Business Organization – 1st Meeting (7/15/25)

Vocabulary flashcards covering key terms, concepts, and motivations from the Business Organization lecture.

Business

Any activity involved in producing and distributing goods or services that satisfies economic needs and aims to earn profit.

Industry

A group of business firms that manufacture or offer similar goods or services (e.g., car, electronics, banking).

Agriculture Industry

Sector of industry devoted to farming and cultivation of natural resources.

Manufacturing Industry

Sector that transforms raw materials into finished goods.

Trade

Buying and selling of goods and services; may be domestic or foreign.

Construction Industry

Sector engaged in building infrastructure such as roads, bridges, and buildings.

Government Sector

Public‐sector organizations that produce goods or services for society.

Gross National Product (GNP)

The total market value of all goods and services produced by a country in a given period.

Economics

The study of how societies use resources to produce and distribute desired goods and services.

Factors of Production

Basic economic resources—land, labor, capital, and entrepreneurship—used to create goods and services.

Land (Factor of Production)

All natural resources used in production.

Labor

Human effort—physical or intellectual—used in production.

Capital

Man-made resources (machines, buildings, tools, money) used in production.

Entrepreneur

Individual who organizes the factors of production, assumes risk, and seeks profit.

Profit

The difference between income from sales and expenses of production (Income − Expenses).

Business System

The integrated set of activities, resources, and relationships through which goods and services are produced and delivered.

Responsibility of a Business Enterprise

Obligation to obey government regulations, negotiate with unions (if any), and serve customers with quality goods at competitive prices.

Manager

Person hired to run the company, accountable to the board of directors.

Board of Directors

Group elected by shareholders to oversee corporate management.

Shareholders

Owners of a corporation who elect the board of directors.

Maslow’s Hierarchy of Needs

Theory that human motivation progresses from physiological needs to safety, social, esteem, and self-fulfillment.

Physiological Needs

Basic biological requirements for survival (food, water, shelter).

Safety Needs

Requirement for security, stability, and protection from danger.

Social Needs

Desire for belongingness, affection, and love.

Ego/Self-Esteem Needs

Need for self-recognition, status, and respect.

Self-Fulfillment (Self-Actualization) Needs

Drive to achieve one’s personal potential and goals.

Commerce

Activities concerned with the exchange and distribution of goods and services between producers and consumers.

Services

Intangible products such as banking, finance, healthcare, and education provided to satisfy consumer needs.

Power (Business Motive)

Desire for influence or control that motivates entry into business.

Prestige

Social status and respect gained through successful business endeavors.

Livelihood

Means of earning a living provided by engaging in business.

Social Approval

Positive recognition from society that can motivate business activity.