BUSN 101 Key Terms Flashcards

Vocabulary flashcards covering key terms and definitions for BUSN 101 Midterm exam review.

enterprise resource planning (ERP) systems

a computerized resource-planning system that incorporates information about the firm's suppliers and customers with its internally generated data

network segmentation

architectural design of a network to manage security and access

income statement

a financial statement that summarizes a firm's revenues and expenses and shows its total profit (or loss) over a period of time

gross profit

$$\text{revenues} - \text{COGS}$$

financing (raising money)

obtaining funding for the firm's operations and investments and seeking the best balance between debt and equity

debt

a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period

common stock

a security that represents an ownership interest in a corporation

marketing

creating, communicating, and delivering value

marketing mix (AKA 4Ps)

1) product 2) price 3) promotion 4) place (distribution). Note: Some textbooks discuss a fifth "P" as being people.

place

the method of getting the product from the supplier to the customer; includes tasks such as transportation, location, supply chain management, online presence, inventory, and atmospherics

strategic planning

the process of creating long-range (one to five years), broad goals for the organization and determining what resources will be needed to accomplish those goals

tactical planning

the process of beginning to implement a strategic plan by addressing issues of coordination and allocating resources to different parts of the organization

operational plans

the process of creating specific standards, methods, policies, and procedures that are used in specific functional areas of the organization

organizing

the process of coordinating and allocating resources to carry out an organization's plans

controlling

the process of assessing the organization's progress toward accomplishing its goals; includes monitoring implementation and correcting deviations

vision statement

a short description of an organization's aspirations and the wider impact it aims to create, with a prominent focus on the "why?" or meaning behind company actions

effectiveness

the ability to produce the desired result or good

functional areas of business

a) accounting b) finance c) management d) management information systems e) marketing f) supply chain management

data

raw, unorganized facts that can be moved and stored

information

data that has been processed, interpreted, organized, structured, or presented in a way that makes it meaningful or useful

spreadsheet

a computer application that enables a user to save, sort, and manage data in an arranged set of rows and columns

database

an organized collection of data stored and accessed electronically

database management system

software that allows you to quickly and easily enter, store, organize, select, and retrieve data in a database; tracks data and allows users to query the database

cloud-computing

the delivery of computing services over the internet, allowing for flexible, on-demand access to resources such as software and data storage

information security

the processes and tools designed and deployed to protect sensitive business information from modification, disruption, destruction, and inspection

cybersecurity

the practice of protecting systems, networks, and programs from digital attacks aimed at accessing, changing, or destroying sensitive information, extorting money, or interrupting operations

supply chain management

the process of smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services; focuses on developing tight bonds with suppliers

operations

the design, execution, and control of operations that convert resources into desired goods and services and implement a company's business strategy

logistics

the coordination across the supply chain involving the flow of goods, services, people, facilities, or supplies

supply chain

the entire sequence of securing inputs, producing goods, and delivering goods to customers; includes raw materials, supplier, manufacturer, distributor, retailer, and customer

procurement

the action of obtaining equipment or supplies for a business

inputs

natural resources, raw materials, human resources, and capital

inventory management

the determination of how much of each type of inventory a firm will keep on hand and the ordering, receiving, storing, and tracking of inventory

just-in-time inventory management

an inventory management system that receives goods from suppliers at the exact time they are needed, reducing storage costs

production

the creation of products and services by turning inputs (natural resources, raw materials, human resources, capital) into outputs (goods and services)

outputs

goods and services

supply chain sustainability

the management of environmental, social, and economic impacts, and the encouragement of good governance practices, throughout the life cycles of goods and services

accounting

the process of collecting, sorting, classifying, summarizing, reporting, and analyzing financial activities

financial accounting

focuses on preparing external financial reports that are used by outsiders such as lenders, suppliers, investors, and government agencies to assess financial strength

managerial accounting

provides financial information that managers inside the organization can use to evaluate and make decisions about current and future operations

auditing

the process of reviewing the records used to prepare financial statements and issuing a formal auditor's opinion indicating whether statements were prepared in accordance with GAAP

tax

strategizing reductions in tax obligations aligned with IRS regulations and preparing required documentation

certified public accountant (CPA)

an accountant who has completed an approved bachelor's degree program, passed a test prepared by the AICPA, and met state requirements; only a CPA can issue an auditor's opinion

balance sheet

a financial statement that summarizes a firm's financial position at a specific point in time; always balances as shown by $\text{Assets} = \text{Liabilities} + \text{Shareholder's Equity}$

