question

401 (k) plan

answer

A savings plan that allows you to deposit pretax dollars and whose earnings compound tax free until withdrawal, when the money is taxed at ordinary income tax rates.

question

a deal

answer

A special price or some other benefit that not all people get.

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 efficiently than all other countries.

question

accounting

answer

The recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions.

question

accounting cycle

answer

A six-step procedure that results in the preparation and analysis of the major financial statements.

question

acquisition

answer

One company's purchase of the property and obligations of another company.

question

actuaries

answer

The people who calculate the chance of loss and the premiums necessary to cover losses.

question

administered distribution system

answer

A distribution system in which producers manage all of the marketing functions at the retail level.

question

administrative agencies

answer

Federal or state institutions and other government organizations created by Congress or state legislatures with delegated power to pass rules and regulations within their mandated area of authority.

question

advertising

answer

Paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message.

question

affirmative action

answer

Employment activities designed to "right past wrongs" by increasing opportunities for minorities and women.

question

agency shop agreement

answer

Clause in a labor-management agreement that says employers may hire nonunion workers; employees are not required to join the union but must pay a union fee.

question

agents/brokers

answer

Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don't take title to the goods.

question

American Federation of Labor (AFL)

answer

An organization of craft unions that championed fundamental labor issues; founded in 1886.

question

annual report

answer

A yearly statement of the financial condition, progress, and expectations of an organization.

question

annuity

answer

A contract to make regular payment to a person for life or for a fixed period.

question

apprentice programs

answer

Training programs involving a period during which a learner works alongside an experienced employee to master the skills and procedures of a craft.

question

arbitration

answer

The agreement to bring in an impartial third party (a single arbitrator or a panel of arbitrators) to render a binding decision in a labor dispute.

question

assembly process

answer

That part of the production process that puts together components.

question

assets

answer

Economic resources (things of value) owned by a firm.

question

auditing

answer

The job of reviewing and evaluating the records used to prepare a company's financial statements.

question

autocratic leadership

answer

Leadership style that involves making managerial decisions without consulting others.

question

automatically fed to a computer

answer

Standard procedure of inputting specific information into a computer on a regular basis.

question

balance of payments

answer

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

question

balance of trade

answer

A nation's ratio of exports to imports.

question

balance sheet

answer

The financial statement that reports a firm's financial condition at a specific time.

question

ballyhooed

answer

Talked about in an exaggerated way.

question

banker's acceptance

answer

A promise that the bank will pay some specified amount at a particular time.

question

bankruptcy

answer

The legal process by which a person, business, or government entity unable to meet financial obligations is relieved of those among creditors, allowing creditors to get at least part of their money and freeing the debtor to begin anew.

question

bargaining zone

answer

Range of options between the initial and final offer that each party will consider before negotiations dissolve or reach an impasse.

question

barter

answer

The trading of goods and services for other goods and services directly.

question

bear market

answer

Situation where the stock market is declining in value and investors feel it will continue to decline.

question

been there, done that

answer

Prior experience.

question

benchmarking

answer

Comparing an organization's practices, processes, and products against the world's best.

question

benefit segmentation

answer

Dividing the market by determining which benefits of the product to talk about.

question

bond

answer

A corporate certificate indicating that a person has lent money to a firm.

question

bookkeeping

answer

The recording of business transactions.

question

bottom line

answer

The last line in a profit and loss statement; it refers to net profit.

question

bottom line

answer

Net income or loss a firm incurred from operations.

question

brain drain

answer

The loss of the best and brightest people to other countries.

question

brainstorming

answer

Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas.

question

brand

answer

A name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors.

question

brand association

answer

The linking of a brand to other favorable images.

question

brand awareness

answer

How quickly or easily a given brand name comes to mind when a product category is mentioned.

question

brand equity

answer

The combination of factors-such as awareness, loyalty, perceived quality, images, and emotions-that people associate with a given brand name.

question

brand loyalty

answer

The degree to which customers are satisfied, like the brand, and are committed to further purchase.

question

brand manager

answer

A manager who has direct responsibility for one brand or one product line; called a product manager in some firms.

question

brand name

answer

A word, letter, or group of words or letters that differentiates one seller's goods and services.

question

brand name

answer

That part of the brand consisting of a word, letter, or group of words or letters comprising a name that differentiates a seller's goods or services from those of competitors.

question

breach of contract

answer

When one party fails to follow the terms of a contract.

question

break-even analysis

answer

The process used to determine profitability at various levels of sales.

question

brightest days

answer

The best of times for a person or organization.

question

broadband technology

answer

Technology that offers users a continuous connection to the Internet and allows them to send and receive mammoth files that include voice, video, and data much faster than ever before.

question

budget

answer

A financial plan that sets forth management's expectations, and, on the basis of those expectations, allocates the uses of specific resources throughout the firm.

question

bull market

answer

Situation where the stock market is increasing in value and investors feel it will continue to grow.

question

bundling

answer

Grouping two or more products together and pricing them as a unit.

question

bureaucracy

answer

An organization with many layers of managers who set rules and regulations and oversee all decisions.

question

business

answer

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

question

business cycles

answer

The periodic rises and falls that occur in all economies over time.

question

business environment

answer

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

question

business law

answer

Rules, statutes, codes, and regulations that are established to provide a legal framework within which business may be conducted and that are enforceable by court action.

question

business plan

answer

A detailed written statement that describes the nature of the business will have in relation to competition, and the resources and qualifications of the owner(s).

question

business-to-business (B2B) market

answer

All the individuals and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others.

question

buying stock on margin

answer

Purchasing stocks by borrowing some of the purchase cost from the brokerage firm.

