Bus 291 - Fall 2020

broadband

the most used form of Internet access. With its high access speeds, it is offered in four different forms: DSL (or Digital Subscriber Line), fiber-optic, cable, and satellite

North American Free Trade Agreement (NAFTA)

(renamed US-Mexico-Canada Agreement, or USMCA), an agreement among the United States, Canada, and Mexico to break down tariffs and trade restrictions.

Moore's Law

the observation that computing power roughly doubles every two years.

Expectancy Theory

the process people use to evaluate the likelihood that their efforts will yield the results they want, along with the degree to which they want those results

team diversity

the variances or differences in ability, experience, personality, or any other factor on a team

Maslow's Hierarchy of Needs

theory of motivation proposed by Abraham Maslow. According to the theory, people have five levels of needs that they seek to satisfy: physiological, safety, social, esteem, and self-actualization.

two ways in which global expansion can benefit a U.S. firm

attracting more customers and using less expensive labor and production in other parts of the world to produce goods and services.

Human Resource Management

attracts, develops, and retains the employees who can perform the activities necessary to accomplish organizational objectives.

3 services offered by public accounting firms

auditing, tax services, and management consulting.

debt financing

borrowed funds that entrepreneurs must repay

trademark

brand that has been given a legal protection.

budget

company's plan for how it will raise and spend money during a given period of time.

diversity

blending individuals of different genders, ethnic backgrounds, cultures, religions, ages , and physical and mental abilities to enhance a company's chances of success.

marketing mix

blending the four elements of marketing strategy—product, distribution, promotion, and pricing—to fit the needs and preferences of a specific target market

supply chain

complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final consumers

list the four components of a computer-based information system

computer hardware, computer software, a network, and a database.

intranet

computer network that is similar to the Internet but limits access to authorized users

expert system

computer program that imitates human thinking through complicated sets of "if-then" rules

virus

computer program that secretly attaches itself to another program (called a host). The virus then changes the host, destroys data, or even makes the computer system inoperable.

data mining

computer searches of customer data to detect patterns and relationships.

computer-aided manufacturing (CAM)

computer tools to analyze CAD output and enable a manufacturer to analyze the steps that a machine must take to produce a needed product or part.

Materials Requirement Planning (MRP)

computer-based production planning system that lets a company ensure that it has all the parts and materials it needs to produce its output at the right time and place and in the right amounts.

psychographic segmentation

dividing consumer markets into groups with similar attitudes, values, and lifestyles

demographic segmentation

dividing markets on the basis of various demographic or socioeconomic characteristics such as gender, age, income, occupation, household size, stage in family life cycle, education, or ethnic group.

traditional structure

each manager is given a specific area of authority

Inflation

economic situation characterized by rising prices caused by a combination of excess consumer demand and increases in the costs of raw materials, component parts, human resources, and other factors of production

Hyperinflation

economic situation characterized by soaring prices

socialism

economic system characterized by government ownership and operation of major industries, such as communications.

communism

economic system in which all property would be shared equally by the people of a community under the direction of a strong central government.

planned economy

economic system in which government controls determine business ownership, profits, and resource allocation to accomplish government goals rather than those set by individual firms.

what is an electronic exchange?

electronic exchange is an online marketplace that brings buyers and sellers together and is tailored to a specific industry's needs.

Crowdsourcing

enlisting the collective talent of a number of people to get work done.

sponsorship

involves providing funds for a sporting or cultural event in exchange for a direct association with the event

Job Analysis

is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job

everyday low pricing (EDLP)

is a strategy devoted to maintaining continuous low prices rather than relying on short-term price cuts such as cents-off coupons, rebates, and special sales

seasonal unemployment

joblessness of workers in a seasonal industry.

Input device on a computer

keyboard and mouse

computer-aided design (CAD)

process that allows engineers to design components as well as entire products on computer screens faster and with fewer mistakes than they could achieve working with traditional drafting systems.

Producer Price Index (PPI)

measurement of the average change in prices of goods and services received by domestic producers.

Consumer Price Index (CPI)

measurement of the monthly average change in prices of goods and services.

vertical merger

merger that combines firms operating at different levels in the production and marketing process.

two basic types of advertising? what three categories do they fall into?

product and institutional informative, persuasive, and reminder-oriented advertising

Flexible Manufacturing System (FMS)

production facility that can be quickly modified to manufacture different products

capital

production inputs consisting of technology, tools, information, and physical facilities.

computer-integrated manufacturing (CIM)

production system in which computers help workers design products, control machines, handle materials, and control the production function in an integrated fashion.

trojan horse

program that claims to do one thing but in reality does something else, usually something malicious

Limited Liability Company (LLC)

secures the corporate advantage of limited liability while avoiding the double taxation characteristic of corporations.

prestige pricing

strategies that establish relatively high prices to develop and maintain an image of quality and exclusiveness.

penetration pricing

strategy that sets a low price as a major marketing tactic

skimming pricing

strategy that sets an intentionally high price relative to the prices of competing products.

conglomerate merger

merger that combines unrelated firms, usually with the goal of diversification, spurring sales growth, or spending a cash surplus in order to avoid a takeover attempt

horizontal merger

merger that joins firms in the same industry for the purpose of diversification, increasing customer bases, cutting costs, or expanding product lines.

Capital Structure

mix of a company's debt and equity capital

venture capital

money invested in a business by another business firm or group of individuals in exchange for an ownership share.

national debt

money owed by government to individuals, businesses, and government agencies who purchase Treasury bills, Treasury notes, and Treasury bonds sold to cover expenditures.

output device on a computer

monitor and printer

private property

most basic freedom under the private enterprise system; the right to own, use, buy, sell, and bequeath land, buildings, machinery, equipment, patents, individual possessions, and various intangible kinds of property.

production and operations management

oversee the production process by managing people and machinery in converting materials and resources into finished goods and services.

stockholders

owners of a corporation due to their purchase of stock in the corporation

Advertising

paid nonpersonal communication usually targeted at large numbers of potential buyers

brand name

part of a brand consisting of words or letters that form a name that identifies and distinguishes an offering from those of competitors.

joint venture

partnership between companies formed for a specific undertaking

distribution channels

path through which products—and legal ownership of them—flow from producer to consumers or business users

cyclical unemployment

people who are out of work because of a cyclical contraction in the economy.

structural unemployment

people who remain unemployed for long periods of time, often with little hope of finding new jobs like their old ones.

goal setting theory

people will be motivated to the extent to which they accept specific, challenging goals, and receive feedback that indicates their progress toward goal achievement

unemployment rate

percentage of the total workforce actively seeking work but currently unemployed.

Departmetalization

process of dividing work activities into units within the organization

encryption

process of encoding data for security purposes, using software that encodes and scrambles messages

accounting

process of measuring, interpreting, and communicating financial information to support internal and external business decision making

collective bargaining

process of negotiation between management and union representatives.

Intrapreneurship

process of promoting innovation within the structure of an established company.

Intrapreneurship

process of promoting innovation within the structure of an existing organization.

decision making

process of recognizing a problem or opportunity, evaluating alternative solutions, selecting and implementing an alternative, and assessing the results.

characteristics of entrepreneurs

vision, high energy levels, the need to achieve, self-confidence and optimism, tolerance for failure, creativity, tolerance for ambiguity, and an internal locus of control.

what is another approach to pricing strategy?

volume objectives, which bases pricing decisions on market share.

LEED (Leadership in Energy and Environmental Design)

voluntary certification program administered by the U.S. Green Building Council, aimed at promoting the most sustainable construction processes available

angel investors

wealthy individuals who invest directly in a new venture in exchange for an equity stake.

corporate website

website designed to increase a company's visibility, promote its offerings, and provide information to interested parties

marketing website

website whose main purpose is to increase purchases by visitors.

social networking sites

websites that provide a virtual community for people to socialize about a particular subject or any topic in general.

define nearshoring

Nearshoring is the outsourcing of production or services to locations near a company's home base.

capitalism

economic system that rewards companies for their ability to perceive and serve the needs and demands of consumers; also called the private enterprise system.

Private enterprise system

economic system that rewards firms for their ability to identify and serve the needs and demands of customers.

corporate philanthropy

effort of an organization to make a contribution to the communities in which it earns profits.

whistle-blowing

employee's disclosure to company officials, government authorities, or the media of illegal, immoral, or unethical practices committed by an organization.

Sarbanes-Oxley Act of 2002

federal legislation designed to deter and punish corporate and accounting fraud and corruption and to protect the interests of workers and shareholders through enhanced financial disclosures, criminal penalties on CEOs and CFOs who defraud investors, safeguards for whistle-blowers, and establishment of a new regulatory body for public accounting firms.

social audits

formal procedures that identify and evaluate all company activities that relate to social issues such as conservation, employment practices, environmental protection, and philanthropy.

code of conduct

formal statement that defines how an organization expects its employees to resolve ethical issues.

labor

includes anyone who works, including both the physical labor and the intellectual inputs contributed by workers.

expansionary monetary policy

increases the money supply in an effort to cut the cost of borrowing.

Define Macroeconomics

is the study of a nation's overall economic issues and how an economic system maintains and allocates its resources.

land

is used in the production of a good, and includes all production inputs or natural resources that are useful in their natural states such as oil, gas, minerals, and timber.

characteristics that make a company admired

its solid profits, stable growth, a safe and challenging work environment, high-quality goods and services, and business ethics and social responsibility.

identify the four basic inputs to an economic systems

land, labor, capital, and entrepreneurship

brand

name, term, sign, symbol, design, or some combination that identifies the products of one company and differentiates them from competitors' offerings.

economic model

one in which businesses believe strongly that their sole role is to maximize profits and increase value to shareholders.

not-for-profit organizations

organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members organizations that have primary objectives such as public service rather than returning a profit to its owners.

ethical responsibilities of businesses to investors and the financial community

Investors and the financial community demand that businesses behave ethically as well as legally in handling their financial transactions. Businesses must be honest in reporting their profits and financial performance to avoid misleading investors. The Securities and Exchange Commission is the federal agency responsible for investigating suspicions that publicly traded firms have engaged in unethical or illegal financial behavior.

factors of production

Land, labor, and capital; the three groups of resources that are used to make all goods and services four basic inputs for effective operation: land, labor, capital, and entrepreneurship.

Big Bang Disruption

Large-scale, fast-paced innovation that can disrupt stable businesses very rapidly. Four phases: singularity, Big Bang, Big Crunch, entropy

Why is vision an important managerial quality?

Managerial vision allows a firm to innovate and adapt to meet changes in the marketplace. managers need vision, the ability to perceive marketplace needs and to determine what an organization must do to satisfy those needs

strategic alliance

partnership formed to create a competitive advantage for the businesses involved; in international business, a business strategy in which a company finds a partner in the country where it wants to do business.

Entrepreneur

person who identifies a business opportunity and allocates available resources to tap that market.

Four stages of the business cycle

the four stages of the business cycle are prosperity, recession, depression, and recovery. Prosperity is characterized by low unemployment and strong consumer confidence. In a recession, consumers often postpone major purchases, layoffs occur, and household savings may be depleted. A depression occurs when an economic slowdown continues in a downward spiral over a long period of time. During recovery, consumer spending begins to increase and business activity accelerates, leading to an increased number of jobs.

product liability

the responsibility of manufacturers for injuries and damages caused by their products.

define microeconomics

the study of economic behavior among individual consumers, families, and businesses

what is the difference between transation management and management in the relationship era?

transaction management is an approach that focuses on building, promoting, and selling enough products to cover costs and earn profits. In the relationship era, businesses seek ways to actively nurture customer loyalty by carefully managing every interaction.

competitive differentiation

unique combination of organizational abilities, products, and approaches that sets a company apart from competitors in the minds of customers.

sexual harrassment

unwelcome and inappropriate actions of a sexual nature in the workplace.

how do factors of production influence the overall supply of goods and services?

A change in the cost or availability of any of the inputs considered to be factors of production can shift the entire supply curve, either increasing or decreasing the amount available at every price.

What role can an ethics compliance officer play in a company?

charged with deterring wrongdoing and ensuring that ethical standards are met.

Industrial Revolution

A series of improvements in industrial technology that transformed the process of manufacturing goods.

why do companies need to do more than just earn a profit?

Although a fundamental goal of any business is to make a profit for its shareholders, investors and the financial community demand that businesses behave ethically and legally.

Describe the contemporary ethical environment

Among the many factors shaping individual ethics are personal experience, peer pressure, and organizational culture. Individual ethics are also influenced by family, cultural, and religious standards. Additionally, the culture of the organization where a person works can be a factor.

What was the Industrial Revolution?

An increase in machine-made goods beginning in England during the 1700s moved business operations from an emphasis on independent, skilled workers to a factory system that mass-produced items

importance of collaboration and employee partnership

Businesses are increasingly focusing on collaboration rather than on individuals working alone. No longer do employees just put in their time at a job they hold their entire career. The new employer-employee partnership encourages teamwork, creative thinking, and problem solving.

to whom do business have responsibilities

Businesses are responsible to customers, employees, investors, and society.

relationship management

collection of activities that build and maintain ongoing, mutually beneficial ties with customers and other parties.

difference between critical thinking and creativity

Critical thinking is the ability to analyze and assess information to pinpoint problems or opportunities. Creativity is the capacity to develop novel solutions to perceived organizational problems.

4 levels of a company's ethical environment

Development of a corporate culture to support business ethics happens on four levels: ethical awareness; ethical education; ethical action; and ethical leadership.

green marketing

Green marketing is a marketing strategy that promotes environmentally safe products and production methods.

Equal Employment Opportunity Commission (EEOC)

commission created to increase job opportunities for women and minorities and to help end discrimination based on race, color, religion, disability, gender, or national origin in any personnel action.

What is privatization?

conversion of government-owned and operated companies into privately held businesses.

define offshoring

Offshoring is the relocation of business processes to lower-cost locations overseas.

define outshoring

Outsourcing involves using outside vendors to produce goods or fulfill services and functions that were once handled in house.

what is the difference between pure competition and monopolistic competition?

Pure competition is a market structure in which large numbers of buyers and sellers exchange homogeneous products, and no single participant has a significant impact on price. Monopolistic competition is a market structure in which large numbers of buyers and sellers exchange differentiated (heterogenous) products, so each participant has some control over price.

what is meant by social responsibility and why do companies exercise it?

