Terminology Flashcards
(130 cards)
1
Q
Value
A
The relationship between the price of a good/service and the benefits that it offers.
2
Q
Business
A
Any organization that provides goods/services in effort to earn a profit.
3
Q
Profit
A
The money a business earns in sales (revenue) minus expenses.
Revenue - expenses = Profit (or loss)
4
Q
Loss
A
When a business incurs expenses greater than its revenue.
5
Q
Entrepreneurs
A
People who risk their time, money, and other resources to start and manage a business.
6
Q
Standard of Living
A
The quality and quantity of goods and services available to a population.
7
Q
Quality of Life
A
The overall sense of well-being experienced by either an individual or a group.
8
Q
Nonprofits
A
Business-like establishments (that employ people and produce goods and services) with the fundamental goal of contributing to the community rather than generating financial gain.
9
Q
Factors of Production
A
Four fundamental elements that businesses need to achieve their objections.
- Natural resources
- Capital
- Human Resources
- Entrepreneurship
10
Q
Business Environment
A
The setting in which business operates.
Five key components:
Economic environment,
competitive environment, technological environment, social environment, and global environment.
11
Q
Speed-to-Market
A
The rate at which a new product moves from conception to commercialization.
12
Q
Business Technology
A
Any tools that businesses can use to become more efficient and effective.
(especially: computers, telecommunications, and other digital products)
13
Q
World Wide Web
A
The service that allows computer users to easily access and share information on the Internet.
14
Q
E-commerce
A
Business transactions conducted online, typically via the Internet.
15
Q
Demographics
A
The measurable characteristics of a population. Demographic factors include population size and density, as well as specific traits such as age, gender, and race.
16
Q
Free Trade
A
An international economic and political movement designed to help goods and services flow more freely across international boundaries.
17
Q
General Agreement on Tariffs and Trade (GATT)
A
An international trade agreement that has taken bold steps to lower tariffs and promote free trade worldwide.
18
Q
Economy
A
A financial and social system of how resources flow through society, from production, to distribution, to consumption.
19
Q
Economics
A
The study of the choices that people, companies, and governments make in allocating society’s resources.
20
Q
Macroeconomics
A
The study of a country’s overall economic dynamics. (unemployment rate, the gross domestic product, and taxation policies)
21
Q
Microeconomics
A
The study of smaller economic units. (individual consumers, families, and individual businesses)
22
Q
Fiscal Policy
A
Government efforts to influence the economy through taxation and spending.
23
Q
Budget Surplus
A
Overage that occurs when revenue is higher than expenses over a given period of time.
24
Q
Budget Deficit
A
Shortfall that occurs when expenses are higher than revenue over a given period of time.
25
Federal Debt
The sum of all the money that the federal government has borrowed over the years and not yet repaid.
26
Monetary Policy
Federal Reserve decisions that shape the economy by influencing interest rates and the supply of money.
27
Commercial Banks
Privately owned financial institutions that accept demand deposits and make loans and provide other services for the public.
28
Money Supply
The total amount of money within the overall economy.
29
Money
Anything generally accepted as a medium of exchange, a measure of value, or a means of payment.
30
M1 Money Supply
Includes all currency plus checking accounts and traveler's checks.
31
M2 Money Supply
Includes all of M1 money supply plus most savings accounts, money market accounts, and certificates of deposit.
32
Open Market Operations
The Federal Reserve function of buying and selling government securities. (treasury bonds, notes, and bills)
33
Federal Deposit Insurance Corporation (FDIC)
A federal agency that insures deposits in banks and thrift institutions for up to $250,000 per customer, per bank.
34
Discount Rate
The rate of interest that the Federal Reserve charges when it loans funds to banks.
35
Reserve Requirement
A rule set by the Fed, which specifies the minimum amount of reserves (or funds) a bank must hold, expressed as a percentage of the bank's deposits.
36
Economic System
A structure for allocating limited resources.
37
Capitalism
An economic system based on private ownership, economic freedom, and fair competition. Also known as the private enterprise or free market system.
38
Pure Competition
A market structure with many competitors selling virtually identical products. Barriers to entry are quite low.
39
Monopolistic Competition
A market structure with many competitors selling differentiated products. Barriers to entry are low.
40
Fundamental Rights of Capitalism
* The right to own a business and keep after-tax profits.
* The right to private property.
* The right to free choice.
* The right to fair competition.
41
Oligopoly
A market structure with only a handful of competitors selling products that can be similar or different. Barriers to entry are typically high.
42
Monopoly
A market structure with one producer completely dominating the industry, leaving no room for any significant competitors. Barriers to entry tend to be virtually insurmountable.
