Key Concepts in Business Operations and Ethics

Flashcards of key vocabulary from business operations and ethics lecture notes.

Business

An organized effort to produce goods and services.

Operations

Producing goods and services.

Inventory Management

Making sure that a business has enough of a product in stock without having too much on hand.

Nonprofit Business

A business that exists to fulfill a specific mission or undertaking.

Marketing

Represents a primary business activity.

Human Resources Management

The business takes care of the responsibilities associated with having employees.

Information Management

Storing and retrieving information.

Producer

Someone who makes things.

Wholesale Trade Businesses

They operate from a variety of business premises.

Service Businesses

Sell intangible activities.

Social Responsibility

One way in which a business can show its social responsibility is by maximizing its profits.

Socially Responsible Business

Will attempt to give customers the best products at the best prices.

Community Impact

The business's social responsibility has an effect on the community.

Raw-Goods Producers

Farms, mines, and lumber companies are examples.

Manufacturer

A company that transforms cotton into wearable clothing.

Builder

A producer that constructs houses and business facilities.

Trade Industry Divisions

The two main divisions are wholesalers and retailers.

Ethical Dilemma

A situation where someone (or something) could be hurt.

Identifying Ethical Dilemma

The first step you should take when resolving an ethical dilemma.

Conflicting Values

Facing an ethical dilemma because of differing cultural beliefs about bribery.

Pressure from Others

Facing an ethical dilemma because of her boss's unethical actions.

Lack of Consequences

Facing an ethical dilemma because she doesn't think anyone will catch her.

Welfare

Countries whose governments provide citizens with free medical care, education, and other benefits.

Communist command economies

A system where there is no competition.

Private enterprise economic system

A system where the interaction of supply and demand primarily determines product prices.

Traditional economic system

A system characterized by a lack of innovation or advancement.

Socialist command economy

An economy facing a shortage of consumer goods.

Profit

A general benefit that provides better wages.

Efficiency

When employees are working faster or better.

Industrial product

Bolts used in the production of automobiles.

Consumer

A laptop purchased for homework assignments.

Noneconomic want

The desire for a friend.

Industrial

A laundry service that cleans and presses used linens from a restaurant.

Shopping product

A dishwasher that George is checking newspaper ads for.

Scarcity

When consumers are usually willing to pay money to get a scarce good or service.

Specialty

A brand of china that Susan is willing to pay a high price for.

Economic want

An example is clothing.

Goods and services classification

To aid in marketing planning.

Behaving ethically

Means doing the right thing.

Fairness

The ethical principle of ensuring everyone has an equal share of the work.

Respect

An ethical principle illustrated by Ava listening carefully despite disagreement.

Ethical principles

Beliefs followed consistently across different contexts.

Viability

Concerned with the long-term impact of actions.

Ethical issue

Deciding whether to lie to a friend or not.

Consequence

What Vivian faces due to her behavior of lying to her parents.

Integrity

Means acting with honesty.

Human resources

The people who work to produce goods and services.

Compliance

Making sure a company follows laws and regulations.

Employee-assistance program

An example is career and education planning.

Importance of human resources

They control all other company resources.

Changing role of HR management

There is greater diversity in the workforce.

Staffing task

The first task is determining need.

Recruiting

The part of staffing that involves seeking out and attracting qualified potential job candidates.

Exit interview purpose

To gain constructive suggestions for improvement.

Marketing function example

Having businesses online as opposed to a physical location.

Marketing

Creating exchanges.

Marketing activity example

Communicating with customers.

Equity

Cash a company has that can use to finance a new venture.

Current ratio

Used to evaluate a company's ability to pay their liabilities as they become due.

Source documents examples

Checks, receipts, invoices, and purchase orders.

Cash method

Accounting method for small business without credit.

Working capital management focus

A company's current balance of assets and liabilities.

Accounts Payable

Money the business owes.

Accrual method

Accounting method for large business with loans.

Finance function involvement

In decisions regarding new business investments and strategies.

Inputs

Resources that enable businesses to operate.

Technology's limitation

Can limit natural resources and capital goods.

Flextime

Allowed to start and end his workday at his convenience as long as he works 40 hours per week.

Economic resources

As natural and human resources become limited, capital goods become limited.

Consumption

The ultimate goal of all economic activity.

Exchange

What do consumers, producers, and the owners of resources do with money payments to create a flow of resources, goods, services, and money payments?

Demand

Ready to buy a new computer, and she has saved up enough money to buy the model she wants.

Elastic

When less expensive substitutes for a product are readily available, then demand for that product is likely to be more.

Inelastic demand

Even though gasoline prices increased 15 cents per gallon as the result of the new gas tax, Alice continued to buy gas so that she could make her 20-mile drive to work.

Supply

When the price of Bluetooth speakers increases, the quantity of Bluetooth speakers offered for sale will increase. This is an example of the law of.

Private enterprise system

One of the main principles of the private enterprise system.

Operational

Category of business risk that includes production problems and incompetent employees.

Business risk

People who go into business know that the business may not succeed. This possibility is referred to as.

Standard of living

People often buy goods and services in order to maintain the quality of life and general living conditions to which they are accustomed; this influence on demand is referred to as.