Business Administration 100 Exam 1 Study Guide (UWM) – Flashcards
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Revenue
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the total amount of money a business takes in during a given period by selling goods and services
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Profit
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the mount of money a business earns above and beyond what it spends for salaries and other expenses
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Loss
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occurs when a business's expenses are more than its revenues
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Risk
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the chance an entrepreneur takes of losing time and money on a business that may not prove profitable
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Nonprofits
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an organization whose goals do not include making a personal profit for its owners or organizers. still do strive for financial gains but they use it for social or educational goals.
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Outsourcing
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contracting with other companies to do some of the firm's functions like production or accounting: benefits: cheaper problems: losing out on quality, negative media
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Insourcing
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foreign companies opening offices and factories in the US: benefits: you do everything & can make sure it's done right problems: more costs
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E-commerce
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buying and selling of goods on the internet
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B2B
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Business to Business: footlocker ordering shoes from Nike
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B2C
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Business to Consumer: online shopping
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Database
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an electronic storage file for information
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Identity Theft
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the obtaining of individuals' personal information, such as Social Security and credit card numbers, for illegal purposes
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Evolution of Business
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1. Agriculture Era 2. Manufacturing Era 3. Service Era 4. Information-Based Era
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Agricultural Era
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led to economic development, technology like harvester changed farming industry, fewer farmers & larger farms
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Manufacturing Era
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Industrialization moved jobs from farms to factories, as technology improved productivity, fewer workers were needed in factories
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Service Era
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70% of U.S. economy, generated almost all increases in employment since 1980's, more high paying jobs
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Information Technology Era
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affects agriculture, industry, and service
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Top Three Exporting Countries in the World
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United States, Germany & China
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Comparative Advantage
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a country should sell to other countries the products that they can produce more effectively and efficiently and should buy from other countries the products that they cannot produce effectively and efficiently example: US produces software effectively but import shoes & coffee
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Absolute Advantage
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a company who has a monopoly of producing a specific product or is able to produce it more efficiently than other countries example: south africa diamond production
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Trade Protectionism
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the use of government regulations to limit the import of goods and service examples: tariffs, import quotas, embargo. advocates of protectionism believe it allows domestic producers to survive, grow and produce jobs
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Tariffs
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taxes on imports, making imported goods more expensive: protective and revenue
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Protective Tariffs
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raise the retail price of imports so domestic goods are competitively priced
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Revenue Tariffs
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raise money for the government
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Balance of Trade
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the total value of a nation's exports compared to its imports measured over a particular period
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Balance of Payments
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the difference between money coming into a country (from exports) and money leaving the country (from imports) plus other money flows (tourism, military expenditures, foreign investments)
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Dumping
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selling products in a foreign country at lower prices than those charges in the producing country
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Ethics
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the standards of moral behavior. behaviors that are accepted by society as right versus wrong
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Compliance-Based Ethics Code
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emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers
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Integrity-Based Ethics Code
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define the organization's guiding values, create an environment that supports ethically sound behavior and stress a shared accountability
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Whistleblower
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insiders who report illegal or unethical behavior
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Corporate Social Responsibility
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The concerns businesses have for the welfare of society. based on commitment to integrity, fairness, and respect
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Corporate Philanthropy
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includes charitable donations
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Corporate Social Initiatives
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include enhanced forms of corporate philanthropy
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Corporate Responsibility
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includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, and providing a safe work environment
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Corporate Policy
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the position a firm takes on social and political issues
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Insider Trading
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insiders using private company information to further their own fortunes or those of their family and friends
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Entrepreneurship
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accepting the risk of starting and running a business
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Entrepreneurial Team
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a group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make, and market a new product
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Micropreneur
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entrepreneurs willing to accept the risk of starting and managing a business that remains small, lets them do the work they want to do, and offers a balanced lifestyle
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Intrapreneur
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a creative person who works as an entrepreneur within a corporation
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Business Incubator
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offer new businesses low-cost offices with basic services
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Business Plan
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a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and owners' qualifications
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Venture Capitalist
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individuals or companies that invest in new businesses in exchange for partial ownership (shark tank)
