to
additional privileges beyond compensation payments,
such as paid vacation time, health, life or dental
insurance, and pension programs.
EMPLOYEE BENEFITS
96
A type of compensation package pertaining to an extra one-time payment at the end of a period in which performance was measured.
BONUSES
97
A type of compensation package representing
compensation for meeting specific sales objectives.
COMMISSIONS
98
A type of compensation package pertaining to additional
privileges beyond compensation payments including free
parking, company car, club memberships, telephone
credit cards, etc.
PERQUISITES
99
A type of compensation package pertaining to a portion
of the firm’s profits shared to employees.
PROFIT SHARING
100
A type of criteria that is measurable
OBJECTIVE CRITERIA
101
A type of criteria that is observable
SUBJECTIVE CRITERIA
102
A set of related products or services offered by a single
firm and tends to expand over time as a firm identifies other consumer needs.
PRODUCT LINE
103
This is referred as the variety of products offered by the FIRM
PRODUCT MIX
104
This refers to the products not purchased frequently.
SHOPPING PRODUCTS
105
A group of individuals or organizations with similar
traits who may purchase a particular product.
TARGET MARKET
106
These exist for various consumer products and services.
CONSUMER MARKETS
107
These exist for industrial products that are purchased b Ffirms.
INDUSTRIAL MARKETS
108
This refers to the use of the Internet to execute design,
pricing, distribution and promotion of products
E-MARKETING
109
This refers to the effort of a firm to distinguish its
product from competitor’s products in a manner that
makes the product more desirable
PRODUCT
DIFFERENTIATION
110
A situation when a producer of a product deals with consumers
CHANNEL OF
DISTRIBUTION
111
A type of channel of distribution that happens when a
producer of a product deals directly with customers, marketing
DIRECT CHANNEL
112
A type of channel of distribution that happens when one
marketing intermediary (retailer) is between the
producer and the consumer.
ONE-LEVEL CHANNEL
113
A type of channel of distribution that happens when
there are two marketing intermediaries (wholesalers and
retailers) between producer and consumer.
TWO-LEVEL CHANNEL
114
type of intermediary for manufacturers by distributing products directly to customers.
RETAILERS
115
A type of intermediary for manufacturers maintaining sufficient inventory so retailers can order small amounts frequently.
WHOLESALERS
116
This is used to distribute a product through selected outlets.
SELECTIVE
DISTRIBUTION
117
This is essential to make consumers aware of a new
product and remind consumers that the product exists.
PROMOTION
118
The combination of promotion methods a firm uses to
increase acceptance of products.
PROMOTION MIX
119
A non-personal sales presentation communicated
through media or non-media forms.
ADVERTISING
120
A personal sales presentation used to influence one or more consumers.
PERSONAL SELLING
121
The set of activities intended to influence customers.
SALES PROMOTION
122
The actions taken with the goal of creating or
maintaining a favorable public image.
PUBLIC RELATIONS
123
The summary and analysis of a firm’s financial condition. This generates financial statements which
provide detailed information about a firm’s recent performance.
ACCOUNTING
124
Accountants working for a single firm and do not require certification.
PRIVATE
ACCOUNTANTS
125
Accountants serving multiple clients for free and must be licensed.
PUBLIC ACCOUNTANTS
126
This involves recording a company’s financial
transactions, such as daily or weekly revenues and expenses.
BOOKKEEPING
127
This outlines the proper methods for reporting financial data.
GENERALLY
ACCEPTED
ACCOUNTING
PRINCIPLES (GAAP)
128
Two organizations who established Generally Accepted Accounting Principles
FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) &
SECURITIES AND EXCHANGE COMMISSION (SEC)
129
This indicates the firm’s revenue, costs, and earnings over a period of time.
INCOME STATEMENT
130
This reports the book value of all the firm’s assets,
liabilities, and owner’s equity at a given point in time.
BALANCE SHEET
131
This reflects the total sales adjusted for any discounts.
NET SALES
132
This is the cost of the materials used to produce the
goods that were sold.
COST OF GOODS SOLD
133
This is equal to net sales minus the cost of goods sold.
GROSS PROFIT
134
This includes the stated value of all common stock
issued, additional paid-in capital and retained earnings.
OWNER’S EQUITY
135
This refers to a firm’s capacity to fulfill short-term
obligations.
LIQUIDITY
136
A measure of liquidity that compares current assets with
current liabilities in ratio form.
CURRENT RATIO
137
A measure of liquidity that requires a slight adjustment
in the current ratio. Inventory may not be easilyconverted into cash.
QUICK RATIO
138
Cost of Goods Sold divided by Inventory
INVENTORY
TURNOVER
139
Net Sales divided by Total Assets
ASSET TURNOVER
140
Net Income divided by Net Sales
NET PROFIT MARGIN
141
Net Income divided by Total Assets
RETURN ON ASSETS
142
Net Income divided by Owner’s Equity
RETURN ON EQUITY
143
A form of pledging assets when borrowing, to make
lenders more willing to provide loans.
COLLATERAL
144
A type of business loan that provides short-term funding
to cover business expenses until revenue is received.
OPERATIONAL LOANS
145
type of business loan used for purchasing fixed assets
like machinery, with maturities ranging from 3 to 10
years.
TERM LOAN
146
A type of business loan that offer flexible borrowing up
to a set limit, typically requiring repayment within a
year.
LINES OF CREDIT
147
These serve as long-term debt securities purchased by
investors.
BONDS
148
This is a security that represents partial ownership of a particular firm.
COMMON STOCK
149
This represents partial ownership in a firm and has
priority over common stock.
PREFERRED STOCK
150
A type of merger that combines firms in the same
industry.
HORIZONTAL MERGER
151
A type of merger that merges a firm with a supplier or
customer.
VERTICAL MERGER
152
A type of merger that combines from unrelated
industries.
CONGLOMERATE
MERGER
153
