question

Business

answer

Organization that provides goods or services to earn profits

question

Profit

answer

Difference between a business's revenues and its expenses

question

External Environment

answer

Everything outside an organization's boundaries that might affect it

question

Domestic Business Environment

answer

The environment in which a firm conducts its operations and derives its revenues

question

Global Business Environment

answer

The international forces that affect a business

question

Technological Environment

answer

All the ways by which firms create value for their constituents

question

Politcal-Legal Environment

answer

The relationship between business and government

question

Sociocultural Environment

answer

The customs, morals, values, and demographic characteristics of the society in which the organization functions

question

Economic Environment

answer

Relevant conditions that exist in the economic system in which a company operates

question

Economic System

answer

A nation's system for allocating its resources among its citizens

question

Factors of Production

answer

Resources used in the production of goods and services: labor, capital, entrepreneurs, physical resources, and information resources

question

Labor (Human Resources)

answer

Physical and mental capabilities of people as they contribute to economic production

question

Capital

answer

Funds needed to create and operate a business enterprise

question

Entrepreneur

answer

Individual who accepts the risks and opportunities involved in creating and operating a new business venture

question

Physical Resources

answer

Tangible items that organizations use in the conduct of their business

question

Information Resources

answer

Data and other information that businesses use

question

Planned Economy

answer

Economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions

question

Communism

answer

Political system in which the government owns and operates all factors of production

question

Market economy

answer

Economy in which individuals control production and allocation decisions through supply and demand

question

Market

answer

Mechanism for exchange between buyers and sellers of a particular good or service

question

Aggregate Output

answer

The total quantity of goods and services produced by an economic system during a given period

question

Standard of Living

answer

The total quantity and quality of goods and services people can purchase with the currency used in their economic system

question

Gross Domestic Product (GDP)

answer

Total value of all goods and services produced within a given period by a national economy through domestic factors of production

question

Gross National Product (GNP)

answer

Total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located

question

Real GDP

answer

GDP adjusted to account for changes in currency values and price changes

question

Ethics

answer

Beliefs about what is right and wrong and good or bad in actions that affect others

question

Unethical Behavior

answer

Behavior that does not conform to generally accepted social norms concerning beneficial and harmful actions

question

Business Ethics

answer

Ethical or unethical behaviors by employees in the context of their jobs

question

Managerial Ethics

answer

Standards of behavior that guide individuals managers in their work

question

Social responsibilty

answer

The attempt of a business to balance its commitments to groups and individuals in its environment, including customers, other businesses, employees, investors, and local communities

question

Organizational Stakeholders

answer

Those groups, individuals, and organizations that are directly affected by the practices of an organization and who therefore have a stake in its performance

question

Collusion

answer

Illegal agreement between two or more companies to commit a wrongful act

question

Greenwashing

answer

A practice in which companies promote their products as environmentally friendly when in truth the brand provides little ecological benefit.

question

Green Marketing

answer

A marketing strategy that promotes environmentally safe products and production methods

question

Insider Trading

answer

Illegal practice of using special knowledge about a firm for profit or gain

question

Obstructionist Stance

answer

Approach to social responsibility that involves doing as little as possible and may involve attempts to deny or cover up violations

question

Defensive Stance

answer

Approach to social responsibility by which a company meets only minimum legal requirements in its commitments to groups and individuals in its social environment

question

Accommodative Stance

answer

Approach to social responsibility by which a company, if asked to do so, exceeds legal minimums in its commitments to groups and individuals in its social environment

question

Proactive Stance

answer

Approach to social responsibility by which a company actively seeks opportunities to contribute to the well-being of groups and individuals in its social environment

question

Social Audit

answer

Systematic analysis of a firm's success in using funds earmarked for meeting its social responsibility goals

question

Small Business Administration (SBA)

answer

Government agency charged with assisting small businesses

question

Small Business

answer

Independently owned business that has relatively little influence in the market

question

Entrepreneurship

answer

The process of seeking business opportunities under conditions of risk

question

Business Plan

answer

Document in which an entrepreneur summarizes her or his business strategy for a proposed new venture and how that strategy will be implemented

question

Venture Capital Company

answer

Group of small investors who invest money in companies with rapid growth potential

