Business Study Guide Flashcards

Vocabulary flashcards covering key terms and definitions across Chapters 1 through 6 of the Business Study Guide.

Industrial Revolution

An era of American business where technology fueled rapid industrialization, factories, mass production, and specialization.

Entrepreneurship Era

An era of American business where large-scale entrepreneurs built business empires.

Production Era

An era of American business focused on efficiency, where the assembly line increased productivity and lowered costs.

Marketing Era

An era of American business where consumers gained power and businesses became more consumer-focused.

Relationship Era

An era of American business where businesses emphasized long-term customer relationships.

Natural resources

Inputs valuable in their natural state, such as land, fresh water, wind, and minerals.

Capital

Manmade resources used to produce goods/services, including machines, tools, buildings, and technology.

Human resources

Physical, intellectual, and creative contributions of workers.

Entrepreneurship

Taking the risk of launching and operating a business.

Economy

A financial and social system describing how resources flow from production to distribution to consumption.

Economics

The study of choices people, companies, and governments make when allocating resources.

Macroeconomics

The study of overall economic dynamics, such as employment, GDP, and taxation.

Microeconomics

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

Fiscal policy

Government efforts to influence the economy through taxation and spending.

Monetary policy

Federal Reserve decisions affecting interest rates and the money supply.

Budget surplus

A financial state where revenue is higher than expenses.

Budget deficit

A financial state where expenses are higher than revenue.

Federal debt

Money borrowed by the federal government and not yet repaid.

Money supply

The total amount of money within the economy.

M1

Currency plus checking accounts and traveler’s checks.

M2

M1 plus most savings accounts and other included near-money assets.

Pure competition

A market structure with many competitors and virtually identical products.

Monopolistic competition

A market structure with many competitors and differentiated products.

Oligopoly

A market structure with few competitors.

Monopoly

A market structure with one significant seller.

Importing

Buying products produced in foreign nations.

Exporting

Selling products to foreign markets.

Foreign outsourcing

Contracting with foreign suppliers to produce products.

Balance of payments

The total flow of money into or out of a country, including trade and other financial flows.

Exchange rate

The value of one nation’s currency relative to another.

Countertrade

Exchanges of products for products rather than currency.

Tariff

A tax on imported goods.

Quota

A limit placed on the quantity of goods that can be imported.

Embargo

A total ban on trade with a particular country or product.

Ethics

Beliefs about what is right/wrong and good/bad.

Ethical dilemma

A situation in which values conflict and choices can have negative consequences.

Code of ethics

A formal written statement of an organization’s ethical standards.

Whistleblower

An employee who reports illegal or unethical behavior.

Corporate philanthropy

Business donations of money, products, or employee time to nonprofit groups.

Cause-related marketing

A business/nonprofit partnership designed to increase sales and raise money for the nonprofit.

Corporate responsibility

Contributions to the community through the actions of the business itself.

Sustainable development

Meeting current needs without harming future generations’ ability to meet theirs.

Carbon footprint

Harmful greenhouse gases emitted directly and indirectly through operations.

Green marketing

Promoting environmentally sound products and practices.

Social audit

A systematic evaluation of how well a firm meets ethics and social responsibility goals.

Effective communication

Occurs when relevant meaning is transmitted from sender to receiver.

Active listening

Communication technique involving empathy, attention, verbal cues, eye contact, nodding, and other signals of focus.

Active voice

A writing style that directly states who performs the action; generally preferred in business communication.

Passive voice

A writing style where the subject receives the action.

Dynamic delivery

A vibrant, compelling presentation style that holds the audience’s attention.

Sole proprietorship

A business form with one owner; simple to establish, but the owner has unlimited liability.

Partnership

A business form with two or more owners where resources, skills, and workload can be shared.

Corporation

A separate legal entity from its owners, where owners generally have limited liability.

LLC

A business form that combines limited-liability protection with flexibility in taxation and operations.