module one vocab (intro to business) Flashcards
1
Q
business
A
any activity that seeks to provide goods and services that operates for profit
2
Q
goods
A
tangible products
3
Q
services
A
intangible products
4
Q
revenue
A
the total amount of money a busiess takes n during a given period
5
Q
profit
A
the amount a business earns above and beyond what it spends
6
Q
loss
A
a business’s expenses are more than its revenue
7
Q
risk
A
the chance an entrepreneur takes of losing time and money on a business that may not prove profitable
8
Q
standard of living
A
the amount of goods and services people can buy with the money they have
9
Q
quality of life
A
the general well-being of a society in terms of political freedom, natural environment , education, health care, safety, amount of leisure, and rewards
10
Q
stakeholders
A
the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to adress
11
Q
outsourcing
A
contracting with another company to do some or all of the functions of the firm, like production or accounting.
12
Q
factors of production
A
the resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge
13
Q
business environment
A
the surroundings factors that help or hinder the business developmet: economic/legal, technological, competitive, social, and global
14
Q
productivity
A
the amount of output you generate given the amount of input
15
Q
demography
A
teh statistical study of the human population in regard to its size, density, and other characteristics
16
Q
economics
A
the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.
17
Q
macroeconomics
A
part of economic study that looks at the operation of a nation’s economy as a whole
18
Q
microeconomics
A
part of economics that studies the behavior of people and organizations in particular markets
19
Q
resource development
A
the study of how to increase resources and to create the conditions that will make better use of those resources
20
Q
invisible hand
A
a phrase coined by adam smith to describe the process that turns self-directed gain into social and economic benefits for all
21
Q
capitalism
A
an economic system in which all or most of the factors of production and distribution are privately owned and operated for profit
22
Q
supply
A
the quantity of products that manufacturers or owners are willing to sell at different prices at a specific time
23
Q
demand
A
the quantity of products that people are willing to buy at different prices at a specific time
24
Q
market price
A
the price determined by supply and demand
25
perfect competition
the degree of competition in which there are many sellers in a market and non e is large enough to dictate the price of a product
26
monolistic competition
the degree of competition in which a large number of sellers produce a very similar product that buyers nevertheless perceive as different
27
oligopoly
degree of competition in which just a few sellers dominate the market
28
monopoly
degree of competition in which only one seller controls the total supply of a product or service and sets the price
29
socialism
economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can be more evenly distributed among the people
30
brain drain
the loss of the best and brightest people to other countries
31
communism
an economic system where the government determines all economic decisions and owns almost all the major factors of production
32
free-market economies
systems where the market largely determines what goods and services get produced, who produces them, and how the economy grows
33
command economies
systems in which the government largely decides what goods and services will be produced, who will get them, and how the economy will grow
34
mixed economy
systems where some allocation of resources is made by the market and some by the government
35
gross domestic product (GDP)
the total value of final goods and services produced in a country in a given year
36
Gross output (GO)
the total sales volume at all stages of production
37
unemployment rate
the number of civilians at least 16 years old who are unemployed and tried to find a job within the last 4 week
38
inflation
a general rise in the prices of goods and services over time
39
disinflation
when the price increases are slowing (inflation declining)
40
deflation
prices are declining, occuring when countries produce so many goods that people cannot afford to buy them all
41
stagflation
occurs when the economy is slowing, but prices go up anyway
42
consumer price index (CPI)
the monthly statistics that measure the pace of inflation or deflation
43
producer price index (PPI)
index that measures prices at wholesale level
44
business cycles
the periodic rises and falls that occur in economies over time
45
recession
two or more consecutive quarters of decline in GDP
46
depression
a severe recession, usually accompanied by deflation
47
fiscal policy
the federal government's efforts to keep the economy stable by increasing or decreasing taxes or government spending
48
keynesian economic theory
the theory that a government policy of increasing spending and cutting taxes could stimulate the economy in a recession
49
national debt
sum of government deficits over time
50
federal reserve bank (THE FED)
a semiprivate organization that decides how much money to put into circulation
51
monetary policy
the management of a the monetary supply and interest rates, this is controlled by the fed
52
importing
buying products from another country
53
exporting
selling products to another country
54
free trade
the movement of goods and services among nations without political or economic obstruction
55
comparative advantage theory
a country should sell to other countries those products that it produces most effectively and efficiently and should buy from other countries the products they cant produce
56
absolute advantage
the advantage that exists when a country is able to produce a specific product more efficiently than all countries
57
balance of trade
the total value of a nations exports compared to its imports measured over a particular period
58
trade deficit
an unfavorable balance of trade; occurs when the value of a country's imports exceeds the exports
59
