MGMT

final exam

Business

An organization that tries to make profit by selling goods or services.

Goods

Tangible items that can be touched, such as clothes or phones.

Services

Intangible offerings that cannot be touched, like haircuts or car repairs.

Profit

Money a business makes after paying all its costs.

Private Sector

The part of the economy that is made up of privately owned businesses.

Public Sector

The part of the economy that is controlled by the government.

Non-profit Sector

Organizations that operate for a purpose other than making a profit, like charities.

Interpersonal Skills

Skills that help you work well with people.

Analytical Skills

Ability to solve problems.

Technical Skills

Skills related to using technology or tools.

Conceptual Skills

Understanding the big picture and how various elements of a business work together.

Economic system

How a country produces, owns, and distributes wealth.

Capitalist / Free Market

An economic system where individuals own businesses and prices are set by supply and demand.

Mixed Economy

An economic system that combines private businesses with government control.

Socialist Economy

An economic system where the government owns important industries.

Communist / Command Economy

An economic system where the government controls all aspects of the economy.

Perfect Competition

An economic situation where many sellers and buyers exist, and price is determined by supply and demand.

Monopolistic Competition

An economic situation with many sellers offering slightly different products.

Oligopoly

A market structure where a few large sellers dominate the market.

Monopoly

A market structure where a single seller controls the entire market.

Supply

The total amount of a product that businesses are willing to sell at a given price.

Demand

The amount of a product that consumers are willing to buy at a given price.

Equilibrium / Market Price

The price at which the quantity of a product supplied equals the quantity demanded.

Inflation

The rate at which prices for goods and services rise.

GDP (Gross Domestic Product)

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

Ethics

Knowing what's right and wrong and acting on that knowledge.

Business Ethics

Applying moral standards to business decisions.

Conflict of Interest

A situation where a person has competing interests that could potentially influence their decisions.

Transparency

Being open and honest about business practices and sharing important information.

Stakeholders

Anyone affected by the decisions of a business.

Consumer Rights

The rights that protect consumers in the marketplace.

Green Marketing

Promoting products based on their environmental benefits.

Absolute Advantage

The ability of a country to produce a good more efficiently than any other country.

Comparative Advantage

A situation where a country produces a product more efficiently compared to other products.

Exporting

Selling products or raw materials to other countries.

Importing

Buying products from other countries.

Trade Deficit

Occurs when a country imports more goods than it exports.

WTO (World Trade Organization)

An organization that regulates international trade.

IMF (International Monetary Fund)

An organization that aims to stabilize international monetary cooperation.

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

Licensing (Contractual Agreement)

A company allows another company to use its brand, design, or product in exchange for a fee. The licensor has limited control and low risk.

Liscensing

A company allows another company to use its brand, design, or product in exchange for a fee. The licensor has limited control and low risk.

Franchising

A business lets someone open a location of their brand and follow a specific system (same menu, rules, training). The franchisor oversees quality but doesn’t run each store.

Subcontracting

A company hires another business to complete a specific task—often manufacturing. The main company sets standards but the work is done elsewhere.

Acquisition

Buying a foreign company

Joint Venture

Partnership to achieve a specific goal (shared company)

Strategic Alliance

Partnership for competitive advantage (Toyota)