question

Global business

answer

Any activity that seeks to provide goods and services to others across national borders at a profit

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Exporting

answer

Selling products to another country

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Importing

answer

Buying products from another country

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Free trade

answer

The movement of goods and services amongs nations without political or economic trade barriers

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Global trade

answer

The exchange of goods and services across national borders

question

Comparative advantage theory

answer

A theory that states that a country should sell to other countries those products that it produces most effectively and efficiently and buy from other countries those products that it cannot products as effectively or efficiently

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Absolute advantage

answer

The advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries

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Balance of trade

answer

The total value of a nation's exports compared to its imports measured over a particular period

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Trade surplus

answer

A favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports

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Trade deficit

answer

An unfavorable balance of trade; occurs when value of a country's imports exceeds that of its exports

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Balance of payments

answer

The difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows from other factors, such as tourism, foregin aid, military expenditures, and foreign investment

question

Dumping

answer

Selling products in a foreign country at lower prices than those charged in the producing country

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Gray market

answer

The flow goods in a distribution channel or channels other than those intended by the manufacturer or licensor

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Trade protectionism

answer

The use government regulations to limit the import of goods and services

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Tariff

answer

A tax on imports

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Harmonized tariff schedule

answer

A schedule of costs for every product from every country that is published by the U.S. government

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Import quota

answer

A protectionist policy that limits the number of products in certain categories that a natin can import

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Embargo

answer

A complete ban on the import or export of a certain product o the stopping of all trade with a particular country

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Nontariff barriers

answer

Restrictive standards that details exactly how a product must be sold in a country

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General agreement on tariff and trade (GATT)

answer

A 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions

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World trade orgaization (WTO)

answer

The international organization that replaced the General Agreement on Tariffs and Trade and was assigned the duty of mediating trade disputes among nations

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Common market (trading bloc)

answer

A regional group of countries that have a common external tariff, no internal tariffs, and coordinated laws that aid trade among member countries

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European union (EU)

answer

A agreement among European member countries to eventually reduce all barriers to trade and become unified, both economically and politically

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The organization of the petroleum exporting countres (OPEC)

answer

An organization of 13 oil producing nations that work together to protect their interests

question

North american free trade agreement (NAFTA)

answer

An agreement that created a free trade area among the United State, Canada,and Mexico

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Licensing

answer

A global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (a royalty)

question

Contract manufacturing

answer

A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark; part of the broad category of outsourcing

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Join venture

answer

A partnership in which two or more companies (often from different countries) undertake a major project

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Greenfield investment

answer

A form of foreign direct investment in which a company builds factories and offices in a foreign country on its own

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Strategic alliance

answer

A long term partnership between two or more companies established to help each company build competitive market advantage

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Foreign direct investment (FDI)

answer

The buying of permanent property and business in foreign nations

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Foreign subsidiary

answer

A company owned in a foreign country by another company,called the parent company

question

Expropriation

answer

When a host government takes over a foreign subsidiary in a country

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Multinational corporation

answer

An organization that manufactures and markets products in many different countries and has multinational management

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Culture

answer

The set of values, beliefs, rules, and institutions held by a specific group of people

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Ethnocentriciy

answer

An attitude that one's own culture is superior to other cultures

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Exchange rate

answer

The value of one nation's currency relative to the currencies of other countries

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Countertrading

answer

A complex form of bartering in which several countries may be involved, each trading goods for goods or services for services

question

Entrepreneurship

answer

Accepting the risk of stating and running a business

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Market

answer

People with unsatified needs and wants who have both the resources and the willingness to buy

question

Business plan

answer

A detailed written statement that describes the nature of business, the target market, the advantages the business wll have in relation to competition, and the resources and qualifications of the owners

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Sole proprietor

answer

A business owner who has only one employee-him-or herself

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Mentor

answer

An adviser experienced in a particular job or type of business who acts as a guide for someone entering a field

question

Chain store

answer

A business location that is one of many stores, all of which have central management (meaning all stores are run by the same people) and share a brand name

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Company store

answer

A store owned and operated by a chain

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Francisee

answer

A person who buys a franchise

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Franchisor

answer

A person or entity that owns the rights to a franchise

question

Cannibalization

answer

A situation in which a new franchise takes away customers from an existing franchise nearby