balance of payments
the difference in money coming in (from exports) and money leaving (for imports) plus money flows from other factors such as tourism, foreign aid, military, and investment
60
dumping
practice of selling products in a foreign country at lower prices than those charged in producing country
61
licensing
global strategy in which a firm allows a foreign company to produce its products in exchange for a fee
62
contract manufacturing
a foreign company produces private-label goods to which a domestic company then attaches its brand name or trademark (aka outsourcing)
63
joint venture
a partnership in which two or more companies join to undertake a major project
64
strategic alliance
a long-term partnership between two or more companies established to help each company build competitive market advantages (they don't share anything, it is just an alliance)
65
foreign direct investment
buying permanent property and business in foreign nationsf
66
foreign subsidiary
a company owned in a foreign country by another company
67
multinational corporation
an organization that manufactures and markets products in many countries and has multinational stock ownership and management
68
exchange rate
the value of one nation's currency relative to other's
69
devaluation
lowering the value of a nation's currency relative to other's
70
countertrading
complex form of bartering in which several nations may be involved in, each trading goods of goods or services for services
71
trade protectionism
use of government regulations to limit the import of goods and services
72
tariff
a tax on imports, making imported goods more expensive
73
import quota
a limit on the number of products in a certain category a nation can import
74
embargo
a complete ban on the import or export of a certain product or stopping all trade with a particular country
75
general agreement on tariffs and trade (GATT)
a 1948 agreement that established a forum for negotiating mutual reductions in trade restrictions
76
world trade organization (WTO)
the international organization that replaced the GATT and was assigned the duty of mediating trade disputes
77
common market (trading bloc)
regional group of countries that have a common external tariff, no internal tariffs, and the coordination of laws to facilitate exchange among member countries
78
north american free trade agreement (NAFTA)
agreement that created a free-trade area among the US, Canada, and Mexico in 1994
79
offshore outsourcing
when companies contract with other companies abroad to do some or all of the functions of a firm, like production or accounting tasks.
80
ethics
the standards of moral behavior (right vs wrong)
81
compliance-based ethics codes
ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers
82
integrity-based ethics codes
standards that define the organization's guiding values, create and environment that supports ethically sound behavior, and stress a shared accountability among employees
83
whistleblowers
(insiders who report illegal or unethical behavior) must feel protected from retaliation
84
corporate social responsibility (CSR)
a business's concern for the welfare of society
85
corporate philanthropy
(CSR dimension) charitable donations
86
corporate social initiatives
(CSR dimension) enhanced forms of donations related to the company
87
corporate policy
(CSR dimension) the position a firm takes on social ad political issues
88
corporate responsibility
(CSR dimension) everything from hiring minorities to making safe products/services
89
insider trading
an unethical activity in which insiders use private company information to further their own fortune or those of their family and friends
90
social audit
a systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs
91
sole proprietorship
a business that is owned and managed by one person, the most common form
92
partnership
a legal form of business between two owners
93
corporation
a legal entity that can act and be liable separate from its owners
94
unlimited liability
the responsibility of business owners for all the debts of the business
95
general partnership
a partnership where all owners share liability and operation
96
limited partner
someone who invests in the business, but doesn't have any responsibilities or liability
97
master limited partnership (MLP)
a partnership that looks like a corporation (due to stocks) but is taxed like a partnership and avoids corporate income tax
98
limited liability partnership (LLP)
a partnership that limits partners' risk of losing assets
99
conventional corporation
a state-chartered legal business that has the authority to act and have liability separate from its owners
100
stockholders
the corporation's owners that are not liable for debts of the corporation beyond the money they invest
101
S corporation
a government creation that looks like a corporation buy is taxed like sole proprietorship and partnerships
102
limited liability company (LLC)
a company similar to an S corporation buy without eligibility requirements
103
merger
the result of two firms forming one company
104
acquisition
the purchase of property and obligations of one company by another
105
vertical merger
the joining of two companies ate different stages that are giving two different products or services
106
horizontal merger
the joining of two firms in the same industry
107
conglomerate merger
the joining of firms in completely unrelated industries thereby diversifying business operations
108
leveraged buyout
an attempt by employees, management, or a group of investors to purchase an organization through borrowing
109
franchise agreement
an arrangement whereby someone with a good idea for business sells the rights to use the business name and sell a product or service to others in a given territory
110
franchisor
a company that develops a product concept and sells others the rights to make and sell it
111
franchise
the right to use a specific business's name and sell its products or services in a given territory
112
franchisee
the person who buys a franchise
113
cooperative
a business owned and controlled by the people who use it (producers, consumers, or workers with similar gains)