question

cafeteria-style fringe benefits

answer

Fringe benefits plan that allows employees to choose the benefits they want up to a certain dollar amount.

question

cannibalize a business

answer

One franchise pulls business away from another franchise.

question

capital budget

answer

A budget that highlights a firm's spending plans for major asset purchases that often require large sums of money.

question

capital expenditures

answer

Major investments in either tangible long-term assets such as land, buildings, and equipment or intangible assets such as patents, trademarks, and copyrights.

question

capital gains

answer

The positive difference between the purchase price of a stock and its sale price.

question

capitalism

answer

An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit.

question

cash budget

answer

A budget that estimates a firm's projected cash inflows and outflows that the firm can use to plan for any cash shortages or surpluses during a given period.

question

cash flow

answer

The difference between cash coming in and cash going out of a business.

question

cash flow forecast

answer

Forecast that predicts the cash inflows and outflows in future periods, usually months or quarters.

question

cash-and-carry wholesales

answer

Wholesalers that serve mostly smaller retailers with a limited assortment of products.

question

celebrity stargazers

answer

Customers who attend the opening of a new business hoping to see or meet a celebrity.

question

center stage

answer

A very important position.

question

centralized authority

answer

An organization structure in which decision-making authority is maintained at the top level of management at the company's headquarters.

question

certificate of deposit (CD)

answer

A time-deposit (savings) account that earns interest to be delivered at the end of the certificate's maturity date.

question

certification

answer

Formal process whereby a union is recognized by the National Labor Relations Board (NLRB) as the bargaining agent for a group of employees.

question

certified internal auditor (CIA)

answer

An accountant who has a bachelor's degree and two years of experience in internal auditing, and who has passed an exam administered by the Institute of Internal Auditors.

question

certified management accountant (CMA)

answer

A professional accountant who has met certain educational and experience requirements, passed a qualifying exam in the field, and been certified by the the Institute of Certified Management Accountants.

question

certified public accountant (CPA)

answer

An accountant who passes a series of examinations established by the American Institute of Certified Public Accountants.

question

chain of command

answer

The line of authority that moves from the top of a hierarchy to the lowest level.

question

channel of distribution

answer

A whole set of marketing intermediaries, such as wholesalers and retailers that join together to transport and store goods in their path (or channel) from producers to consumers.

question

climbed the ladder

answer

Promoted to higher-level jobs.

question

closed shop agreement

answer

Clause in a labor-management agreement that specified workers had to be members of a union before being hired (was outlawed by the Taft-Hartley Act in 1947).

question

collective bargaining

answer

The process whereby union and management representatives form a labor-management agreement, or contract, for workers.

question

command economies

answer

Economic systems in which the government largely decides what goods and services will be produced, who will get them, and how the economy will grow.

question

commercial bank

answer

A profit-seeking organization that receives deposits from individuals and corporations in the form of checking and savings accounts and then uses some of these funds to make loans.

question

commercial finance companies

answer

Organizations that make short-term loans to borrowers who offer tangible assets as collateral.

question

commercial paper

answer

Unsecured promissory notes of $100,000 and up that mature (come due) in 270 days or less.

question

commercialization

answer

Promoting a product to distributors and retailers to get wide distribution, and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers.

question

commodity exchange

answer

A securities exchange that specializes in the buying and selling of precious metals and minerals (e.g., silver, foreign currencies, gasoline) and agricultural goods (e.g., wheat, cattle, sugar).

question

common law

answer

The body of law that comes from decisions handed down by judges; also referred to as unwritten law.

question

common market

answer

A regional group of countries that have a common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange; also called a trading bloc. An example is the European Union.

question

common stock

answer

The most basic form of ownership in a firm; it confers voting rights and the right to share in the firm's profits through dividends, if offered by the firm's board of directors.

question

communism

answer

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

question

comparable worth

answer

The concept that people in jobs that require similar levels of education, training, or skills should receive equal pay.

question

comparative advantage theory

answer

Theory that states that a country should sell to other countries those products that it produces most effectively and efficiently, and buy from other countries those products that it cannot produce as effectively or efficiently.

question

competing in time

answer

Being as fast as or faster than competition in responding to consumer wants and needs and getting goods and services to prices.

question

competition-based pricing

answer

A pricing strategy based on what all the other competitors are doing. The price can be set at, above, or below competitors' prices.

question

compliance-based ethics codes

answer

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

question

compressed workweek

answer

Work schedule that allows an employee to work a full number of hours per week but in fewer days.

question

computer-aided design (CAD)

answer

The use of computers in the design of products.

question

computer-aided manufacturing (CAM)

answer

The use of computers in the manufacturing of products.

question

computer-integrated manufacturing (CIM)

answer

The uniting of computer-aided design with computer-aided manufacturing.

question

concept testing

answer

Taking a product idea to consumers to test their reactions.

question

conceptual skills

answer

Skills that involve the ability to picture the organization as a whole and the relationship among its various parts.

question

conglomerate merger

answer

The joining of firms in completely unrelated industries.

question

Congress of Industrial Organizations (CIO)

answer

Union organization of unskilled workers; broke away from the American Federation of Labor (AFL) in 1935 and rejoined it in 1955.

question

consideration

answer

Something of value; consideration is one of the requirements of a legal contract.

question

consultative salesperson

answer

A salesperson who begins by analyzing customer needs and then comes up with solutions to those needs.

question

consumer market

answer

All the individuals or households that want goods and services for personal consumption or use.

question

consumer price index (CPI)

answer

Monthly statistics that measure the pace of inflation or deflation.

question

consumer-driven plans

answer

A plan where you have a fixed "spending account," funded by your employer, which you can use to pay for office visits, prescription drugs, and routine medical procedures.

