BUSN11 Introduction to Business (Kelly+Williams) (Ch.1-5)

Federal Trade Commission (FTC) (Ch.1)

Actively promote fair competitive practices, which help give every enterprise a chance to succeed.

Speed-to-market (Ch.1)

the rate at which a new product moves from conception to commercialization

Factors of production (4) (Ch.1)

Business rely on the factors of production to achieve their objectives:

1) Natural resources

2) Capital

3) Human Resources

4) Entrepreneurship

Natural Resources (Ch.1)

This factor includes all inputs that offer value in their natural state, such as land, fresh water, wind, and mineral deposits

Capital (Ch.1)

This factor includes machines, tools buildings, information, and technology-the synthetic resources that a business needs to produce goods or services

Human Resources (Ch.1)

This factor encompasses the physical, intellectual, and creative contributions of everyone who works within an economy

Entrepreneurship (Ch.1)

People who are accepting the risk of launching and running their own business

Non-profits (Ch.1)

An organization that is set up to help those in need but not to make a profit from the business.

Entrepreneur (Ch.1)

people who risk their time, money, and other resources to start and manage business.

Communism (Ch.2)

an economic and political system that calls for public ownership of virtually all enterprises, under the direction of a strong central- government.

Socialism (Ch.2)

an economic system based on the principle that the government should own and operate key enterprises that directly affect public welfare.

(such as utilities, telecommunication, healthcare) tend to have higher taxes.

supply curve (Ch.2)

A curve that shows the relationship between the price of a product and the quantity of the product (supplier)

demand curve (Ch.2)

a graph of the relationship between the price of a good and the quantity from a (customer) demanded standpoint (quantity demand drop as price rise)

Industrial Revolution (Era) (Ch.1)

from the mid-1700s to the mid 1800s, technology fueled a period a rapid industrialization. Factories sprang up in cities, leading to mass production and specialization

(Loss of biz + Pride)

Production Era (Ch.1)

In the early 1900s, major businesses focused on further refined the production process and created greater huge efficiencies. The assembly line, introduced in 1913, boosted productivity and lowered costs.

(Customers Last)

Entrepreneurship Era (Ch.1)

During the second half of the 1800s, large-scale entrepreneurs emerged, building business empires that created enormous wealth, but often at the expense of workers and consumers.

(manipulative price Gov Step In)

Business environment (Ch.1)

The setting in which business operates. The five key components are:

1)economic environment,

2)competitive environment,

3)technological environment,

4)social environment, and

5) global environment.

Leading edge (Ch.1)

leading edge differs from bleeding edge by offering products just as the market becomes ready to embrace them.

(Ready to accept Business)

Bleeding edge (Ch.1)

( People not ready to accept Business)

Bleeding edge firms launch products that (FAIL) because they"re too far ahead of the market. Because customers weren't ready to dump traditional.

Microeconomics (Ch.2)

The study of the smaller economic units, such as individuals, consumers, families, and individual businesses.

Federal Reserve System (Ch.2)

the core purpose of the fed is to influence the size of the money supply.

Macroeconomics (Ch.2)

The study of a country's overall economic dynamics, such as the employment rate, and the gross domestic product, and the taxation policies

Discount rate (Ch.2)

The rate of interest that the Federal Reserve charges when it loans funds to banks

Troubled Asset Relief Program (TARP) (Ch.2)

Introduced a an economics plan

(Emergency money to help avoid bankrupt)

Open market operations (Ch.2)

The Federal Reserve function of buying and selling government securities, which include treasury bonds, notes, and bills.

(This is the fed's most frequently used tools!)

Monetary policy (Ch.2)

Federal Reserve decisions that shape the economy by influencing interest rates and the supply of money

Equilibrium price (Ch.2)

the prices associated with the point at which the quantity demanded of a product equals the quantity supplied

Natural monopoly (Ch.2)

A market structure with one company as the supplier of a product because the natural of the product makes a single supplier more efficient than multiple, competing ones most natural monopolies are government sanctioned and regulated : Gas, Water etc

Monopoly (Ch.2)

A market structure with one producer completely dominating the industry, leaving no room for any significant competitors. Barriers to entry tend to be virtually insurmountable.

Opportunity cost (Ch.3)

the opportunity of giving up the second-best choice when making a decision

Comparative advantage (Ch.3)

the benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries

Foreign outsourcing (Ch.3)

contracting with foreign suppliers to produce products, usually at a fraction of the cost of domestic production

Trade deficit (Ch.3)

shortfall that occurs when the total value of a nation's imports is higher than the total value of its exports

Balance of trade (Ch.3)

a basic measure of the difference in value between a nation's exports and imports, including both goods and services

Countertrade (Ch.3)

international trade that involves the barter of products for products rather than for currency

Direct investment (Ch.3)

(or foreign direct investment) When firms either acquire foreign firms or develop new facilities from the ground up in foreign countries.