assets

things of value owned by a firm

liabilities

what a firm owes to its creditors; also known as debts

shareholder's equity

the total amount of investments in the firm minus any liabilities; also called net worth

cost of goods sold (COGS)

expenses directly related to the buying or producing of a firm's goods or services

other expenses

expenses that do not stem from the operations of your business, such as utilities and rent

earnings per share (EPS)

the ratio of net profit to the number of common stock outstanding; measures dollars earned by each share of stock

finance

a field that deals with the allocation of assets and liabilities over time under conditions of certainty and uncertainty

financial management

the art and science of managing a firm's money so that it can meet its goals

financial planning

preparing the financial plan, which projects revenues, expenditures, and financing needs over a given period

investment (spending money now to make money later)

investing the firm's funds in projects and securities that provide high returns in relation to their risks

equity

funds raised through the sale of ownership (stock) in the business

commercial banks

profit-oriented financial institutions that accept deposits, make business and consumer loans, invest in securities, and provide other financial services

investment banking

helps companies raise long-term financing by acting as intermediaries to buy securities from corporations and governments and resell them to the public

real estate

a specialized branch of finance dealing with financing and investment structures used to acquire, develop, and maintain commercial and residential properties

dividends

payments to stockholders from a corporation's profits

public company

a company with shares of stock traded in the public, typically on a stock exchange

private company

a company without publicly traded stock

initial public offering (IPO)

a company's initial sale of stock to the public

ticker symbol

a unique abbreviation used to identify the shares of a publicly traded company

share price

the price of a single share of a company's stock

interest

a fixed amount of money paid by the borrower (for a bond, loan, or mortgage) to the lender on a regular schedule

product

goods, services, and ideas

price

something given in exchange for a product; can be monetary or nonmonetary (such as rent, fees, charges)

promotion

methods for informing and influencing the customer to buy the product; promotional mix includes traditional advertising, sales promotion, public relations, personal selling, social media, and e-commerce

market segmentation

the process of separating, identifying, and evaluating the layers of a market in order to determine a target market for your firm to operate within

target market

the specific group of consumers toward which a firm could direct its marketing efforts

management

the process of guiding the development, maintenance, and allocation of resources to attain organizational goals

human resource management (HR/HRM)

involves coordinating, managing, and allocating human capital (employees) in ways that move an organization's goals forward

entrepreneurship

understanding when there is an opening in the marketplace that no other provider is meeting and knowing how to go after this new opportunity at the right time

entrepreneur

an individual or a small group of partners who embark on an original path to create a new business

management consulting

focuses on helping organizations operate effectively through an outside perspective on problem-solving, best practices, and strategy

four primary functions of managers

1) planning 2) organizing 3) leading 4) controlling

planning

the process of deciding what needs to be done to achieve organizational objectives, identifying when and how it will be done, and determining who should do it

contingency plans

plans that identify alternative courses of action for very unusual or crisis situations

leading (leadership)

the process of guiding and motivating others toward the achievement of organizational goals

corporate culture

the set of attitudes, values, and standards that distinguishes one organization from another

mission statement

used by a company to explain, in simple and concise terms, its purpose(s) for being; focuses on the "what?" and "how?" to accomplish their vision

values (AKA core values)

the beliefs and behaviors that a company considers non-negotiable guiding principles for how people show up and treat each other

efficiency

using the least amount of resources to accomplish the organization's goals

business

an organization that strives for a profit by providing goods and services desired by its customers

goods

tangible items manufactured by businesses, such as laptops

services

intangible offerings of businesses that can't be held, touched, or stored, such as physicians, lawyers, hair stylists, car washes, and airlines

business-to-business (B2B)

selling products and services between two businesses, rather than to a consumer

business-to-consumer (B2C)

selling products and services directly to a consumer (the end user)

traditional purpose of a business

to maximize the value of the firm to its owners (maximize shareholder's wealth by increasing profits)

stakeholder

anyone involved with or affected by an organization, including shareholders, customers, community members, employees, suppliers, etc.

shareholder

owns a share of a company's stock; could be an individual, a company, or an institution

profit

the difference between the amount earned and the amount spent in buying, operating, or producing something; calculated as $\text{revenue} - \text{expenses}$

revenue

the dollar amount of a firm's sales plus any other income received from sources such as interest, dividends, and rents

expense

what it costs you to operate your business

cross-functional teams

groups of people that belong to different functional/expertise domains

value proposition

the unique benefit that a company provides customers who buy their goods or services

information systems

systems that allow users to leverage technology, information, and people to further organizational goals

information technology

the equipment and techniques used to manage and process information