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Sole proprietorship

answer

A business operated by sole proprietorship

question

Unlimited liability

answer

The responsibility of business owners for all the debt of the business

question

Partnership

answer

A legal form or business with two or more owners

question

General partnership

answer

A partnership in which all owners share in operating te business and in assuming liability for the business's debts

question

Limited partnership

answer

A partnership wih one or more general partners and one or more limited partners

question

General partner

answer

An owner (partner) who has unlimited liability and is active in managing the firm

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Limited partner

answer

An owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment

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Limited liability

answer

Means limited partners are not responsible for the debts of th business beyond the amount of their investment- their liability is limited to the amount they put into the company; their personal assets are not a risk

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Master limited partnership (MLP)

answer

Structured much like a corporation in that it acts like a corporation in that it acts like a corporation and is traded on stock exchange like a corporation, but taxed like a partnership and thus aviods the corporate income tax

question

Limited liability partnership (LLP)

answer

Risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision

question

Corporate governance

answer

The processes, customs, policies, laws, and institutions that affect how a corporation is directed, administered, or controlled

question

Board of director

answer

The group ultimately responsible for the decisions of a business

question

Conventional (C) corporation

answer

A form of business ownership that provides limited liability

question

Double taxaton

answer

Occurs when the owners of a corporation are tased twice-once when the corporation is taxed and then again when the dividends are taxed

question

Dividend

answer

Part of a firm's profits that may be distributed to stockholders as cash payments or additional shares of stock

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S corporation

answer

A legal form of corporation for which the biggest advantage is it tax status, which is the same as a sole proprietorship

question

Venture capitalists

answer

People or companies that invest money in businesses in return for a stake in them

question

Angel investors

answer

People (usually wealthy) who invest their own funds in a business in exchange for a stake in the company

question

Small business adminstration (SBA)

answer

A u.s. government agency that advises and assists small businesses by providing management tranining, finanical advice, and loans

question

Economic

answer

The study of how individuals and society choose to use scarce resources to produce goods and services and distribute them for consumption

question

Opportunity cost

answer

Refers to what you give up (your next best choices) in order to do of get something else (your chosen decision)

question

Macroeconomics

answer

the study of the operation of a nation's economy as a whole

question

Microeconomics

answer

The study of the behaveior of people and organizations in paricular markets

question

Resource development

answer

The study of how to increase resources and create the conditions that will make better use of those resource

question

Invisible hand

answer

A phrase a coined by Adam Smith to descride the process that turns self-directed gain into social and economic benefits for all

question

Supply

answer

The quantity of products manuafacturers or owners are willing to sell at different prices at a specific time

question

Demand

answer

The quanity of products people are willing and able to buy at different prices at a specific time

question

Equilibrium point

answer

The point at which the amount of goods sought by buyers is equal to the amount of goods produced by suppliers

question

Business cycle

answer

A common pattern in which there is a period of rapid economic growth (recovery and prosperity) when supply and demand stimulate each other, alternating with a period of decline (contraction or recession) with diminishing demand and supply

question

Capitalism

answer

An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit

question

Free market

answer

A system in which decisions about what to produce and in what quantities are made by the market

question

Perfect competition

answer

A market condiction in which there are many businesses and no one business is large enough to dictate the price of a product

question

Monopolistic competition

answer

A market condiction in which a large number of businesses produce products that are very similar but are perceived by buyers as different

question

Product differentiation

answer

An attempt to make buyers think similar products are different in some way

question

Oligopoly

answer

A form of competition in which just a few businesses dominate a market

question

Monopoly

answer

A form of competition in which only one business controls the total supply of a product and its price

question

Deregulation

answer

The removal or government control and strict oversight in a market that thereby opens the market for others to enter

question

Socialism

answer

An economic system based on the premise that some, if not most, basic businesses should be owned by the government so profits can b evenly distributed among all people

question

Brain drain

answer

The loss of the best and brightest people to other countries

question

Communism

answer

An Economic and political system in which the state (the government makes almost all economic decisions and owns almost all the major factors of production, including housing for its people

question

Free-market economies

answer

Economic systems in which the market largely determines what goods and services get produce, who get them, and how the economy grow

question

Command economies

answer

Economic systems in which the government largey decides what goods and services will produces, who will get them, and how the economy will grow

question

Mixed Economies

answer

Economic systemsin which some allocation of resources is made by the market and some is by the government

question

Gross domestic product (GDP)

answer

The total value of final goods and services produced in a country in a given year

question

Gross national product (GNP)

answer

The value of goods and services produced by a country's factors of production, regardless of where these factors are based

question

Recession

answer

A period during which during GDP of nation declines for two or more quarters

question

Depression

answer

A severe recession

question

Recovery

answer

A period following a recession during which an economy sabilizes and begins grow again

