Business and Economics Key Terminology

A set of vocabulary flashcards defining key business, legal, economic, and technical terms directly from the lecture notes.

Business-format franchise

A franchising agreement where the franchisee gets not only the parent company’s trade name, products, and services, but an entire system for operating the business (marketing, training, location selection, and standard procedures).

Franchise

A authorization or license granted by a company (franchisor) to an individual or group (franchisee) enabling them to carry out specified commercial activities under the franchisor's brand and business model.

Annual report

A comprehensive financial document published yearly by a public company to inform shareholders and potential investors about its operations, financial performance, and future outlook.

Speech Mannerisms

Distinctive vocal habits, gestures, tones, or repetitive verbal cues (such as using "um" or specific phrases) characteristic of a particular speaker during speech.

Cultural Barrier

Any difference in language, beliefs, customs, values, or social norms that hinders clear communication or mutual understanding between people from different cultures.

Address Section in a letter

The part of a formal business or personal letter that specifies the contact information (name, title, street address, city, state, zip code) of either the sender (return address) or the intended recipient (inside address).

Apparel

Clothing, garments, or attire worn by people.

Communist Command

An economic system (also known as a command economy under communism) where the central government controls and owns the means of production and determines what goods are produced, how much is produced, and their prices.

Free Enterprise

An economic system in which private businesses operate in competition and largely free of state control, driven by market demand and private ownership.

Gross profit

The total revenue earned by a company minus the direct cost of goods sold (COGS) before subtracting operating expenses, taxes, and interest.

Net profit or loss

The final financial result obtained by subtracting all total expenses (including operating costs, interest, and taxes) from total revenue over a period; a positive result is a net profit, while a negative result is a net loss.

Federal Reserve Banks

The 12 regional banks that make up the central banking system of the United States (the Federal Reserve), responsible for implementing monetary policy, supervising commercial banks, and providing financial services.

Seldom

Not often; rarely or infrequently.

Controversy

Prolonged public disagreement, debate, or dispute, typically concerning a matter of conflicting opinion or point of view.

Imperialism

A policy or practice of extending a country's power, rule, or influence over foreign nations or territories through diplomacy, economic influence, or military force.

Retail Credit

A credit system offered directly by retailers allowing individual consumers to buy goods or services immediately and pay for them over time, often through store cards or installment plans.

Gross Earnings

The total amount of income earned by an individual or business during a specific period before any deductions, taxes, or expenses are subtracted.

Validating

The act of confirming, proving, or recognizing something as official, logical, accurate, or legitimate.

Collateral

An asset or property pledged by a borrower to a lender to secure a loan, which the lender can repossess if the borrower defaults.

Charter

A formal document issued by a government or legal authority that grants specified rights, powers, or privileges to establish a corporation, institution, or organization.

Premium

The specified amount of money paid regularly by an individual or business to an insurance company in exchange for coverage.

Policyholder

The person, entity, or organization that owns an insurance policy and pays the premium to receive coverage.

Cash conversion cycle

A financial metric measuring the amount of time (in days) it takes for a business to convert its investments in inventory and other operational resources into cash inflows from sales.

External information

Data, facts, or insights gathered from sources outside an organization or individual, such as market research, industry reports, or customer feedback.

The Sarbanes-Oxley Act

A 2002 U.S. federal law designed to protect investors from corporate fraud by establishing strict financial reporting, auditing, and corporate governance standards for public companies.

The Sherman Anti-Trust Act

A landmark 1890 U.S. federal law that prohibits monopolies, anticompetitive agreements, and practices that unreasonably restrain trade and commerce.

The Landrum-Griffin Act

A 1959 U.S. federal labor law (officially the Labor-Management Reporting and Disclosure Act) that regulates the internal financial operations and administrative procedures of labor unions to ensure democratic practices and prevent corruption.

The Taft-Hartley Act

A 1947 U.S. federal law (officially the Labor Management Relations Act) that restricts the activities and power of labor unions, banning certain types of strikes and allowing states to pass right-to-work laws.

Portal

A web site or application that serves as a single, centralized entry point to a broad array of resources, information, and tools.

Wireless Fidelity

The full term for Wi-Fi, referring to wireless networking technology that allows devices to connect to a local network or the internet using radio frequency signals.

Broadband Cable

A high-speed internet connection delivered over the coaxial cable infrastructure originally installed for cable television.

Analog

A method of transmitting or representing information using continuous, variable physical signals (such as sound waves or voltage), rather than discrete digital binary digits (0s and 1s).

Market Share

The percentage of total sales within a specific industry or market that is controlled by a particular company or product over a given time frame.

Noncompliance

The failure or refusal to follow rules, regulations, laws, standards, or official guidelines.

Embezzlement

The crime of fraudulently appropriating or stealing money or property that has been lawfully entrusted to one's care or custody (typically by an employee or trustee).

Capital-intensive

Describing a business, process, or industry that requires large amounts of financial investment and machinery/equipment relative to labor to produce goods or services.

Intermittent

Occurring at irregular, non-continuous, or periodic intervals rather than steadily or continuously.

Contract Work

Employment on a temporary basis for a specified period or project, governed by a contract agreement rather than a permanent employment arrangement.