Business Terminology Flashcards

Vocabulary flashcards to help with understanding key business terms and concepts.

Channel Management

The process of managing the distribution channels through which a company sells its products.

Channel of Distribution

The path through which products or services flow from the manufacturer to the final consumer, involving various intermediaries.

Tort

A civil wrong that causes harm or loss to another person, leading to legal liability.

Internal Communication Memo

A written message used for internal communication within an organization.

Opportunity Cost

Potential gain that is lost when a different course of action is taken.

External Business Environment

The outside influences and factors that affect business operations.

Price Equilibrium

The price at which the supply of goods is equal to demand for goods.

Income Statement

Financial summary that shows how much money the business has made or lost.

Marginal Utility

The additional satisfaction that a consumer gets from one more product.

Data Mining

The process of analyzing a large batch of information to discern trends and patterns.

Operations Function

The management of the day-to-day activities and processes that keep a business running smoothly.

Project Charter

A formal document that outlines a project's key details, including its goals and responsibilities.

Lean Production

A management philosophy that aims to improve efficiency and reduce waste.

Trade Association

A group of people or businesses that work in the same industry and come together for common goals.

Vertical Channel Integration

Involves a company taking ownership of two or more steps in its supply chain.

Horizontal Channel Integration

A company acquires or merges with another company in the same industry and at the same level.

Duty of Care

Legal obligation to act reasonably and avoid causing harm to others.

Balance Sheet

Shows a firm's assets, liabilities, and owner's equity.

Inputs

All economic resources used in producing goods and services.

Concurrent Engineering

A method of designing and developing products in which the different stages run simultaneously.

Express Contract

A contract written out in words or explicitly stated orally.

Implied Contract

A contract not explicitly stated but still legally binding by the actions of both parties.

Unilateral Contract

One party has the obligation to give something to the other party.

Bilateral Contract

Both parties have to give/promise something to each other.

Maslow’s Hierarchy of Needs

A pyramid of needs ranging from basic to advanced.

Organic Word of Mouth

Consumers share information about products simply because they like them.

Amplified Word of Mouth

Companies use marketing strategies to foster word-of-mouth referrals.

Spyware

Malicious software that steals data.

Groupware

Computer software that helps members of a group work together.

Freeware

Completely free software for anyone to use.

Shareware

Software that is initially free of charge but requires payment later.

Six-Thinking Hats

A technique to improve decision-making with multiple perspectives.

Shill Marketing

Advertising a product without the customer knowing, often with false testimonials.

Mobile Marketing

Any advertising activity that promotes products via mobile devices.

Infringement

An unauthorized use of a copyrighted or patented invention.

Points of Difference

Characteristics that set a product apart from competitors.

Environmental Scanning

Analyzing outside factors that may affect a business.

Likert Scale

Degree of agreement or disagreement in a questionnaire.

Executed Agreement

Establishes a contractual, enforceable relationship.

EDI

Electronic data interchange for sending information electronically.

Invoices

Documents that list digital marketing services and tools used in projects.

Open Agreement

Signed without a specific date range.

Intensive Distribution

Making products available in as many locations as possible.

Selective Distribution

Focusing on selling certain types of products through select retailers.

Matching Engine Technology

Uses algorithms to match orders based on specific parameters.

Campaign Management Software

Tools that help manage and monitor marketing campaigns.

Personalization Technology

Using data to tailor content to individual customers.

Sales Force Automation Technology

Helps sellers take optimal actions using data analysis.

Revolving Credit

An open line of credit available for business use.

Installment Credit

A loan providing a fixed amount of money over time.

Tax Liability

The amount of money a business owes in taxes.

Capital Investment Decision

Comprehensive analysis of market conditions and financing options.

Semantic-Differential Rating Scales

Measures perceived distance between concepts.

Marketing Strategy

A long-term plan for achieving a company's goals.

Marketing Tactic

Any action taken by marketers to achieve their goals.

Unconscious Problem Solving

A sudden realization of a solution without active thinking.

Linking

A search engine optimization technique to increase ranking.

Patent

Protects inventions from unauthorized use.

Copyright

Protects creative works like music and books.

Trademark

Protects brand names and logos.

License

Permission to use someone else's protected work.

Strain vs. Sprain

Strain: Injury to muscles/tendons; Sprain: Injury to ligaments.

Professional Selling

Using personal interaction to sell products.

Exempt Contract

A contract that doesn’t follow certain rules due to special conditions.

Defensible Agreement

A legally strong or justified contract.

Brand Touchpoints

Any interaction a customer has with a brand.

Price Fixing

When competitors agree to set prices instead of competing.

Price Lining

Offering multiple versions of related products at different price points.

Incident Response

A plan for handling emergencies quickly.

Guarantee vs. Warranty

Guarantee: Refund promise; Warranty: Repair/replacement promise.

Credit Union

A nonprofit bank owned by its members.

Direct Response Marketing

Ads designed to prompt immediate action.

Loss Leader

A product sold at a loss to attract customers.

Types of Insurance

Health, Auto, Life, Home.

Slotting Fees

Money paid to get products placed on shelves.

Predatory Pricing

Selling cheaply to drive competitors out of business.

Tying Agreements

Requiring purchase of one product to get another.

Antitrust Laws

Regulations to prevent unfair competition.

Joint Venture

An agreement where two or more parties work together on a project.

Economic Utility

The value added to a product through its usefulness.

Time Utility

Enhances value by making a product available at a certain time.

Place Utility

Enhances value by making a product accessible at various locations.

Possession Utility

Enhances value by making products easy to use or transfer.

Information Utility

Enhances value by supplying consumers with information.

Aggregate Demand

The total demand for goods and services in an economy.

Economic Contraction

A period when the economy shrinks, marked by reduced spending.

Federal Bonds

Loans made to the government by investors.

Accounts Receivable

Money owed to a business by its customers.

Accounts Payable

Money a business owes to its suppliers.

Behavioral Segmentation

Dividing customers based on their behaviors.

Trade Publications

Magazines aimed at professionals in specific industries.

Attribute Listing

A technique where all features of a product are listed.

Mail Response List

List of people responding to previous direct-mail campaigns.

Cooling-Off Laws

Laws allowing customers to cancel purchases shortly after buying.

Vertical Channel Conflict

Disputes between different levels of the supply chain.

Marketing Concept

A business approach focused on satisfying customer needs.

Instant Gratification vs. Formal Recognition

Instant Gratification: Immediate satisfaction; Formal Recognition: Public acknowledgment.

Dividends

Payments made to shareholders from a company's profits.

Types of Financial Systems

Credit Union, Commercial Bank, Investment Bank.

Trade Journal

A publication with news for professionals in a specific industry.