Social responsibility is management's acceptance of its obligation to consider profit, consumer satisfaction, and societal well-being to be of significant value when evaluating the company's performance. Businesses demonstrate social responsibility because such behavior is required by law, because it enhances the company's image, or because management believes it is the right thing to do.

stakeholders

customers, investors, employees, and public affected by or with an interest in a company.

four main consumer rights

The four main consumer rights are the right to be safe, to be informed, to choose, and to be heard.

the major economic systems

The major economic systems are private enterprise economy, planned economy (such as communism or socialism), and mixed market economy. In a private enterprise system, individuals and private businesses pursue their own interests—including investment decisions and profits—without undue governmental restriction. In a planned economy, the government exerts stronger control over business ownership, profits, and resources to accomplish governmental and societal—rather than individual—goals. Socialism, one type of planned economic system, is characterized by government ownership and operation of all major industries. Communism is an economic system with limited private property; goods are owned in common, and factors of production and production decisions are controlled by the state. A mixed market economy blends government ownership and private enterprise, combining characteristics of both planned and private enterprise economies.

what are the 3 components of a typical company's approach to ethics and social responsibility?

The three components are (1) engaging in typical corporate philanthropy (2) anticipating and managing risks (3) identifying opportunities to create value by doing the right thing

Work force trends

The workforce is changing in several significant ways: it is aging and the labor pool is shrinking, and it is becoming increasingly diverse. The nature of work has shifted toward services and a focus on information. More businesses now rely on outsourcing, offshoring, and nearshoring to produce goods or fulfill services and functions that were previously handled in-house or in-country. in addition, today's workplaces are becoming increasingly flexible, allowing employees to work from different locations. And with artificial intelligence (AI) to become more efficient, companies are fostering innovation through teamwork and collaboration.

sexism

discrimination against members of either sex but primarily affecting women.

green marketing

a marketing strategy that promotes environmentally safe products and production methods.

vision

ability to perceive marketplace needs and what an organization must do to satisfy them.

integrity

adhering to deeply felt ethical principles in business situations.

business

all profit-seeking activities and enterprises that provide goods and services necessary to an economic system.

competition

battle among businesses for consumer acceptance.

discrimination

biased treatment of a job candidate or employee.

Artificial Intelligence (AI)

Intelligent machines that think and act like human beings

Supply Chain Professionals

To improve the service levels to customers while reducing overall supply chain costs.

partnership

association of two or more persons who operate a business as co-owners by voluntary legal agreement

place marketing

attempt to attract people to a particular area, such as a city, state, or nation

Marketing Professionals

* Marketing professionals identify strategies & techniques used to attract customers to a business. * They determine pricing based on product demand and supply, help maximize a firm's profits, and grow market share for a business.

More for machine learning

- enables machines to make decisions based on past data - works well on low-end systems - most features need to be identified in advanced and manually coded - problem divided into parts and solved individually then combined - testing takes longer - crisp rules explain why a certain decision was taken

More for deep learning

- enables machines to make decisions with the help of neural networks - needs high end systems to work - the machine learns the features from data that's provided - testing takes less time - the problem is solved in an end-to-end manner

what is LAN?

A local area network (LAN) is a computer network that connects machines within a limited area, such as a building or several nearby buildings

what is management development program?

A management development program provides training designed to improve the skills and broaden the knowledge of current or future managers and executives.

World Trade Organization (WTO)

159-member international institution that monitors GATT agreements and mediates international trade disputes.

European Union

28-nation European economic alliance

differentiate among a brand, a brand name, and a trademark

A brand is a name, term, sign, symbol, design, or some combination thereof used to identify the products of one company and differentiate them from competitive offerings. A brand name is that part of the brand consisting of words or letters used to identify and distinguish the company's offerings from those of competitors. A trademark is a brand that has been given legal protection.

potential channel conflict for a firm conducting e-commerce

A channel conflict might occur when a producer sells its goods for less online than it does through a retailer

what is a marketing intermediary?

A marketing intermediary (also called a middleman) is a business that moves goods between producers and consumers or business users.

Different categories of entrepreneurs

A classic entrepreneur identifies a business opportunity and allocates available resources to tap that market. A serial entrepreneur starts one business, runs it, and then starts and runs additional businesses in succession. A social entrepreneur uses business principles to solve social problems. A social entrepreneur recognizes a societal problem and uses business principles to develop innovative solutions.

major components of an effective distribution strategy

A company must consider whether to move products through direct or indirect distribution. Once the decision is made, the company needs to identify the types of marketing intermediaries, if any, through which it will distribute its goods and services. The Internet has made direct distribution an attractive option for many retail companies. Another component is distribution intensity. The business must decide on the amount of market coverage—intensive, selective, or exclusive—needed to achieve its marketing strategies. Finally, attention must be paid to managing the distribution channel. It is vital to minimize conflict between channel members.

international businesses

A company that adopts a global strategy develops a single, standardized product and marketing strategy for implementation throughout the world. The company sells the same product in essentially the same manner in all countries in which it operates. Under a multidomestic (or adaptation) strategy, the firm develops a different treatment for each foreign market. It develops products and marketing strategies that appeal to the customs, tastes, and buying habits of particular nations.

features of a successful business plan

A complete business plan contains an executive summary, an introduction, financial and marketing sections, and résumés of the business principals. Within this structure, an effective business plan includes the company's mission, an outline of what makes the company unique, identification of customers and competitors, financial evaluation of the industry and market, and an assessment of the risks.

What is a corporation?

A corporation is a legal organization with assets and liabilities separate from those of its owners. A corporation can be a large or small business.

what is a cost-based pricing formula?

A cost-based pricing formula calculates the total costs per unit and then adds markups to cover overhead costs and generate profits.

explain demand and supply curves

A demand curve is a graph of the amount of a product that buyers will purchase at different prices. A supply curve shows the relationship between different prices and the quantities that sellers will offer for sale, regardless of demand.

environment for entrepreneurs

A favorable public perception, availability of financing, the falling cost and widespread availability of information technology, globalization, entrepreneurship education, and changing demographic and economic trends all contribute to a fertile environment for people to start new ventures

financial planning

A financial plan is a document that specifies the funds needed by a company for a given period of time, the timing of inflows and outflows, and the most appropriate sources and uses of funds. The financial plan addresses three questions: What funds will be required during the planning period? When will funds be needed? Where will funds be obtained? Three steps are involved in the financial planning process: forecasting sales over a future period of time, estimating the expected level of profits over the planning period, and determining the additional assets needed to support additional sales.

franchising

A franchisor is a large firm that permits another business (the franchisee) to sell its products under its brand name in return for a fee. Benefits to the franchisor include opportunities for expansion and greater profits. Benefits to the franchisee include name recognition, quick start-up, support from the franchisor, and the freedom of small-business ownership.

what is the difference between a franchisor and a franchisee?

A franchisor permits a franchisee to market and sell its products under its brand name, in return for a fee.

what is a global business strategy?

A global business strategy specifies a standardized competitive strategy in which the firm sells the same product in essentially the same manner throughout the world. It works well for goods and services that are common to many nations

what is a joint venture?

A joint venture is a partnership between organizations formed for a specific undertaking.

What is a labor union?

A labor union is a group of workers who have banded together to achieve common goals in the areas of wages, hours, and working conditions

buyouts

A leveraged buyout (LBO) is a transaction in which shares are purchased from public shareholders, and the company reverts to private status. Usually LBOs are financed with substantial amounts of borrowed funds. Private equity companies are often major financers of LBOs.

what is a lifestyle entrepreneur?

A lifestyle entrepreneur is a person who starts a business to gain flexibility in work hours and control over his or her own life.

Mergers

A merger is a combination of two or more companies into one company Even in a merger, there is a buyer and a seller (called the target). The buyer offers cash, securities, or a combination of the two in return for the target's shares. Mergers and acquisitions should be evaluated as any large investment is: by comparing the costs with the benefits

function of exchange rate

A nation's exchange rate is the rate at which its currency can be exchanged for the currencies of other nations to make it easier for them to trade with one another.

what is the main characteristic of a not-for-profit corporation?

A not-for-profit organization is set up legally so that its goals do not include pursuing a profit. Most states set out specific legal provisions for organizational structures and operations of not-for-profit corporations. They are exempt from paying corporate taxes.

what are the three criteria of an effective performance appraisal?

A performance appraisal must be linked to organizational goals, be based on objective criteria, and be a two-way conversation.

What is an entrepreneur?

A person who organizes, manages, and takes on the risks of a business. willing to start, own, and operate a business - risk taker

major drawback of blogging

A poorly conceived and written blog can result in bad publicity, as can a negative blog written by someone outside the organization

product strategy and how to classify goods and services

A product is a bundle of physical, service, and symbolic attributes designed to satisfy consumer wants. The marketing of a product includes its brand, product image, warranty, service attributes, packaging, and labeling, in addition to the physical or functional characteristics of the good or service. Goods and services can be classified as consumer (B2C) or business (B2B) products. Consumer products are those purchased by ultimate consumers for their own use. They can be convenience products, shopping products, specialty products, or unsought products, depending on consumer habits in buying them. Business products are those purchased for use either directly or indirectly in the production of other goods and services for resale. They can be classified as installations, accessory equipment, component parts and materials, raw materials, and supplies

managers as decision makers

A programmed decision applies a company rule or policy to solve a frequently occurring problem. (reordering office supplies) A nonprogrammed decision forms a response to a complex and unique problem with important consequences for the organization. (entering a new market or developing a new product) The five-step approach to decision making includes recognizing a problem or opportunity, developing alternative courses of action, evaluating the alternatives, selecting and implementing an alternative, and following up the decision to determine its effectiveness.

pulling strategy

A pulling strategy promotes the product by generating consumer demand for it, through advertising and sales promotion Pulling strategies are used by retailers and by manufacturers of consumer goods such as cosmetics, automobiles, and clothing.

push strategy

A pushing strategy relies on personal selling to market a product to wholesalers and retailers in a company's distribution channels An example of a pushing strategy is one used by drug manufacturers, which is used to market solely to physicians and hospitals.

infrastructure

basic systems of communication, transportation, and energy facilities in a country.

What are the two types of divestitures?

A sell-off is a divestiture in which assets are sold to another company. In a spin-off, a new company is created from the assets divested. Shareholders of the divesting company become shareholders of the new company as well.

What is skunkworks?

A skunkworks project is initiated by an employee who conceives an idea and then recruits resources from within the company to turn that idea into a commercial product.

why are most businesses small businessess?

A small business is an independently owned business having fewer than 500 employees. Generally, it is not dominant in its field and meets industry-specific size standards for income or number of employees. A business is classified as large when it exceeds these specifications.

how does the Small Business Administration (SBA) define small business?

A small business is defined as an independent business having fewer than 500 employees. However, those bidding for government contracts or applying for government assistance may vary in size according to industry.

Forms of Private Business Ownership

A sole proprietorship is owned and operated by one person. While sole proprietorships are easy to set up and offer great operating flexibility, the owner remains personally liable for all of the firm's debts and legal settlements. In a partnership, two or more individuals share responsibility for owning and running the business. Partnerships are relatively easy to set up, but they do not offer protection from liability. When a business is set up as a corporation, its assets and liabilities are separate from those of its owners and it is a separate legal entity. Investors receive shares of stock in the firm. Owners have no legal and financial liability beyond their individual investments. In an employee-owned business, most stockholders are also employees. Family-owned businesses may be structured legally in any of these three ways but face unique challenges, including succession and complex relationships. The legal structure of a not-for-profit corporation stipulates that its goals do not include earning a profit.

what is a sovereign wealth fund?

A sovereign wealth fund is a government-owned investment company. These companies make investments in a variety of financial and real assets, such as real estate. Although most investments are based on the best risk-return trade-off, political, social, and strategic considerations play roles as well.

building and managing a website

A successful website requires careful planning and preparation, decisions about content and Internet connections, and cost. A website must be updated continually in order to remain useful. Measuring the effectiveness of a website depends on the purpose of the website—is it intended to dispense information and develop brand loyalty or to generate sales?

define supply chain

A supply chain is the complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final consumers.

what is a tariff? what is the purpose?

A tariff is a tax, surcharge, or duty charged on foreign products. Its purpose is to protect domestic producers of those items.

what is a team?

A team is a group of people with certain skills who are committed to a common purpose, approach, and set of performance goals

what is a team norm?

A team norm is a standard of conduct shared by team members that guides their behavior. Norms are informal standards that identify key values and clarify team members' expectations.

Unicorns

A unicorn company, or unicorn startup, is a private company with a valuation over $1B.

What is a virtual network?

A virtual network is a common type of computer network that partly or in whole consists of virtual network links that are not physical connections.

what is meant by a vision for the company?

A vision serves as the target for a company's actions, helping direct the company toward opportunities and differentiating it from its competitors.

Marketable Skills

Abilities that are in demand in the job market, they are useful for tasks that are valuable to employers.

what percentage of small businesses remain in operation five years after starting? ten years?

About 50% are in business after 5 years; about 70% have folded by the 10-year mark.

why do small businesses fail?

About 7 of every 10 new (small) businesses survive at least two years. But by the tenth year, 70% have closed. Failure is often attributed to management shortcomings, inadequate financing, and difficulty meeting government regulations.

Users of Accounting Information

Accountants measure, interpret, and communicate financial information to parties inside and outside the company to support improved decision making. Accountants gather, record, and interpret financial information for management. They also provide financial information on the status and operations of the company for evaluation by outside parties, such as government agencies, stockholders, potential investors, and lenders. Accounting plays key roles in financing activities, which help start and expand an organization; investing activities, which provide the assets it needs to continue operating; and operating activities, which focus on selling goods and services and paying expenses incurred in regular operations

Define Accounting

Accounting is the process of measuring, interpreting, and communicating financial information to enable people inside and outside the company to make informed decisions

types of advertising

Advertising, the most visible form of nonpersonal promotion, is designed to inform, persuade, or remind. Product advertising promotes a good or service, while institutional advertising promotes a concept, idea, organization, or philosophy. Television, Internet, and newspapers are the largest advertising media categories. Others include magazines, radio, and outdoor advertising.

explain affective conflict and its impact on teams

Affective conflict refers to the emotional reactions that can occur when disagreements become personal rather than professional. These differences strongly decrease team performance.

Who regulates banks?

