Sophia Business Program

Business

An organization that attempts to earn a profit through the sale of goods or services

Entrepreneur

A person who pursues a business venture with growth and expansion as primary goals

Free Enterprise System

A market system with little control and regulation of business (by the Government)

Loss

When expenses are greater than sales, there is a loss

Microeconomics

An area of economic study that focuses on specific markets, choices, and behaviors that affect price cost, and demand.

Profit

When revenue and sales are greater than expenses, there is a profit

External Environments

The conditions outside of a business that affects how it operates

Economy Systems

How a society chooses to distribute goods, services, and resources.

Factors of Production

The resources necessary to produce output.

Market Economy

Supply and demand dictates how to distribute resources for the production of goods and services.

Mixed Market Economy

A combination of a planned economy and a market economy.

Planned Economy

A central authority controls and chooses how to distribute resources for the production of goods and services.

Equilibrium Price

The price at which the quantity demanded and the quantity supplied meet.

Market Price

The current price of a good or service that a customer is willing to pay.

Monopolistic Competition

An industry market structure characterized by a large number of firms selling similar products.

Monopoly

An industry market structure characterized by one firm supplying a unique product to the entire market. Barries to entry prevent competition.

Oligopoly

An industry market structure characterized by a few firms selling similar products.

Perfect Competition

An industry market structure characterized by a very large number of firms selling a homogeneous (identical) product.

Shorage

When there is more demand for a product than there is supply

Surplus

When there is more supply of a product than demand for it.

Small business

An organization with fewer than 500 employees that attempts to earn a profit through the sale of goods or services.

Liability

A legal obligation or responsibility

Partnership

A business that is owned and operated by two or more people.

Sole proprietor

A business that is owned and operated by one person

Corporate Governance

The structures of rules, rights, and processes that govern a corporation.

Corporations

An organization that can legally operate as a separate entity.

Dividend

A payment of earnings to shareholders from an organization.

Proxy

Voting Rights that are passed on to someone so they have the authority to act on behalf of the stockholder.

Stock

A form of partial ownership of a corporation

Stock Holders

People who own shares of stock for a corporation

Business Plan

A document that outlines the plan for a business

Franchise

A type of business in which one organization pays to use an established business model and intellectual properties.

Multilevel Marketing

A type of business where people are compensated not only for their own sales but also earn a percentage of what their recruited salespeople sell.

Business Ethics

The principles of right and wrong and the morality of the choices made in the business world.

Code of Conduct

Organizational rules to encourage responsible and ethical behavior

Collusion

An attempt by businesses to conspire to the detriment of customers, other businesses, or the general public

Confidentiality

Keeping private trusted data out of the hands of the public and other people

Conflict of interested

A circumstance in which the judgement of an individual or group may be impaired because of a difference in primary and secondary interest

Ethics

The principles of right and wrong and the morality of the choices involved

Managerial Ethics

The principles of right and wrong and the morality of the choices made in the context of management

Social Responsibility

The responsibility to act in a way that benefits society at large

Stakeholders

The People and parties directly affected by an organization

Accommodative Stance

An approach to social responsibility in which an organization goes beyond the minimal standards of social responsibility but does not necessarily seek to make major changes

Defensive Stance

An approach to social responsibility in which an organization will fight any allegations of social irresponsibility

Obstructionist Stance

An approach social responsibility in which an organization actively tries to avoid, slow, or stop social responsibility.

Proactive Stance

An approach to social responsibility in which an organization goes beyond the minimal standards of social responsibility by actively anticipating future issues.

Absolute Advantage

The capacity to produce a higher number of goods or services using the same production resources as competitors

Comparative Advantage

A trading advantage achieved over another company due to lower opportunity cost.

Exports

Goods produced domestically

Globalization

The expansion of business into international markets

Imports

Goods domestically sold that were produced in a foreign nation

International Business

Business conducted between two or more nations

Per Capita Income

The average income of a group

World Bank

An international banking organization connected to the United Nations and focused on developing poorer nations

Embargo

A trade restriction that stops trade with a specific country

Quota

Limiting the amount of a good being traded to a specific amount or value

Sourcing

Determining the production location of goods based on external and internal variables of the business.

