Académique Documents
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Entrepreneurial resources
The initiative to combine natural, human, and capital resources
Opportunity cost
Value of the next-best alternative that is forgone to produce or obtain
another product
Competitors
Economic decision-making
Economic resources
Private property
Right to purchase, use, and discard of things of value
Services
Activities that can be consumed at the time of purchase to satisfy
needs and wants
Scarcity
Condition that exists when wants or needs exceed resources available
Economics
Study of the decisions made for production, distribution, and
consumption of goods and services to satisfy needs and wants
Needs
Necessities required for living
Consumer
Necessities required for living
Buys and uses the goods and services
Capital resources
Goods and money used in the production of goods and services
Natural resources
Raw materials supplied by nature
Human resources
People using efforts, knowledge, and skills at work to produce goods
and services
Free enterprise
Economic system which freedom to consume and produce goods and
services exists
Traditional economy
Economic system in which decisions are based on customs and
centered on family
Goods
Items purchased to satisfy needs and wants
Profit
Money left after selling goods and services and costs of operating a
business have been paid
Wants
Goods that are purchased to add comfort or pleasure to life
Marketplace
Anywhere goods and services exchange hands
Marketplace
Process of giving up something for gaining something else
Market economy
Goods and services are owned and controlled by the people
Freedom of choice
Opportunity to make choices of goods and services and accept
consequences of decisions
Command economy
Economics system in which the government owns resources and
dictates what is produced
Market price
The point where supply and demand are equal
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Deflation
A decrease in the general price level
Business Cycle
The movement of an economy from one condition to another and
back again
Capital Project Spending
Spending by businesses for items such as land, buildings, and
equipment
Budget Surplus
Government spends less than it takes in
Depression
A phase marked by a long period of high A unemployment, weak
consumer sales, and business failures
Bond
Represents debt for an organization
Personal Income
Salaries and wages as well as investment income and government
payments to individuals
GDP Per Capita
The Gross Domestic product (GDP) divided by the total population of
a country
Productivity
Production output in relation to a unit of input, such as a worker
Recovery
The phase in which unemployment decreases, demand for goods and
services increases, and GDP begins to rise
Inflation
An increase in the general price level
Stock
Represents ownership in a corporation
Budget Deficit
Government spending more than it takes in
Unemployment Rate
The portion of people in the labor force who are not working
Retail Sales
The sales of durable and nondurable goods bought by consumers
Prosperity
A period in which unemployment is low, businesses produce many
goods and services, and wages are good
Price Index
A number that compares prices in one year with some earlier base
year
Recession
Partnership Agreement
a written agreement among all owners of a partnership
Articles of Incorporation
a written legal document that defines ownership and operating
procedures and conditions for the business
Board of Directors
the people who will make the major policy and financial decisions for
a corporation
Limited Liability Partnership
a partnership in which some investors cannot lose more than the
amount of their investment, but are not allowed to participate in the
day-to-day management of the business.
Joint Venture
a unique business organization by two or more other businesses to
operate for a limited time and for a specific project. It is a type of
partnership.
S-Corporation
A corporation which passes all income through to the owners based
on their investment and is taxed on their individual tax returns.
Limited Liability Company (LLC)
A corporation which is much like a partnership and limits the liability
of the owners
Nonprofit Corporation
a group of people who join to do some activity that benefits the
public.
Cooperative
is formed by a group of people who cooperate to provide goods and
services that they all need. It is owned by the members.
Franchise
a written contract granting permission to operate a business to sell
products and services in a set way.
Franchisor
The company that owns a product or service and grants the rights to
sell products and services in a set way to another business
Franchisee
A company that purchases the right to to sell products and services of
another company in a set way
General Partner
plays an active role and has unlimited liability. (every partnership
must have at least one general partner.)
Limited Partner
participates as an investor in the partnership but has limited
liablility.
Secret Partner
plays an active role but is secret from society
Dormant Partner
plays no role and is not know to the public
Silent Partner
does not have an active role but is know to the public.
Domestic Corporation
corporation chartered in a specific state
Foreign Corporation
corporation chartered in one state but doing business in another
state.
Alien Corporation
corporation chartered in another nation but doing business in a state.
Public Corporation
corporation established for government purposes.
Private Corporation
corporation established by individuals for business or charitable
purposes.
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Management
the process of accomplishing the goals of an organization through the
effective use of people and other resources.
Planning
involves analyzing information, setting goals, and making decisions
about what needs to be done.
Organizing
means identifying and arranging the work and resources needed to
achieve the goals that have been set.
Staffing
includes all of the activities involed in obtaining, preparing, and
compensating the employees of a business.
Implementing
the effort to direct and lead people to accomplish the planned work of
the organization.
Controlling
determines to what extent the business is accomlishing the goals it
set out to reach in the planning stage.
