Business Dynamics Final

Wants

things you don’t need to survive

Needs

things you need to survive

Goods

Physically made products

Services

tasks that a business/company performs for customers.

Business

Any commercial activity that seeks profit by providing goods and services to others in exchange for money

Competition

The contest between businesses to win customers

Factors of Production

all the economic resources necessary to produce a society’s goods and services

Natural Resources

raw materials from nature that are used to produce goods.

Labor Resources

skilled or unskilled people who make the goods and services for which they are paid for

Capital Resources

finished products used to produce goods and services such as buildings, materials, and equipment.

Entrepreneurship

The process of recognizing a business opportunity, testing it in the market, and gathering the resources to start and run a business

Market Economy

an economic system in which economic decisions are made in the marketplace

Command Economy

the economic system in which a central authority makes the key economic decisions

Ethics

moral principles by which people conduct themselves personally, socially, and professionally

Social Responsibility

the duty to do what is best for the good of society

Sole Proprietorship

A business owned by ONE person

Partnership

a business owned by 2 or more people who share the risks and rewards

Corporation

A company that is registered by a state and operates apart from its owners

Management

the process of achieving company goals by planning, organizing, leading, controlling, and evaluating the effective use of resources

Copyright

protects artists written materials from being used without permission

Patent

granted by the federal government for the sole right to own an invention

Trademark

a name, symbol, or characteristic that identifies a product and where it belongs to

Leadership

taking a company and its employees in a direction based on a vision

Autocratic

Leadership Style where ONE person runs everything and makes all decisions without consulting others

Democratic

Leadership style where managers work with employees to make decisions

Free-Rein

requires the leader to set goals for managers and employees and then leave them alone to get the job done

Self-Managed Teams

work groups that supervise themselves

Five functions of management

1. planning

2. organizing

3. leading

4. controlling

5. evaluating

planning

how management defines what the future of the organization should be and how to get there.

organizing

deciding how to best implement your planning

leading

using knowledge, character, and empathy to inspire employees and achieve goals

controlling

the process of monitoring activities and making modifications and corrections when needed

evaluating

measuring performance and comparing results to objectives