question

consumerism

answer

A social movement that seeks to increase and strengthen the rights and powers of buyers in relation to sellers.

question

contingency planning

answer

The process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives.

question

contingent workers

answer

Workers who do not have the expectation of regular, full-time employment.

question

continuous process

answer

A production process in which long production runs turn out finished goods over time.

question

contract

answer

A legally enforceable agreement between two or more parties.

question

contract law

answer

Set of laws that specify what constitutes a legally enforceable agreement.

question

contract manufacturing

answer

A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark; also called outsourcing.

question

contractual distribution system

answer

A distribution system in which members are bound to cooperate through contractual agreements.

question

contrarian approach

answer

Buying stock when everyone else is selling or vice versa.

question

controlling

answer

A management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not.

question

convenience goods and services

answer

Products that the consumer wants to purchase frequently and with a minimum of effort.

question

conventional (C) corporation

answer

A state-chartered legal entity with authority to act and have liability separate from its owners.

question

cookies

answer

Pieces of information, such as registration data or user preferences, sent by a website over the Internet to a Web browser that the browser software is expected to save and send back to the server whenever the user returns to that website.

question

cooking the books

answer

Making accounting information look better than it actually is to outside observers and users of financial information of a company.

question

cooling-off period

answer

When workers in a critical industry return to their jobs while the union and management continue negotiations.

question

cooperative

answer

A business owned and controlled by the people who use it-producers, consumers, or workers with similar needs who pool their resources for mutual gain.

question

copyright

answer

A document that protects a creator's rights to materials such as books, articles, photos, and cartoons.

question

core competencies

answer

Those functions that the organization can do as well as or better than any other organization in the world.

question

core time

answer

In a flextime plan, the period when all employees are expected to be at their job stations.

question

corporate distribution system

answer

A distribution system in which all of the organizations in the channel of distribution are owned by one firm.

question

corporate philanthropy

answer

Dimension of social responsibility that includes charitable donations.

question

corporate policy

answer

Dimension of social responsibility that refers to the position a firm takes on social and political issues.

question

corporate responsibility

answer

Dimension of social responsibility that includes everything from hiring minority workers to making safe products.

question

corporate social responsibility

answer

A business's concern for the welfare of society.

question

corporation

answer

A legal entity with authority to act and have liability separate from its owners.

question

cost of capital

answer

The rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holders.

question

cost of goods sold

answer

A measure of the cost of merchandise sold or cost of raw materials and supplies used for producing items for resale.

question

couch potatoes

answer

People who sit and watch TV for hours at a time.

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

counting on it

answer

Expecting it.

question

craft union

answer

An organization of skilled specialists in a particular craft or trade.

question

credit unions

answer

Nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members.

question

critical path

answer

In a PERT network, the sequence of tasks that takes the longest time to complete.

question

cross-functional self-managed teams

answer

Groups of employees from different departments who work together on a long-term basis.

question

current assets

answer

Items that can or will be converted into cash within one year.

question

customer relationship management (CRM)

answer

The process of learning as much as possible about customers and doing everything you can to satisfy them-or even exceed their expectations-with goods and services over time.

question

damages

answer

The monetary settlement awarded to a person who is injured by a breach of contract.

question

data processing (DP)

answer

Name for business technology in the 1970s; included technology that supported an existing business and was primarily used to improve the flow of financial information.

question

database

answer

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

question

dealer (private-label) brands

answer

Products that don't carry the manufacturer's name but carry a distributor or retailer's name instead.

question

debenture bonds

answer

Bonds that are unsecured (i.e., not backed by any collateral such as equipment).

question

debit card

answer

An electronic funds transfer tool that serves the same function as checks: it withdraws funds from a checking account.

question

debt financing

answer

Funds raised through various forms of borrowing that must be repaid.

question

decentralized authority

answer

An organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be.

question

decertification

answer

The process by which workers take away a union's right to represent them.

question

decision making

answer

Choosing among two or more alternatives.

question

deflatin

answer

A situation in which prices are declining.

question

demand

answer

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

question

demand deposit

answer

The technical name for a checking account; the money in a demand deposit can be withdrawn anytime on demand from the depositor.

question

demographic segmentation

answer

Dividing the market by age, income, and education level.

question

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.

question

departmentalization

answer

The dividing of organizational functions into separate units.

question

depreciation

answer

The systematic write-off of the cost of a tangible asset over its estimated useful life.

question

depression

answer

A severe recession.

question

deregulation

answer

Government withdrawal of certain laws and regulations that seem to hinder competition.

question

devaluation

answer

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

question

direct marketing

answer

Any activity that directly links manufacturers or intermediaries with the ultimate consumer.

question

direct selling

answer

Selling to consumers in their homes or where they work.

question

disability insurance

answer

Insurance that pays part of the cost of a long-term sickness or an accident.

question

discount rate

answer

The interest rate that the Fed charges for loans to member banks.

question

disinflation

answer

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

question

diversification

answer

Buying several different investment alternatives to spread the risk of investing.

question

dividends

answer

Part of a firm's profits that may be distributed to stockholders as either cash payments or additional shares of stock.

question

double-entry bookkeeping

answer

The concept of writing every business transaction in two places.

question

Dow Jones Industrial Average (the Dow)

answer

The average cost of 30 selected industrial stocks, used to give an indication of the direction (up or down) of the stock market over time.

question

drop shippers

answer

Wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer.

question

dumping

answer

Selling products in a foreign country at lower prices than those charged in the producing country.

question

e-commerce

answer

The buying and selling of goods and services over the Internet.

question

e-mail snooped

answer

When someone other than the addressee reads e-mail messages.

question

economic pie

answer

The money available in the economy.

question

economics

answer

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

question

economies of scale

answer

The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.

