Exam Review- Principles of Business and Marketing – Flashcards
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needs
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things we need to survive; ex- food, shelter
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wants
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something that adds pleasure to our lives but is not necessary to survive
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goods
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things you can see and touch
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services
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wants that are satisfied through the efforts of other people or by equipment; ex- hair stylist
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economic resources
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the means through which goods and services are produced
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factors of production
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another name for economic resources: means through which goods and services are produced
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natural resources
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raw materials supplied by nature
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human resources
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the people who work to produce goods and services
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labor
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another name for human resources
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capital resources
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tools, equipment, and buildings that are used to produce goods and services
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capital
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money that is needed to run a business
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basic economic problem
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the conflict between unlimited wants and limited resources
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scarcity
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another name for the basic economic problem
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economic system
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a nation's plan for answering the key economic questions
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custom-based economy
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goods are produced the way they have always been produced
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direct economy
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resources are owned and controlled by the government
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marketplace
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any place where buyers and sellers exchange goods, services, and some form of money
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capitalism
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means that economic resources are usually privatelyowned by individuals rather than by the government
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free or private enterprise system
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freedom of the individual to choose what to produce
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voluntary exchange
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buyers and sellers make their own economic decisions to determine what the price will be for goods and services produced and sold
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demand
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the quantity of a product or service that consumers are willing and able to buy at a particular price
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supply
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the quantity of a product or service that businesses are willing and able to provide at a particular price
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standard of living
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a measure of how well people in a country live; the quality and quantity of wants and needs that are satisfied
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labor productivity
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the quantity of a good an average worker produces in one hour
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public goods
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things that are needed and provided by a community and are equall accessible to everyone
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worker
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wants to increase his productivity to increase your earnings
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consumer
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buy goods and services
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citizen
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job is to pay taxes, vote, help the community
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gross domestic product
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the total value of all final goods and services produced in one year
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base year
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the year chosen to compare an item, such as price, to the same item in another year
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gross domestic product per capita
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the GDP divided by the total population of a country
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business cycle
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the movement of an economy from one condition to another and back again
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prosperity
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a phase fo the businesss cycle when most people who want ot work are working and businesses produce goods and services in record numbers
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recession
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a period where demand begins to decrease, businesses lower production of goods and services, unemployment begins to rise, and GDP growht slows for several quarters
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depression
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a phase marked by high unemployment, weak sales of goods and services, and business failures
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recovery
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a phase of the business cycle in which unemplyment begins to decrease, demand for godds and services increases, and GDP begins to rise again
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inflation
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an increase in the general price level; money is worth less
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deflation
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a decrease in the general price level; money is worth more
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extractor
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a business that grows products or takes raw materials from nature
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manufacturer
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a business that takes an extractor's products or raw materials and changes them into a form that consumers can use
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custom manufacturing
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building a specific and unique product to meet the needs of one customer
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mass production
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a large number of identical products are assembled using a continuous, efficient procedure
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processing
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changing the form of materials so them can be consumed or used to manufacture other products
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marketer
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a business involved with moving goods from producers to consumers
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service business
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a business that does things for you instead fo making products
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sole proprietorship
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a business owned by one person
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partnership
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an association of two or more people operating a business as co-owners and sharing profits or losses according to a written agreement
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corporation
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a business made up of a number of owners but authorized by law to act as a single person
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certificate of incorporation
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a document, generally issued by a state government, giving permission to start a corporation
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shareholders
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people who own stock in a corporation
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board of directors
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a group of people elected by shareholders to guide a corporation
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dividend
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The part of the profits of a corporation that each shareholder receives
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franchise
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A written contract granting permission to sell someone else's product or service in a prescribed manner, over a certain period of time, and in a specified area
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franchisee
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The person or group of people who have received permission from a parent company to sell its products or services
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franchisor
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the parent company that grants permission to a person or group to sell its products or services
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leadership
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the ability to influence individuals and groups to accomplish important goals
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human relations
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the way people get along with each other
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position influence
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the ability to get others to accomplish tasks because fo the position the leader holds
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reward influence
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Results from the leader's ability to give or withhold rewards
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expert influence
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arises when group members recognize that the leader has special expertise in an area
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identity influence
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stems from personal trust and respect members have for the leader
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leadership style
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the way a manager treats and directs employees
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tactical management
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a leadership style where the manager is more directive and controlling
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strategic management
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a leadership style where managers are less directive and involve emplyees in decision making
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mixed management
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the combined use fo tactical and strategic management
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marketing functions
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groups of marketing activities
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marketing concept
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directing all marketing activities at profitably satisfying customer needs
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marketing strategy
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a two-step process for successfully planning and marketing products and services
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target market
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a group of consumers with very similar needs to whom a company can sell its products
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marketing mix
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the blending of four marketing elements to satisfy a target market
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product
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anything offered to the target market to satisfy needs including physical products and services
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place
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teh locations where products are sold and the ways they are made available to customers
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price
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what customers pay and the method of payment
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promotion
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the methods and info communicated to customers to encourage purchases and increase their satisfaction
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buying motives
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the reasons for making a purchase
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channel of distribution
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the path that a product travels from producer to consumer
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wholesaler
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a middle firm that assists with distribution activities between businesses
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retailer
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a business firm that sells directly to the consumer
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social responsibility
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the obligation of a business to contribute to the well-being of a community
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non-renewable resource
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a natural resource, such as gas, coal, copper, and iron ore, that cannot be replaced one used up
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business ethics
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rules about how businesses and their employees ought to behave
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code of ethics
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a statement of values and rules that guides the behavior of employees or members of an organization
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conservation
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the preservation and careful management of the environment and of natural resources
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pollution
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undesirable state of the natural environment being contaminated with harmful substances as a consequence of human activities
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workplace diversity
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differences among coworkers including culture, race, age, gender, economic status, and religion among other things
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safety
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a state of being free of danger and injury
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employee wellness
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programs are offered by employers to maintain a healthy workforce
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international business
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the business activities necessary for creating, shipping,a nd selling goods adn services across national borders
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imports
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goods and services bought from another country
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exports
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goods and services sold to another country
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exchange rate
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the value fo the money of one country expressed in terms of the money of another country
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barriers to trade
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include tariffs, quotas and embargoes
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quota
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a limit on the quantity of a product that may be imported and exported within a given period of time
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tariff
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a tax that a government places on certain imported products
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embargo
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stopping the importing or exporting of a certain product or service
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balance of trade
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the difference between a country's total imports and total exprots of goods
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interstate commerce
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business transactions involving companies in more than one state
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intrastate commerce
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business transactions involving companies that do business only in one state
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contract
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an agreement to exchange goods or services for something of value
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patent
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the exclusive right given to a person to make, use, or sell an invention for a period of 17 years
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copyright
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protection of the work of authors, composers, and artists
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trademark
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a word, letter, or symbol associated with a specific product or company
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public utility
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a business that supplies a service or product vital to all people; the price charge for the service is determined by government regulation rather than by competition
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monopoly
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a business that has complete control of the market for a product or service
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antitrust laws
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laws designed to promote competition and fairness to prevent monopolies
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revenue
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business or government income
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business plan
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a written description of the business idea and how it will be carried out including all major business operations
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entrepreneur
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someone who takes a risk in starting a business to earn a profit
