1
Q
business
A
individual organizations who try to earn a profit by satisfying needs
2
Q
product
A
tangible or intangible characteristics
3
Q
profit
A
what it costs to make vs. what the customer pays
4
Q
stakeholders
A
groups that have stakes in the success and outcomes of businesses
primary- necessary for firms survival (customers, employees, suppliers)
secondary- not essential (media, trade associations)
5
Q
management
A
involves developing plans, coordinating employee’s actions to achieve the firm’s goals, organizing people to work, and motivating them. It also involves planning, leading, and controlling
6
Q
marketing
A
includes all activities to provide g and s that people want. they gather info, conduct research to determine what is wanted. Focus on: product, price, place, and promotion
7
Q
finance
A
all activities with obtaining money and using it effectively
8
Q
natural resources
A
land, forests, minerals, water, and other things that are not made by people
9
Q
human resources (labor)
A
the physical and mental abilities people use to produce g and s
10
Q
capital
A
the funds needed to acquire natural and human resources
11
Q
economic system
A
how a particular society distributes its resources to produce goods
12
Q
communism
A
Karl Marx, people own all of a nations resources problems : low standards of living, shortage of consumer good and higher prices
13
Q
socialism
A
most democratic, recognizes individual freedom, more stable, allows higher standard of living but taxes and unemployment rate are higher
14
Q
capitalism
A
economic decisions without government intervention pure capitalism and modified capitalism
15
Q
pure capitalism (free- market system)
A
all economic decisions are made without government intervention
16
Q
modified capitalism
A
government intervenes and regulates business to some extent (laws)
17
Q
mixed economies
A
economies made up of more than one system
18
Q
free enterprise
A
an opportunity for a business to fail or succeed based on demand
19
Q
four properties of free enterprise
A
- individuals must have right to own property and pass it down to heirs
- individuals and businesses have the right to earn profit
- individuals and businesses have the right to make decisions
- individuals can determine their own goal and career
20
Q
demand
A
number of goods consumers are willing to buy
21
Q
supply
A
number of products the business is willing to sell at specific times
22
Q
pure competition
A
many small businesses selling one standardized product
23
Q
monopolistic competition
A
fewer businesses than in a pure competition and the differences among the goods they sell are small
24
Q
oligopoly
A
a few businesses offer very similar products or services
25
monopoly
a market in which there are many buyers but only one seller
26
inflation
caused by economic expansion, a continuing rise of prices, harmful when incomes do not increase
27
economic contraction
a decline in spending
28
recession
caused by economic contraction, a decline in production, employment, and income
29
gross domestic product
the sum of all goods and services produced in a country during a year
30
standard of living
level of wealth and material comfort people have available
31
business ethics
principles and standards that determine acceptable conduct in business
32
personal ethics
individual's values, principles, and standards of conduct
33
social responsibility
a business's obligation to pursue policies, make decisions, and take actions that benefit society. Maximize positive impact and minimize negative impact
34
business law
law and regulations that govern the conduct of business
35
ethical issue
an identifiable problem, situation, or opportunity that require a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical
36
bribes
payments, gifts, or special favors intended to influence the outcome of a decision
37
misuse of company time
engaging in activities that are not necessary for the job
38
abuse behavior
most common problem, physical threats, bullying, harassment
39
conflict of interest
when a business puts its interests before the interests of society
40
code of ethics
formalized rules and standards that describe what a company expects of its employees
41
whistleblowing
when an employee exposes an employer's wrongdoing to outsiders
42
4 stages of social responsibility
financial, legal compliance, ethics, philanthropy
43
corporate citizenship
business goal: to do well and solve social problems
44
consumerism
the activities that independent individuals, groups, and organizations undertake to protect their rights as consumers
45
sustainability
conducting activities in a way to provide for long term being of the environment including biological ethics
46
pollution
major environmental issue, wind, and solar are most expensive, control carbon to control climate change
47
communication
false advertising and deceptive personal selling traits
48
jurisdiction
legal power of the court to interpret and apply the law
49
appellate court
deals solely with appeals relating to the interpretation of law
50
federal trade commission
influences business activities related to questionable practices that create disputes
51
uniform commercial code
a set of statutory laws covering several business law topics
52
express warranty
stipulates the specific terms the seller will honor
53
implied warranty
imposed on the producer or seller by law, although it may not be a written document provided at the time of sale
54
tort
a private wrong committed by one person against another
55
sherman antitrust act of (1890)
prevents businesses from restraining trade and monopolizing markets
56
clayton act
1914, prohibits price discrimination
57
outsourcing
transferring a firm's activities that have traditionally been internal to external suppliers
58
trade deficit
nation's imbalance of trade, imports more than exports
59
infrastructure
the physical facilities that support a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems
60
exchange rate
the ratio at which one nation's currency can be exchanged for another nation's currency
61
quota
a restriction on the number of units of a particular product that can be imported into a country
62
dumping
the act of a country or business selling products at less than what it costs to produce them
63
general agreement on tariffs and trade (GATT)
23 nations, now 100, provided a forum for tariff negotiations and where international trade problems are discussed. used to prevent dumping and reduce trade barriers
64
world trade organization