question

electronic check conversion (ECC)

answer

An electronic funds transfer tool that converts a traditional paper check into an electronic transaction at the cash register and processes it through the Federal Reserve's Automated Clearing House.

question

electronic funds transfer (EFT) system

answer

A computerized system that electronically performs financial transactions such as making purchases, paying bills, and receiving paychecks.

question

electronic retailing

answer

Selling goods and services to ultimate customers (e.g., you and me) over the Internet.

question

embargo

answer

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

question

employee orientation

answer

The activity that introduces new employees to the organization; to fellow employees; to their immediate supervisors; and to the policies, practices, and objectives of the firm.

question

employee stock ownership plans (ESOPs)

answer

Programs that enable employees to buy part or total ownership of the firm.

question

empowerment

answer

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

question

enabling

answer

Giving workers the education and tools they need to make decisions.

question

enterprise resource planning (ERP)

answer

A computer application that enables multiple firms to manage all of their operations (finance, requirements planning, human resources, and order fulfillment) on the basis of a single, integrated set of corporate data.

question

enterprise zones

answer

Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support.

question

entrepreneur

answer

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

question

entrepreneurial team

answer

A group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product.

question

entrepreneurship

answer

Accepting the risk of starting and running a business.

question

environmental scanning

answer

The process of identifying the factors that can affect marketing success.

question

equity financing

answer

Funds raised from operations within the firm or through the sales of ownership in the firm.

question

equity theory

answer

The idea that employees try to maintain equity between inputs and outputs compared to others in similar positions.

question

ethics

answer

Standards of moral behavior, that is, behavior that is accepted by society as right versus wrong.

question

everyday low pricing (EDLP)

answer

Setting prices lower than competitors and then not having any special sales.

question

exchange rate

answer

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

question

exclusive distribution

answer

Distribution that sends products to only one retail outlet in a given geographic area.

question

executor

answer

A person who assembles and values your estate, files income and other taxes, and distributes assets.

question

expectancy theory

answer

Victor Vroom's theory that the amount of effort employees exert on a specific task depends on their expectations of the outcome.

question

exporting

answer

Selling products to another country.

question

express warranties

answer

Specific representations by the seller that buyers rely on regarding the goods they purchase.

question

external customers

answer

Dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use.

question

extranet

answer

A semiprivate network that uses Internet technology and allows more than one company to access the same information or allows people on different servers to collaborate.

question

extrinsic reward

answer

Something given to you by someone else as recognition for good work; extrinsic rewards include pay increase, praise, and promotions.

question

facility layout

answer

The physical arrangement of resources (including people) in the production process.

question

facility location

answer

The process of selecting a geographic location for a company's operations.

question

factoring

answer

The process of selling accounts receivable for cash.

question

factors of production

answer

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

question

Federal Deposit Insurance Corporation (FDIC)

answer

An independent agency of the U.S. government that insures bank deposits.

question

finance

answer

The function in a business that acquires funds for the firm and manages those funds within the firm.

question

financial accounting

answer

Accounting information and analyses prepared for people outside the organization.

question

financial control

answer

A process in which a firm periodically compares its actual revenues, costs, and expenses with its projected ones.

question

financial management

answer

The job of managing a firm's resources so it can meet its goals and objectives.

question

financial managers

answer

Managers who make recommendations to top executives regarding strategies for improving the financial strength of a firm.

question

financial statement

answer

A summary of all the transactions that have occurred over a particular period.

question

first in, first out (FIFO)

answer

An accounting method for calculating cost of inventory; it assumes that the first goods to come in are the first to go out.

question

fiscal policy

answer

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

question

fixed assets

answer

Assets that are relatively permanent, such as land, buildings, and equipment.

question

flat organization structure

answer

An organization structure that has few layers of management and a broad span of control.

question

flexible manufacturing

answer

Designing machines to do multiple tasks so that they can produce a variety of products.

question

flextime plan

answer

Work schedule that gives employees some freedom to choose when to work, as long as they work the required number of hours.

question

focus group

answer

A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues.

question

foreign direct investment

answer

The buying of permanent property and businesses in foreign nations.

question

foreign subsidiary

answer

A company owned in a foreign country by another company (called the parent company).

question

form utility

answer

The value added by the creation of finished goods and services, such as the value added by taking silicon and making computer chips or putting service together to create a vacation package.

question

formal organization

answer

The structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts.

question

franchise

answer

The right to use a specific business's name and sell its products or services in a given territory.

question

franchise agreement

answer

An arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory.

question

franchisee

answer

A person who buys a franchise.

question

franchisor

answer

A company that develops a product concept and sells others the rights to make and sell the products.

question

free trade

answer

The movement of goods and services among nations without political or economic obstruction.

question

free-for-all atmosphere

answer

A situation where all order seems to be lost in conducting business.

question

free-market economies

answer

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

question

free-rein leadership

answer

Leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives.

question

freight forwarder

answer

An organization that puts many small shipments together to create a single large shipment that can be transported cost-effectively to the final destination.

question

fringe benefits

answer

Benefits such as sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages.

question

from scratch

answer

From the beginning.

question

fundamental accounting equation

answer

Assets = liabilities + owners' equity; this is the basis for the balance sheet.

question

futures markets

answer

Commodities markets that involve the purchase and sale of goods for delivery sometime in the future.

question

Gantt chart

answer

Bar graph showing production managers what projects are being worked on and what stage they are in at any given time.

question

General Agreement on Tariffs and Trade (GATT)

answer

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

question

general partner

answer

An owner (partner) who has unlimited liability and is active in managing the firm.

question

general partnership

answer

A partnership in which all owners share in operating the business and in assuming liability for the business's debts.