question

Unemployment rate

answer

The number of civilians 16yrs of age and older who are unemployed and have tried to find a job within the prior four weeks

question

Inflation

answer

A general rise in that prices of goods and services over time

question

Stagflation

answer

A situation where the economy is slowing but prices are rising

question

Deflation

answer

A general decline in the prices of goods and services over time

question

Producer price index (PPI)

answer

A set of monthly statistics that measures prices at the wholesale level

question

Consumer price index (CPI)

answer

A set of monthly statistics that measures the pace of inflation of deflation

question

Monetary policy

answer

The management of the money supply and interest rates by the Federal Reserve Bank

question

Interest rate

answer

A rate charged for using money

question

National deficit

answer

The money the federal government spends over and above its revenue for a specific period of time

question

National debt

answer

The sum of the government deficits overtime

question

Bankruptcy

answer

The legal process by which an individual or business unable to meet financial obligations can seek court protection under these laws and can be relieved of those debts by a court

question

Business

answer

Is a person, partnership, or corporation that seeks to provide goods and services to others at a profit

question

Goods

answer

Tangible products, such as cameras, food, computers, clothing, an cars

question

Services

answer

Intangible products such as education, insurance, and travel

question

Entrepreneur

answer

A person who risks time and money to start and manage business

question

Return on Investment (ROI)

answer

The money gained from taking on a business risk

question

Revenue

answer

The total amount of money a business takes in during a given period as a result of selling its goods or service

question

Expenses

answer

The costs of purchasing the goods and service that are needed to operate a business

question

Profit

answer

The amount of money a business earns above and beyond what is spends for goods, services, salaries, and other expenses

question

Loss

answer

When a business's expenses are more than its revenues

question

Risk

answer

The chance an individual or organization takes of losing time and money on a business that may not prove profitabe

question

Outsourcing

answer

Assigning various function, such as accounting, production, security, maintenance, and legal work, to outside organizations

question

Small and medium-sized enterpises

answer

Small enterprises employ 50 or fewer people and are managed by their owners on a day-to-day basis, and medium-sized enterprises have 51 to 500 employees

question

For-profit organizations

answer

Organizations that are motivated to earn profits

question

Nonprofit orgaizations

answer

Organizations that are not driven to garner profit

question

Stakeholders

answer

Any people or organizations who stand to gain or lose from the activities of a business

question

Contract

answer

A legally enforceable agreement between two or more parties

question

Database

answer

An electronic storage file for information

question

Tradeable Currency

answer

One country's money that is allowed to be exchanged for another country's money

question

Capitalist system

answer

A system in which cmpanies and businesses are are owned by citizens instead of the government

question

Effectiveness

answer

Producing the desired results

question

Efficieny

answer

Producing goods using the least amount of resources

question

Resource

answer

An input used to produce a good

question

Productivity

answer

The amount of output generated given a particular amount of an input

question

E-commerce

answer

The buying and selling of goods over the internet

question

Business-to-consumer

answer

A business that produces products to sell directly to the consumer

question

Busines-to-busniess

answer

A business that produces products to sell to another business

question

Value

answer

Good quality at a fair price

question

Empowerment

answer

Giving frontline workers the responsibility, authority, and freedom to respond quickly to customer requests

question

Diversity

answer

Board differences among a group of people, including their ethnicity, sex, color, sexual orientation, body size, age and so on

question

Demographics

answer

Statistics about the human population with regard to its size, density, and other characteristics

question

Free Trade

answer

The movement of goods and services among nations without political or economics barriers

question

Globalization

answer

The worldwide integration of government policies, cultures, social movement, and finanical markets through trade and exchange of ideas

question

Factor of production

answer

The resources used to create wealth: land, labor, capital, entrepreneurship,and knowledge

question

Standard of living

answer

The amount of goods and services people can buy with the money they have

question

Ethics

answer

the standards of moral behavior; that is,behavior that is accepted society as right verus wrong

question

Illegal

answer

an act for which you could be fined or imprisoned

question

Compliance- based ethics codes

answer

prevent unlawful behavior by increasing control and penalizing violations

question

Integrity-based ethics code

answer

define the organization's quideing values and create an enivronment that supports ethically sound behavior

question

Whistleblower

answer

insiders who reports illegal or unethical behavior

question

Th Sarbanes-Oxley Act

answer

legislation passed in 2002 that set new standards for ethical codes of conduct within organizaton