All banks have either state or federal charters. Federally chartered banks are regulated by the Federal Reserve, the FDIC, and the Comptroller of the Currency. State-chartered banks are regulated by state banking authorities and the FDIC.

basic steps in developing a marketing strategy

All organizations develop marketing strategies to reach customers. This process involves analyzing the overall market, selecting a target market, and developing a marketing mix that blends elements related to product, distribution, promotion, and pricing decisions.

global environment for e-commerce

Although 87% of North Americans are online as compared to 40% of Asians, the actual number of Internet users in Asia (1.6 billion) dwarfs the number in North America (314 million). These statistics present many global opportunities for companies that do business via the Internet. The global nature of e-commerce can also heighten competition. Challenges include language barriers and adhering to local laws and customs.

why do companies generally rely more on long-term funds rather than short-term funds?

Although short-term funds are generally less expensive than long-term funds, short-term funds expose the company to more risk. Thus, most companies choose to finance their long-term assets with long-term funds

what is a flexible manufacturing system (FMS)?

An FMS is a production facility that can be quickly modified to manufacture different products.

What is the objective of an integrated marketing communications program?

An IMC strategy focuses on customer needs to create a unified promotional message about a company's goods or services

what is an LBO?

An LBO—a leveraged buyout—is a transaction in which public shareholders are bought out, and the company reverts to private status. LBOs are usually financed with large amounts of borrowed money

Acquisitions

An acquisition is a transaction in which one company buys another Mergers and acquisitions should be evaluated as any large investment is: by comparing the costs with the benefits.

how does an environmental impact study influence the location decision?

An environmental impact study influences the location decision because it outlines how transportation, energy use, water and sewer treatment needs, and other factors will affect plants, wildlife, water, air, and other elements of the natural environment.

how are financial statements adjusted for exchange rates?

An exchange rate is the ratio at which a country's currency can be exchanged for other currencies. Fluctuations of exchange rates create either gains or losses for particular companies because data about international financial transactions must be translated into the currency of the country in which the parent company is based.

what are the three approaches to product-related segmentation?

The three approaches to product-related segmentation are by benefits sought, product usage rate, and brand loyalty levels.

how do extranets and private exchanges work?

An extranet is a secure network used for e-business and accessible through a firm's website to external customers, suppliers, or other authorized users. A private exchange is a secure website at which a company and its suppliers share their data with each other.

what is an important determinant of a company's dividend policy?

An important determinant of a company's dividend policy is its investment opportunities. Companies with more profitable investment opportunities often pay less in dividends than do companies with fewer such opportunities.

what is the purpose of an organization chart?

An organization chart is a visual representation of a company's structure that illustrates job positions and functions.

what is artificial intelligence and machine learning?

Artificial Intelligence (AI) and Machine Learning (ML) have seen considerable advancement. AI involves machines that can perform tasks characteristic of human intelligence—things like planning, understanding language, recognizing objects and sounds, learning, and problem solving. Machine learning is simply a way of achieving AI by "training" an algorithm so that the algorithm can "learn how." "Training" involves feeding huge amounts of data to the algorithm and allowing the algorithm to adjust itself and improve.

on which continent is the greatest number of internet uses located

Asia has the greatest number of Internet users (1.6 billion).

How is the balance sheet organized?

Assets (what a company owns) are shown on one side of the balance sheet and are listed in order of convertibility into cash. On the other side of the balance sheet are claims to assets, liabilities (what a company owes), and owners' equity. Claims are listed in the order in which they are due, so liabilities are listed before owners' equity. Assets always equal liabilities plus owners' equity.

identify the styles of leadership as they appear along a continuum of greater or lesser employee participation

At one end of the continuum, autocratic leaders make decisions without consulting employees. In the middle of the continuum, democratic leaders ask employees for suggestions and encourage participation. At the other end of the continuum, free-rein leaders leave most decisions to their employees.

what is augmented and virtual reality?

Augmented Reality (AR), Virtual Reality (VR), and mixed reality, which combines the two, will be used by 20% of all businesses to create immersive experiences with the help of head-mounted displays. Virtual and augmented reality technologies are removing the distance to people, information, and experiences, transforming the ways people live and work

what are the two different types of B2C websites

B2C occurs through shopping sites and informational sites. Shopping sites allow consumers to make direct purchases, whereas informational sites provide information that is intended to lead to purchases offline

balance of payment

Balance of payments is the overall flow of money into or out of a country

balance of trade

Balance of trade is the difference between a nation's exports and imports

Where do U.S. banks rank compared with international banks?

Banks in Asia and Europe are generally much larger than U.S. banks. In fact, only 4 out of the world's 20 largest banks are based in the United States.

why is it important for an entrepreneur to have a high energy level and a strong need for achievement?

Because start-up companies typically have a small staff and struggle to raise enough capital, the entrepreneur has to compensate by working long hours. A strong need for achievement helps entrepreneurs enjoy the challenge of reaching difficult goals and promotes dedication to personal success.

in the financial system who are the borrowers and who are the savers

Savers and borrowers are individuals, businesses, and governments. Generally, individuals are net savers, meaning they spend less than they make, whereas businesses and governments are net borrowers

what are some ways in which a company can monitor the quality level of its output?

Benchmarking, quality control, Six Sigma, and ISO standards are ways of monitoring quality

what are the benefits to both parties of franchising?

Benefits to the franchisor include opportunities for expansion and greater profits. Benefits to the franchisee include name recognition, quick start-up, support and training from the franchisor, and the freedom of small-business ownership.

Big Data

Big data can be defined as the massive amounts of data available to companies today, which is available in a structured or unstructured format. Big data changes on an ongoing basis, due mainly to the many sources from which it originates, including social media, mobile devices, online sales, and customer service feedback. Big data can lead a company to see trends, providing greater insight to make better, more informed decisions

Blockchain

Blockchains will see their value grow beyond their use in cryptocurrency and digital currency. As data is stored across a decentralized network of millions of computers, the influence of blockchain will expand and transform the Internet of Things—and hopefully, reduce the risk of data hacking.

determinants of consumer behavior

Both personal and interpersonal factors influence the way buyers behave. Personal influences include an individual's needs and motives; perceptions, attitudes, and learned experiences; and self-concept. Interpersonal influences include cultural, social, and family influences.

Define Brand Equity

Brand equity is the added value that a respected and successful name gives to a product

role of budgeting

Budgets are financial guidelines for future periods and reflect expected sales revenues, operating expenses, and cash receipts and outlays. They reflect management expectations for future occurrences and are based on plans that have been made. Budgets are important planning and controlling tools because they provide standards against which actual performance can be measured. One important type of budget is the cash budget, which estimates cash inflows and outflows over a period of time

collective ownership? where are cooperatives typically found, and what benefits do they provide small businesses?

Collective ownership establishes an organization referred to as a cooperative, whose owners join forces to operate all or part of the functions in their firm or industry Collective ownership establishes an organization referred to as a cooperative (co-op), whose owners join forces to operate all or part of the functions in their firm or industry. Cooperatives are frequently found among agricultural businesses. Cooperatives allow small firms to pool their resources, share equipment and expertise, and split discount savings among members.

consumer perceptions of prices

Marketers must consider how consumers perceive the price-quality relationship of their products. Consumers may be willing to pay a higher price if they perceive a product to be of superior quality. Marketers often use odd pricing to convey a message to consumers.

what are business incubators?

Business incubators are local programs organized by community agencies that provide low-cost shared business facilities, along with training, support, and networking, in an effort to help small businesses get started.

major functions of B2B E-commerce

Business-to-business (B2B) e-commerce generates sales revenue, provides detailed product descriptions and other information, handles payment options over the Internet, and helps firms slash costs. Electronic data interchange (EDI), extranets, and private exchanges allow companies to exchange data accurately, rapidly, and collaboratively without paper flow. Electronic exchanges are online B2B marketplaces, while e-procurement allows firms to improve the efficiency of their procurement processes.

B2C e-commerce

Business-to-consumer (B2C) e-commerce connects companies with consumers through shopping sites and informational sites. Electronic storefronts allow consumers to make online purchases, while informational sites provide information about products, the company, store location, community involvement, and the like. Benefits of B2C e-commerce include convenience, time and cost savings, fast delivery, and large selections.

sources of funds and capital structure

Businesses have two sources of funds: debt capital and equity capital. Debt capital consists of funds obtained through borrowing, and equity capital consists of funds provided by the company's owners. The mix of debt and equity capital is known as the company's capital structure, and the financial manager's job is to find the proper mix. Leverage is a technique of increasing the rate of return on funds invested by borrowing. However, leverage increases risk. Also, overreliance on borrowed funds may reduce management's flexibility in future financing decisions. Equity capital also has drawbacks. When additional equity capital is sold, the control of existing shareholders is diluted. In addition, equity capital is more expensive than debt capital. Financial managers are also faced with decisions concerning the appropriate mix of short- and long-term funds. Short-term funds are generally less expensive than long-term funds but expose companies to more risk. Another decision involving financial managers is determining the company's dividend policy

reasons that businesses invest in robots

Businesses use robots to free people from boring, sometimes dangerous assignments and to perform tasks that require repeated manipulation of materials and tools.

How is a cash budget organized?

Cash budgets are generally prepared monthly. Cash receipts are listed first. They include cash sales as well as the collection of past credit sales. Cash outlays are listed next. These include cash purchases, payment of past credit purchases, and operating expenses. The difference between cash receipts and cash outlays is net cash flow.

why do companies often choose to invest excess cash in marketable securities?

Cash earns no rate of return, which is why excess cash should be invested in marketable securities. These are low-risk securities that have short maturities and can be sold easily in the secondary markets. As a result, they are easily converted back into cash, when needed

challenges associated with e-commerce

Challenges confronting e-business firms include developing safe online payment systems, battling security breaches and Internet fraud, overcoming consumer fears about identity theft, and dealing with potential channel conflicts.

Cloud Computing

Cloud computing involves powerful servers that store applications software and databases for users to access via the web using anything from a PC to a smart phone.

what is collective bargaining?

Collective bargaining is the process of negotiation between management and union representatives.

what is countertrade?

Countertrade consists of payments made in the form of local products, rather than currency.

what are the marketing implications of each stage?

Marketers sometimes employ strategies to extend the product life cycle, including increasing frequency of use, adding new users, finding new uses for the product, and changing package size, labeling, or product design.

seven historical eras

Colonial period, the Industrial Revolution, the age of industrial entrepreneurs, the production era, the marketing era, the relationship era, and the social era. In the Colonial period, businesses were small and rural, emphasizing agricultural production. The Industrial Revolution brought factories and mass production to business. The age of industrial entrepreneurs built on the Industrial Revolution through an expansion in the number and size of companies. The production era focused on the growth of factory operations through assembly lines and other efficient internal processes. During and following the Great Depression, businesses concentrated on finding markets for their products through advertising and selling, giving rise to the marketing era. In the relationship era, businesspeople focused on developing and sustaining long-term relationships with customers and other businesses. In the social era, businesses use technology and relationship management to connect and communicate with consumers and promote innovation. Strategic alliances create a competitive advantage through partnerships. Concern for the environment also helps build strong relationships with customers.

Why is commercial paper an attractive short-term financing option?

Commercial paper is an attractive financing option because companies can raise large amounts of money by selling commercial paper at rates that are generally lower than those charged by banks

what is the difference between communication in low-context and high-context?

Communication in low-context cultures tends to rely on explicit written and verbal messages. By contrast, communication in high-context cultures depends not only on the message itself but also on the conditions that surround it, including nonverbal cues, past and present experiences, and personal relationships among the parties.

in what two ways do companies benefit from sponsorship?

Companies benefit from sponsorship in two ways: they gain exposure to the event's audience, and they become associated with the activity's image.

how do organizations use the web to communicate

Companies communicate with each other, customers, suppliers, and the general public via online communities, blogs and other publishing platforms, web-based promotions, and social networking. Doing so allows them to gain more knowledge about the marketplace, adapt to consumer preferences, and create a wide-ranging positive image.

compensation

Companies compensate employees with wages, salaries, incentive pay systems, and benefits. Benefit programs vary among firms, but most companies offer health care programs, insurance, retirement plans, paid time off, and sick leave. A growing number of companies are offering flexible benefit plans and flexible work plans, such as flextime, compressed workweeks, job sharing, and home-based work.

when does a company use personal selling instead of nonpersonal selling?

Companies generally use personal selling when customers are few and geographically concentrated; the product is technically complex, involves trade-ins, or requires special handling; the price is high; or the product moves through direct-distribution channels.

barriers to international trade

Companies must be sensitive to social and cultural differences, such as languages, values, and religions, when operating in other countries. Economic differences include standard-of-living variations and levels of infrastructure development. Legal and political barriers are among the most difficult to judge. Each country sets its own laws regulating business practices. Trade restrictions such as tariffs and administrative barriers also present obstacles to international business.

why do companies pursue multiple promotional objectives at the same time?

Companies pursue multiple promotional objectives because they may need to convey different messages to different audiences

why do companies implement competitive pricing strategies?

Companies use competitive pricing strategies to reduce the emphasis on price competition by matching other companies' prices and concentrating their own marketing efforts on the product, distribution, and promotional elements of the marketing mix.

how does a nation acquire a comparative advantage?

Comparative advantage exists when a nation can supply a product more efficiently and at a lower price than it can supply other goods, compared with the outputs of other countries.

computer software

Computer software provides the instructions that tell the hardware what to do. The software that controls the basic workings of the computer is its operating system. Other programs, called application software, perform specific tasks that users want to complete.

components and types of information systems

Computer-based information systems rely on four components: - computer hardware - computer software - a network - database. The heart of an information system is its database, a centralized, integrated collection of data resources. Information systems fall into two broad categories: operational support systems and management support systems. Operational support systems are designed to produce a variety of information for users. Examples include transaction processing systems and process control systems. Management support systems are those designed to support effective decision making. They include management information systems, decision support systems, executive support systems, and expert systems

what are the benefits of computer based or online training?