question

generic goods

answer

Nonbranded products that usually sell at a sizable discount compared to national or private-label brands.

question

geographic segmentation

answer

Dividing the market by geographic area.

question

get in on the dough

answer

Take the opportunity to make some money.

question

Ghostbusters

answer

Popular film of the 1980s in which characters chase and capture ghosts. Inspired the song "Who You Going to Call? Ghostbusters!"

question

givebaks

answer

Concessions made by union members to management; gains from labor negotiations are given back to management to help employers remain competitive and thereby save jobs.

question

go for the gold

answer

To work to be the very best (figuratively winning a gold medal).

question

go out with me

answer

Go with me to dinner or to a movie or some other entertainment.

question

goals

answer

The broad, long-term accomplishments an organization wishes to attain.

question

goal-setting theory

answer

The idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions.

question

gone off the deep end

answer

Doing something risky, almost crazy-like jumping into the deep end of a swimming pool when you can't swim.

question

goods

answer

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

question

goofing off

answer

Doing things at work not associated with the job, such as talking with others at the drinking fountain.

question

government and not-for-profit accounting

answer

Accounting system for organizations whose purpose is not generating a profit but serving ratepayers, and others according to a duly approved budget.

question

green product

answer

A product whose production, use, and disposal don't damage to a duly approved budget.

question

grievance

answer

A charge by employees that management is not abiding by the terms of the negotiated labor-management agreement.

question

gross domestic product (GDP)

answer

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

question

gross profit

answer

How much a firm earned by buying (or making) and selling merchandise.

question

hard copy

answer

Copy printed on paper.

question

Hawthorne effect

answer

The tendency for people to behave differently when they know they are being studied.

question

health maintenance organizations (HMOs)

answer

Health care organizations that require members to choose from a restricted list of doctors.

question

heart

answer

He most important part of something; the central force or idea.

question

helped turn around

answer

Helped reverse the downward trend.

question

hierarchy

answer

A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.

question

high-low pricing strategy

answer

Setting prices that are higher than EDLP stores, but having many special sales where the prices are lower than competitors'.

question

horizontal merger

answer

The joining of two firms in the same industry.

question

hot second

answer

Immediately.

question

human relation skills

answer

Skills that involve communication and motivation; they enable managers to work through and with people.

question

human resource management

answer

The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals.

question

hygiene factors

answer

In Herzberg's theory of motivating factors, job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased.

question

If it isn't broken, don't fix it

answer

Don't risk making things worse by changing things that don't need to be changed.

question

implied warranties

answer

Guarantees legally imposed on the seller.

question

import quota

answer

A limit on the number of products in certain categories that a nation can import.

question

importing

answer

Buying products from another country.

question

inbound logistics

answer

The area of logistics that involves bringing raw materials, packaging, other goods and services, and information from suppliers to producers.

question

income statement

answer

The financial statement that shows a firm's profit after costs, expenses, and taxes; it summarizes all of the resources that have come into the firm (revenue), all the resources that have left the firm, and the resulting net income.

question

incubators

answer

Centers that offer new business low-cost offices with basic business services.

question

indenture terms

answer

The terms of agreement in a bond issue.

question

independent audit

answer

An evaluation and unbiased opinion about the accuracy of a company's financial statements.

question

individual retirement account (IRA)

answer

A taxderred investment plan that enables you (and your spouse, if you are married) to save part of your income for retirement; a traditional IRA allows people who quality to deduct from their reported income the money they put into an account.

question

industrial goods

answer

Products used in the production of other products. Sometimes called business goods or B2B goods.

question

industrial unions

answer

Labor organizations of unskilled and semiskilled workers in mass-production industries such as automobiles and mining.

question

inflation

answer

A general rise in the prices of goods and services over time.

question

infomercial

answer

A full-length TV program devoted exclusively to promoting goods or services.

question

informal organization

answer

The system of relationships and lines of authority that develops spontaneously as employees meet and form power centers; that is, the human side of the organization that does not appear on any organization chart.

question

information systems

answer

Technology that helps companies do business; includes such tools as automated teller machines (ATMs) and voice mail.

question

information technology (IT)

answer

Technology that helps companies change business by allowing them to use new methods.

question

information utility

answer

Adding value to products by opening two-way flows of information between marketing participants.

question

initial public offering (IPO)

answer

The first public offering of a corporation's stock.

question

injunction

answer

A court order directing someone to do something or to refrain from doing something.

question

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.

question

institutional investors

answer

Large organizations-such as pension funds, mutual funds, insurance companies, and banks-that invest their own funds or the funds of others.

question

insurable interest

answer

The possibility of the policyholder to suffer a loss.

question

insurable risk

answer

A risk that the typical insurance company will cover.

question

insurance policy

answer

A written contract between the insured and an insurance company that promises to pay for all or part of a loss.

question

intangible assets

answer

Long-term assets (e.g., patents, trademarks, copyrights) that have no real physical form but do have value.

question

integrated marketing communication (IMC)

answer

A technique that combines all the promotional tools into one comprehensive and unified promotional strategy.

question

integrity-based ethics 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.

question

intensive distribution

answer

Distribution that puts products into as many retail outlets as possible.

question

interactive marketing program

answer

A system in which consumers can access company information on their own and supply information about themselves in an ongoing dialogue.

question

interactive promotion

answer

Promotion process that allows marketers to go beyond a monologue, where sellers try to persuade buyers to buy things, to a dialogue in which buyers and sellers work together to create mutually beneficial exchange relationships.

question

interest

answer

The payment the issuer of the bond makes to the bondholders for use of the borrowed money.

question

intermittent process

answer

A production process in which the production run is short and the machines are changed frequently to make different products.

