Introduction to Business Review Chapters 1-5 – Flashcards
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Business
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Tries to earn a profit by providing products that satisfy people's needs.
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Products
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Have both intangible and tangible characteristics that provide satisfaction and benefits.
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Profit
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The difference between what it costs to make and sell a product and what a customer pays for it.
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Human Resources
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Labor, the physical and mental abilities that people use to produce goods and services.
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Supply and Demand
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The number of products (supply) that business are willing to sell at different prices at a specific time.Demand is the number of goods and services that consumers are willing to buy at different prices at a specific time.
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Competition
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Rivalry among business for consumers' dollars.
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Inflation
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A continuous rise in the prices.
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Recession
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A decline in production,employment and income.
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Unemployment
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The condition in which a % of the population wants to work but is unable to find jobs.
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Gross Domestic Product (GDP)
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The sum of all the goods and services produced in a country during a year.
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Entrepreneur
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A person who risks his or her wealth,time, and effort to develop for profit an innovative product or way of doing something.
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Business Ethics
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Principles and standards that determine acceptable conduct in business organizations.
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Social Responsibility
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Obligation of a business to maximize its positive impact and minimize its negative impact on society.
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Code of Ethics
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Formalized rules and standards that describe what the company expects of its employees.
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Corporate Citizenship's
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The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders.
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International Business
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The buying,selling and trading of goods and services across national boundaries.
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Outsourcing
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The transferring of manufacturing or other tasks-such as data processing-to countries where labor and supplies are less expensive
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Exporting / Importing
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The sale of goods and services to foreign markets (exporting). Purchase of goods and services from foreign sources (importing).
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Balance of Trade
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Difference in value between its exports and imports.
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Infrastructure
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The physical facilities that support a country's economic actives, such as railroads, highways, ports airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems
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Import Tariff
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A tax levied by a nation on goods imported into the country
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Quota/ Embargo/ Dumping
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Limits the number of units of a particular product that can be imported into a country (quota). Prohibits trade in a particular product (embargo). When a business /country sells products less than what it cost to produce them.
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North America Free Trade Agreement (NAFTA)
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Agreement that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among Canada, the United States, and Mexico.
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Licensing / Franchising
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A trade agreement in which one company--the licensor--allows another company--the licensee--to use its company name, products, patents, brands, trademark, raw materials, and/or production processes in exchange for a fee or royalty. , - A form of licensing in which a company-the franchiser- agrees to provide a franchise the name, logo, methods of operation, advertising, products, and other elements associated w/ the franchiser's business, in return for a financial commitment and the agreement to conduct business in accordance with the franchiser's standard of operations.
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Strategic Alliance
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A partnership formed to create competitive advantage on a worldwide basis.
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Database
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A collection of data organized in a manner that allows access, retrieval, and use of that data.
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Intranet
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An internal network similar to the Internet that is accessible only by authorized personnel; used to access.
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E-business
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Carrying out the goals of business through utilization of the internet.
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Business to Business (B2B) / Customer to Customer(C2C)
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Provides goods and services to other businesses (B2B). Individuals buying and selling goods to one another online (C2C).
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Customer Relationship Management (CRM)
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The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
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Sole Partnerships / Partnerships / Corporation
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Businesses owned and operated by one individual (sole partnerships). An association of 2 or more persons to carry on a business for profit (partnerships). A legal entity, created by the state, whose assets and liabilities are separate from its owner (corporation).
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General / Limited Partnership
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Involves a complete sharing in the management of a business (general partnership). Has one general partner,who assumes unlimited liability, and at least one limited partner, whose liability is limited to his or her investment to business (limited partnerships).
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Stock
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Owned by many individuals and organizations who owns shares of the business.
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Dividends
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Profits distributed in the form of cash payments.
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Private / Public Corporation
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Owned by just one or a few people who are closely involved in managing the business (private). Stock anyone may buy, sell, or trade (public).
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Initial Public Offering (IPO)
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Public corporation by selling stock so that it can be traded in public markets.
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Board of Directors
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Elected by stockholders to oversee the general operation of the corporation, sets long-range objectives of the corporation.
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Limited Liability Company (LLC)
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Ownership that provides limited liability and taxation like a partnership but places fewer restrictions on members.
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Merger / Acquisition
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The combination of two companies (usually corporations) to form a new business (merger). The purchase of one company by another, usually by buying its stock (acquisition).
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Entrepreneurship
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The process of creating and managing,a business to achieve desired objectives.
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Small Business
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Independently owned and operated and is not dominant in its competitive area doesn't employ more than 500 people.
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Small Business Administration ( SBA)
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Independent agency of federal government that offers managerial and financial assistance to small businesses.
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Under-capitalization
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Lack of funds to operate a business normally.
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Business Plan
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A precise statement of the rationale for the business and a step-by-step explanation of how it will achieve its goals.
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Intrapreneurs
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Individuals in large firms who take responsibility for the development of innovations within the organization.