question

Small-Business Investment Company (SBIC)

answer

Government-regulated investment company that borrows money from the SBA to invest in or lend to a small business

question

Small Business Development Center (SBDC)

answer

SBA program designed to consolidate information from various disciplines and make it available to small businesses

question

Sole Proprietorship

answer

Business owned and usually operated by one person who is responsible for all of its debts

question

Unlimited Liability

answer

Legal principle holding owners responsible for paying off all debts of a business

question

General Partnership

answer

Business with two or more owners who share in both the operation of the firm and the financial responsibility for its debts

question

Limited Partnership

answer

Type of Partnership consisting of limited partners and a general (or active partner)

question

Limited Partner

answer

Partner who does not share in a firm's management and is liable for its debts only to the limits of said partner's investment

question

General Partner (active partner)

answer

Partner who actively manages a firm and who has unlimited liability for its debts

question

Master Limited Partnership

answer

Form of ownership that sells shares to investors who receive profits and that pays taxes on income from profits

question

Cooperative

answer

Form of ownership in which a group of sole proprietorships and/or partnerships agree to work together for common benefits

question

Corporation

answer

Business that is legally considered an entity separate from its owners and is liable for its own debts; owners' liabilities extend to the limits of their investments

question

Limited Liability

answer

Legal principle holding investors liable for a firm's debts only to the limits of their personal investments in it

question

Tender Offer

answer

Offer to buy shares made by a prospective buyer directly to a target corporation's shareholders, who then make individual decisions about whether to sell

question

Double Taxation

answer

Situation in which taxes may be payable both by a corporation on its profits and by shareholders on dividends incomes

question

Closely Held Corporation (Private Corporation)

answer

Corporation whose stock is held by only a few people and is not available for sale to the general public Ex: Bluecross/Blueshield, Mastercard

question

Publicly/ Public Corporation

answer

Corporation whose stock is widely held and available for sale to the general public Ex: Dell Computers, Starbucks

question

S Corporation

answer

Hybrid of a closely held corporation and a partnership, organized and operated like a corporation but treated as a partnership for tax purposes Ex. Frontier Bank, Minglewood Associates

question

Limited Liability Corporation (LLC)

answer

Hybrid of publicly held corporation and a partnership in which owners are taxed as partners but enjoy the effects of a limited liability Ex: Ritz Ritz Carlton, Global Ground Support

question

Professional Corporation

answer

Form of ownership allowing professionals to take advantage of corporate benefits while granting them limited business liability and unlimited professional liability Ex: B & H Engineering, Anderson, McCoy & Ortia

question

Multinational/Transnational Corporation

answer

Form of corporation spanning national boundries Ex: General Electric, Nestle

question

Corporate Governance

answer

Roles of shareholders, directors, and other managers in corporate decision making and accountability

question

Stockholder/Shareholder

answer

Owner of shares of stock in corporation

question

Board of Directors

answer

Governing body of a corporation that reports to its shareholders and delegates power to run its day-to-day operations while remaining responsible for sustaining its assets

question

Officers

answer

Top management team of a corporation

question

Chief Executive Officer (CEO)

answer

Top manager who is responsible for the overall performance of a corporation

question

Strategy Alliance

answer

Strategy in which two or more organizations collaborate on a project for mutual gain

question

Joint Venture

answer

Strategic alliance in which the collaboration involves joint ownership of the new venture

question

Merger

answer

The union of two corporations to form a new corporation

question

Acquisition

answer

The purchase of one company by another

question

Divestiture

answer

Strategy whereby a firm sells one or more of its business units

question

Spin-Off

answer

Strategy of setting up one or more corporate units as new, independent corporations

question

Globalization

answer

Process by which the world economy is becoming a single independent system

question

Import

answer

Product made or grown abroad but sold domestically

question

Export

answer

Product made or grown domestically but sold abroad

question

North American Free Trade Agreement (NAFTA)

answer

Free trade agreement with the USA, Canada & Mexico. Goal = promote economic prosperity & cooperation. Easier perhaps to achieve at regional level than global level (World Trade Organization).