question

intermodal shipping

answer

The use of multiple modes of transportation to complete a single long-distance movement of freight.

question

internal customers

answer

Individuals and units within the firm that receive services from other individuals or units.

question

International Monetary Fund (IMF)

answer

Organization that assists the smooth flow of money among nations.

question

Internet2

answer

The new Internet system that links government supercomputer centers and a select group of universities; it runs more than 22,000 times faster than today's public infrastructure and supports heavy-duty applications.

question

intranet

answer

A companywide network, closed to public access, that uses Internet-type technology.

question

intrapreneurs

answer

Creative people who work as entrepreneurs within corporations.

question

intrinsic reward

answer

The personal satisfaction you feel when you perform well and complete goals.

question

inverted organization

answer

An organization that has contact people at the top and the chief executive officer at the bottom of the organization chart.

question

investment bankers

answer

Specialists who assist in the issue and sale of new securities.

question

invisible hand

answer

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

question

involuntary bankruptcy

answer

Bankruptcy procedures filed by a debtor's creditors.

question

IOUs

answer

Debt; abbreviation for "I own you."

question

ISO 14000

answer

A collection of the best practices for managing an organizations' impact on the environment.

question

ISO 9000

answer

The common name given to quality management and assurance standards.

question

job analysis

answer

A study of what is done by employees who hold various job titles.

question

job description

answer

A summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions.

question

job enlargement

answer

A job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment.

question

job enrichment

answer

A motivational strategy that emphasizes motivating the worker through the job itself.

question

job rotation

answer

A job enrichment strategy that involves moving employees from one job to another.

question

job sharing

answer

An arrangement whereby two part-time employees share one full-time job.

question

job simulation

answer

The use of equipment that duplicates job conditions and tasks so that trainees can learn skills before attempting them on the job.

question

job specifications

answer

A written summary of the minimum qualifications required of workers to do a particular job.

question

joint venture

answer

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

question

journal

answer

The record book or computer program where accounting data are first entered.

question

judiciary

answer

The branch of government chosen to oversee the legal system through the court system.

question

jumped headfirst

answer

Began quickly and eagerly without hesitation.

question

junk bonds

answer

High-risk, high-interest bonds.

question

just-in-time (JIT) inventory control

answer

A production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line.

question

key player

answer

Important participant.

question

kick back and relax

answer

To take a rest.

question

Knights of Labor

answer

The first national labor union; formed in 1869.

question

knockoff brands

answer

Illegal copies of national brand-name goods.

question

know-how

answer

A level of specific expertise.

question

knowledge management

answer

Finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm.

question

last in, first out (LIFO)

answer

An accounting method for calculating cost of inventory; it assumes that the last goods to come in are the first to go out.

question

latchkey kids

answer

School-age children who come home to empty houses since all of the adults are at work.

question

law of large numbers

answer

Principle that if a large number of people are exposed to the same risk, a predictable number of losses will occur during a given period of time.

question

leading

answer

Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization's goals and objectives.

question

lean manufacturing

answer

The production of goods using less of everything compared to mass production.

question

ledger

answer

A specialized accounting book or computer program in which information from accounting journals is accumulated into specific categories and posted so that managers can find all the information about one account in the same place.

question

letter of credit

answer

A promise by the bank to pay the seller a given amount if certain conditions are met.

question

leave playing field

answer

Treating everyone equally

question

leverage

answer

Raising needed funds through borrowing to increase a firm's rate of return.

question

leveraged buyout

answer

An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing.

question

liabilities

answer

What the business owes to others (debts).

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 (a royalty).

question

limited liability

answer

The responsibility of a business's owners for losses only up to the amount they invest; limited partners and shareholders have limited liability.

question

limited liability company (LLC)

answer

A company similar to an S corporation but without the special eligibility requirements.

question

limited liability partnership (LLP)

answer

A partnership that limits partners' risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision.

question

limited partner

answer

An owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment.

question

limited partnership

answer

A partnership with one or more general partners and one or more limited partners.

question

line of credit

answer

A given amount of unsecured short-term funds a bank will lend to a business, provided the funds are readily available.

question

line organization

answer

An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.

question

line personnel

answer

Employees who are part of the chain of command that is responsible for achieving organizational goals.

question

liquidity

answer

How fast an asset can be converted into cash.

question

lockout

answer

An attempt by management to put pressure on unions by temporarily closing the business.

question

logistics

answer

The marketing activity that involves planning, implementing, and controlling the physical flow of materials, final goods, and related information form points of origin to points of consumption to meet customer requirements at a profit.

question

long-term financing

answer

Borrowed capital that will be repaid over a specific period longer than one year.

question

long-term forecast

answer

Forecast that predicts revenues, costs, and expenses for a period longer than 1 year, and sometimes as far as 5 or 10 years into the future.

question

loss

answer

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

question

M-1

answer

Money that can be accessed quickly and easily (coins and paper money, checks, traveler's checks, etc.).

question

M-2

answer

Money included in M-1 plus money that may take a little more time to obtain (savings accounts, money market accounts mutual funds, certificates of deposit, etc.).

question

macroeconomics

answer

The part of economics study that looks at the operation of a nation's economy as a whole.

question

management

answer

The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.

question

management by objectives (MBO)

answer

A system of goal setting and implementation that involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees.

question

management development

answer

The process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time.

question

managerial accounting

answer

Accounting used to provide information and analyses to managers within the organization to assist them in decision making.

question

managing diversity

answer

Building systems and a climate that unite different people in a common pursuit without undermining their individual strengths.

question

manufacturers' brand names

answer

The brand names of manufacturers that distribute products nationally.

question

market

answer

People with unsatisfied wants and needs who have both the resources and the willingness to buy.

