Intro To Business Final
Key Terms
Chapter 1:
1.1-1.3
Business
Something that you can invest in and earn money through in a variety of ways, (such as providing products that satisfies a person's needs) a person’s occupation/profession by making a living off of participating in things like trade
Product
A good or service with tangible and intangible characteristics that provide satisfaction and benefits
Profit
The primary goal of all businesses is to earn a profit, which is the difference between what it costs to make and sell a product and what a customer pays for it
Stakeholders
Groups that have a stake in the success and outcomes of a business
Management
It involves developing plans, coordinating employees’ actions to achieve the firm’s goals, organizing people to work efficiently, and motivating them to achieve the business’s goals. Marketing
The focus of all marketing activities is satisfying customers. Marketing includes all the activities designed to provide goods and services that satisfy consumers’ needs and wants. Marketers gather information and conduct research to determine what customers want.
Finance
It is the primary responsibility of the owners to provide financial resources for the operation of the business. Finance refers to all activities concerned with obtaining money and using it effectively.
1.4-1.5
Economics
the study of how resources are distributed for the production of goods and services within a social system
Economic System
a description of how a particular society distributes its resources to produce goods and services
Capitalism
an economic system in which individuals own and operate the majority of businesses that provide goods and services
Socialism
an economic system in which the government owns and operates basic industries- postal service, telephone, utilities, transportation, health care, banking, and some manufacturing- but individuals own most businesses.
Communism
a society in which the people, without regard to class, own all the nation’s resources
Supply
the number of products that businesses are willing to sell at different prices at a specific time.
Demand
the number of goods and services that consumers are willing to buy at different prices at a specific time.
1.6-1.7
Competition
the rivalry among businesses for consumers’ dollars.
Monopoly
the market structure that exists when there is only one business providing a product in a given market. Utility companies that supply electricity, natural gas, and water are monopolies.
Inflation
a condition characterized by a continuing rise in prices.
Recession
a decline in production, employment, and income.
Depression
a condition of the economy in which unemployment is very high, consumerism is low, and business output is sharply reduced.
GDP
the sum of all goods and services produced in a country during a year. It only measures those goods and services that are produced in a country and does not include profits from companies’ overseas operations
Chapter 2
2.1-2.2
Business Ethics
principles and standards that determine acceptable conduct in business.
Social Responsibility
a business’s obligation to maximize its positive impact and minimize its negative impact on society
Ethical Issue
an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical, or unethical.
2.3
Corporate Social Responsibility
when businesses act in ways that balance profit and growth with the good of society.
Sustainable Design
designs that are sustainable meets the planet’s current needs while preserving resources for future generations.
Cause-Related Marketing
a partnership between a business and a nonprofit group for the benefit of both.
Philanthropy
the act of promoting the welfare of others through voluntary, often organized, efforts like charitable gifts of money, time, or resources
Chapter 4
4.1
Sole Proprietorship
businesses owned and operated by one individual; the most common form of business organization in the United States.
Unlimited Liability
The sole proprietor has unlimited liability in meeting the debts of the business. If the business cannot pay its debts, the proprietor may be forced to use personal items (car, house) or funds to pay off the debts.
4.2
Partnerships
a form of business organization defined by the Uniform Partnership Act as “an association of two or more persons who carry on as co-owners of a business for profit.”
General Partnership
a partnership that involves a complete sharing in both the management and the liability of the business.
Limited Partnership
a business organization that has at least one general partner, who assumes unlimited liability, and at least one limited partner, whose liability is limited to his or her investment in the business.
Articles of Partnership
legal documents that set forth the basic agreement between partners.
4.3
Corporation
a legal entity, created by the state, whose assets and liabilities are separate from its owners.
Dividends
profits of a corporation that are distributed in the form of cash payments to stockholder
Incorporators
The individuals creating a corporation are called the incorporators
Private Corporation
a corporation owned by just one or a few people who are closely involved in managing the business. These people, often a family, own all of the corporation’s stock and none is sold to the public. EX: Publix Super Markets
Public Corporation
a corporation whose stock anyone may buy, sell, or trade. EX: IBM, McDonalds, Proctor & Gamble
4.4
Joint Ventures
a partnership established for a specific project or for a limited time.
