rsm100 terms

terms

What is a Brand?

A name, term, sign, symbol, design, or combo that identifies products of one firm and shows how they differ from competitors.

What is Branding?

The process of creating in consumers’ minds an identity for a good, service, or company.

What is Business?

All profit-seeking activities and enterprises providing goods and services.

What is Capital?

Production inputs like technology, tools, information, and physical facilities.

What is Capitalism?

An economic system rewarding firms for serving consumer needs; also called the private enterprise system.

What is Competition?

The battle among businesses for consumer acceptance.

What is Competitive Differentiation?

Unique abilities, products, and approaches that set a company apart in customers’ minds.

What is Consumer Orientation?

A philosophy focusing first on consumers’ unmet needs, then designing products to meet them.

What is Creativity?

The capacity to develop novel solutions to organizational problems.

What is Critical Thinking?

The ability to analyze and assess information to pinpoint problems or opportunities.

What is Diversity?

Blending of individuals of different backgrounds to enhance a firm’s success.

What is an Entrepreneur?

A person who seeks profitable opportunities and takes risks to set up and run a business.

What is Entrepreneurship?

The willingness to take risks to create and operate a business.

What are Factors of Production?

Natural resources, capital, human resources, and entrepreneurship.

What are Human Resources?

Anyone who works, providing physical labor and intellectual input.

What are Natural Resources?

Inputs useful in their natural state (land, sites, forests, minerals).

What is Nearshoring?

Outsourcing production/services to locations near a firm’s home base.

What are Not-for-Profit Organizations?

Organizations whose main aim is public service, not profit.

What is Offshoring?

Relocating business processes to lower-cost locations overseas.

What is Outsourcing?

Using outside vendors for goods/services previously handled in-house.

What is the Private Enterprise System?

An economic system rewarding firms for serving customer needs.

What is Private Property?

The right to own, use, buy, sell, and pass down property and assets.

What are Profits?

Rewards for those who take business risks by offering goods/services.

What is the Relationship Era?

The business era focused on promoting customer loyalty through managed interactions.

What is Relationship Management?

Activities to build and maintain ongoing, mutually beneficial customer ties.

What is the Social Era?

The business era where firms use technology to connect with customers.

What is a Strategic Alliance?

A partnership formed to create competitive advantage; often across countries.

What is Transaction Management?

Building/promoting products hoping enough sales cover costs and yield profit.

What is Vision?

The ability to perceive marketplace needs and how to satisfy them.

What is a Balanced Budget?

When revenues and fees equal total spending for the year.

What is a Budget?

A plan for how an organization will raise and spend money in a period.

What is a Budget Deficit?

When government spends more than it raises.

What is a Budget Surplus?

Extra funds when government spends less than it raises.

What is Communism?

An economic system with shared property under strong central government.

What is the Consumer Price Index (CPI)?

Measures monthly average change in prices of goods/services.

What is the Core Inflation Rate?

Inflation after removing food and energy prices.

What is Cyclical Unemployment?

Job loss caused by economic downturns.

What is Deflation?

A continuous fall in prices.

What is Demand?

Buyers’ willingness and ability to purchase goods/services at prices.

What is a Demand Curve?

A graph showing demand at different prices.

What is Economics?

The study of choices in allocating scarce resources.

What is Equilibrium Price?

The current market price where supply meets demand.

What is Expansionary Monetary Policy?

Government increasing money supply to cut borrowing costs and stimulate growth.

What is Fiscal Policy?

Government spending and taxation to control inflation/unemployment and boost growth.

What is Frictional Unemployment?

Temporary joblessness while seeking new work.

What is GDP?

The total value of goods/services produced within a country in a period.

What is Hyperinflation?

Extremely high, fast-rising prices.

What is Inflation?

General rise in prices due to demand or cost increases.

What is Macroeconomics?

Study of national-level economic issues.

What is Microeconomics?

Study of individual consumers, families, and businesses.

What are Mixed Market Economies?

Systems combining features of both planned and market economies.

What is Monetary Policy?

Government changing money supply, banking rules, or interest rates to influence lending.

What is Monopolistic Competition?

Many sellers offering varied products with some price control.

What is a Monopoly?

Market with one seller and no close substitutes.

What is National Debt?

Money owed by government to lenders via bonds and bills.

What is an Oligopoly?

Market with few sellers and high barriers to entry.

What is a Planned Economy?

Government decides business ownership, profits, and resource use.

What is Privatization?

Turning government-run firms into private businesses.

What is the Producer Price Index (PPI)?

Measures average price change received by producers.

What is Productivity?

Output per input used.

What is Pure Competition?

Many sellers and buyers trade identical goods with no single influence.

What is Quantitative Easing?

Central bank buys bonds/assets to boost liquidity and stimulate economy.

What is a Recession?

A 6+ month economic downturn.

What is a Regulated Monopoly?

A monopoly granted exclusive rights by government.

What is Restrictive Monetary Policy?

Reducing money supply to curb inflation and overexpansion.

What is Seasonal Unemployment?

Joblessness in industries tied to seasons.

What is Socialism?

Government ownership/operation of major industries.

What is Structural Unemployment?

Long-term joblessness due to outdated skills.

What is Supply?

Sellers’ willingness and ability to provide goods at different prices.

What is a Supply Curve?

Graph showing supply levels at different prices.

What is the Unemployment Rate?

Percentage of workforce seeking but without jobs.

Q: What is the definition of Business?

A: All profit-seeking activities that provide goods and services necessary to an economic system.

Q: What are Not-for-Profit Organizations?

A: Business-like establishments whose main goals are social, political, governmental, or educational instead of profit.

Q: What are the four Factors of Production?

A: Natural resources, capital, human resources, and entrepreneurship.

Q: What are Natural Resources (Factors of Production)?

A: Inputs useful in their natural state (land, minerals, forests, etc.).

Q: What is Capital (Factors of Production)?

A: Technology, tools, information, and physical facilities.

Q: What are Human Resources (Factors of Production)?

A: Anyone who works, contributing labor or intellectual input.

Q: What is Entrepreneurship (Factors of Production)?

A: The willingness to take risks to create and operate a business.

Q: What is the Private Enterprise System?

A: An economic system that rewards firms for serving consumer needs and demands.

Q: What rights do citizens enjoy in a Private Enterprise System?

A: Private property, profits, freedom of choice, and competition.

Q: What drives economic growth in a Private Enterprise System?

A: Entrepreneurship.