question

market price

answer

The price determined by supply and demand.

question

market segmentation

answer

The process of dividing the total market into groups whose members have similar characteristics.

question

marketing

answer

The process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organizational objectives.

question

marketing concept

answer

A three-part business philosophy: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation.

question

marketing intermediaries

answer

Organizations that assist in moving goods and services from producers to industrial and consumer users.

question

marketing mix

answer

The ingredients that go into a marketing program: product, price, place, and promotion.

question

marketing research

answer

The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions.

question

marriage of software, hardware, etc.

answer

Combination of various technologies.

question

Maslow's hierarchy of needs

answer

Theory of motivation based on unmet human needs from basic physiological needs to safety, social, and esteem needs to self-actualization needs.

question

mass customization

answer

Tailoring products to meet the needs of individual customers.

question

mass marketing

answer

Developing products and promotions to please large groups of people.

question

master limited partnership (MLP)

answer

A partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax.

question

materials handling

answer

The movement of goods within a warehouse, from warehouses to the factory floor, and from the factory floor to various workstations.

question

materials requirement planning (MRP)

answer

A computer-based production management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place.

question

matrix organization

answer

An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure.

question

maturity data

answer

The exact date the issuer of a bond must pay the principal to the bondholder.

question

measuring stick

answer

Tool used to evaluate or compare something.

question

mediation

answer

The use of a third party, called a mediator, who encourages both sides in a dispute to continue negotiating and often makes suggestions for resolving the dispute.

question

mentor

answer

An experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor.

question

merchant wholesalers

answer

Independently owned firms that take title to (own) the goods they handle.

question

merger

answer

The result of two firms forming one company.

question

Mickey D's

answer

Nickname for McDonald's.

question

microeconomics

answer

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

question

micropreneurs

answer

Entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle.

question

middle management

answer

The level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling.

question

mine the knowledge

answer

Make maximum use of the knowledge employees have.

question

mission statement

answer

An outline of the fundamental purposes of an organization.

question

mixed economies

answer

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

question

monetary policy

answer

The management of the money supply and interest rates.

question

money

answer

Anything that people generally accept as payment for goods and services.

question

money supply

answer

The amount of money the Federal Reserve Bank makes available for people to buy goods and services.

question

monopolistic competition

answer

The market situation in which a large number of sellers produce products that are very similar but that are perceived by buyers as different.

question

monopoly

answer

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

question

more than meets the eye

answer

More than one can see with his or her own eyes; much is happening that is not visible.

question

motivators

answer

In Herzberg's theory of motivating factors, job factors that cause employees to be productive and that give them satisfaction.

question

mouse-click away

answer

Ease of doing something by using the computer or Internet

question

muddy the water

answer

Making things even more difficult than they currently are.

question

multinational corporation

answer

An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management.

question

mutual fund

answer

An organization that buys stocks and bonds and then sells shares in those securities to the public.

question

mutual insurance company

answer

A type of insurance company owned by its policyholders.

question

National Association of Securities Dealers Automated Quotations (NASDAQ)

answer

A nationwide electronic system that communicates over-the-counter trades to brokers.

question

national debt

answer

The sum of government deficits over time.

question

negligence

answer

In tort law, behavior that causes unintentional harm or injury.

question

negotiable instruments

answer

Forms of commercial paper (such as checks) that are transferable among businesses and individuals and represent a promise to pay a specified amount.

question

negotiated labor-management agreement (labor contract)

answer

Agreement that sets the tone and clarifies the terms under which management and labor agree to function over a period of time.

question

net income or net loss

answer

Revenue left over after all costs and expenses, including taxes, are paid.

question

network computing system (client/server computing)

answer

Computer systems that allow personal computers (clients) to obtain needed information from huge databases in a central computer (the server).

question

networking

answer

Using communications technology and other means to link organizations and allow them to work together on common objectives.

question

networking

answer

The process of establishing and maintaining contacts with key managers in one's own organization and other organizations and using those contacts to weave strong relationships that serve as informal development systems.

question

niche marketing

answer

The process of finding small but profitable market segments and designing or finding products for them.

question

nonbanks

answer

Financial organizations that accept no deposits but offer many of the services provided by regular banks (pension funds, insurance companies, commercial finance companies, consumer finance companies, and brokerage houses).

question

nonprofit organization

answer

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

question

North American Free Trade Agreement (NAFTA)

answer

Agreement that created a free-trade area among the United States, Canada, and Mexico.

question

objectives

answer

Specific, short-term statements detailing how to achieve the organization's goals.

question

off-the-job training

answer

Training that occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development.

question

oligopoly

answer

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

question

one-to-one marketing

answer

Developing a unique mix of goods and services for each individual customer.

question

online training

answer

Training programs in which employees "attend" classes via the Internet.

question

on-the job training

answer

Training in which the employee immediately begins his or her tasks and learns by doing, or watches others for a while and then imitates them, all right at the workplace.

question

open shop agreement

answer

Agreement in right-to-work states that gives workers the option to join or not join a union, if one exists in their workplace.

question

open-market operations

answer

The buying and selling of U.S. government bonds by the Fed with the goal of regulating the money supply.

question

operating (master) budget

answer

The budget that ties together all of a firm's other budgets; it is the projection of dollar allocations to various costs and expenses needed to run or operate the business, given projected revenues.

question

operating expenses

answer

Costs involved in operating a business, such as rent, utilities, and salaries.

question

operational planning

answer

The process of setting work standards and schedules necessary to implement the company's tactical objectives.

question

operations management

answer

A specialized area in management that converts or transforms resources (including human resources) into goods and services.