43
Natural Monopoly
A market structure with one company as the supplier of a product because the nature of that product makes a single supplier more efficient than multiple, competing ones. Most natural monopolies are government sanctioned and regulated.
44
Supply
The quantity of products that producers are willing to offer for sale at different market prices.
45
Supply Curve
The graphed relationship between price and quantity from a supplier standpoint.
46
Demand
The quantity of products that consumers are willing to buy at different market prices.
47
Demand Curve
The graphed relationship between price and quantity from a customer demand standpoint.
48
Equilibrium Price
The price associated with the point at which the quantity demanded of a product equals the quantity supplied.
49
Socialism
An economic system based on the principle that the government should own and operate key enterprises that directly affect public welfare.
50
Communism
An economic and political system that calls for public ownership of virtually all enterprises, under the direction of a strong central government.
51
Mixed Economics
Economies that embody elements of both planned and market-based economic systems.
52
Privatization
The process of converting government owned businesses to private ownership.
53
Gross Product (GDP)
The total value of all final goods and services produced within a nation's physical boundaries over a given period of time.
54
Unemployment Rate
The percentage of people in the labor force over 16 who do not have jobs and are actively seeking employment.
55
Business Cycle
The periodic contraction and expansion that occur over time in virtually every economy.
56
Contraction
A period of economic downturn, marked by rising unemployment and falling business production.
57
Recession
An economic downturn marked by a decrease in the GDP for two consecutive quarters.
58
Depression
An especially deep and long-lasting recession.
59
Recovery
A period of rising economic growth and employment.
60
Expansion
A period of robust economic growth and high employment.
61
Inflation
A period of rising average prices across the economy.
62
Hyperinflation
An average monthly inflation rate of more than 50 percent.
63
Disinflation
A period of slowing average price increases across the economy.
64
Deflation
A period of falling average prices across the economy.
65
Consumer Price Index (CPI)
A measure of inflation that evaluates the change in the weighted-average price of goods and services that the average consumer buys each month.
66
Producer Price Index (PPI)
A measure of inflation that evaluates the change over time in the weighted-average wholesale prices.
67
Productivity
The basic relationship between the production of goods and services (output) and the resources needed to produce them (input) calculated via the following equation: output/input=productivity
68
Opportunity Cost
The opportunity of giving up the second-best choice when making a decision.
69
Absolute Advantage
The benefit a country has in a given industry when it can produce more of a product than other nations using the same amount of resources.
70
Comparative Advantage
The benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries.
71
Balance of Trade
A basic measure of the difference in value between a nation's exports and imports, including both goods and services.
72
Trade Surplus
Overage that occurs when the total value of a nation's imports is higher than the total value of its exports.
73
Trade Defecit
Shortfall that occurs when the total value of a nation's imports is higher than the total value of its exports.
74
Balance of Payments
A measure of the total flow of money into or out of a country.
75
Balance of Payments Surplus
Overage that occurs when more money flows into a nation than out of that nation.
76
Balance of Payments Deficit
Shortfall that occurs when more money flows out of a nation than into that nation.
77
Exchange Rates
A measurement of the value of one nation's currency relative to the currency of other nations.
78
Countertrade
International trade that involves the barter of products rather than for currency.
79
Foreign Outsourcing
Also contract manufacturing. Contracting with foreign suppliers to produce products, usually at a fraction of the cost of domestic production.
80
Importing
Buying products domestically that have been produced or grown in foreign nations.
81
Exporting
Selling products in foreign nations that have been produced or grown domestically.
82
Foreign Licensing
Authority granted by a domestic firm to a foreign firm for the rights to produce and market its product or to use its trademark/patent rights in a defined geographical area.
83
Foreign Franchising
A specialized type of foreign licensing in which a firm expands by offering businesses in other countries the right to produce and market its products according to specific operating requirements.
84
Direct Investment
Also Foreign Direct Investment. When firms either acquire foreign firms or develop new facilities from the ground up in foreign countries.
85
Joint Ventures
When two or more companies join forces—sharing resources, risks, and profits, but not actually merging companies—to pursue specific opportunities.
86
Partnership
A voluntary agreement under which two or more people act as co-workers of a business for profit.
87
Strategic Alliance
An agreement between two or more firms to jointly pursue a specific opportunity without actually merging their businesses. Strategic alliances typically involve less formal, less encompassing agreements than partnerships.
88
Sociocultural Differences
Differences among cultures in language, attitudes, and values.
89
Infrastructure
A country's physical facilities that support economic activity.
