ETS Business Study Guide

These flashcards cover key business concepts and definitions relevant to the ETS test.

ETS Test

An assessment designed to evaluate knowledge across core business areas, consisting of 120 questions.

Return on Equity (ROE)

A financial metric calculated as net income divided by equity, used to measure profitability.

Product Development

A strategy where a company adds new features or products to its existing line.

Comparative Advantage

The ability of a country to produce a good at a lower opportunity cost than another country.

Managing Workplace Diversity

Leveraging employee differences to enhance performance and innovation.

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay to its security holders.

Just-in-Time (JIT)

A production strategy that minimizes inventory by producing only as needed.

Transaction Processing System (TPS)

A system designed to handle day-to-day operations of a business.

Federal Reserve

The central banking system of the United States, which regulates monetary policy.

Opportunity Cost

The value of the next best alternative that is foregone when making a decision.

Perfect Competition

A market structure where firms are price takers due to identical products.

International Financial Reporting Standards (IFRS)

A set of accounting standards developed by the International Accounting Standards Board.

Power Distance

A cultural dimension that reflects the degree of inequality in power distribution.

Title VII of the Civil Rights Act 1964

A federal law that prohibits employment discrimination based on race, color, religion, sex, or national origin.

Feasible Region

The set of all possible points that satisfy the constraints of a linear programming problem.

Economic Order Quantity (EOQ)

A model that determines the optimal order quantity that minimizes total inventory costs.

Exponential Smoothing

A forecasting technique that places more weight on recent data.

Corporate Social Responsibility (CSR)

A management concept where companies integrate social and environmental concerns in their business operations.

Market Segmentation

The process of dividing a market into distinct groups of buyers.

Penetration Pricing

Setting a low initial price for a new product to attract customers and gain market share.