question

organization chart

answer

A visual device that shows relationships among people and divides the organization's work; it shows who is accountable for the completion of specific work and who reports to whom.

question

organization (or corporate) culture

answer

Widely shared values within an organization that provide unity and cooperation to achieve common goals.

question

organizing

answer

A management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives.

question

out of the office loop

answer

Out of the line of communication that occurs in the workplace.

question

outbound logistics

answer

The area of logistics that involves managing the flow of finished products and information to business buyers and ultimate consumers (people like you and me).

question

outsourcing

answer

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

question

over-the-counter (OTV) market

answer

Exchange that provides a means to trade stocks not listed on the national exchanges.

question

owners' equity

answer

The amount of the business that belongs to the owners minus any liabilities owed by the business.

question

participative (democratic) leadership

answer

Leadership style that consists of managers and employees working together to make decisions.

question

partnership

answer

A legal form of business with two or more owners.

question

patent

answer

A document that gives inventors exclusive rights to their inventions for 20 years.

question

pave the way

answer

Process of making a task easier.

question

peanut butter and jelly

answer

Popular combination for sandwich; the two are seen as perfect complementary products.

question

penetration strategy

answer

Strategy in which a product is priced low to attract many customers and discourage competition.

question

pension funds

answer

Amounts of money put aside by corporations, nonprofit organizations, or unions to cover part of the financial needs of members when they retire.

question

perks

answer

Short for perquisites; compensation in addition to salary, such as day care or a company car.

question

perfect competition

answer

The 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

performance appraisal

answer

An evaluation in which the performance level of employees is measured against established standards to make decisions about promotions, compensation, additional training, or firing.

question

personal selling

answer

The face-to-face presentation and promotion of goods and services.

question

place utility

answer

Adding value to products by having them where people want them.

question

planning

answer

A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.

question

piece of the action

answer

A share in the opportunity.

question

pink slip

answer

A notice that you've lost your job.

question

pitch in

answer

To help as needed.

question

PMI

answer

Listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column.

question

possession utility

answer

Doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up service.

question

poster child

answer

Best example.

question

precedent

answer

Decisions judges have made in earlier cases that guide the handling of new cases.

question

preferred provider organizations (PPOs)

answer

Health care organizations similar to HMOs except that they allow members to choose their own physicians (for a fee).

question

preferred stock

answer

Stock that gives its owners preference in the payment of dividends and an earlier claim on assets than common stockholders if the company is forced out of business and its assets sold.

question

premium

answer

The fee charged by an insurance company for an insurance policy.

question

price leadership

answer

The procedure by which one or more dominant firms set the pricing practices that all competitors in an industry follow.

question

primary boycott

answer

When a union encourages both its members and the general public not to buy the products of a firm involved in a labor dispute.

question

primary data

answer

Data that you gather yourself (not from secondary sources such as books and magazines).

question

principle of motion economy

answer

Theory developed by Frank and Lillian Gilbreth that every job can be broken down into a series of elementary motions.

question

private accountants

answer

Accountants who work for a single firm, government agency, or nonprofit organization.

question

problem solving

answer

The process of solving the everyday problems that occur. Problem solving is less formal than decision making and usually calls for quicker action.

question

process manufacturing

answer

That part of the production process that physically or chemically changes materials.

question

producer price index (PPI)

answer

An index that measures prices at the wholesale level.

question

product

answer

Any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers, such as the brand.

question

product analysis

answer

Making cost estimates and sales forecasts to get a feeling for profitability of new-product ideas.

question

product differentiation

answer

The creation of real or perceived product differences.

question

product liability

answer

Part of tort law that holds businesses liable for harm that results from the production, design, sale, or use of products they market.

question

product life cycle

answer

A theoretical model of what happens to sales and profits for a product class over time.

question

product line

answer

A group of products that are physically similar or are intended for a similar market.

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product mix

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The combination of product lines offered by a manufacturer.

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product placement

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Putting products into TV shows and movie where they will be seen.

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product screening

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A process designed to reduce the number of new-product ideas being worked on at any one time.

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production

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The creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge.

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production management

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The term used to describe all the activities managers do to help their firms create goods.

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productivity

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The amount of output you generate given the amount of input.

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profit

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

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program evaluation and review technique (PERT)

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A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project.

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program trading

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Giving instructions to computers to automatically sell if the price of a stock dips to a certain point to avoid potential losses.

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promissory note

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A written contract with a promise to pay a supplier a specific sum of money at a definite time.

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promotion

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All the techniques sellers use to motivate people to buy their products or services.

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promotion

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An effort by marketers to inform and remind people in the target market about products and to persuade them to participate in an exchange.

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promotion mix

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The combination of promotional tools an organization uses.

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pros and cons

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Arguments for and against something.

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prospect

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A person with the means to buy a product, the authority to buy, and the willingness to listen to a sales message.

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prospecting

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Researching potential buyers and choosing those most likely to buy.

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prospectus

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A condensed version of economic and financial information that a company must file with the SEC before issuing stock; the prospectus must be sent to prospective investors.

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provided the spark

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Supplied the energy that motivated others.

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psychographic segmentation

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Dividing the market using the group's value, attitudes, and interests.

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psychological pricing

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Pricing goods and services at price points that make the product appear less expensive than it is.

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public accountant

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An accountant who provides his or her accounting services to individuals or businesses on a fee basis.

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public domain software (freeware)

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Software that is free for the taking.

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public relations (PR)

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The management function that evaluates public attitudes, changes policies and procedures in response to the public's requests, and executes a program of action and information to earn public understanding and acceptance.

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publicity

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Any information about an individual, product, or organization that's distributed to the public through the media and that's not paid for or controlled by the seller.

Understanding Business (terms) – Flashcards

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