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ethics

answer

standards of moral behavior that is accepted by society as right VS wrong

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compliance-based ethic codes

answer

ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers

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integrity-based ethic codes

answer

ethical standards that define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees

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whistleblowers

answer

insiders who report illegal or unethical behavior

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corporate social responsibility (CSR)

answer

a business's concern for the welfare of society

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corporate philanthorpy

answer

dimension of social responsibility that includes charitable donations

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corporate social initiatives

answer

enhanced forms of corporate philanthropy directly related to the company's competencies

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corporate responsiblity

answer

the dimension of social responsibility that includes everything from hiring minority workers to making safe products

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corporate policy

answer

diminesion of social responsibility that refers to the position firm takes on social and political issues

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insider trading

answer

an unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends

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social audit

answer

a systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs

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business

answer

Any activity that seeks to provide goods and services to others while operating at a profit.

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profit

answer

The amount of money a business earns above and beyond what it spends for salaries and other expenses.

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entrepreneur

answer

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

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revenue

answer

The total amount of money a business takes in during a given period by selling goods and services.

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loss

answer

When a business's expenses are more than its revenues.

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risk

answer

The chance an entrepreneur takes of losing time and money on a business that may not prove profitable.

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Standard Of Living

answer

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

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Quality Of Life

answer

The general well-being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time, and everything else that leads to satisfaction and joy.

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stakeholders

answer

All the people who stand to gain or lose by the policies and activities of a business.

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Nonprofit Organization

answer

An organization whose goals do not include making a personal profit for its owners or organizers.

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Factors Of Production

answer

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

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Business Environment

answer

The surrounding factors that either help or hinder the development of business.

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technology

answer

Everything from phones and copiers to computers, medical imaging devices, personal digital assistants, and the various software programs that make business processes more efficient and productive.

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productivity

answer

The amount of output you generate given the amount of input (e.g., hours worked).

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e-commerce

answer

The buying and selling of goods over the internet.

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database

answer

An electronic storage file where information is kept; one use of databases is to store vast amounts of information about consumers.

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empowerment

answer

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

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demography

answer

The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income.

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goods

answer

Tangible products such as computers, food, clothing, cars, and appliances.

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services

answer

Intangible products (i.e., products that can't be held in your hand) such as education, health care, insurance, recreation, and travel and tourism.

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outsourcing

answer

assigning various functions, such as accounting, production, security, maintenance, and legal work to outside organizations

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Climate Change

answer

the movement of the temperature of the planet up or down over time

question

Greening

answer

The trend toward saving energy and producing products that cause less harm to the environment

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Identity Theft

answer

the obtaining of individuals' personal information, such as Social Security and credit card numbers, for illegal purposes

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Economics

answer

Study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals

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Macroeconomics

answer

A part of economics that looks at the operation of a nation's economy as a whole

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Microeconomics

answer

The part of economics that looks at the behavior of people and organizations in particular markets

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Invisible Hand

answer

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

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Capitalism

answer

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

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Supply

answer

The quantities of products that manufacturers or owners are willing to sell at different prices at a specific time.

question

Demand

answer

The quantity of products that people are willing to buy at different prices at a specific time.

question

Market Price

answer

The price determined by supply and demand.

question

Perfect Competition

answer

Market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product

question

Monopolistic Competition

answer

Market situation in which a large number of sellers produce products that are very similiar but that are perceived by buyers as different

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Oligopoly

answer

A form of competition in which just a few sellers dominate the market

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Monopoly

answer

A market in which there is only one seller for a product or service.

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Socialism

answer

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

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Brain Drain

answer

Loss of the best and brightest people to other countries

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Communism

answer

An economic and political system in which the state makes almost all economic decisions and owns almost all of the major factors of production.

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Free-Market Economies

answer

Economic system in which the market largely determines what goods and services get produced, who gets them, and how the economy grows.

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Command Economies

answer

Economic system in which the government largely decides what goods and services will be produced, who gets them, and how the economy grows.

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Mixed Economies

answer

Economic system in which some allocation of resources is made by the market and some by the government.

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Gross Domestic Product (GDP)

answer

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

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Unemployment Rate

answer

Number of civilians at least 16 years who have been trying to find a job within the prior four weeks.

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Inflation

answer

General rise in the prices of goods and services over time.

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Deflation

answer

A situation in which prices are declining

question

Business Cycles

answer

Periodic rises and falls that occur in all economies over time.

question

Recession

answer

Two or more consecutive quarters of decline in the GDP.

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Depression

answer

A severe recession.

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Consumer Price Index (CPI)

answer

monthly statistics that measure the pace of inflation or deflation

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Disinflation

answer

a situation in which price increases are slowing (the inflation rate is declining)

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Fiscal Policy

answer

The federal government efforts to keep the economy stable by increasing or decreasing taxes or government spending

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Keynesian Economic Theory

answer

The theory that a government policy of increasing spending and cutting taxes could stimulate the econemy in a recession.

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Monetary Policy

answer

The management of the money supply and interest rates by the federal reserve.

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National Debt

answer

The sum of government deficits over time.

question

Producer Price Index (PPI)

answer

An index that measures prices at the wholesale level.

question

Resource Development

answer

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

question

Stagflation

answer

A situation when the economy is slowing but prices are going up anyhow.

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importing

answer

buying products from oanoter country

question

exporting

answer

selling products to another country

question

free trade

answer

the movement of goods and services amon ations without political or economic barriers

question

comparative advantage theory

answer

theory that states that a country should sell to tother countries those products that it produces most effectviely and efficiently and buy from other countries those products that it cannot produce as effectively/efficiently

question

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 effciently than all other countries

question

balance of trade

answer

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

question

trade surplus

answer

a favorable balance of trade, occurs when teh value of a country's exports that of its imports

question

trade deficit

answer

an unfavorable balance of trade, occurs when the value of a country's imports exceeds that of its exports

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balance of payments

answer

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

question

dumping

answer

selling products in a foregin country at lower prices than those charged in the producing country

question

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 (royalty)

question

contract manufacturing

answer

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

question

joint venture

answer

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

question

strategic alliance

answer

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

question

foreign direct investment (FDI)

answer

buying of permanent property and businesses in foreign nations

question

foreign subsidiary

answer

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

question

multinational corportation

answer

an organization that manufactures and markets products in many countries and has multinational stock ownership and multinational management

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sovereign wealth funds (SWFs)

answer

investment funds controlled by governments holding large stakes in foreign companies

question

exchange rate

answer

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

question

devaluation

answer

lowering the value of a nation's currency relative to other currencies

question

countertrading

answer

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

question

trade protectionism

answer

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

question

tariff

answer

a tax imposed on imports

question

import quota

answer

a limit on the number of products in certain categories taht a nation can import

question

embargo

answer

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

question

General agreement on tariffs and trade (GATT)

answer

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

question

World trade organization (WTO)

answer

international organization that replaced the GATT and was assigned te duty to mediate trade disputes among nations

question

common market

answer

regional group of countries that have common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange, also called a trading bloc. (European Union)

question

North American free trade agreement (NAFTA)

answer

agreement that created free trade area among US, Canada, and Mexico

Understanding Business–10th Edition–Chapter 1-4 Vocabulary – Flashcards

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