Computer-based or online training offers consistent presentations, interactive learning, and learning at one's own pace. It is also less expensive than other types of training.

the role of technology in the production process

Computer-driven automation allows companies to design, create, and modify products rapidly and produce them in ways that effectively meet customers' changing needs. Important design and production technologies include robots, computer-aided design (CAD), computer-aided manufacturing (CAM), and computer-integrated manufacturing (CIM). Many companies are pouring resources into the development of manufacturing processes that result in a reduction of waste, energy use, and pollution.

team conflict

Conflict and disagreement are inevitable in most teams. - Conflict can stem from many sources: disagreements about goals and priorities, task-related issues, interpersonal incompatibilities, scarce resources, and simple fatigue. - The key to dealing with team conflict is not avoiding it but making sure that the team experiences the right kind of conflict. Cognitive conflict focuses on problem-related differences of opinion and, when reconciled, strongly improves team performance. By contrast, affective conflict refers to the emotional reactions that can occur when disagreements become personal rather than professional, and these differences strongly decrease team performance. A team leader can manage team conflict by fostering good communication so team members perceive each other accurately, understand what is expected of them, and obtain the information they need.

consumer behavior

Consumer behavior refers to the actions of ultimate consumers with direct effects on obtaining, consuming, and disposing of products as well as the decision processes that precede and follow these actions. Personal influences on consumer behavior include an individual's needs and motives, perceptions, attitudes, learned experiences, and self-concept. The interpersonal determinants include cultural influences, social influences, and family influences. A number of people within a company may participate in business purchase decisions, so business buyers must consider a variety of organizational influences in addition to their own preferences.

Market Segmentation

Consumer markets can be divided according to four criteria: geographical factors; demographic characteristics, such as age and family size; psychographic variables, which involve behavioral and lifestyle profiles; and product-related variables, such as the benefits consumers seek when buying a product or the degree of brand loyalty they feel toward it. Business markets are segmented according to three criteria: geographical characteristics, customer-based specifications for products, and end-user applications.

distinguish between consumer products and business products

Consumer products are goods and services purchased by end users. Business products are goods and services purchased to be used, either directly or indirectly, in the production of other goods for resale.

how do consumer products differ from business products?

Consumer products, such as personal-care items, are sold to end users. Business products, such as copying machines, are sold to companies or organizations.

how does the price-quality relationship affect a company's pricing strategy?

Consumers must believe that the price of an item reflects its quality, except in extreme cases. So a company must try to set its prices accordingly.

benefits to both consumers and e-commerce companies of an omni-channel or multichannel retail experience?

Consumers will increasingly leverage a variety of online and in-store options including retail stores, online stores, mobile stores, and mobile app stores. A mobile strategy will be important as consumers transition between multiple touchpoints. A result of such a multichannel experience will be increased company revenues and, ultimately, customer loyalty.

differentiate among convenience, shopping, specialty and unsought products

Convenience products are items the consumer seeks to purchase frequently, immediately, and with little effort. Shopping products are typically purchased after the buyer has compared competing products in competing stores. Specialty products are those a purchaser is willing to make a special effort to obtain. Unsought products are goods and services that consumers either do not know about or know about but don't think of buying until a need arises

what is the most common type of security sold privately?

Corporate debt securities are the most common type of security sold privately.

what is the difference between a corporate website and a marketing website?

Corporate websites are designed to increase visibility and to provide information about the company. Marketing websites are intended to sell goods or services and to build relationships with customers

Communication

meaningful exchange of information through messages.

How is trade measured between nations?

Countries measure the level of international trade by comparing exports and imports and then calculating whether a trade surplus or a deficit exists. This is the balance of trade, which represents the difference between exports and imports. The term balance of payments refers to the overall flow of money into or out of a country, including overseas loans and borrowing, international investments, and profits from such investments. An exchange rate is the value of a nation's currency relative to the currency of another nation. Currency values typically fluctuate relative to the supply and demand for specific currencies in the world market. When the value of the dollar falls compared with other currencies, the cost paid by foreign businesses and households for U.S. products declines, and demand for exports may rise. An increase in the value of the dollar raises the prices of U.S. products sold abroad, but it reduces the prices of foreign products sold in the United States.

factors involved in a location decision

Criteria for choosing the best site for a production facility fall into three categories: transportation, physical, and human factors. Transportation factors include proximity to markets and raw materials, along with availability of transportation alternatives. Physical or infrastructure variables involve such issues as water supply, available energy, and options for disposing of hazardous wastes. Human factors include the area's labor supply, local regulations, taxes, and living conditions.

what do customer service standards measure?

Customer service standards measure the quality of service a company provides to its customers

four common listening behaviors

Cynical listening occurs when the receiver of a message feels that the sender is trying to gain some advantage from the communication. Offensive listening occurs when the receiver tries to catch the speaker in a mistake or contradiction. Polite listening occurs when the receiver is rehearsing what he or she wants to say when the speaker finishes. Active listening requires involvement with the information and empathy with the speaker's situation.

data

Data are raw facts and figures that may or may not be relevant to a business decision The massive amounts of data available to companies today, referred to as big data, continue to grow. When captured, formatted, manipulated, stored, analyzed, and evaluated, big data can lead a company to see trends, providing greater insight to make better, more informed decisions.

what is data mining?

Data mining is the task of using computer technology to evaluate data in a database and identify useful trends

what is the difference between debt financing and equity financing?

Debt financing is money borrowed that must be repaid. Equity financing is an exchange of ownership shares in a company for money supplied by one or more investors.

what is the most common form of segmentation for consumer markets?

Demographics is the most commonly used consumer market segmentation method

what happens when a currency is devalued?

Devaluation describes a drop in a currency's value relative to other currencies or to a fixed standard.

what is disruptive innovation?

Disruptive innovation refers to a theory that describes the impact an innovation has when a new market and value are created that "disrupt" an existing market and its value. Disruptive innovations are less expensive and simpler versions of existing products and services that target entirely new customers, many times replacing industry leaders. Examples include smart phones replacing personal computers, downloadable digital media replacing CDs and DVDs, Wikipedia and other online sources replacing traditional print encyclopedias, and retail medical clinics replacing traditional doctors' offices.

Blockchain

Distributed ledger technology

define distribution channels

Distribution channels are the paths that products, and legal ownership of them, follow from producer to consumer or business user.

what is distribution intensity?

Distribution intensity is the number of intermediaries or outlets through which a manufacturer distributes its goods.

what is the difference between primary data and secondary data

Primary data are collected firsthand through observation or surveys. Secondary data are previously published facts that are inexpensive to retrieve and easy to obtain.

divestitures

Divestitures are the opposite of mergers, in which companies sell assets such as subsidiaries, product lines, or production facilities. A sell-off is a divestiture in which assets are sold to another company. In a spin-off, a new company is created from the assets divested. Shareholders of the divesting company become shareholders of the new company as well.

what is downsizing

Downsizing is the process of reducing the number of employees within a company by eliminating jobs. Downsizing is done to cut overhead costs and streamline the organizational structure.

Why is dumping a problem for companies marketing goods internationally?

Dumping is selling products abroad at prices below the cost of production or exporting products at a lower price than charged in the home market. It drives the cost of products sharply down in the market where they are dumped, thus hurting the domestic producers of those products.

what is an electronic communications network (ECN)?

ECN connects major brokerages and individual traders virtually using the Internet, so that trades can be made directly without going through an intermediary.

different methods for motivating employees

Employee motivation starts with high employee morale. According to Maslow's hierarchy of needs, people satisfy lower-order needs (such as food and safety) before moving to higher-order needs (such as esteem and fulfillment). Herzberg's two-factor model of motivation is based on the fulfillment of hygiene factors and motivation factors. Expectancy theory suggests that people use those factors to determine whether to put forth the effort to complete a task. Equity theory refers to a person's perception of fair and equitable treatment. Goal-setting theory says that people will be motivated to the extent to which they accept specific, challenging goals. Job design is also used by managers for motivation.

how do employee stock ownership plans and stock options reward employees and encourage empowerment?

Employee stock ownership plans (ESOPs) benefit employees by giving them ownership stakes in their companies. Employees are motivated to work harder and smarter than they would without ESOPs because they share in their company's financial success. In contrast to an ESOP, in which the company holds stock for the benefit of employees (when employees leave the company, they cash in their stock), stock options give employees a chance to own the stock themselves if they exercise their options by completing the stock purchase.

how does ethical leadership contribute to ethical standards throughout a company?

Employees more readily commit to the company's core values when they see that executives and managers behave ethically.

What is empowerment?

Empowerment comes from giving employees authority and responsibility to make decisions about their work.

what is encryption and why is it important?

Encryption is the process of encoding data for security purposes. Successful encryption keeps consumer information secure from unauthorized access.

what is end-use segmentation in the B2B Market?

End-use segmentation focuses on the precise way a B2B purchaser will use a product.

what is meant by an entrepreneurs vision?

Entrepreneurs begin with a vision, which is an overall idea for how to make their business idea a success, and then passionately pursue it.

how do entrepreneurs create new businesses?

Entrepreneurs combine their ideas and drive with money, employees, and other resources to create a business that fills a market need.

process of starting a new venture

Entrepreneurs must select an idea for their business, develop a business plan, and obtain financing

why do ethical conflicts arise

Ethical conflicts arise when business is trying to serve the different needs of its constituents.

decisions to go global

Exporting and importing, the first level of involvement in international business, involves the lowest degree of both risk and control. Companies may rely on export trading or management companies to help distribute their products. Contractual agreements, such as franchising, foreign licensing, and subcontracting, offer additional options. Franchising and licensing are especially appropriate for services. Companies may also choose local subcontractors to produce goods for local sales. International direct investment in production and marketing facilities provides the highest degree of control but also the greatest risk. Firms make direct investments by acquiring foreign companies or facilities, forming joint ventures with local firms, and setting up their own overseas divisions.

external communication and crisis management

External communication is a meaningful exchange of information through messages transmitted between an organization and its major audiences, such as customers, suppliers, other companies, the general public, and government officials. Every communication with customers should create goodwill and contribute to customer satisfaction. However, all of this is threatened when companies experience a public crisis that threatens their reputations or goodwill. To manage a public crisis, businesses should respond quickly and honestly, with a member of top management present.

role of financial institutions in the sale of securities

Financial institutions purchase new securities issues from corporations or state and local governments and then resell the securities to investors. The institutions charge a fee for their services

Explain the Risk-Return Trade off

Financial managers strive to maximize the wealth of their company's shareholders by striking the optimal balance between risk and return.

global perspective of the financial system

Financial markets exist throughout the world and are increasingly interconnected. Investors in other countries purchase U.S. securities, and U.S. investors purchase foreign securities. Large U.S. banks and other financial institutions have a global presence. They accept deposits, make loans, and have branches throughout the world. Foreign banks also operate worldwide. The average European or Japanese bank is much larger than the average American bank. Virtually all nations have central banks that perform the same roles as the U.S. Federal Reserve System. Central bankers often act together, raising and lowering interest rates as economic conditions warrant

what are flexible benefit plans and how do they work?

Flexible benefit plans offer employees a choice of benefits, including different types of medical insurance, dental and vision plans, and life and disability insurance. Typically, each employee receives a set allowance to pay for these benefits, depending on his or her needs.

difference between flexible production and customer-driven production?

Flexible production generally involves using technology to receive and fulfill orders and skilled people to carry out tasks needed to fill a particular order. Customer-driven production evaluates buyer demands in order to make the connection between products manufactured and products purchased

what are the differences between formal and informal communication?

Formal communication occurs within the formal chain of command defined by an organization. Informal communication occurs outside formally authorized channels within an organization's hierarchy.

Describe Macroeconomics and the issues for the entire economy

Four basic models characterize competition in a private enterprise system: pure competition, monopolistic competition, oligopoly, and monopoly. Pure competition is a market structure, like that in small-scale agriculture, in which large numbers of buyers and sellers exchange homogeneous products and no single participant has a significant influence on price. Monopolistic competition is a market structure, like that of retailing, in which large numbers of buyers and sellers exchange differentiated products, so each participant has some control over price. Oligopolies are market situations, like those in the steel and airline industries, in which relatively few sellers compete and high start-up costs form barriers to keep out new competitors. In a monopoly, one seller dominates trade in a good or service, for which buyers can find no close substitutes.

how might values and attiuides form a barrier to trade, and how can they be overcome?

Marked differences in values and attitudes, such as religious attitudes, can form barriers between traditionally capitalist countries and those adapting new capitalist systems. Many of these can be overcome by learning about and respecting such differences.

what is the difference between a Gantt chart and a PERT chart

Gantt charts, which track projected and actual work progress over time, are used for scheduling relatively simple projects. PERT charts, which seek to minimize delays by coordinating all aspects of the production process, are used for more complex projects.

what are some measures that economists use to determine the health of an economy?

Gross domestic product (GDP), general level of prices, core inflation rate, the Consumer Price Index, and the unemployment rate are all measures used to determine the health of an economy.

guerrilla marketing

Guerrilla marketing consists of innovative, low-cost marketing efforts designed to get consumers' attention in unusual ways

Computer Hardware

Hardware consists of all tangible elements of a computer system, including input and output devices. Major categories of computers include mainframes, supercomputers, midrange systems, personal computers (PCs), and handheld devices

why is it important for a top executive to set high ethical standards?

High ethical standards often result in a stable workforce, job satisfaction, and customer loyalty.

what human factors are relevant to the location decision?

Human factors include an area's labor supply, labor costs, local regulations, taxes, and living conditions.

human resource managers - job description

Human resource managers are responsible for attracting, developing, and retaining the employees who can perform the activities necessary to accomplish organizational objectives. They plan for staffing needs, recruit and hire workers, provide for training, evaluate performance, determine compensation and benefits, and oversee employee separation.

Recruitmemnt and selection

Human resource managers use internal and external methods to recruit qualified employees. They may use college job fairs, personal referrals, social media, and other resources. Internet recruiting is now the fastest, most efficient, and inexpensive way to reach a large pool of job seekers. Companies must abide by employment laws during selection. Before hiring candidates, human resource managers may require employment tests that evaluate certain skills or aptitudes. When all of this is complete, there is a better chance that the right person will be hired for the job.

disaster recovery and backup systems

Information system disasters, whether caused by humans or natural disasters, can cost businesses billions of dollars. The consequences of a disaster can be minimized by routinely backing up software and data, both at an organizational level and at an individual level. Organizations should back up critical data at an off-site location. Some firms may also want to invest in extra hardware and software sites, which can be accessed during emergencies.

Define insider trading

Insider trading is defined as the use of material nonpublic information to make an investment profit.

how does public relations serve a marketing purpose?

Public relations can be an efficient, indirect communications channel for promoting products. It can publicize products and help create and maintain a positive image of the company.

Licensing

In a foreign licensing agreement, one company allows another to produce or sell its product or use its trademark, patent, or manufacturing process in a specific geographical area in return for royalty payments or other compensation.

what is a merger?