question

European Union (EU)

answer

Organization for economic, social, and security cooperation among European nations

question

Association of Southeast Asian Nations (ASEAN)

answer

Organization for economic, political, social, and cultural cooperation among Southeast Asian nations

question

General Agreement on Tariffs and Trade (GATT)

answer

International trade agreement to encourage the multilateral reduction or elimination of trade barriers

question

World Trade Organization

answer

Organization through which member nations negotiate trading agreements and resolve disputes about trade practices and policies

question

Balance of Trade

answer

Economic value of all products a country exports minus the economic value of all products it imports

question

Trade Deficit

answer

Situation in which a country imports more than it exports, creating a negative balance of trade

question

Trade Surplus

answer

Situation in which a country exports more than it imports, creating a positive balance of trade

question

Management

answer

Process of planning, organizing, leading, and controlling an organization's resources to achieve its goal

question

Planning

answer

Management process of determining what an organization needs to do and how best to get it done

question

Organizing

answer

Management process of determining how best to arrange an organization's resources and activities into coherent structure

question

Leading

answer

Management process of guiding and motivating employees to meet an organization's objectives

question

Controlling

answer

Management process of monitoring on organization's performance to ensure that it is meeting its goals

question

Top Manager

answer

Manager responsible for a firm's overall performance and effectiveness

question

Middle Manager

answer

Manager responsible for implementing the strategies and working toward the goals set by top managers

question

First-Line Manager

answer

Manager responsible for supervising the work of employees

question

Technical Skills

answer

Skills needed to perform specialized tasks

question

Human Relations Skills

answer

Skills in understanding and getting along with people

question

Conceptual Skills

answer

Abilities to think in the abstract, diagnose, and analyze different situations and see beyond the present

question

Decision-Making Skills

answer

Skills in defining problems and selecting the best courses of action

question

Time Management Skills

answer

Skills associated with the productive use of time

question

Organizational Structure

answer

Specification of the jobs to be done within an organization and the ways in which they relate to one another

question

Organization Chart

answer

Diagram depicting a company's structure and showing employees where they fit into its operations

question

Chain of Command

answer

Reporting relationships within a company

question

Job Specialization

answer

The process of identifying the specific jobs that need to be done and designating the people who will perform them

question

Departmentalization

answer

Process of grouping jobs into logical units

question

Profit Center

answer

Separate company unit responsible for its own costs and profits

question

Product Departmentalization

answer

Dividing an organization according to specific products or services being created

question

Process Departmentalization

answer

The dividing of an organization according to production processes use to create a good or service

question

Functional Departmentalization

answer

The dividing of an organization according to groups' functions or activities

question

Customer Departmentalization

answer

The dividing of an organization to offer products and meet needs for identifiable customer groups

question

Flat Organizational Structure

answer

An organizational structure that has only a few levels of management and emphasizes decentralization

question

Tall Organizational Structure

answer

Characteristic of centralized companies with multiple layers of management.

question

Span of Control

answer

Number of people supervised by one manager

question

Delegation

answer

Process through which a manager allocates work to subordinates

question

Responsibility

answer

Duty to perform an assigned task

question

Authority

answer

Power to make the decisions necessary to complete a task

question

Accountability

answer

Obligation employees have to their manager for the successful completion of an assigned task

question

Line Authority

answer

An organizational structure in which authority flows in a direct chain of command from the top of the company to the bottom

question

Line Department

answer

Department directly linked to the production and sales of a specific production

question

Staff Authority

answer

Authority based on expertise that usually involves counseling and advising line managers

question

Staff Members

answer

Advisers and counselors who help line departments in making decisions, but do not have the authority to make final decisions

question

Committee and Team Authority

answer

Authority granted to committees or teams involved in a team's daily operations

question

Work Teams

answer

Group of operating employees who are empowered to plan and organize their own work and to perform that work with minimal supervision

question

Functional Structure

answer

Organization structure in which authority is determined by the relationship between group functions and activities

question

Divisional Structure

answer

An organizational structure in which corporate divisions operate as autonomous businesses under the larger corporate umbrella

question

Division

answer

Department that resembles a separate business in that it produces and markets its own products

question

Matrix Structure

answer

Organizational structure created by superimposing one form of structure onto another

question

International Organizational Structures

answer

Approaches to organizational structure developed in response to the need to manufacture, purchase, and sell in global markets

question

Informal Organization

answer

Groups within a formal organization in which personal relationships are guided by norms rituals and sentiments that are not part of the formal organization

question

Intrapreneuring

answer

Process of creating and maintain the innovation and flexibility of a small business environment within the confines of a large organization.

