Learn: BUS 100 Test 1 vocabulary, chapters 1-6 | Quizlet

Goods

Tangible products such as computers, food, clothing, cars and appliances

Business

Any activity that seeks to provide goods and services to others while operating at a profit

Entrepreneur

A person who risks time and money to start and manage a business

Profit

Amount of money a business earns above and beyond what it spends for salaries and other expenses

Loss

When a business's expenses are more than its revenues

Risk

The chance an entrepreneur takes of loosing time and money on a business that may not prove profitable

Standard of living

The amount of goods and services people can buy with the money they have

Quality of life

The general well being of a society in terms of its political freedom, natural environment, education, health care, safety, amount of leisure and, rewards that add to the satisfaction and joy that other goods and services provide

Stakeholders

All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address

Outsourcing

Contracting with other companies (often in other countries) to do some or all the functions of a firm, like its production or accounting tasks.

Nonprofit organizations

An organization whose goals do not include making a personal profit for its owners or organizers

Factors of production

The resources used to create wealth, land, labor, capital, entrepreneurship, and knowledge.

Business environment

The surrounding factors that either help or hinder the development of businesses

Technology

Everything from phones and copiers to computers, medical imaging devices, software programs that make business processes more effective, efficient, and productive

Productivity

The amount of output you generate given the amount of input

e-commerce

Buying and selling of goods over the internet

Database

An electronic storage file for information

Identity theft

Obtaining individuals' personal information, such as Social Security and credit card numbers, for illegal purposes

Empowerment

Giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer service requests

Demography

The statistical study of the human population with regards to its size, density, and other characteristics such as age, gender, and income

Climate change

The movement of the temperature of the planet up and down over time

Services

Intangible products such as education, health care, insurance, travel and tourism

Revenue

The total amount of money a business takes in during a given period by selling goods and services

Greening

The trend toward saving energy and producing products that cause less harm to the environment

Economics

The study of how society chooses to employ resources to make goods, services, and

to distribute them for consumption amongst various groups and individuals.

Macroeconomics

looks at the operations of a nation's economy as a whole.

Microeconomics

Looks at the behavior of people and organizations in markets for particular products or services.

Resource Development

The study of how to increase resources and create conditions that will make better use of them.

Invisible Hand

Used to describe the process that turns self-directed gain into social and economic benefits for everyone.

Capitalism

When all the factories of production and distribution are owned privately and

operated for profit.

Foundations of Capitalism (basic rights under free-market capitalism)

1. The right to own private property

2 The right to own a business and keep all that business's profits

3. The right to freedom of competition

4. The right to freedom of choice

Supply

Refers to the quantities of products manufacturers or owners are willing to sell at

different prices at a specific time.

Demand

Refers to the quantity of products that people are willing to buy at different prices at a specific time.

Perfect Competition

When there are many sellers in a market and there is no one to dictate the price of a product.

Monopolistic Competition

Many sellers that make similar products that buyers think are different. Ex: Hot Dogs, Soda, T-Shirts

Oligopoly

Competition in which few sellers dominate the market.

Monopoly

Where one seller controls the price of products and services and sets the price.

Brain Drain

Loss of the best and smartest people to other countries.

Inflation

The general rise in the prices of goods and services over time.

Disinflation

When price increases are slowing.

Communism

Where the government decides everything about how the market is, what items can be sold and at what price they will be sold.

Free Market Economies

When market determines what goods and services are produced, who gets them and how the economy grows.

Command Economies

When the government determines what goods and services are produced, who gets them and how the economy grows.

Mixed Economies

When some resources are made by the market and some are made by the government.

Gross Domestic Product (GDP)

The total value of final goods and services produced in a country in the given year.

Unemployment Rate

Shows civilians of 16 years of age who are unemployed and tried to find a job in the last 4 weeks.

Deflation

Prices are declining.

Stagflation

When economy is slowing but prices are still going up.

Consumer Price Index (CPI)

Monthly statistics that measure the pace of inflation or deflation.