In a merger, two or more firms combine to form one company.

what happens when businesses join forces

In a merger, two or more firms combine to form one company. A vertical merger combines firms operating at different levels in the production and marketing process. A horizontal merger joins firms in the same industry. A conglomerate merger combines unrelated firms. An acquisition occurs when one firm purchases another. A joint venture is a partnership between companies formed for a specific undertaking.

What is an acquisition?

In an acquisition, one firm purchases the property and assumes the obligations of another. Acquisitions also occur when one firm buys a division or subsidiary from another firm.

subcontracting

In subcontracting, a firm hires local companies abroad to produce, distribute, or sell its goods and services in a specific region.

what are the stages of the product life cycle?

In the introduction stage, the company attempts to promote demand for the new product. In the product's growth stage, sales climb, and the company earns its initial profits. In the maturity stage, sales reach a saturation level. In the decline stage, both sales and profits decline.

information/information systems

Information is knowledge gained from processing those facts and figures. An information system is an organized method for collecting, storing, and communicating past, present, and projected information on internal operations and external intelligence. Most information systems today use computer and telecommunications technology.

involuntary turnover

Involuntary turnover occurs when employees are terminated because of poor job performance or unethical behavior. It can also occur when a company is forced to eliminate jobs

joint ventures

Joint ventures allow companies to share risks, costs, profits, and management responsibilities with one or more host-country nationals

labor-management relations

Labor unions have resulted in the improvement of wages and working conditions for many workers over the past century, along with the passage of significant labor laws. Unions achieve these improvements through the collective bargaining process, resulting in an agreement. - Most labor-management disputes are settled through the grievance process, in which mediation or arbitration sometimes is necessary

managers as leaders

Leadership is the act of motivating others to achieve certain goals. The basic leadership styles are autocratic, democratic, and free-rein leadership. The best leadership style depends on three elements: the leader, the followers, and the situation.

Leadership

Leadership means directing or inspiring people to attain certain organizational goals. Effective leaders share several traits, such as empathy, self-awareness, and objectivity in dealing with others. Leaders also use the power of their jobs, expertise, and experience to influence others. ability to direct or inspire people to attain certain goals.

concept of leverage

Leverage is a technique of increasing the rate of return on funds invested by borrowing funds. However, leverage also increases risk.

financial ratio analysis

Liquidity ratios measure a company's ability to meet short-term obligations. Examples are the current ratio and the quick, or acid-test, ratio. Activity ratios—such as the inventory turnover ratio, accounts receivable turnover ratio, and the total asset turnover ratio—measure how effectively a company uses its resources. Profitability ratios assess the overall financial performance of the business. The gross profit margin, net profit margin, and return on owners' equity are examples of profitability ratios. Leverage ratios, such as the total liabilities to total assets ratio and the long-term debt to equity ratio, measure the extent to which the company relies on debt to finance its operations. Financial ratios help managers and outside evaluators compare a company's current financial information with that of previous years and with results for other companies in the same industry

Distribution channel decisions and logistics

Marketers can choose either a direct distribution channel, which moves goods directly from the producer to the consumer, or indirect distribution channels, which involve marketing intermediaries in the paths through which products—and legal ownership of them—flow from producer to the final customer. Ideally, the choice of a distribution channel should support a company's overall marketing strategy. Before selecting distribution channels, companies must consider their target markets, the types of goods being distributed, their own internal systems and concerns, and competitive factors.

computer networks, cloud computing, and the future of the internet

Local area networks connect computers within a limited area. Wide area networks tie together larger geographical regions by using telephone lines, microwave, or satellite transmission. A wireless network allows computers to communicate through radio waves. A virtual network is a common type of computer network that consists of links that are not physical connections. Virtual private networks (VPNs) provide a secure Internet connection between two or more points. Intranets allow employees to share information on a ready-made company network. Access to an intranet is restricted to authorized users and is protected by a firewall. Cloud computing involves powerful servers that store applications software and databases for users to access via the web using anything from a PC to a smart phone. The Internet has changed how we live, how we access information, how we utilize various services, and how we are entertained. It is predicted that soon everyone around the world will have Internet access, with usage currently at 88% of the global population.

long-term financing

Long-term funds are repaid over many years. There are three sources: long-term loans obtained from financial institutions, bonds sold to investors, and equity financing. Public sales of securities represent a major source of funds for corporations. These securities can generally be traded in secondary markets. Public sales can vary substantially from year to year depending on the conditions in the financial markets. Private placements are securities sold to a small number of institutional investors. Most private placements involve debt securities. Venture capitalists are an important source of financing for new companies. If the business succeeds, venture capitalists stand to earn large profits. Private equity funds are investment companies that raise funds from wealthy individuals and institutional investors and use the funds to make investments in both public and private companies. Unlike venture capitalists, private equity funds invest in all types of businesses. Sovereign wealth funds are investment companies owned by governments

Machine Learning Vs. Deep Learning

Machine learning needs small amounts of training data. Deep learning does NOT need small amounts of training data

Deep Learning

Machines think like human brains using artificial neural networks

what tasks do management accountants perform?

Management accountants work for the organization and are responsible for collecting and recording financial transactions and for preparing and interpreting financial statements

What is management?

Management is the process of achieving organizational objectives through people and other resources. The manager's job is to combine human and technical resources in the best way possible to achieve the company's goals.

How do entrepreneurs differ from managers?

Managers are employees who direct the efforts of others to achieve an organization's goals. The drive and impatience that entrepreneurs have to make their companies successful may hurt their ability to manage.

empowering employees

Managers empower employees by giving them the authority and responsibility to make decisions about their work. Empowerment seeks to tap the brainpower of all workers to find improved ways of doing their jobs, better serving customers, and achieving organizational goals. Empowerment often includes linking rewards to company performance through employee stock ownership plans (ESOPs) and stock options.

how can managers empower employees?

Managers empower employees by sharing company information and decision-making authority and by rewarding them for their performance as well as the company's.

Who uses accounting information?

Managers of all types of organizations use accounting information to help them plan, assess performance, and control daily and long-term operations. Outside users of accounting information include government officials, investors, creditors, and donors

Importance of Effective Communication

Managers spend about 80% of their time in direct communication with others. Company recruiters consistently rate effective communication— such as listening, conversing, and giving feedback—as the most important skill they look for when hiring new employees. The communication process follows a step-by-step process that involves interactions among six elements: sender, message, channel, audience, feedback, and context. The sender composes the message and sends it through the channel. The audience receives the message and interprets its meaning. The receiver gives feedback to the sender. The communication takes place in a situational or cultural context.

how do managers reinforce corporate culture

Managers use symbols, rituals, ceremonies, and stories to reinforce corporate culture.

Identify the educational factors that help expand current opportunities for entrepreneurs.

Many U.S. universities offer majors in entrepreneurship, dozens of others offer an entrepreneurship emphasis, and hundreds more offer courses in how to start a business. Also, organizations such as the Kauffman Center for Entrepreneurial Leadership and Enactus encourage and teach entrepreneurship.

why are small businesses good opportunities for women and minorities?

Many women feel they can achieve more as small-business owners and can balance family and work more easily if they own their own firms. Minority business owners can receive special assistance from programs such as the SBA's 8(a) Business Development program.

identify three ways in which marketing creates utility

Marketing creates time utility by making a good or service available when customers want to purchase it, place utility by making the product available in a convenient location, and ownership utility by transferring the product from the seller to the buyer.

marketing research

Marketing research is the information-gathering function that links marketers to the marketplace. It provides valuable information about potential target markets. Companies may generate internal data or gather external data. They may use secondary data or conduct research to obtain primary data. Data mining, which involves evaluating and analyzing customer data to detect patterns or relationships, is one helpful tool in forecasting various trends such as sales revenues and consumer behavior.

how does cohesiveness affect teams?

Members of cohesive teams interact more often, share common attitudes and goals, have higher morale, and are more likely to help each other. Cohesive teams also perform better.

differentiate between a merchant wholesaler and an agent or broker in terms of title to the goods

Merchant wholesalers are independently owned wholesaling intermediaries that take title to the goods they handle. Agents and brokers may or may not take possession of the goods they handle, but they never take title, working mainly to bring buyers and sellers together.

what are the different kinds of mergers?

Mergers can be classified as vertical, horizontal, or conglomerate.

microeconomics/macroeconomics - forces of demand and supply

Microeconomics is the study of economic behavior among individual consumers, families, and businesses whose collective behavior in the marketplace determines the quantity of goods and services demanded and supplied at different prices. Macroeconomics is the study of the broader economic picture and how an economic system maintains and allocates its resources; it focuses on how a government's monetary and fiscal policies affect the overall operation of an economic system. Demand is the willingness and ability of buyers to purchase goods and services at different prices. Factors that drive demand for a good or service include customer preferences, the number of buyers and their incomes, the prices of substitute goods, the prices of complementary goods, and consumer expectations about the future. Supply is the willingness and ability of businesses to offer products for sale at different prices. Supply is determined by the cost of inputs and technology resources, taxes, and the number of suppliers operating in the market.

managing the economy's performance

Monetary policy encompasses a government's efforts to control the size of the nation's money supply. Various methods of increasing or decreasing the overall money supply affect interest rates and therefore affect borrowing and investment decisions. By changing the size of the money supply, government can encourage growth or control inflation. Fiscal policy involves decisions regarding government revenues and expenditures. Changes in government spending affect economic growth and employment levels in the private sector. However, a government must also raise money, through taxes or borrowing, to finance its expenditures. Because tax payments are funds that might otherwise have been spent by individuals and businesses, any taxation changes also affect the overall economy.

how is the marketing concept tied to the relationship and social eras of marketing?

Most marketing now centers on the satisfaction of customers and building long-term relationships with them through several channels including the Internet and social media, rather than simply producing and selling goods and services

what are the types of disasters to which information and systems are vulnerable?

Natural disasters, power failures, equipment malfunctions, software glitches, human error, and even terrorist attacks can disrupt even the most powerful, sophisticated computer information systems

Orientation, training, and evaluation

New employees often participate in an orientation, also called onboarding, where they learn about company policies and practices. Training programs provide opportunities for employees to build their skills and knowledge and prepare them for new job opportunities within the company. They also give employers a better chance of retaining employees. Performance appraisals give employees feedback about their strengths and weaknesses and how they can improve.

How are new industries created?

New industries are created when small businesses adapt to shifts in consumer interests and preferences. Innovation and new technology can play a significant role. In addition, new industries may be created when both the business world and consumers recognize a need for change.

does a balanced budget erase the national debt?

No, a balanced budget does not erase the national debt; it just doesn't increase it.

what is noise in the communication process

Noise is some type of interference that influences the transmission of messages and feedback. It can result from physical factors such as poor reception of a cell phone message or from differences in people's attitudes and perceptions.

not-for-profit marketing and nontraditional marketing

Not-for-profit organizations must engage in marketing just as for-profit firms do. Not-for-profit organizations operate in both the public and private sectors and use marketing to obtain volunteers and donations, make people aware of their existence, achieve certain goals for society, and so on. Not-for-profit organizations may engage in several types of nontraditional marketing—person, place, event, cause, or organization marketing. They may rely on one type or a combination

why do not-for-profit organizations engage in marketing?

Not-for-profit organizations use marketing to reach audiences, secure funding, and accomplish their overall missions.

security and ethical issues affecting information systems

Numerous security and ethical issues affect information systems. Main security threats are cybercrime, cyberterrorism, and malware. Cybercrimes range from hacking—unauthorized penetration of an information system—to the theft of hardware. Cyberterrorism can involve deliberate threats to information systems and can be associated with terrorist activities. Malware is any malicious software program designed to infect computer systems. Examples include viruses, botnets, Trojan horses, and spyware. Ethical issues affecting information systems include the proper use of the systems by authorized users. Organizations also have an obligation to employees, vendors, and customers to protect the security and confidentiality of the data stored in information systems

how do managers use objectives?

Objectives set guideposts by which managers define the organization's desired performance in such areas as new-product development, sales, customer service, and employee satisfaction.

international accounting practices

One accounting issue that affects global business is exchange rates. An exchange rate is the ratio at which a country's currency can be exchanged for other currencies. Daily changes in exchange rates affect the accounting entries for sales and purchases of companies involved in international markets. These fluctuations create either losses or gains for particular companies. The International Accounting Standards Board (IASB) was established to provide worldwide consistency in financial reporting practices and comparability of and uniformity in international accounting standards. It has developed International Financial Reporting Standards (IFRS). Many countries have already adopted IFRS, and the United States is in the process of making the transition to it

identify three challenges in the global marketplace for e-businesses

One challenge is language barriers; a second is heightened competition; third is adhering to local laws and customs

benefits of online communities

Online communities offer information exchange, facilitate marketing, and build relationships among participants.

Describe the various types of people who shop online

Online shoppers vary by age, gender, income, and education. Online shopping trends are driven by teens and Millennials, the dominant online shopping demographic. In addition, middle-aged people have embraced its convenience, and men spend almost as much money online as women.

four main reasons people choose to become entrepreneurs?

People generally choose to become entrepreneurs because they want to be their own boss, they believe they will achieve greater financial success, they believe they have more control over job security, and they want to enhance their quality of life.

pricing objectives in marketing mix

Pricing objectives can be classified as profitability, volume, meeting competition, and prestige. Profitability objectives are the most common. Volume objectives base pricing decisions on market share. Meeting competitors' prices makes price a nonissue in competition. Prestige pricing establishes a high price to develop and maintain an image of quality or exclusiveness

what are the five major forms of departmentalization?

Product departmentalization organizes units by the different goods and services a company offers. Geographical departmentalization organizes units by geographical regions. Customer departmentalization organizes units by different types of customers. Functional departmentalization organizes units by business activities such as finance, marketing, human resources, and production. Process departmentalization organizes units by the steps or work processes it takes to complete production or provide a service.

