Study Plan: Business in Society SLO2

Accounting

responsible for accurately representing the financial transactions of a business to internal and external parties, government agencies, and owners/investors; provide managers with information needed to make decisions about the allocation of company resources

Business

any activity that provides goods or services to consumers for the purpose of making a profit

Capital

a resource that has been produced but is also used to produce other goods and services; money is not capital because money by itself does not produce an output the way that a machine can

Career Competencies

skills that are important for the job market

Controlling

ensuring activities within the business are on track to achieve its goals

Corporate Social Responsibility

a commitment by businesses to behave in an ethical way by supporting charitable causes and contributing to local communities, adhering to ethical standards in their treatment of workers and others, and adopting environmentally responsible practices

Creditor

supplies financial capital, raw materials, and services to the business and wants to be paid on time and in full

Customer

want the business to produce quality products at reasonable prices

Demography

the study of people’s vital statistics, such as their age, gender, race and ethnicity, and location; helps companies define the markets for their products and also determine the size and composition of the workforce

Economic Factors

include factors such as growth of the economy, recession, inflation, real estate prices, unemployment, and economic conditions in other countries

Entreprenurship

a special form of labor provided by a person who is willing to risk his or her time and money to start or run a business

Environmental Factors

changes to the physical environment

External Stakeholder or Interested Party

groups outside a business or people who don’t work inside the business but are affected in some way by the decisions and actions of the business such as customers, suppliers, creditors, the local community, society, and the government

Factors of Production

resources used to produce goods and services

Finance

planning for, obtaining, and managing a company’s funds

For-profit Business

a business that provides goods or services to consumers and its primary goal is to return a profit to the owners of the business

Free Trade

allows goods and services to flow across international borders more efficiently and cheaply

Goods

tangible items

Hard Skills

job-related skills that you acquire through education or experience.

Inputs

another word to describe resources used in production

Internal Stakeholder or Interested Party

groups or people who work directly within the business, such as managers, employees, and owners

Labor

any human input (paid or unpaid) involved in the production of a good or service; can be physical or intellectual

Leading

managers take charge in practical ways like leading teams or groups but may also serve in symbolic ways in representing the organization when interacting with the community, customers, and suppliers

Legal Factors

regulations, laws, and liabilities that companies must navigate in order to stay in business

Loss

the condition that happens if the expenses of the business are greater than the revenue or income generated from operations

Management

primary role of managers in business is to supervise other people’s performance

Marketing

everything that a company does to identify customers’ needs and design products and services that meet those needs; also includes promotion and developing pricing strategies

Natural Resources

resources that are found in nature and can be used to produce goods and services; people can use them but not make them

Nonprofit or Not-for-profit Business

a business that provides goods or services to consumers, but its primary goal is not to return profit to the owners of the business

Operations

inputs (factors of production) are converted into outputs (goods and services); operations controls the supply chain, including procurement and logistics

Organizing

arranging the operations of a business in the most efficient way to enable the business to use its resources effectively

Outputs

goods or services that are produced

Planning

setting long-term goals for the business, as well as short-term strategies needed to execute those goals

Political Factors

include government policies that affect businesses

Profit

the amount of revenue or income that a business owner retains after paying all the expenses associated with the operation of the business

Research and Development

scientists, thought leaders, subject matter experts, and industry analysts provide the organization with knowledge and ideas to keep up with, and ahead of, the competition

Sales

finalizing transactions with customers that create revenue coming into the business that is necessary to operate profitably

Service

an action or work performed

Shareholder

have invested in the business and want the business to remain profitable and provide a return on their investment

Social Factors

encompasses the values, attitudes, beliefs, wants, and desires of the consuming public as well as demographics

Soft Skills

personal attributes or character traits that can help you at any job.

Stakeholder or Interested Party

an individual or group that has a legitimate interest in a company, organization, or business

Suppliers

need the business to continue to buy their products in order to maintain their own profitability

Technological Factors

businesses must constantly reconsider the tools they use to reach customers, produce their products, and provide their services; includes factors a business must consider to do better than competitors such as the development of new technologies

Value

the relationship between the price a customer pays for the good or service and the perceived benefits the customer receives in exchange for their time and money