Studied by 4 people
Business
An activity that provides goods and services
Revenue
Income made from selling goods
Profit
Whats left after bills are paid. (Rev-cost)
Participants
Owner
Stakeholders
Those with an interest in the company
Management
Responsible for work performance of others
Operations
Converting resources (labor
Marketing
Identify customer needs and design a product for them.
Accounting
Measure
Financial Accounting
Asses financial strength (internal and external use)
Managerial accounting
Prep info/reports and its used internally.
Finance
Plan
Macroenvironment
Business has little control over outside factors. (P.E.S.T.E.L.D)
P.E.S.T.E.L.D (outside factors)
Political
Factors of Production
Used to turn an input into an output. Resources to product. Land
Team
Those who work together to achieve a specific goal.
Self Managing
Teams lead by members. They have autonomy.
Manager Led
Like a sports team with a central director
Cross Functional
Taking advantage of everyone strengths
Virtual Teams
Online
Groupthink
When everyone is on the same page and conforms to rules
Teams work b/c
Theyre effective
Group Cohesion
Can be grouped bc of small size
Task Facilitating Roles
Accomplish team goals
Relationship Building
Challenge unmotivated behavior or help group members understand their roles.
Blocking Roles
Inhibiting performance of another team member.
Economics
Study of production
Households
Provideo and consume goods and services (workers
Economic Systems
What needs to be produced
Planned Systems
Government controls allocation and distrubtuon of some or all goods and services
Communism
PS: highest controll gov where gov controls most enterprises and dictates how goods will be produced.
Socialism
Gov stands with health care and some utilities and banking may be gov owned. Allowed privately owned businesses
Free Market
G&S price determined by competition
Capatilism
Competition dictates how goods and services are allocated with limited gov involvement. Can own land and have to pay taxes. Control over prices
Mixed Market Econ
Mix to allocate G&S better. You can't have purely one or the other.
Economic Spectrum
communism-----pure competition. As you move from left to right
Privatization
Adopt more capatilstic characteristics and conver gov businesses to private ownership.
Free Market
Adam Smith
Laissez Faire
Leaving things alone
FDA
Food and drug admisinstration. Where gov intervenes in our capatalistic society that has hints of socialism.
Perfect Competition
Buy standard products from numerous businesses. Sellers accept the going price.
Demand
Quantity of product buyers are willing to purchase at various prices.
Supply
Quantity of a product a seller will sell at various prices
Equilibrium Price
Where two curves would meet graphed together. Without outside influences
Monopolistic
Many sellers selling identical products with some differenciation...with limited control over price.
Oligopoly
Few sellers selling lots. Some control over prices High price to start so most people dont. WHen someone lowers a price
Monopoly
One seller
Natural: public utilities such as electrical and gas suppliers. Can't change prices bc they are regulated.
Legal: Given Patent so there is no competition can control some of the price
Economic Goals
Growth
GDP
Measuring performance of economy from all goods and services produced in a year.
Business Cycle
3-5 Years Prosperity:Econ expands
CPI
Reported by monthly buerau of labor statistics. Measures rate of inflation.
Economic Indicators. Lagging and Leading:
Lagging: status of econ a gew months past. Shows unemployment. Leading: 3-12 months in the future. Looks for unemployment claims
Monetary Policy
Fed Reserve System increases or decreases money supply and raises or lowers interest rates.
Fisical Policy
Relies on gov spending and taxation. How gov increases taxes when we are in a recession vs decreasing when inflation.
Ethics
Know right from wrong
Ethical Issue
Difficult Social questions w contrversy
Ethical Dilemmas
Situations hard for an individual bc there are negative consequences. (right vs right)
Insider Trading
Acting on info that isn't avaible to the public or trading it to someone else.
Bribes
Consider time
Whistle Blowing
Individual who exposes illegal or unethical behavior.
CSR
Balance responsibility toward stakeholders when making economic
CSR Owners
Invest money and capital into the company
CSR Managers
Safeguard assets
CSR Employees
Get to have safe enviroments and benefits
Customer Rights
Safe Products Informed about a product Choose Heard
Federal Trade CommissionFTC
Consumer protection law
Ethical Decision
Right vs Wrong
Import
Buy from other places
Export
Sell to other places
Absolute Advantage
The product can make it using fewer resources than other countries.
Comparitive Advantage
Can produce a product at a lower oppourtunity cost compared to another nation.
Balance of Trade
Imports- exports (selling more is a surplus!)
Balance of Payment
Money coming in- money going out.
Licensing Agreement
Allow foreign company to sell products of a producer/ use its intellectual property in exchange for royaltee fees.
Franchise
Company grants foreign company to use its brand name and sell its products.
Contract Manufacturing
Form of outsourcing
Strategic Alliances
Agreement between two companies to pool resources to achieve business goals that benefit both partners.
Joint Ventures
Alliances which partners fund seperate entities to manage joint operations (magazines in dif languages)
FDI
Formal establishment of bus operations on foreign soil (job outsourcing)
Foreign Subsidairy
Independeny company owned by a foreign firm. Gives the parent company full access to local market but its exempt from laws that hamper foreign firms.
Multinational Corporations
Local talent oriented in foreign countries to act locally and have a target audience. Outsourcing is a con
High and Low context
Americans get right to it and other regions initiate small talk and are not as direct.
Economic Development
Seek well being in another country.Know if your product will do well there. Attractive country is one w low annual income. They want to move up the economic development ladder (reliable banking
Foreign Corrupt Practicing Act
Prohibits distrubitons or bribes
Subsidies
Gov payments you get to offset some of the costs of production (farmers get income then they can sell the food for a certain rpice without consulting marekt price)
Protectionism
Protect comestic industried by reducing foreign competition
Tarrifs
Taxes on Imports
Quotas
Imposes limits on the quantity of a good that can be imported over a period of time.
Dumping
Practice of selling exported goods below normal price.
Embargo
Banning imports or exports to or from a specific country
General Agreement on Tariffs and Trade
Encouraged free trade by regulating and reducing trades by providing forumn for resolving trade disputes.
IMF
Loans money to coutnries w troubled economies
World Bank
Economic assistance for poor and developing countries.
NAFTA
Agreement amoungst gov to open boarders to unrestricted trade. (one economic zone w basically no trade barriers)
EU
Common Market. entitities. Have poltical and social cooperations. Tax and tariff outside goods.`
Joint Currency
Euro. Harder to pay debt because its been piling up.
Bus Research
Info gathered
Levels of topics
Company
Scholarly or peer reviewed
Offical and worth using
Boolean Logic/ operators:
Specific words to get best results "and"
Note 
Flashcard (25)