Product placement

Product placement involves paying a fee to have a product showcased in various types of media

importance of production

Production and operations management is a vital business function. Without a quality product or service, a company is less likely to be profitable, and this can result in closure. The production process is also crucial in a not-for-profit organization because the good produced or service provided justifies the organization's existence. Production and operations management plays an important strategic role by lowering the costs of production, boosting output quality, and allowing the company to respond flexibly and dependably to customers' demands

job of production managers

Production and operations managers use people, technology, and machinery to convert inputs (materials and resources) into finished goods and services. Four major tasks are involved. First, the managers must plan the overall production process. Next, they must pick the best layout for their facilities. Then they implement their production plans. Finally, they control the production process and evaluate results to maintain the highest possible quality. Implementation involves deciding whether to make, buy, or lease components; selecting the best suppliers for materials; and controlling inventory to keep enough, but not too much, on hand.

product identification

Products are identified by brands, brand names, and trademarks, which are important elements of product images. Effective brand names are easy to pronounce, recognize, and remember, and they project the right images to buyers. Brand names cannot contain generic words. Under certain circumstances, companies lose exclusive rights to their brand names if common use makes them generic terms for product categories. Some brand names belong to retailers or distributors rather than to manufacturers. Brand loyalty is measured in three degrees: brand recognition, brand preference, and brand insistence. Some marketers use family brands to identify several related items in a product line. Others employ individual branding strategies by giving each product within a line a different brand name

list two ways in which the securities markets are self-regulated

Professional organizations such as the National Association of Securities Dealers have codes of conduct that members are expected to follow. Major financial markets have trading rules and procedures to identify suspicious trading activity.

accounting professionals

Public accountants provide accounting services to other companies or individuals for a fee. They are involved in such activities as auditing, tax return preparation, management consulting, and accounting system design. Management accountants collect and record financial transactions, prepare financial statements, and interpret them for managers in their own companies. Government and not-for-profit accountants perform many of the same functions as management accountants, but they analyze how effectively the organization or agency is operating, rather than its profits and losses.

public ownership

Public ownership occurs when a unit or agency of government owns and operates an organization.

Importance of Quality

Quality control involves evaluating goods and services against established quality standards. Such checks are necessary to spot defective products and to see that they are not shipped to customers. Devices for monitoring quality levels of the firm's output include visual inspection, electronic sensors, robots, and X-rays. Companies are increasing the quality of their goods and services by using Six Sigma techniques and by becoming ISO 9000 and ISO 14000 certified

why do retailers and manufactures use sales promotions?

Retailers and manufacturers use sales promotions to offer consumers extra incentives to buy their products.

Why is odd pricing used?

Retailers believe that consumers favor uneven amounts or amounts that sound like less than they really are. Odd pricing may also be used to suggest an item is on sale.

competitive retail strategy

Retailers, in contrast to wholesalers, are distribution channel members that sell goods and services, usually in small quantities, to individuals for their personal use rather than for resale. Nonstore retailing includes four forms: direct-response retailing, Internet retailing, automatic merchandising, and direct selling. Store retailers range in size from tiny newsstands to department stores and warehouse-like retailers such as Sam's Club. first step in developing a competitive retailing strategy is to select a target market. Next, the retailer must develop a product strategy to determine the best mix of merchandise to carry to satisfy that market. A retailer's customer service strategy focuses on attracting and retaining target customers to maximize sales and profits. Retailers base their pricing decisions on the costs of purchasing products from other channel members and offering services to customers. A good location often marks the difference between success and failure in retailing. A retailer develops promotions to stimulate demand and to provide information such as the store's location, merchandise offerings, prices, and hours. A successful retailer closely aligns its merchandising, pricing, and promotion strategies with store atmospherics, and the physical characteristics of a store and its amenities to influence consumers' perceptions of the shopping experience.

what are the various ways the SBA helps small Businesses?

SBA guarantees business loans; helps small businesses compete for government set-aside programs; and provides business information, advice, and training to owners of small businesses. It also advocates for small-business interests within the federal government.

What is search engine optimization?

SEO is a crucial strategic initiative employed by businesses because so many users find sites through search engines. It is a way companies increase visitors to their websites by paying a fee to online search engines such as Google to have their websites listed in the search engine results pages as "sponsored links" on the right side of the search results page.

SWOT analysis

SWOT is an acronym for strengths, weaknesses, opportunities, and threats. By systematically evaluating all four of these factors, a firm can then develop the best strategies for gaining a competitive advantage.

Salaries

Salaries are paid periodically, such as weekly or monthly. Salaries do not fluctuate with hours worked

sales promotion

Sales promotion accounts for greater expenditures than advertising. Consumer-oriented sales promotions such as coupons, games, samples, contests, sweepstakes, loyalty programs, and promotional products offer an extra incentive to buy a product. Point-of-purchase advertising displays and trade shows are sales promotions directed to the trade markets. Personal selling involves face-to-face interactions between seller and buyer. The primary sales tasks are order processing, creative selling, and missionary selling. Public relations is nonpaid promotion that seeks to enhance a company's public image.

what does span of management mean?

The span of management, or span of control, is the number of employees a manager supervises.

various types of securities

Securities, also called financial instruments, represent obligations on the part of issuers—businesses and governments—to provide purchasers with expected or stated returns on the funds invested or loaned. Securities can be classified into three categories: money market instruments, bonds, and stock. Money market instruments and bonds are debt instruments. Money market instruments are short-term debt securities and tend to be low-risk securities. Bonds are longer-term debt securities and pay a fixed amount of interest each year. Bonds are sold by the U.S. Department of the Treasury (government bonds), state and local governments (municipal bonds), and corporations. Mortgage pass-through securities are bonds backed by a pool of mortgage loans. Most municipal and corporate bonds have risk ratings. Common stock represents ownership in corporations. Common stockholders have voting rights and a residual claim on the company's assets

What is seed capital?

Seed capital is the money that is used to start a company.

what are the three key in which small businesses contribute to the economy?

Small businesses create new jobs and new industries and provide innovation.

what are the contributions of small businesses to the economy?

Small businesses create new jobs and new industries. They often hire workers who traditionally have had difficulty finding employment at larger firms. Small firms give people the opportunity and outlet for developing new ideas, which can turn into entirely new industries. Small businesses also develop new and improved goods and services.

in what industries do small businesses play a significant role?

Small businesses provide most jobs in construction, agriculture, wholesale trade, accommodation and food services, arts, entertainment and recreation, real estate, lending, and leasing. In addition, home-based businesses make up 50% of American small businesses

what are the key difference between sole proprietorships and partnerships?

Sole proprietorships and partnerships expose their owners to unlimited financial liability from their businesses. Sole proprietorships are more flexible and easier to dissolve than partnerships. Partnerships involve shared work load and decision making, whereas sole proprietorships are entirely the responsibility of one business owner.

Outline the planning process

Some plans are very broad and long range, focusing on key organizational objectives; others are more detailed and specify how particular objectives will be achieved. From the mission statement to objectives to specific plans, each phase must fit into a comprehensive planning framework.

why do people choose entrepreneurship as a career path?

Some reasons are desire to be one's own boss, desire to achieve financial success, desire for job security, and desire to improve one's quality of life.

three possible strategies for beginning overseas business operations

Strategies are exporting or importing; contractual agreements such as franchising, licensing, or subcontracting; and making direct investments in foreign markets through acquisition, joint venture, or establishment of an overseas division.

what are the three main causes of small-business failure?

The three main causes of small-business failure are management shortcomings, inadequate financing, and difficulty complying with government regulations.

Three types of machine learning

Supervised learning, unsupervised learning, and reinforcement learning

synergy

Synergy is the term used to describe the benefits produced by a merger or acquisition. It is the notion that the combined company is worth more than the buyer and the target are individually.

Machine Learning

Systems learn things without being programmed to do so

team cohesiveness and norms

Team cohesiveness is the extent to which team members feel attracted to the team and motivated to remain on it. Team norms are standards of conduct shared by team members that guide their behavior. Highly cohesive teams whose members share certain standards of conduct tend to be more productive and effective.

team diversity

Team diversity represents differences in ability, experience, personality, or any other factor on a team

team level

Team level is the average level of ability, experience, personality, or other factors on a team

Explain how teams progress through the stages of team development

Teams pass through five stages of development: forming, storming, norming, performing, and adjourning.

what is the function of the Equal Employment Opportunity Commission (EEOC)?

The EEOC investigates discrimination complaints and helps employers set up affirmative action programs

what are the goals of the European union and how do they promote international trade?

The European Union's goals include promoting economic and social progress, introducing European citizenship as a complement to national citizenship, and giving the EU a significant role in international affairs. Unifying standards and laws can contribute to economic growth.

what is the federal reserve system?

The Federal Reserve System is the U.S. central bank. It is responsible for regulating commercial banks, providing banking-related services for the federal government, providing services for banks, and setting monetary policy.

organizational structures

The subdivision of work activities into units within the organization is called departmentalization. It may be based on products, geographical locations, customers, functions, or processes. Most companies implement one or more of four structures: line, line-and-staff, committee, and matrix structures.

Federal Reserve System

The Federal Reserve regulates banks, performs banking functions for the U.S. Department of the Treasury, and acts as the bankers' bank (clearing checks, lending money to banks, and replacing worn-out currency). It controls the supply of credit and money in the economy to promote growth and control inflation. The Federal Reserve's tools include reserve requirements, the discount rate, and open market operations. Selective credit controls and purchases and sales of foreign currencies also help the Federal Reserve manage the economy.

GDPR

The General Data Protection Regulation 2016/679 is a regulation in EU law on data protection and privacy in the European Union and the European Economic Area.

what is the purpose of the IASB?

The International Accounting Standards Board (IASB) was established to provide worldwide consistency in financial reporting practices and comparability and uniformity of international accounting rules. The IASB has developed the International Financial Reporting Standards (IFRS)

Internet of Things (IoT)

The Internet of Everything or the Internet of Things (IoT) refers to a move beyond stand-alone devices and toward an entire Internet-connected ecosystem of everyday items such as TVs, cars, household appliances, and wearable tech devices

available assistance for small businesses

The SBA guarantees loans made by private lenders, including microloans and those funded by Small Business Investment Companies (SBICs). It offers training and information resources, so business owners can improve their odds of success. The SBA also provides specific support for businesses owned by women and minorities. State and local governments also have programs designed to help small businesses get established and grow. Venture capitalists are firms that invest in small businesses in return for an ownership or equity stake.

3 primary sources of government funds

The U.S. government acquires funds through taxes, fees, and borrowing.

compare and contrast the goals of the world bank and the international monetary fund

The World Bank funds projects that build or expand nations' infrastructure such as transportation, education, and medical systems and facilities. The International Monetary Fund makes short-term loans to member nations that are unable to meet their expenses. The fund operates as a lender of last resort for troubled nations.

WEF

The World Economic forum is a Swiss non-profit organisation which is an intergovernmental organisation (working across borders). It promotes public private co -operation with its aim to improve the state of the world by bringing business, political and leaders of society to shape global, regional and industry agendas.

what international trade organization succeeded GATT, and what is its goal?

The World Trade Organization (WTO) succeeded GATT with the goal of monitoring GATT agreements, mediating disputes, and continuing the effort to reduce trade barriers throughout the world

What is the accounting equation?

The accounting equation states that assets (what a company owns) must always equal liabilities (what a company owes) plus owners' equity. Therefore, if assets increase or decrease, there must be an offsetting increase or decrease in liabilities, owners' equity, or both

the accounting cycle

The accounting process involves recording, classifying, and summarizing data about transactions and then using this information to produce financial statements for the company's managers and other interested parties. Transactions are recorded chronologically in journals, posted in ledgers, and then summarized in accounting statements. Today, much of this activity takes place electronically. The basic accounting equation states that assets (what a company owns) must always equal liabilities (what a company owes creditors) plus owners' equity. This equation also illustrates double-entry bookkeeping, the process by which accounting transactions are recorded. Under double-entry bookkeeping, each individual transaction must have an offsetting transaction

current demographic trends that present opportunities for entrepreneurial businesses

The aging of the U.S. population, increasingly diverse ethnic groups, and the predominance of two-income families are creating opportunities for entrepreneurs to market new goods and services.

Midas List

The annual ranking by Forbes of the best deal makers in high-tech and life science venture capital.

financial statements

The balance sheet shows the financial position of a company on a particular date. The three major classifications of balance sheet data are the components of the accounting equation: assets, liabilities, and owners' equity. The income statement shows the results of a company's operations over a specific period. It focuses on the company's activities—its revenues and expenditures—and the resulting profit or loss during the period. The major components of the income statement are revenues, cost of goods sold, expenses, and profit or loss. The statement of owners' equity shows the components of the change in owners' equity from the end of the prior year to the end of the current year. Finally, the statement of cash flows records a company's cash receipts and cash payments during an accounting period. It outlines the sources and uses of cash in the basic business activities of operating, investing, and financing

What is the relationship between leadership style and corporate culture?

The best leadership style to adopt often depends on the organization's corporate culture and its system of principles, beliefs, and values. Managerial philosophies, communications networks, and workplace environments and practices all influence corporate culture.

stock markets

The best-known financial markets are the stock exchanges. They exist throughout the world. The two largest—the New York Stock Exchange and NASDAQ—are located in the United States. The NYSE is bigger, measured in terms of the total value of stock traded. Larger and better-known companies dominate the NYSE. Buy and sell orders are transmitted to the trading floor for execution. The NASDAQ stock market is an electronic market in which buy and sell orders are entered into a computerized communication system for execution. Most of the world's major stock markets today use similar electronic trading systems

Why is an effective business plan important to the success of a firm?

The business plan is a written document that provides an orderly statement of a company's goals, methods, and standards. It is the document that secures financing and creates a framework for the organization.

first thing a company should do when a public crisis occurs?

The company should respond quickly by preparing a written statement that includes the time, place, description of the event, and the number and status of people involved.

what factors affect the make, buy, or lease decision?

The costs of leasing or purchasing parts from vendors, versus producing them in-house, the availability of dependable outside suppliers, and the need for confidentiality affect this decision.

How is the Fed organized?

The country is divided into 12 districts, each of which has a Federal Reserve Bank. The Fed is run by a seven-member board of governors headed by a chair and vice chair. An important part of the Fed is the Federal Open Markets Committee, which sets monetary and interest rate policy. The Fed is designed to be politically independent.

what are the potential drawbacks of franchising for both parties?

The drawbacks for the franchisor include mismanagement and failure on the part of any of its franchisees, overexpansion, and loss of absolute control over the business. Drawbacks for the franchisee include an initial outlay of expenses, problems due to failure on the part of the franchisor or other franchisees, and restrictive franchise agreements.

the five basic types of teams

The five basic types of teams are work teams, problem-solving teams, self-managed teams, cross-functional teams, and virtual teams. Work teams are permanent groups of co-workers who perform the day-to-day tasks necessary to operate the organization. Problem-solving teams are temporary groups of employees who gather to solve specific problems and then disband. Self-managed teams have the authority to make decisions about how their members complete their daily tasks. A Cross-functional teams are made up of members from different units, such as production, marketing, and finance. Virtual teams are groups of geographically or organizationally dispersed co-workers who use a combination of telecommunications and information technologies to accomplish an organizational task.