S Corporation
corporation taxed as though it were a partnership with restrictions on shareholders
LLC
a form of business ownership that provides limited liability, as in a corporation, but is taxed like a partnership.
Cooperatives
an organization composed of individuals or small businesses that have banded together to reap the benefits of belonging to a larger organization. EX: Ocean spray
Merger
occurs when two companies (usually corporations) combine to form a new company
Acquisition
the purchase of one company by another, usually by buying its stock. The government sometimes scrutinizes mergers and acquisitions in an attempt to protect customers from monopolistic practices.
Chapter 5
5.1
Entrepreneurship
The process of creating and managing a business to achieve desired objectives.
Microentrepreneur
entrepreneurs who develop businesses with five or fewer employees.
Social Entrepreneurs
individuals who use entrepreneurship to address social problems. Social entrepreneurship can include both nonprofit and for-profit organizations.
Small Business
any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people.
5.2
Retailers
acquire goods from producers or wholesalers and sell them to consumers.
Wholesaling
provide both goods and services to producers and retailers.
Services
includes businesses that do not actually produce tangible goods.
Manufacturing
can provide unique opportunities for small businesses.
High Technology
a broad term used to describe businesses that depend heavily on advanced scientific and engineering knowledge.
Sharing Economy
an economic model involving the sharing of underutilized resources.
5.3-5.4
Intuitive
using one’s intuition to derive what’s true without conscious reasoning
Charismatic
having the ability to inspire others behind a central vision
Persistent
continuing in a certain action in spite of obstacles
Undercapitalization
the lack of funds to operate a business normally
Chapter 11
11.1-11.2
Marketing
creates value by allowing individuals and organizations to obtain what they need and want.
Exchange
The act of giving up one thing (money, credit, labor, goods) in return for something else (goods, services, ideas).
Strategic Integration
Marketing is central to a firm's strategy; all functional areas (operations, finance, management) must coordinate with marketing decisions.
11.3
Buying
Understanding buyers’ needs and desires to determine what products to make available.
Storing
Warehousing goods to create time utility—the ability to satisfy demand in a timely manner.
Grading
Standardizing products by dividing them into subgroups and labeling them for consumer clarity.
Value
A customer’s subjective assessment of benefits relative to costs in determining the worth of a product or service.
11.4
Marketing Concept
The idea that an organization should try to satisfy customers’ needs through coordinated activities that also allow it to achieve its own goals.
Production Orientation
During the second half of the 19th century, the industrial revolution was well under way in the U.S. New technologies such as electricity, railroads, and mass-production made it possible to manufacture goods with increasing efficiency.
Sales Orientation
By the early 20th century, supply exceeded demand; businesses realized they had to "sell" products to buyers.Sales became the primary means of increasing profits while characterizing the sales orientation period.
Market Orientation
As an approach requiring organizations to gather information about customer needs, share that information throughout the firm, and use that information to help build long-term relationships with customers.
11.5
Marketing Strategy
A plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers.
Market
A group with need, purchasing power, and authority to spend on goods and services.
Target Market
A specific consumer group whose needs and wants are the company's primary focus.
Market Segmentation
Business-to-Business (B2B)
Marketing to customers for resale, direct use in operations, or manufacturing.
Business-to-Consumer (B2C)
Marketing products directly to the final end consumer for personal use.
Niche Marketing
Narrow focus on a small, well-defined group with unique needs. These segments are typically small relative to the total market. EX: Freshpet (all-natural gourmet pet food)
Marketing Mix
A combination of factors including product, price, place, and promotion that work together to effectively market a product. Each element must be carefully considered to meet the demands of the target market.
Product
The item or service offered to satisfy customer needs, encompassing aspects such as quality, features, branding, and design. A successful product meets the specific requirements of the target audience, ensuring it stands out in the marketplace.
Price
The amount of money that customers are willing to pay for a product or service, reflecting the perceived value, competition, and customer demand. Setting the right price is crucial as it impacts sales volume, profitability, and overall market positioning.
Place
The distribution channels and locations where products are made available to customers, including retailers, online platforms, and warehouses. Effective placement strategies ensure that products reach their intended market efficiently and conveniently, influencing customer accessibility and purchase decisions.
Promotion