Management Style
the way a manager treats and involves employees
leadership
the ability to motivate individual and groups to accomplish important
goals
human relations
the way people get along with each other.
influence
enables a person to affect the actions of others.
informal influence
the leadership role is not part of a formal structure
formal influence
the leadership position is part of the organization's structure
ethical business practice
ensure that the highest standards of conduct are observed in a
company's relationships with everyone who is a part of the business
or is affected by the business' activities.
core values
the important principles that will guide decisions and actions in the
company.
Executives
top-level managers with responsibilities for the direction and success
of the entire business
Mid-managers
specialists with responsibilities for specific parts of a company's
operations
supervisors
White-collar worker
one whose work is more mental than physical and involves the
handling and processing of information
Blue-collar worker
one whose job involves a great deal of manual work including the
operation of machinery and equipment or other production activities.
Technology
the use of automated machinery, electronic equipment, and
integrated computer systems to help increase the efficiency of
producing goods and services
Human Resources
the people who work for a business
Planning and staffing
A human resource activity involved in identifying and filling all of the
jobs in the company with qualified people
performance management
A human resource activity involved in evaluating the work of
employees and improving performance through training and
development
Compensation and benefits
a human resource activity involved in planning and managing
payroll, personnal records, and benefits programs.
Permanent employee
an employee to whom a company makes a long-term commitment.
Temporary employee
an employee who is hired for a specific time or to complete a specific
assignment
Full-time employee
an employee who regularly works a schedule of 30 hours or more per
week
Part-time employee
an employee who usually works less than 30 hrs per week either
through shorter hours per day or fewer days per week
Commission
a form of pay in which an employee is paid a percentage of sales for
which he or she is responsible
Piece Rate
Scheduling
involves determining the activities that need to be completed, the
people who will complete the work, and the resources needed for the
task
Safety and Security
Protection of people and property.
Operational Plan
a tool for business operations which identifies how work will be done,
who will do it, and what resources will be needed.
Schedule
a time plan for completing activities
Standard
A specific measurement against which an activity or result is judged
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Management Information System (MIS)
an ordered system of processing and reporting information in an
organization
Components of MIS
1.Financial Information 2.Production and Inventory Information
3.Marketing and Sales Information 4. Human Resource Information
E-commerce (e for electronic)
refers to conducting business transactions over the internet or other
technology
Robotics
the use of mechanical devices programmed to do routine tasks, such
as those in many factories
Artificial Intelligence
software that enables computers to reason, learn, and make
decisions. It uses logical methods similar to the methods humans
use.
Expert Systems
Computer programs that help people solve technical problems
Computer-aided design (CAD)
the use of technology to create product styles and designs.
Telecommuting
involves the activities of a worker using a computer at home to do a
job instead of going to their employer's place of business
Business ethics
Rules about how businesses and their employees ought to behave.
Social responsibility
The duty of a business to contribute to the well-being of a
community.
Ethics
Principles of morality or rules of conduct.
Code of ethics
A set of rules for guiding the action of employees or members of an
organization.
Patent
The exclusive rights of an inventor to make, sell, and use a product or
process.
Trademark
A distinctive name, symbol, word, picture, or combination of these
that a company uses to identify products or services.
Copyright
Protection of the creative work of authors, composers, and artists.
Public utility
An organization that supplies a service or product vital to all people
including companies that provides local telephone service, water, and
electricity.
Nonrenewable resource
A natural resource that cannot be replaced
Monopoly
When a business has control of the market for a product or service.
Antitrust laws
Laws intended to prevent unfair business practices such as false
advertising, deceptive pricing, and misleading labeling.
Contract
An agreement to exchange goods or services for something of value,
usually money.
Social responsibility
Advertising
any paid form of communication through mass media directed at
identified consumers to provide information and influence their
actions
Channel Members
the businesses that take part in a channel of distribution
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Are banks like businesses?
Banks are businesses because they sell services such as checking
accounts, saving accounts and loans. They want to earn revenues and
make profits.
Can anyone start a bank?
No, not everyone can start a bank. They have to meet federal and
government's state requirements. They take people's money so they
must be fair. Must have enough capital.
How can people start a bank?
People can start a bank, but they have to apply for charter from the
federal government. If they apply to their state and the charter is
granted, the bank will open as a state bank. If it is a charter from the
federal government it will operate as a national association (N.A).
Is government regulation of a bank necessary?
Yes, it is necessary because if a bank fails thousands of people will
loose money. The government has to regulate the banking laws to
assure the saftey of customers' money. State banks= state banking
laws and National banks= federal law
Deposit type institutions
accept deposits for people in the future. (main types: commercial,
s&l, mutual, credit union)
Commercial banks
Full service banks that offer a wide range of financial services. Bank
offer checking accounts, provide savings accounts, make loans to
individuals and to businesses, And offer other services. Have been
opened in supermarkets and offer everything!
Federal Deposit Insurance Corporation FDIC
Protects depositors money in case of failure... Insures all account in
same bank
Savings and Loans Association
Specalized in savings accounts and making loans for home mortages