5 considerations for off-site data storage

The five considerations are planning and deciding which data to back up, establishing and following a backup schedule, protecting data when they are transmitted off site, selecting the right security vendor, and continually testing and evaluating the backup system.

identify the five main levels of corporate ownership and management

The five levels are stockholders, board of directors, top management, middle management, and supervisory management.

what are they five main tasks of a human resource manager?

The five main tasks are planning for staffing needs, recruiting and hiring workers, providing for training and evaluating performance, determining compensation and benefits, and overseeing employee separation.

what are the five types of nontraditional marketing used by not-for-profit organizations?

The five types of nontraditional marketing are person, place, event, cause, and organization marketing

Foundation of the accounting system

The foundation of the accounting system in the United States is GAAP (generally accepted accounting principles), a set of guidelines or standards that accountants follow. There are four basic requirements to which all accounting rules should adhere: consistency, relevance, reliability, and comparability. The Financial Accounting Standards Board (FASB), an independent body made up of accounting professionals, is primarily responsible for evaluating, setting, and modifying GAAP. The U.S. Securities and Exchange Commission (SEC) also plays a role in establishing and modifying accounting standards for public companies—companies whose shares are traded in financial markets.

production process

The four main categories of production processes are the... analytic production system, which reduces a raw material to its component parts in order to extract one or more marketable products; the synthetic production system, which combines a number of raw materials or parts to produce finished products; the continuous production process, which generates finished items over a lengthy period of time; and the intermittent production process, which generates products in short production runs.

four steps in the process of motivation?

The four steps are need, motivation, goal-directed behavior, and need satisfaction.

what is the lifetime value of a customer?

The lifetime value of a customer incorporates the revenues and intangible benefits from the customer over the life of the relationship with a company minus the amount the company must spend to acquire and serve the customer.

What are the major benefits of computer-integrated manufacturing (CIM)?

The main benefits are increased productivity, decreased design costs, increased equipment utilization, and improved quality

role of the financial manager

The major responsibilities of financial managers are to develop and implement financial plans and determine the most appropriate sources and uses of funds. The chief financial officer (CFO) heads a company's finance organization. Three senior executives reporting to the CFO are the vice president for financial management, the treasurer, and the controller. When making decisions, financial professionals continually seek to balance risks with expected financial returns.

what is the marketing concept

The marketing concept is a companywide customer orientation with the objective of achieving long-run success. According to the marketing concept, marketplace success begins with the customer

mobile or m-commerce

The new world of mobile or m-commerce means that e-businesses interested in capturing consumers who make purchases on their mobile devices will need a mobile strategy in place. Mobile commerce will reach 20% of overall e-commerce in the coming year.

what accounts for the popularity of laptop and notebook computers?

The popularity of these devices can be explained by smaller, lighter, more powerful computing, and by the improved displays, faster processing speeds, and ability to handle more intense graphics, larger storage capacities, and more durable designs

distinguish between a primary and secondary financial market

The primary market for securities serves businesses and governments that want to sell new security issues to raise funds. The secondary market handles transactions of previously issued securities between investors.

controlling the production process

The production control process consists of five steps: planning, routing, scheduling, dispatching, and follow-up. Quality control is an important consideration throughout this process. Coordination of each of these phases should result in high production efficiency and low production costs.

what opportunities does globalization create for today's entrepreneurs?

The rapid globalization of business has created many opportunities for entrepreneurs. They market their products abroad and hire international workers. Among the fastest-growing small U.S. companies, almost two of every five have international sales.

impact of the smart phone of business

The smart phone is a game-changing technological innovation. On a global basis and at lightning speed, the smart phone has contributed to an increased flow of ideas and improved knowledge exchange, resulting in growth and productivity for both businesses and the global economy.

what are the two aspects of accounts receivable management?

The two aspects of accounts receivable management are determining an overall credit policy (whether to offer credit and, if so, on what terms) and deciding which customers will be offered credit.

two general types of information systems and examples

The two categories of information systems are operational support systems (such as transactions processing and process control systems) and management support systems (such as management information, decision support, executive support, and expert systems). Some information systems support parts of an organization, others support entire organizations, and some support groups of organizations

what are the two key elements of the incorporation process?

The two key elements are where to incorporate and the corporate charter

two conventional methods from measuring the success of online ads

The two methods are click-through rate and conversion rate. Click-through rate calculates a percentage of users who click on an ad; conversion rate calculates the percentage of website visitors who actually make purchases.

what are the steps in developing a marketing strategy?

The two steps are (1) studying and analyzing potential target markets and choosing among them and (2) creating a marketing mix to satisfy the chosen market.

two main production systems

The two systems are analytic production and synthetic production.

two time-related production processes?

The two time-related production processes are the continuous production process and the intermittent production process.

organizing a corporation

There are three types of corporations: domestic, foreign, and alien. Stockholders, or shareholders, own a corporation. In return for their financial investments, they receive shares of stock in the company. Stockholders elect a board of directors, who set overall policy. The board hires the chief executive officer (CEO), who then hires managers.

what are they three overall objectives of a human resource manager?

They are providing qualified, well-trained employees for the organization; maximizing employee effectiveness; and satisfying individual employee needs through monetary compensation, benefits, opportunities to advance, and job satisfaction.

how do entrepreneurs generally feel about the possibility of failure?

They view failure as a learning experience and are not easily discouraged or disappointed when things don't go as planned

Team Characteristics

Three important characteristics of a team are its size, team level, and team diversity. The ideal team size is about six or seven members. Team level is the average level of ability, experience, personality, or any other factor on a team. Team diversity is the variances or differences in ability, experience, personality, or any other factor on a team. Team diversity is an important consideration for teams that must complete a wide range of different tasks or particularly complex tasks. Teams pass through five stages of development: (1) Forming is an orientation period during which members get to know each other and find out the behaviors that are acceptable to the group. (2) Storming is the stage during which individual personalities emerge as members clarify their roles and expectations. (3) Norming is the stage at which differences are resolved, members accept each other, and consensus emerges about the roles of the team leader and other participants. (4) Performing is characterized by problem solving and a focus on task accomplishment. (5) Adjourning is the final stage, with a focus on wrapping up and summarizing the team's experiences and accomplishments.

three ways that managers restructure jobs to increase employee motivation

Three ways that employers apply motivational theories to restructure jobs are job enlargement, job enrichment, and job rotation. Job enlargement is a job design that expands an employee's responsibilities by increasing the number and variety of tasks the person works on. Job enrichment is an expansion of job duties that empowers employees to make decisions and learn new skills leading toward career growth. Job rotation involves systematically moving employees from one job to another.

how do the jobs of top managers, middle managers, and supervisory managers differ?

Top managers develop long-range plans, set a direction for their organization, and inspire all employees to achieve the company's vision. Top managers focus on long-range, strategic plans. Middle managers focus on specific operations, products, or customers. They develop procedures to implement the company's strategic plans. middle-level managers focus on short-term, tactical planning. Supervisory managers interact directly with nonmanagerial employees who produce and sell the company's goods and services. They are responsible for implementing the plans developed by middle managers and motivating workers to accomplish daily, weekly, and monthly goals.

trade credit

Trade credit is extended by suppliers when a buyer agrees to pay for goods and services at a later date. Trade credit is relatively easy to obtain and costs nothing unless a cash discount is offered

what are the two most important considerations in choosing an idea for a new business?

Two important considerations are finding something you love to do and are good at doing and determining whether your idea can satisfy a need in the marketplace

what is utility?

Utility is the ability of a good or service to satisfy the wants and needs of customers.

venture capitalists

Venture capitalists raise money from wealthy individuals and institutional investors and invest the funds in promising companies. If the business succeeds, venture capitalists can earn substantial profits.

setting a vision and ethical standards for a company

Vision is the founder's perception of the marketplace needs and the company's methods for meeting them. Vision helps clarify a company's purpose and the actions it can take to make the most of opportunities. High ethical standards can help build success for a company through job satisfaction and customer loyalty

voluntary turnover

Voluntary turnover occurs when employees resign and leave companies to start their own businesses, take jobs with other companies, move to another community, or retire

Wages

Wages are based on an hourly pay rate or the amount of work accomplished

Wholesaling

Wholesaling is the process of selling goods primarily to retailers, other wholesalers, or business users. Wholesaling intermediaries can be classified on the basis of ownership; some are owned by manufacturers, some are owned by retailers, and others are independently owned. Companies operate two main types of manufacturer-owned wholesaling intermediaries: sales branches and sales offices. An independent wholesaling intermediary is a business that represents a number of different manufacturers and makes sales calls to retailers, manufacturers, and other business accounts. Independent wholesalers are classified as either merchant wholesalers or agents and brokers, depending on whether they take title to the products they handle. Retailers sometimes band together to form their own wholesaling organizations. Such organizations can take the form of either a buying group or a cooperative

Accounting Equation

assets must always equal the sum of liabilities and owners' equity

Trends in E-Commerce

With value-based pricing and flexible delivery options, savvy digital customers, in search of a seamless experience, wish to shop anywhere at any time and from any location.

Integrated Marketing Communications (IMC)

a company coordinates promotional activities to produce a unified, customer-focused message. -IMC identifies consumer needs and shows how a company's products meet them. -Marketers select the promotional media that best target and reach customers. -Teamwork and careful promotional planning to coordinate IMC strategy components are important elements of these programs. A company's promotional mix integrates two components: personal selling and nonpersonal selling, which includes advertising, sales promotion, and public relations. By selecting the appropriate combination of promotional mix elements, marketers attempt to achieve the company's five major promotional objectives: provide information, differentiate a product, increase demand, stabilize sales, and accentuate the product's value.

GIG Economy

a labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.

botnet

a network of PCs that have been infected with one or more data-stealing viruses

Cyberterrorism

a new generation of terrorism, can involve deliberate threats to information systems and can be associated with terrorist activities.

What is a municipal bond?

a security issued by or on behalf of a local or state authority.

Tariffs

a tax or duty to be paid on a particular class of imports or exports

cross-functional team

a team made up of members from different functions, such as production, marketing, and finance

investment banker

assist companies in raising capital and provide merger and acquisition services

Accrual Accounting

accounting method that records revenues and expenses when they occur, not necessarily when cash actually changes hands

Consumer Behavior

actions of ultimate consumers directly involved in obtaining, consuming, and disposing of products and the decision processes that precede and follow these actions.

Business Intelligence

activities and technologies for gathering, storing, and analyzing data to make better competitive decisions.

exchange process

activity in which two or more parties give something of value to each other to satisfy perceived needs

physical distribution

actual movement of products from producer to consumers or business users.

brand equity

added value that a respected and successful name gives to a product

Employee Benefits

additional compensation such as vacation, retirement plans, profit-sharing, health insurance, gym membership, child and elder care, and tuition reimbursement, paid entirely or in part by the company.

Central American-Dominican Republic Free Trade Agreement (CAFTA-DR)

agreement among the United States, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic to reduce tariffs and trade restrictions.

acquisition

agreement in which one company purchases another

merger

agreement in which two or more firms combine to form one company.

team-based structure

all workers are responsible for their output.

cooperative advertising

allowances provided by marketers in which they share the cost of local advertising of their company's product or product line with channel partners.

human resource inventory

also called a skills inventory, contains employee data such as age, gender, education, experience, training, and specialized skills

Equity Theory

an individual's perception of fair and equitable treatment.

environmental scanning

analysis of external environmental factors by marketers to understand how they impact business and marketing decisions.

asset

anything of value owned by a company

liability

anything owed to creditors—the claims of a company's creditors.

frictional unemployment

applies to members of the workforce who are temporarily not working but are looking for jobs.

managers planning and controlling functions

basic purpose of controlling is to assess the success of the planning function. Controlling also provides feedback for future rounds of planning.

List the four financial statements

balance sheet, the income statement, the statement of owners' equity, and the statement of cash flows

Countertrade

barter agreement whereby trade between two or more nations involves payment made in the form of local products instead of currency

computer hacking

breach of a computer system by unauthorized users. Sometimes the hackers' motive is just to see if they can get in. Other times, hackers have more sinister motives, including stealing or altering data

just-in-time system (JIT)

broad management philosophy that reaches beyond the narrow activity of inventory control to influence the entire system of production and operations management

transaction management

building and promoting products in the hope that enough customers will buy them to cover costs and earn profits.

product

bundle of physical, service, and symbolic attributes designed to satisfy buyers' wants.

Relationship Era

business era in which companies seek ways to actively

social era

business era in which companies seek ways to connect and interact with customers using technology.

venture capitalists

business firms or groups of individuals that invest in new and growing firms in exchange for an ownership share

Sole Proprietorship

business ownership in which there is no legal distinction between the sole proprietor's status as an individual and his or her status as a business owner.

employee ownership

business ownership in which workers own shares of stock in the company that employs them

consumer orientation

business philosophy that focuses first on determining unmet consumer wants and needs and then designing products to satisfy those needs.

Social Responsibility

business's consideration of society's well-being and consumer satisfaction, in addition to profits.

alternative term for private enterprise system

capitalism

database

centralized integrated collection of data resources

what is a database?

centralized integrated collection of data resources.

Promotional Mix

combination of personal and nonpersonal selling components designed to meet the needs of a company's target customers and effectively and efficiently communicate its message to them

primary differences between commercial banks and savings banks?

commercial and savings banks offer many of the same services. commercial banks lend money to businesses as well as to individuals. Savings banks lend money primarily to individuals, principally in the form of home mortgage loans.

profitability objectives

common objectives included in the strategic plans of most companies

Virtual Network

common type of technology infrastructure, which consists of links that are not wired connections

what is outsourcing?

companies contract with other companies to perform noncore jobs or business functions, such as maintenance or accounting. This allows companies to focus on what they do best and can result in a downsized workforce.

electronic storefronts

company website that sells products to customers

nonpersonal selling

consists of advertising, sales promotion, direct marketing, and public relations

product advertising

consists of messages designed to sell a particular good or service

sales promotion

consists of types of promotion such as coupons, product samples, and rebates that support advertising and personal selling.

increasing importance of one-on-one marketing efforts

consumers demand more customization in goods and services. It is also increasingly dependent on technology such as computer-aided design and manufacturing (CAD/CAM). The Internet also offers a way for businesses to connect with customers in a direct and personal manner

franchise

contractual agreement in which a franchisee gains the right to produce and/or sell the franchisor's products under that company's brand name if they agree to certain operating requirements.

franchising

contractual business arrangement between a manufacturer or other supplier, and a dealer such as a restaurant operator or retailer.