Producer Price Index (PPI)

Measures price at the whole sale level.

Business Cycles

Are the periodic rise and falls that happen in economies over time.

Recession

2 or more consecutive quarters of decline in the GDP.

Depression

Severe recession usually comes with deflation.

Fiscal Policy

When the federal government's efforts to keep the economy stable by increasing

or decreases taxes or government spending.

National Debt

Total government deficits over time.

Absolute advantage

The advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries.

Balance of payments

The difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investment.

Keynesian Economic theory

That a government policy of increase spending and cutting taxes could stimulate the economy in a recession.

Monetary Policy

The management of the money supply and interest rate by the federal reserve bank.

Balance of trade

The total value of a nation's exports compared to its imports measured over a particular period.

Common market

A regional group of countries that have a common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange; also called a trading bloc. An example is the European Union.

Comparative advantage theory

Theory that a country should sell to other countries those products that it produces most effectively and efficiently, and buy from other countries those products that it cannot produce as effectively or efficiently.

Contract manufacturing

A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark; part of a broad category of outsourcing.

Countertrading

A complex form of bartering in which several countries may be involved, each trading goods for goods or services for services.

Devaluation

Lowering the value of a nation's currency relative to other currencies.

Dumping

Selling products in a foreign country at lower prices than those charged in the producing country.

Embargo

A complete ban on the import or export of a certain product, or the stopping of all trade with a particular country.

Exchange rate

The value of one nation's currency relative to the currencies of other

countries.

Exporting

Selling products to another country.

Foreign direct investment (FDI)

The buying of permanent property and

businesses in foreign nations.

Foreign subsidiary

A company owned in a foreign country by another company, called the parent company.

Free trade

Movement of goods and services among nations without political or economic barriers.

General Agreement on Tariffs and Trade (GATT)

A 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions.

Importing

Buying products from another country.

Import quota

A limit on the number of products in certain categories that a nation can import.

Joint venture

A partnership in which two or more companies (often from different countries) join to undertake a major project.

Licensing

A global strategy in which a firm (the licensor) allows a foreign company

(the licensee) to produce its product in exchange for a fee (a royalty).

Multinational corporation

An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management.

North American Free Trade Agreement (NAFTA)

Agreement that created a free-trade area among the United States, Canada, and Mexico.

Sovereign wealth funds (SWFs)

Investment funds controlled by governments holding large stakes in foreign companies.

Strategic alliance

A long-term partnership between two or more companies established to help each company build competitive market advantages.

Tariff

Tax imposed on imports.

Trade deficit

An unfavorable balance of trade; occurs when the value of a country's

imports exceeds that of its exports.

Trade protectionism

The use of government regulations to limit the import of goods and services.

Trade surplus

A favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports.

World Trade Organization (WTO)

The international organization that replaced the General Agreements on Tariff and Trade, and was assigned the duty to mediate trade disputes among nations.

Compliance-Based Ethic Codes

Ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers.

Corporate Philanthropy

The dimension of social responsibility that includes charitable donations.

Corporate Policy

The dimension of social responsibility that refers to the position a firm takes on social and political issues.

Corporate Responsibility

The dimension of social responsibility that includes everything from hiring minority workers to workers safe products.

Corporate Social Initiatives

Enhanced forms of corporate philanthropy directly related the company's competencies

Corporate Social Responsibility [CSR]

A businesses' concern for the welfare of society

Ethics

Standards of moral behavior, that is, behavior accepted by society as right versus wrong.

Insider Trading

An unethical activity in which insiders use private company information further their own fortunes or those of their family and

friends.

Integrity-Based Ethics Code

Ethical standards that define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.

Social Audit

A systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs.

Whistleblowers

Insiders who report illegal or unethical behavior.

Sole Proprietorship

A business that is owned, and usually managed, by one

person.

Partnership

A legal form of business with two or more owners.

Corporation

A legal entity with authority to act and have liability apart from its owners.