Business Management and Economics Overview

This set of flashcards covers key terms and concepts from the lecture on economic systems, business management, organizational structures, and processes in managing a business.

What are the major types of economic systems?

The two major categories are free market (capitalism) and planned economies (communism and socialism).

What is the primary goal of for-profit businesses?

The primary goal is to make a profit by providing goods and services desired by consumers.

What are the four traditional factors of production?

Natural resources, labor, capital, and entrepreneurship.

What is the importance of understanding the business environment?

It influences business decision-making and helps businesses adapt to changing conditions.

What is the difference between goods and services?

Goods are tangible items, while services are intangible offerings that cannot be held or stored.

What defines quality of life?

Quality of life refers to the general level of human happiness, including health, education, and environment.

What are the two main types of unemployment?

Frictional, structural, cyclical, and seasonal unemployment.

What is the purpose of financial management in a business?

To ensure efficient use of funds and maintain profitability.

What is the role of the Federal Reserve System?

To oversee the nation’s monetary policy and stabilize the banking system.

What is market segmentation?

The process of separating and evaluating layers of a market to identify a target audience.

Who are angel investors?

Individuals or groups that provide financing for start-up businesses, often called seed capital.

What is the Hawthorne effect?

The phenomenon where employees perform better when they feel singled out for attention.

What does Maslow's hierarchy of needs encompass?

Five levels of human needs from basic physiological to self-actualization.

What is the difference between microeconomics and macroeconomics?

Microeconomics focuses on individual parts of the economy, while macroeconomics looks at the economy as a whole.

What is a business plan?

A formal document that outlines the objectives, strategies, and structure of a business.

What strategies are included in the marketing mix?

Product, price, place (distribution), promotion, and people.

What are the different types of organizational structures?

Functional, product, process, customer, geographic, line organization, and matrix structures.

What is the purpose of total quality management (TQM)?

To instill a company-wide commitment to continuous improvement in all aspects of production.

What are the two types of marketing channels?

Traditional and nontraditional channels.

What is supply chain management?

The process of coordinating all activities of supply chain members to create customer satisfaction.

What is financial accounting?

The practice of preparing reports for external stakeholders, such as investors and creditors.

What are liquidity ratios?

Measures of a firm's ability to meet short-term obligations.

What is the product lifecycle?

The stages a product goes through from introduction to growth, maturity, decline, and possibly discontinuation.

How does e-procurement benefit businesses?

It allows businesses to purchase supplies and materials online, streamlining the purchasing process.

What distinguishes a wholesaler from a retailer?

Wholesalers sell finished goods to retailers and institutions, while retailers sell directly to consumers.

What is the importance of job analysis in HR management?

It helps define job roles and responsibilities, essential for hiring and performance evaluation.

What does intrinsic motivation include?

Satisfaction, pride, and fulfillment derived from within oneself.

What is the purpose of training and development programs?

To enhance employees' skills and knowledge, improving organizational performance.