Semester 1 > Management Ch 1 > Flashcards

Management Ch 1 Flashcards

(63 cards)

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1
Q

Business

A

organisation that provides goods or

services to earn profits

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2
Q

Profits

A

difference between a business’s revenues

and its expenses

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3
Q

External Environment

A

everything outside an organisation’s

boundaries that might affect it

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4
Q

Domestic Business Environment

A

the environment in which a firm conducts

its operations and derives its revenues

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5
Q

Global Business Environment

A

the international forces that affect a

business

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6
Q

Technological Environment

A

all the ways by which firms create value for

their core business

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7
Q

Political-Legal Environment

A

the relationship between business and

government

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8
Q

Sociocultural Environment

A

the customs, mores, values, and
demographic characteristics of the society
in which an organization functions

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9
Q

Economic Environment

A

relevant conditions that exist in the
economic system in which a company
operates

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10
Q

Economic System

A

a nation’s system for allocating its

resources among its citizens

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11
Q

Factors of Production

A

resources used in the production of goods
and services labor, capital, entrepreneurs,
physical resources, and information
resources

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12
Q

Labor (Human Resources)

A

physical and mental capabilities of people

as they contribute to economic production

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13
Q

Capital

A

funds needed to create and operate a

business enterprise

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14
Q

Entrepreneur

A

individual who accepts the risks and
opportunities involved in creating and
operating a new business venture

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15
Q

Physical Resources

A

tangible items that organizations use in the

conduct of their businesses

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16
Q

Information Resources

A

data and other information used by

businesses

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17
Q

Planned Economy

A

economy that relies on a centralized
government to control all or most factors
of production and to make all or most
production and allocation decisions

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18
Q

Market Economy

A

economy in which individuals control
production and allocation decisions through
supply and demand

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19
Q

Communism

A

political system in which the government

owns and operates all factors of production

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20
Q

Market

A

mechanism for exchange between buyers

and sellers of a particular good or service

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21
Q

Capitalism

A

system that sanctions the private
ownership of the factors of production and
encourages entrepreneurship by offering
profits as an incentive

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22
Q

Mixed Market Economy

A

economic system featuring characteristics

of both planned and market economies

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23
Q

Privatisation

A

process of converting government

enterprises into privately owned companies

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24
Q

Socialism

A

planned economic system in which the
government owns and operates only
selected major sources of production

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25
Demand
the willingness and ability of buyers to | purchase a good or service
26
Supply
the willingness and ability of producers to | offer a good or service for sale
27
Law of Demand
principle that buyers will purchase (demand) more of a product as its price drops and less as its price increases
28
Law of Supply
principle that producers will offer (supply) more of a product for sale as its price rises and less as its price drops
29
Demand and Supply Schedule
assessment of the relationships among different levels of demand and supply at different price levels
30
Demand Curve
graph showing how many units of a product will be demanded (bought) at different prices
31
Supply Curve
graph showing how many units of a product will be supplied (offered for sale) at different prices
32
Market Price (Equilibrium Price)
profit-maximizing price at which the quantity of goods demanded and the quantity of goods supplied are equal
33
Surplus
situation in which quantity supplied | exceeds quantity demanded
34
Shortage
situation in which quantity demanded | exceeds quantity supplied
35
Private Enterprise
economic system that allows individuals to pursue their own interests without undue governmental restriction
36
Competition
vying among businesses for the same | resources or customers
37
Perfect Competition
market or industry characterized by numerous small firms producing an identical product
38
Monopolistic Competition
market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors
39
Oligopoly
market or industry characterized by a handful of (generally large) sellers with the power to influence the prices of their products
40
Monopoly
market or industry in which there is only one producer that can therefore set the prices of its products
41
Natural Monopoly
industry in which one company can most efficiently supply all needed goods or services
42
Economic Indicators
statistics that help assess the performance | of an economy
43
Business Cycle
short-term pattern of economic expansions | and contractions
44
Aggregate Output
the total quantity of goods and services produced by an economic system during a given period
45
Standard of Living
the total quantity and quality of goods and services people can purchase with the currency used in their economic system
46
Gross Domestic Product (GDP)
total value of all goods and services produced within a given period by a national economy through domestic factors of production
47
Gross National Product (GNP)
total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located
48
GDP per Capita
gross domestic product divided by total | population
49
Real GDP
GDP adjusted to account for changes in | currency values and price changes
50
Nominal GDP
GDP measured in current dollars or with all | components valued at current prices
51
Purchasing Power Parity
the principle that exchange rates are set so that the prices of similar products in different countries are about the same
52
Productivity
a measure of economic growth that compares how much a system produces with the resources needed to produce it
53
Balance of Trade
the economic value of all the products that a country exports minus the economic value of all the products it imports
54
National Debt
the amount of money the government | owes its creditors
55
Stability
condition in which the amount of money available in an economic system and the quantity of goods and services produced in it are growing at about the same rate
56
Inflation
occurs when widespread price increases | occur throughout an economic system
57
Consumer Price Index (CPI)
a measure of the prices of typical products purchased by consumers living in urban areas
58
Unemployment
the level of joblessness among people actively seeking work in an economic system
59
Recession
a period during which aggregate output, as | measured by GDP, declines
60
Depression
a prolonged and deep recession
61
Fiscal Policies
policies used by a government regarding | how it collects and spends revenue
62
Monetary Policies
policies used by a government to control | the size of its money supply
63
Stabilization Policy
government economic policy intended to smooth out fluctuations in output and unemployment and to stabilize prices

Semester 1 (8 decks)

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