90
Protectionism
National policies designed to restrict international trade, usually with the goal of protecting domestic businesses.
91
Tariffs
Taxes levied against imports.
92
Quotas
Limitations on the amount of specific products that may be imported from certain countries during a given time period.
93
Voluntary Export Restraints (VERs)
Limitations on the amount of specific products that one nation will export to another nation.
94
Embargo
A complete ban on international trade of a certain item, or a total halt in trade with a particular nation.
95
World Trade Organization (WTO)
A permanent global institution to promote international trade and to settle international trade disputes.
96
World Bank
An international cooperative of 187 member countries, working together to reduce poverty in the developing world.
97
International Monetary Fund (IMF)
An international organization of 187 member nations that promotes international economic cooperation and stable growth.
98
Trading Bloc
A group of countries that have reduced or even eliminated tariffs, allowing for the free flow of goods among the member nations.
99
Common Market
A group of countries that have eliminated tariffs and harmonized trading rules to facilitate the free flow of goods among the member nations.
100
North American Free Trade Agreement (NAFTA)
The treaty among the United States, Mexico, and Canada that eliminated trade barriers and investment restrictions over a fifteen-year period starting in 1994.
101
European Union (EU)
The world's largest common market, composed of twenty-seven European nations.
102
Ethics
A set of beliefs about right and wrong, good and bad.
103
Universal Ethical Standards
Ethical norms that apply to all people across a broad spectrum of situations.
104
Business Ethics
The application of right and wrong, good and bad, in a business setting.
105
Ethical Dilemma
A decision that involves a conflict of values; every potential course of action has some significant negative consequences.
106
Code of Ethics
A formal, written document that defines the ethical standards of an organization and gives employees the information they need to make ethical decisions across a range of situations.
107
Whistle-Blowers
Employees who report their employer's illegal or unethical behavior to either the authorities or the media.
108
Social Responsibility
The obligation of a business to contribute to society.
109
Stakeholders
Any groups that have a stake- or a personal interest- in the performance and actions of an organization.
110
Consumerism
A social movement that focuses on four key consumer rights:
1. The right to be safe.
2. The right to be informed.
3. The right to choose.
4. The right to be heard.
111
Planned Obsolescence
That strategy of deliberately designing products to fail in order to shorten the time between purchases.
112
Sarbanes-Oxley Act
Federal legislation passed in 2002 that sets higher ethical standards for public corporations and accounting firms. Key provisions limit conflict-of-interest issues and require financial officers and CEOs to certify the validity of their financial statements.
113
Corporate Philanthropy
All business donations to nonprofit groups, including money, products, and employee time.
114
Cause-Related Marketing
Marketing partnerships between businesses and nonprofit organizations, designed to spike sales for the company and raise money for the nonprofit.
115
Corporate Responsibility
Business contributions to the community through the actions of the business itself rather than donations of money and time.
116
Sustainable Development
Doing business to meet the needs of the current generation, without harming the ability of future generations to meet their needs.
117
Carbon Footprint
Refers to the amount of harmful greenhouse gases that a firm emits throughout its operations, both directly and indirectly.
118
Green Marketing
Developing and promoting environmentally sound products and practices to gain a competitive edge.
119
Social Audit
A systematic evaluation of how well a firm is meeting its ethics and social responsibility goals.
120
Communication
The transmission of information between a sender and a recipient.
121
Noise
Any interference that causes the message you send to be different from the message your audience understands.
122
Communication Barriers
Obstacles to effective communication, typically defined in terms of physical, language, body language, cultural, perceptual, and organizational barriers.
123
Intercultural Communication
Communication among people with differing cultural backgrounds.
124
Nonverbal Communication
Communication that does not use words. Common forms of nonverbal communication include gestures, posture, facial expressions, tone of voice, and eye contact.
125
Active Listening
Attentive listening that occurs when the listener focuses his or her complete attention on the speaker.
126
Communication Channels
The various ways in which a message can be sent, ranging from one-on-one in-person meetings to Internet message boards.
127
Bias
A preconception about members of a particular group. Common forms of bias include gender bias; age bias; and race, ethnicity, or nationality bias.
128
Active Voice
Sentence construction in which the subject performs the action expressed by the verb (e.g., My sister wrote the paper). The active voice works better for the vast majority of business communication.
129
Passive Voice
Sentence construction in which the subject does not do the action expressed by the verb; rather the subject is acted upon (e.g., The paper was written by my sister). The passive voice tends to be less effective for business communication.
130
Dynamic Delivery
Vibrant, compelling presentation delivery style that grabs and holds the attention of the audience.