international organization that regulates international trade created by Uruguay round
65
NAFTA (North America Free Trade Agreement
agreement that created a free- trade area among the US, Canada, and Mexico
66
APEC (Asia Pacific Economic Cooperation)
promotes free trade throughout Asia, pacific region
67
ASEAN (Association of Southeast Asian Nations)
promotes regional development, trade, and economic stability, 10 member alliance
68
world bank
loans money to underdeveloped countries and developing countries
69
countertrade agreements
involve bartering products for other products instead of for currency
70
trading company
buy goods in one country and sells them to buyers in another country
71
licensing
a trade agreement in which one company- the licensor - allows another company - the licensee - to use its company name, products, patients, brands, trademarks, raw materials, and/ or production processes in exchange for a fee or royalty
72
franchising
a franchiser provides a franchisee the name, logo, and products in return for financial commitment
73
contract manufacturing
when companies hire manufacturers to produce their products in another country
74
offshoring
relocation of business processes to lower- cost locations overseas
75
joint venture
a partnership in which two or more companies (often form different countries) join to undertake a major project
76
strategic alliance
a partnership formed to create competitive
77
direct investment
the ownership of overseas facilities
78
multinational corporation
operates on a worldwide scale without significant ties to one nation
79
global strategy
involves standardizing products for the whole world, as if it were a single entity
80
sarbanes- oxley act
criminalized securities fraud and stiffened penalties for corporate fraud
enacted after the accounting scandals in the early 2000s
81
dodd- frank act
passed to reform the financial industry and offer consumers protection against complex and/ or deceptive financial products
enacted after the most recent recession
82
trial court
draws factual conclusions, judge applies to laws to resolve dispute, determines which laws are pertinent to the case
83
appellate court
reevaluates cases based on interpretation of law, does not draw factual conclusion, does not hear witness testimony
84
import tariff
tax imposed by a government on goods and services imported from other countries
85
fixed tariff
price you pay for your energy is set for a specific period
86
ad valorem tariff
tax imposed on goods based on their value rather than quantity or weight
87
exchange controls
government imposed limitations on the purchase and/or sale of currencies
88
embargo
an official ban on trade or other commercial activity with a particular country
89
dumping
selling goods in a foreign market at a price lower than their domestic market price or below their production cost
90
equilibrium price
the price at which the number of products that businesses are willing to supply equals the number of products that consumers are willing to buy at a specific point in time
Ex. company is willing to supply four rugs at $500 each, and consumers are willing to buy for rugs ay $500 each
91
unemployment
percentage of population that wants to work but is unable to find jobs
92
gross domestic product (GDP)
the sum of all goods and services produced in a country during a year (includes profits earned by foreign companies within the country being measured)(not GDP)
93
budget deficit
when a nation spends more than it takes in from taxes
94
trade balance
the difference between our exports and our imports, if negative (deficit) -> unhealthy for our economy
95
consumer price index
measures changes in prices of g and s purchased for consumption by typical urban households
96
per capita income
indicates the income level of "average" Americans , useful in determining how much "average" consumers spend and how much money Americans are earning
97
unemployment rate
indicates how many working- age Americans are not working who otherwise want to work
98
worker productivity
the amount of g and s produced for each hour worked
99
corporate citizenship
the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their various stakeholders
100
environmental, social, and governance (ESG) framework
a framework that enables the evaluation of a firm's efforts to operate sustainability (alternative energy), contribute to social causes (LGBTQ), and engage in responsible and ethical conduct- (regulatory compliance) has gained popularity
101
lawsuits
where one individual or organization takes another to court using civil laws
102
medication
form of negotiation to resolve a dispute by bringing in one or more third- party mediators, usually chosen by the disputing parties, to help reach a settle
103
arbltration
involves submission of a dispute to one or more third- party arbitrators, usually chosen by the disputing parties, whose decision is final
104
mini- trial
a method of dispute resolution that has become important in settling complex disputes
105
private court system
an independent third party resolves the case after hearing both side of the story
106
federal trade commission (FTC)
it allocates a large portion of resources to curbing false advertising, misleading pricing, and deceptive packaging and labeling
107
Uniform Commerical Code
set of statutory laws covering several business law topics
108
fraud
purposefully unlawful act to deceive or manipulate in order to damage others
109
product liability
businesses legal responsibility for any negligence in the design, production, sale, and consumption of products
110
absolute advantage
when a country is the most efficient producer of a unique item
111
comparative advantage
when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items
112
outsourcing
transferring manufacturing and other tasks to countries where labor and supplies are less expensive
113
balance of payments
the difference between the flow of money into and out of a country
114
exchange rate
the ratio at which ones nation's currency can be exchanged for another nation's currency
115
import tariff
tax levied by a nation on goods imported into the country
116
countertrade agreements
which involve bartering products for other products instead of for currency
117
licensing
is a trade arrangement in which one company- the licensor- allows another company - the licensee- to use its company name, products, patents, brands
118
cartel
an association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition
119
MIE 201
flashcards
Decks in class (9)
# Cards
