BMA deca 2

**Market Risk

risk of financial loss due to the decreased value of an investment**

**Franchise

a contractual agreement between a parent company and a franchisee to distribute goods and services**

**Corporation

a form of business ownership owned by stockholders who purchased shares of the company**

**Elastic Demand

demand that changes according to changes in price**

**Inelastic Demand

demand that is not affected by changes in price**

**Unitary Demand

sales stay the same because changes in supply and demand are equal**

**Tort

a private wrongdoing that potentially harms another person or entity**

**Doctrine of Sovereign Immunity

principle that each nation can manage its own government and develop its own laws**

**Job Enlargement

combining different tasks into one position**

**Job Rotation

moving from one job to another within an organization**

**Specialization by Trade

the type of work a person performs to earn a living**

**Frictional Unemployment

unemployment caused by workers in transition**

**Structural Unemployment

unemployment from declining demand for certain workers due to technology or new skills**

**Cyclical Unemployment

unemployment caused by changes in economic/business cycles**

**Wage Garnishments

court-ordered taking of income from an employee’s salary**

**Embezzlement

theft of valuables entrusted to someone’s care**

**Securities Fraud

misleading tactics to persuade investors to buy securities**

**Espionage

revealing confidential information without permission**

**Variety-seeking Buying Behavior

purchasing routine items with desire for variety**

**Brand-insistence Buying Behavior

buyer refuses to buy anything except a specific brand**

**Automation

using machines to perform production tasks**

**Ergonomics

study of equipment/technology and its effects on workers’ physical well-being**

**Innovation

taking action to make an idea, item, or process available for consumers**

**Business-format Franchise

close, continuous working relationship between franchisor and franchisee**

**Customer Complaints

issues related to a business’s policies and procedures**

**Consumer Products

goods/services purchased by the ultimate consumer**

**Capital Products

products purchased by businesses for operations**

**Communist Command Economy

government provides capital for businesses using taxes or profits**

**Traditional Economy

people produce only what they need to survive**

**Market Economy

production and distribution are owned and controlled by individuals and businesses**

**Operating Expenses

costs of running a business**

**Gross Domestic Product

final market value of all goods/services produced in a country in one year**

**Federal Reserve Banks

used by local banks to protect banking functions**

**Tact

ability to express ideas without offending others**

**Cultural Imperialism

creation of unequal cultural relationships favoring a powerful civilization**

**Nationalization

when the government takes ownership**

**Credit

arrangement to purchase now and pay later**

**Defamation

tort involving harm to reputation**

**Monetary Gift

money given with no expectation of repayment**

**Punitive Damages

damages intended to punish and deter wrongful conduct**

**Contraction

period of lower sales and profits due to external factors**

**Business Cycle

periods of expansion and contraction in the economy**

**Expansion

strong economy with profits, growth, and hiring**

**Transitional Economic System

economy moving from one system to another**

**Secondary Dimensions of Diversity

differences that can change over a lifetime**

**Primary Dimensions of Diversity

inborn differences that cannot be changed**

**Debit Card

electronically transfers funds from account to seller**

**Corporate Bonds

bonds issued by corporations to fund operations**

**Brokerage Bills

fee charged by an agent to facilitate a transaction**

**Gross Pay

total income before taxes/deductions**

**Net Pay

income received after taxes/deductions**

**Overtime Income

extra income earned for working beyond scheduled hours**

**General Endorsement

allows check to be cashed or deposited anywhere**

**Capital Gains

taxes on earnings from investment appreciation**

**Rebate

part of the price refunded to a customer**

**Stop Words

common words that add little meaning to search terms**

**Logistics

manages flow of goods/services from production to consumption**

**Malware

illegal program used to disrupt or access computer systems**

**Shareware

software offered on a trial basis, then purchased if desired**

**Position Innovation

repositioning an existing product**

**Process Innovation

changing how a product is produced or delivered**

**Distributed Innovation

decentralized problem-solving model**

**Conceptual Skills

ability to see the big picture and connect ideas**

**Moderate Input

decision maker asks for some help before deciding**

**Payroll Records

information about money paid to employees**

**Web Ring

linked web pages that share a theme**

**Channel Management

identifies, selects, and evaluates sales channels**

**Channels of Distribution

sales channels**

**Product/Service Management

developing, maintaining, improving a product mix**

**Promotion

communicating information to achieve a desired outcome**

**Rolling Budget

continuous budget**

**Zero-Based Budgeting

requires justification for every expense**

**Working Capital

difference between current assets and current liabilities**

**Capital Investment Decisions

decisions about investments, financing, and dividends**

**Capital Structure

mix of debt and equity financing**

**Market Risk Management

using instruments to manage exposure to market risk**

**Accrual Accounting Method

records income/expenses when they occur**

**Cash Accounting Method

records income/expenses when money changes hands**

**Managerial Accounting

reporting financial data to internal users**

**Tax Accounting

recording transactions for tax purposes**

**Churning

broker encourages excessive trades to earn commissions**

**Skimming

pricing strategy with high prices over competitors**

**Bundling

offering multiple products as one**

**Flighting Strategy

advertising only during peak sales periods**

**Transfer Payments

government payments with no goods/services in return**

**Floating Exchange-Rate System

currency value fluctuates**

**Law of Economies of Scale

average cost decreases as business expands**

**Picketing

protest by positioning union members near business entrances**

**Injunction

court order forbidding certain activities**

**Lockout

management refuses to let union members work**

**Direct Distribution

goods move directly from producer to consumer**

**Indirect Distribution

goods move through intermediaries**

**Slack Resources

extra resources beyond what is needed**

**Competitive Aggression

striving to win scarce customer dollars**

**Organizational Learning

strengthening an organization by empowering employees**

**Operations Management

planning and monitoring daily business activities**

**Information Management

processing and distributing data for decision-making**

**Touch Points

opportunities for a company to connect with customers**

**Brand Promise

company’s agreement to consistently meet expectations**

**Statute

a law**