Business Concept, Characteristics and Environment Practice Flashcards

Comprehensive vocabulary flashcards covering the concepts of business characteristics, utility types, market structures, business models, and organizational strategic intent based on the lecture notes.

Business

The whole complex field of commerce and industry, including basic industries, processing, manufacturing, and ancillary services like banking and transport, aimed at generating profit and catering to societal needs.

Form Utility

The want-satisfying capacity created when a businessman converts raw materials into a different shape or form, such as a carpenter converting a log of wood into furniture.

Place Utility

The value added to a product by transporting it from a place of abundance to a place of scarcity.

Time Utility

The utility created by storing goods available in large quantities during harvest and selling them during periods of scarcity or drought.

Service Utility

The utility created when trained professionals, such as doctors or engineers, render specialized services to consumers.

Industry

The part of business activity concerned with the production, processing, or fabrication of products for final consumers or other industrial undertakings.

Commerce

The set of activities designed to remove barriers between producers and ultimate consumers, specifically relating to the distribution and exchange of goods and services.

Trade

The mediation in the process of exchange that removes the barrier of possession by transferring goods from the seller to the buyer.

Oligopolistic Structure

A market characteristic where a small number of firms (usually between two and ten) sell either homogenous or differentiated products and exhibit interdependence in decision-making.

Pure Oligopoly

A market form, also known as oligopoly without differentiation, where a few sellers offer homogenous products, such as in the petroleum industry.

Differentiated Oligopoly

A market where a few sellers provide products that are close substitutes but differentiated, such as in the soap or automobile industries.

Corporate Governance

A broad system of structuring, operating, and controlling a company to ensure a fair, efficient, and transparent administration that meets the objectives of all stakeholders.

Corporate Social Responsibility (CSR)

The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life for the workforce, local community, and society.

Internal Environment

The framework and factors within a business organization, including management structure, relationships between stakeholders, physical assets, and financial resources.

Business Model

A company's core strategy for profitably doing business, identifying products, target markets, sources of revenue, and anticipated expenses.

Churn

A term used in subscription-based business models referring to the number of subscribers that a business loses each month.

Freemium Business Model

A model where a firm provides a basic version of its service for free and generates revenue by selling a premium version.

Razor and Blades Business Model

A model involving the sales of dependent goods where one item is sold at a discount (the razor) while the necessary dependent good (the blades) is sold at a high margin.

New Market Disruption

A disruptive business model that addresses a market that previously was not served, such as Google AdWords providing affordable advertising for small businesses.

Low-end Market Disruption

A disruption that occurs when firms provide simpler, low-cost alternatives to industries where existing products have become better than what many customers actually need.

Sustainability in Business

Conducting activities to balance economic growth, environmental protection, and social responsibility to ensure long-term success for present and future generations.

Gig Economy

A labor market characterized by short-term, flexible assignments and independent workers connected to customers via digital platforms.

Remote Work

A work arrangement where employees perform duties outside a traditional office, often from home, relying heavily on digital communication tools.

Vision

A future-oriented articulation of the position a firm hopes to attain in the distant future, representing its ultimate aspirations and strategic intent.

Mission

An explicit statement defining the essential purpose of an organization, the nature of its business, and the specific societal needs it seeks to satisfy.

Goals

Generalized aims denoting what an organization hopes to accomplish in a future period, representing the desired outcome of current efforts.

Objectives

Concrete, specific, and usually quantitative ends that state exactly how goals shall be achieved within a specific timeframe.