question

Service Operations (Service Production)

answer

Production activities that yield tangible and intangible service products. Ex: entertainment, transportation, and education

question

Goods Operations (Goods Production)

answer

Activities producing tangible products Ex: radios, newspapers, buses and textbooks

question

Operations (Productions)

answer

Activities involved in making products (goods and services) for customers

question

Utility

answer

A product's ability to satisfy a human want or need

question

Operations Management

answer

Systematic direction and control of processes that transform resources into finished products that create value for and provide benefits to customers

question

Operations Manager

answer

Managers responsible for ensuring that operations processes create value and provide benefits to customers

question

Process Layout

answer

Physical arrangement of production activities that groups equipment and people according to function

question

Product Layout

answer

Physical arrangement of production activities designed to make one type of product in a fixed according to its production requirements

question

Assembly Line

answer

Product layout in which a product moves step by step through a plant on conveyor belts or other equipment until it is completed

question

Quality

answer

The combination of "characteristics of a product or service that bear on its ability to satisfy stated or implied needs"

question

Performance

answer

A dimension of quality that refers to how well a product does what it is supposed to do

question

Consistency

answer

A dimension of quality that refers to sameness of product quality from unit to unit

question

Master Production Schedule

answer

A schedule showing which products will be produced and when in upcoming time periods

question

Detailed Schedule

answer

A schedule showing daily work assignments with start and stop times for assigned jobs

question

Staff Schedule

answer

Assigned working times in upcoming days for each employee on each work shift

question

GANTT Chart

answer

A horizontal bar chart used in project management to graphically represent the schedule of a set of specific activities or tasks.

question

Operations Control

answer

Process of monitoring production performance by comparing results with plans and taking corrective action when needed

question

Follow up

answer

Operations control activity for ensuring that production decisions are being implemented

question

Materials Management

answer

The grouping of management functions supporting the complete cycle of material flow, from the purchase and internal control of production materials to the planning and control of work in process to the warehousing, shipping, and distribution of the finished product.

question

Supplier Selection

answer

The process of finding and choosing suppliers from whom to buy

question

Purchasing

answer

The acquisition of the materials and services that a firm needs to produce its products

question

Transportation

answer

Activities in transporting resources to the producer and finished goods to customers

question

Warehousing

answer

The storage of incoming materials for production and finished goods for distribution to customers

question

Inventory Control

answer

Receiving, storing, handling, and counting of all raw materials, partly finished goods and finished goods

question

Lean Product System

answer

A production system designed for smooth production flows that avoid inefficiencies, eliminate unnecessary inventories and continuously improve production processes

question

Just-In- Time Production (JIT)

answer

A type of lean product system that brings together all materials at the precise time they are required at each production stage

question

Quality Control

answer

a method to insure that goods are suitable for sale

question

Total Quality Management (TQM)

answer

Efforts of all members of an organization directed to ensure that quality in the production of goods and services is achieved

question

Quality Ownership

answer

Principle of total quality management that holds that quality belongs to each person who creates it while performing a job.

question

Competitive Product Analysis

answer

The process by which a company analyzes a competitor's products to identify desirable improvements

question

Value-Added Analysis

answer

The process of evaluating all the work activities, materials flows, and paperwork to determine the value that they add for customers

question

Quality Improvement Team TQM

answer

Tool in which collaborative groups of employees from various work areas work together to improve quality by solving common shared production problems

question

ISO 9000 Program

answer

Set of international standards on quality management and quality assurance, critical to international business

question

ISO 14000 Certification

answer

certification that a company follows guidelines that discourage firms from engaging in hazardous environmental practices, and ensures that cooperate policies promoting environmentally sound, efficiency-embracing, innovative technologies

question

Business Process Reengineering

answer

The rethinking and radical redesign of business processes to improve performance, quality, and productivity

Intro to Business (Rutgers, Ken Genco) – Flashcards

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