Joint venture (Ch.3)

when 2 or more companies join forces sharing resources, risks, and profits, but not actually merging to pursue specific opprtunities

Sociocultural differences (Ch.3)

differences among cultures in language, attitudes, and values

Marketing Era (Ch.1)

After WWII, businesses began to develop brands to help consumers understand the differences among products (Customers)

Protectionism (Ch.3)

national policies designed to restrict international trade, usually with the goal of protecting domestic businesses

Donald Trump

Ethics (Ch.4)

a set of beliefs about right and wrong, good and bad

Code of ethics (Ch.4)

A formal, written document that defines the ethical standards of an organization and gives employees the information they need to make ethical decisions across a range of situations

Ethical dilemma (Ch.4)

a decision that involves a conflict of values; every potential course of action has some significant negative consequences

Relative Ethics (Ch.4)

The view that all morality, individuals or cultures create their own morals, which are not considered better or worse than any other. (do nothing because its your family/friends. not following the moral norms.

Consumerism (4) (Ch.4)

A social movement that focuses on four key consumer rights:

1) the right to be safe

2) the right to be informed

3) the right to choose

4) the right to be heard

Corporate philanthropy (Ch.4)

all business donations to nonprofit groups, including money, products, and employee time

Whistle-blowing (Ch.4)

employee who report their employer's illegal or unethical behavior to either the authorize or the media

Social Responsibility (Ch.4)

the obligation of a business to contribute to society

Carbon footprint (Ch.4)

refers to the amount of harmful greenhouse gases that a firm emits throughout its operations, both directly and indirectly

Noise (Ch.5)

any interference that causes the message you send to be different from the message your audience understands

Communication barriers (Ch.5)

obstacles to effective communication, typically defined in terms of physical,

1) language,

2) body language,

3) cultural,

4) perceptual,

5) organizational barriers

Nonverbal communication (Ch.5)

Communication that does not use words. Common forms of nonverbal communication include gestures, posture, facial expressions, tone of voice, and eye contact.

Communication channel (Ch.5)

the various ways in which a message can be sent, ranging from one-on-one in person meeting to internet message boards

Dynamic delivery (Ch.5)

vibrant, compelling presentation delivery style that grabs and holds the attention of the audience

The fundamental Right of Capitalism

1) The right to own a business

2) The right to private property

3) The right to free choice

4) The right to fair competition

Marketing Era

After WWII, businesses began to develop brands to help consumers understand the differences among products (Costumers)

Relationship Era

(over) technology

Consume Price Index (CPI)

a measure of inflation that evaluates the change in the weighted average price of goods and services that the average consumer buys each month.

(Notes: gov uses 2 major price indexes CPI/PPI to evaluate inflation.

Producer Price Index (PPI)

A measure of inflation that evaluates the change over time in the weighted-average wholesale prices.

3 key benefit international trade (Ch.3)

better access to factors of

1) production

2) reduced risk

3) inflow of new ideas

monopolistic competition (Ch.2)

A market structure with many competitors selling differentiated products. Barriers to entry are low.

exchange rates (Ch.3)

a measurement of the value of one nation's currency relative to the currency of other nations

budget deficit (Ch.2)

Shortfall that occurs when expenses are higher than revenue over a given period of time

budget surplus (Ch.2)

overage that occurs when revenue is higher than expenses over a given period of time

social environment (Ch.1)

embodies the values, attitudes, customs, and beliefs shared by groups of people.

(demographic, population size, density, specific traits such as age, gender, race, education and income

Technological Environment (Ch.1)

includes any tools that business can use to become more efficient and effective.

( computers, telecommunication, digital products)

business (Ch.1)

any organization or activity that provides goods and services in an effort to earn a profit

profit (Ch.1)

the money that a business earns in sales ( or revenue) minus expenses, such as the cost of goods and the cost of salaries.

Revenue- Expenses = Profit or Loss

planned obsolescence (Ch.4)

the strategy of deliberately designing products to fail in order to shorten the time between purchases

4 consumer rights outlined

by president Kennedy early 1960's

the right to safety,

the right to be informed,

the right to choose,

and the right to be heard

International Monetary Fund (IMF) (Ch.3)

An international organization of 188 member nations that promotes international economic cooperation and stable growth. (lender of last resort)