question

Corporate philanthropy

answer

an individual society responsibility that includes charitable donations

question

Corporate responsibility

answer

an indicator of social responsibility that includes the actions the company takes that could affect others

question

Corporate policy

answer

the position a firm takes on social and political issues

question

Insider trading

answer

insiders of company (such as employees) using private company information to further their own finanical situation

question

Pension

answer

a promise made by a company to pay a monthly dollar amount to employees who have worked a minimum number of years

question

Social audit

answer

a systematic evaluation of a company's progress toward implementing programs that are socially responsible

question

Management

answer

the process of planning, organizing,leading,and controlling,people other available resources to accomplish organizational goals and objectives

question

Planning

answer

a management function that includes anticipating trends and determining the best stratgies and tactics to achieve organiztional goals and objectives

question

Organizing

answer

a management function that includes designing the structures of the organizational and creating conditions and systems in which everyone and everything works together to achieve the organization' goal and objectives

question

Leading

answer

creating a vision for an ogranization and guiding,training, coaching, and motivating others to work effectiviely to achieve the organization's goals and objectives

question

Empowerment

answer

givin frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests

question

Controlling

answer

a management function that involves establishing clear standards to determine whether or not a organization is progressing toward its goals and objectives, rewarding people for doing a good job and taking corrective action if they not

question

Vision

answer

an encompassing explanation of why the organization exists and the direction its trying to go

question

Mission statement

answer

an outline of the fundamental purpose of an organization

question

Goals

answer

the broad,long-term accomplishments an organzation wishes to attain

question

Objective

answer

specific statements that detail how to achieve an organization's goals in th short term

question

SWOT analysis

answer

a planning tool used to analyze an organization's strengths,weakness,opportunities,and threats

question

PEST analysis

answer

an analysis of outside factors that could affect a business: poltical, economic,social and technological

question

Strategic planning

answer

the process of determinig the major long-term goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals

question

Tactical planning

answer

the process of developing detailed, short-term statements abou what is to b done, who is to do it and how it is done

question

Operational planning

answer

the process of setting work standards and schedules necessary to implement the company's tactical objectives

question

Contingency planning

answer

the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives

question

Organization chart

answer

a visual device that shows relationships among people and divide the organization's work; it shows who reports to whom

question

Span of control

answer

the optimal number of subordinates(employees) a manager supervises

question

Top management

answer

the highest level of management, consisting of the president and other key company executives who develop stragtegic plans

question

Middle management

answer

the level of management that includes general managers, division managers, and branch and plant managers who are responsible fo tactial planning and controlling

question

Supervisory(first line) management

answer

managers who are directly responsible for supervising workers and evaluating their daily performance

question

Technical skills

answer

skills that involve the ability to perform tasks in a specific discipline of department

question

Human relation skills

answer

skill that involve communication and motivation; they enable managers to work through and with people

question

Conceptual skills

answer

skills that inolves the ability to picture the organization as a whole and the relationship among its various parts

question

Staffing

answer

a management function that includes hiring, motivating, and retaining the best people avaiable to accomplish a company's objectives

question

Transparency

answer

the presentation of a company's facts and figure in a way that is clear and apparent to all stakeholder

question

Work-life balance

answer

a person's control over the interactions between his or her work life and family and personal life

question

Total quality management (tqm)

answer

a management strategy whereby quality goods are ensured at every phase of the production process

question

Autocratic leadership

answer

a leadership style that involves making managerial decisions without consulting others

question

Participative (democratic) leadership

answer

a leadership style that consists of managers and employees working together to make decision

question

Free-rein leadership

answer

a leadership style that involves managers setting objectives and employees being relatively free to do whatever it take to accomplish those objective

question

Theory X

answer

managers who believe the average person disikes work, has relatively little ambition, and wishes to aviod responsibility, so workers must be forcefully directed or threatened to punishment

question

Theory Y

answer

managers who believe most people like work and naturally work toward goals to which they committed. People are capable of using imagination and creativity solve problems.Each worker is stimualted by rewards unique to that worker

question

Downsizing

answer

the elimination of many management jobs, and other types of jobs, by using cost-cutting methods and technology, such as computer

question

Rightsizing

answer

Downsizing that takes place with careful matching of resources to needs

question

Theory Z

answer

a management theory that forcuses on trust and intamacy within the work group

question

Theory Z

answer

a management theory that forcuses on trust and intamacy within the work group

question

Theory Z

answer

a management theory that forcuses on trust and intamacy within the work group

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