Tariff

Any imports and exports tax that is placed on a group of products

Trade Agreement

A trade treaty between nations that sets tax rates and any limit on restrictions

Trade Restrictions

Artificially limiting the business conducted between nations.

Advertising

Paid communication to inform about a product, idea, or service

Marketing

The process of developing a reciprocal exchange, including the development of informational and promotional materials to stimulate demand.

Public Relations

Communication that is not directly paid for but functions to inform about a product, idea or service

Value

The corresponding usefulness, practicality, or significance

Consumer Goods

Goods that are purchased by the individual end user and not the producer

Industrial goods

Goods that are purchased to be used in manufacturing and construction

Services

Mercantile activity where the consumer doesn’t receive ownership of the thing bought.

Holistic Marketing

A marketing approach that considers the entire business with its place in the world community while it performs business

Relationship Marketing

A marketing approach that considers developing a long-term relationship more essential than the immediate sale.

Marketing Plan

A plan of action that creates a framework for the marketing efforts within an organization

Target Market

An identified cluster of customers that is the focus of business, specifically marketing efforts.

4 P’s

A marketing mix for organizations looking at product, price, promotion, and place

4 C’s

A marketing mix for organizations looking at customer’s needs and wants, convenience, cost to the user, and communication

Convenience Goods

Low-priced goods that are typically purchased as a routine or quickly without forethought.S

Shopping goods

Goods that have a more sophisticated choosing process that has the purchaser evaluating a variety of characteristics

Specialty Goods

High-priced goods that consumers spend considerable time and effort in evaluating their choices

Penetration Pricing

Setting a low price so the organistion can enter the market and gain traction within it.

Skimming Pricing

Setting a steep introductory price with the intent of generating consumer interest

Distribution

The system of providing a product or service accessible to consumers and businesses for consumptionI

Intermediaries

A business in the supply chain that bridges the gap between wholesale and retail

Retail

Selling items that will be used and will not be sold again

Wholesale

The distribution of goods on a broad scale to be sold by other parties

Media Mix

The various communication forms used by an organization to inform of or promote its offerings

Consumer Behavior

The research and understanding of how human beings, singularly or as a group, consider and accept organizational offerings as well as how these choices impact culture as a whole.

Cultural Influences

Influences on a consumer’s opinions that are related to the broad impact of the society in which they are currently living or have lived

Personal Influences

Influences on a consumer’s opinions that are related to their interactions with and response to the opinions of specific other people

Psychological Influences

Influences on a consumer’s opinions that are related to the scientific study of how human beings think and respond to their environment

Social Influences

Influences on a consumer’s opinions that are related to the opinions of groups or societies

Consumer Buying Process

The process that humans go through when making choices to meet their needs and wants

Market Segmentation

A marketing process where the market as a whole is subdivided into categories of potential consumers based on traits, and then each subdivided group is focused on through specific marketing efforts

Target Market

An identified cluster of customers that is the focus of the business specifically, its marketing efforts

Product life cycle (PLC)

The cycle that each item tangible or intangible, goes through from its debut to its downturn

Branding

Creating an individual name and perception for a product, company, or idea through marketing measures.

Product Differentiation

Creating a perceived difference for a good or service in the minds of the cluster of customers that is the minds of the cluster customers that is the focus of the business or organization

Substitute Product

A product that a consumer would select in lieu of another product. (lieu - to replace or to substitute)

Trademark

Provides exclusive legal use of branding and all of its related elements

Buzz Marketing

A marketing process that generates a strong word-of-mouth response via social media outlets

Viral Marketing

A marketing process that focuses on unpaid people utilizing social media outlets to generate sales, awareness, or general positive regard for the brand

Brand Collateral

The supportive materials that communicate the brandL

Logo

Visual symbol of an organization’s name and brand