Privatization

conversion of government-owned and operated companies into privately held businesses.

comarketing

cooperative arrangement in which two businesses jointly market each other's products.

Cobranding

cooperative arrangement in which two or more businesses team up to closely link their names on a single product

Integrated Marketing Communications (IMC)

coordination of all promotional activities—media advertising, direct mail, personal selling, sales promotion, and public relations—to produce a unified customer-focused message.

S corporation

corporations that do not pay corporate taxes on profits; instead, profits are distributed to shareholders, who pay individual income taxes

production control

creates a well-defined set of procedures for coordinating people, materials, and machinery to provide maximum production efficiency.

data warehouse

customer database that allows managers to combine data from several different organizational functions.

Recession

cyclical economic contraction that lasts for six months or longer.

distribution strategy

deals with the marketing activities and institutions involved in getting the right good or service to the company's customers

tactical planning

determine which short-term activities should be implemented to accomplish the company's overall strategy.

which of a companies characteristics does a SWOT analysis compare?

determines a company's strengths, weaknesses, opportunities, and threats relative to its competitors.

multidomestic business strategy

developing and marketing products to serve different needs and tastes of separate national markets

cite some measures of the size of the international marketplace

developing countries have lower per capita incomes than developed nations in North America and Western Europe, their populations are large and growing. China's population is about 1.4 billion, and India's is roughly 1.3 billion

balance of trade

difference between a nation's exports and imports. balance sheet

affective conflict

disagreement that focuses on individuals or personal issues.

cognitive conflict

disagreement that focuses on problem- and issue-related differences of opinion.

point-of-purchase (POP) advertising

displays or demonstrations that promote products when and where consumers buy them, such as in retail stores.

Wholesaler

distribution channel member that sells primarily to retailers, other wholesalers, or business users

retailer

distribution channel members that sell goods and services to individuals for their own use rather than for resale

geographical segmentation

dividing an overall market into homogeneous groups on the basis of their locations.

product-related segmentation

dividing consumer markets into groups based on buyers' relationships to the good or service.

Define entrepreneur

entrepreneurs are risk takers who run their business with a major goal of expansion and growth. They are visionaries who seek profitable opportunities and take the initiative to gather the resources they need to start their businesses quickly.

Inventory Turnover

equals cost of goods sold divided by average inventory

current ratio

equals current assets divided by current liabilities

Net Profit Margin

equals net income divided by sales

Debt Ratio

equals total liabilities divided by total assets

3D printing

etching of plastic layers into different shapes by laying down successive layers of material to form a 3D solid.

performance appraisal

evaluation of and feedback on an employee's job performance.

budget surplus

excess funding that occurs when government spends less than the amount of funds raised through taxes and fees.

basic forms of communication

exchange messages in many ways: oral and written, formal and informal, verbal and nonverbal communication. Effective written communication reflects its audience, its channel, and the appropriate degree of formality. Formal communication channels carry messages within the chain of command. Informal communication channels, such as the grapevine, carry messages outside the formal chain of command. Nonverbal communication plays a larger role than most people realize. Generally, when verbal and nonverbal cues conflict, the receiver of a message tends to believe the meaning conveyed by nonverbal cues.

Chief Information Officer (CIO)

executive responsible for managing a firm's information system and related computer technologies

team cohesiveness

extent to which team members feel attracted to the team and motivated to remain part of it

Federal Deposit Insurance Corporation (FDIC)

federal agency that insures deposits at commercial and savings banks.

two most common ways that funds are transferred between borrowers and savers

financial markets and through financial institutions

Income Statement

financial record of a company's revenues, expenses, and profits over a period of time

three business activities that involve accounting?

financing, investing, and operating activities.

home-based businesses

firm operated from the residence of the business owner.

franchisor

firm whose products are sold to customers by the franchisee.

multinational corporation (MNC)

firm with significant operations and marketing activities outside its home country

strategic planning process

first step of strategic planning is to translate the company's vision into a mission statement that explains its overall intentions and aims. Next, planners must assess the company's current competitive position using tools such as SWOT analysis. Managers then set specific objectives. The next step is to develop strategies for reaching objectives that will differentiate the company from its competitors. Managers then develop an action plan that outlines the specific methods for implementing the strategy. Finally, the results achieved by the plan are evaluated, and the plan is adjusted as needed.

infomercials

form of broadcast direct marketing; 30-minute programs that resemble regular TV programs but are devoted to selling goods or services.

cause advertising

form of institutional advertising that promotes a specific viewpoint on a public issue as a way to influence public opinion and the legislative process.

positioning

form of promotion in which marketers attempt to establish the identity and value of their products in the minds of customers by communicating to buyers meaningful distinctions about the attributes, price, quality, or use of a good or service

product placement

form of promotion in which marketers pay fees to have their products showcased in various media, ranging from newspapers and magazines to original online television and movies

order processing

form of selling, mostly at the wholesale and retail levels, that involves identifying customer needs, pointing them out to customers, and completing orders

cost-based pricing

formulas that calculate total costs per unit and then add markups to cover overhead costs and generate profits

Pricing Strategies

four alternative pricing strategies are skimming, penetration, everyday low pricing and discounting, and competitive pricing. A skimming strategy sets a high price initially to recover costs and then lowers it; a penetration strategy sets a lower price and then raises it later. Everyday low pricing and discounting offers a lower price for a period of time. Competitive pricing matches other companies' prices and emphasizes nonprice benefits of an item.

product life cycle

four basic stages—introduction, growth, maturity, and decline—through which a product progresses.

Human Resource Management

function of attracting, developing, and retaining employees who can perform the activities necessary to accomplish organizational objectives

controlling

function of evaluating an organization's performance against its objectives.

promotion

function of informing, persuading, and influencing a purchase decision

inventory control

function requiring production and operations managers to balance the need to keep stock on hand to meet demand against the costs of carrying inventory

Owner's Equity

funds contributed by owners plus profits not distributed to owners in the form of cash dividends

equity financing

funds invested in new ventures in exchange for part ownership

Decision Support System (DSS)

gives direct support to businesspeople during the decision- making process

Empowerment

giving employees authority and responsibility to make decisions about their work.

business (B2B) product

good or service purchased to be used, either directly or indirectly, in the production of other goods for resale

board of directors

governing body of a corporation

monetary policy

government actions to increase or decrease the money supply and change banking requirements and interest rates to influence bankers' willingness to make loans

expansionary monetary policy

government actions to increase the money supply in an effort to cut the cost of borrowing, which encourages business decision makers to make new investments, in turn stimulating employment and economic growth.

restrictive monetary policy

government actions to reduce the money supply to curb rising prices, overexpansion, and concerns about overly rapid economic growth.

fiscal policy

government spending and taxation decisions designed to control inflation, reduce unemployment, improve the general welfare of citizens, and encourage economic growth.

demand curve

graph of the amount of a product that buyers will purchase at different prices.

supply curve

graph that shows the relationship between different prices and the quantities that sellers will offer for sale, regardless of demand.

target marketing

group of people toward whom an organization markets its goods, services, or ideas with a strategy designed to satisfy their specific needs and preferences.

product line

group of related products marked by physical similarities or intended for the same market.

labor union

group of workers who have banded together to achieve common goals in the areas of wages, hours, and working conditions

Objectives

guideposts by which managers define the organization's desired performance in such areas as new-product development, sales, customer service, growth, environmental and social responsibility, and employee satisfaction

directing

guiding and motivating employees to accomplish organizational objectives.

Phishing

high-tech scam that uses authentic looking e-mail or pop-up ads to get unsuspecting victims to reveal personal information

the new-product development process for most products six stages

idea generation, screening, concept development and business analysis, product development, test marketing, and commercialization. At each stage, marketers must decide whether to continue to the next stage, modify the new product, or discontinue the development process. Some new products skip the test marketing stage due to the desire to quickly introduce a new product with excellent potential, a desire not to reveal new-product strategies to competitors, and the high costs involved in limited production runs.

job description

includes information such as job title, location, reporting to and of employees, job summary, nature and objectives of a job, and tasks and duties to be performed.

Why do nations trade?

increasing globalization of the world's economies, the international marketplace offers tremendous opportunities for U.S. and foreign businesses to expand into new markets for their goods and services. Doing business globally provides new sources of materials and labor. Trading with other countries also reduces a company's dependence on economic conditions in its home market. Countries that encourage international trade enjoy higher levels of economic activity, employment, and wages than those that restrict it. Nations usually benefit if they specialize in producing certain goods or services. A country has an absolute advantage if it can maintain a monopoly or produces a good or service at a lower cost than other nations. It has a comparative advantage if it can supply a particular product more efficiently or at a lower cost than it can produce other items. Nations trade because trading boosts economic growth by providing a market for products and access to needed resources. This makes production and distribution systems more efficient and reduces dependence on the economy of the home nation.

small business

independent business with fewer than 500 employees, not dominant in its market.

missionary selling

indirect form of selling in which the representative promotes goodwill for a company or provides technical or operational assistance to the customer

franchisee

individual or business firm purchasing a franchise.

core inflation rate

inflation rate of an economy after energy and food prices are removed.

big data

information collected in massive amounts and at unprecedented speed from both traditional and digital sources that is used in business decision making; complex structured or unstructured sets of information that traditional processing applications are unable to analyze.

Management Information Systems (MIS)

information system designed to produce reports for managers and others within the organization

Operational Support Systems

information systems designed to produce a variety of information on an organization's activities for both internal and external users

Management Support Systems

information systems that are designed to provide support for effective decision making

Market order

instructs the investor's broker to obtain the best possible price when buying or selling securities.

What is a mutual fund?

intermediary that raises money by selling shares to investors. It then pools investor funds and purchases securities that are consistent with the fund's objectives.

grapevine

internal information channel that transmits information from unofficial sources.

foreign licensing agreement

international agreement in which one company allows another to produce or sell its product, or use its trademark, patent, or manufacturing processes, in a specific geographical area in return for royalties or other compensation

Subcontracting

international agreement that involves hiring local companies to produce, distribute, or sell goods or services in a specific country or geographical region

General Agreement on Tariffs and Trade (GATT)

international trade accord that substantially reduced worldwide tariffs and other trade barriers

test marketing

introduction of a new product supported by a complete marketing campaign to a selected city or geographic area

describe the four stages of the product life cycle

introduction, growth, maturity, and decline. In the introduction stage, the company attempts to elicit demand for the new product. In the product's growth stage, sales climb, and the company earns its initial profits. In the maturity stage, sales reach a saturation level. In the decline stage, both sales and profits decline. Marketers sometimes employ strategies to extend the product life cycle, including increasing the frequency of use, adding new users, finding new uses for the product, and changing package size, labeling, or product quality.

expansion decision

involves choosing between offering new products or building or acquiring new production facilities

institutional advertising

involves messages that promote concepts, ideas, philosophies, or goodwill for industries, companies, organizations, or government entities

Corporation

legal organization with assets and liabilities separate from those of its owner(s)

disruptive innovations

less expensive and simpler versions of existing products and services that target an entirely new group of customers

Executive Support Systems (ESS)

lets senior executives access the company's primary databases, often by touching the computer screen, pointing and clicking a mouse, or using voice recognition

quota

limit set on the amounts of particular products that can be imported.

firewall

limits data transfers to certain locations and log system use so that managers can identify attempts to log on with invalid passwords and other threats to a system's security

business incubator

local programs designed to provide low-cost shared business facilities to small start-up ventures.

two main types of financial institutions?

major types of financial institutions are depository institutions (those that accept deposits that customers can draw on demand) and nondepository institutions.

Malware

malicious software program designed to infect computer systems

Social Responsibility

management philosophy that includes contributing resources to the community, preserving the natural environment, and developing or participating in nonprofit programs designed to promote the well-being of the general public.

delegation

managerial process of assigning work to employees

enterprise computing

many different types of hardware networked together to create a seamless data flow between organizations

Why is virtually no country an economic island these days?

many goods and services travel across national borders. Companies now are becoming multinational firms.

Monopoly

market situation in which a single seller dominates trade in a good or service for which buyers can find no close substitutes.

regulated monopolies

market situations in which local, state, or federal government grants exclusive rights in a certain market to a single firm.

monopolistic competition

market structure in which large numbers of buyers and sellers exchange heterogeneous products so each participant has some control over price.

Oligopoly

market structure in which relatively few sellers compete and high start-up costs form barriers to keep out new competitors.

pure competition

market structure, in which large numbers of buyers and sellers exchange homogeneous products and no single participant has a significant influence on price.

affinity program

marketing effort sponsored by an organization that solicits involvement by individuals who share common interests and activities.

during which era was the idea of branding developed

marketing era

frequency marketing

marketing initiative that rewards frequent purchases with cash, rebates, merchandise, or other premiums.

Digital Marketing

marketing of products or services using digital channels to reach consumers through promotion of brands through various forms of digital media

Event Marketing

marketing or sponsoring short-term events such as athletic competitions and cultural and charitable performances

end-use segmentation

marketing strategy that focuses on the precise way a B2B purchaser will use a product.

organization marketing

marketing strategy that influences consumers to accept the goals of, receive the services of, or contribute in some way to an organization.

cause marketing

marketing that promotes a cause or social issue, such as preventing child abuse, anti-littering efforts, and stop-smoking campaigns

financial markets

markets in which securities are bought and sold.

external communication

meaningful exchange of information through messages transmitted between an organization and its major audiences

what is a multidomestic business strategy?

multidomestic business strategy allows the firm to treat each foreign market in a different way to appeal to the customs, tastes, and buying habits of particular national markets. It allows the firm to customize its marketing appeals for individual cultures or areas.

brand

name, term, sign, symbol, design, or some combination that identifies the products of one company and differentiates them from competitors' offerings

publicity

nonpersonal stimulation of demand for a good, service, place, idea, event, person, or organization by unpaid placement of information in print or broadcast media.

ethical issues with the use of information technology

not uncommon for organizations to have specific ethical standards and policies regarding the use of information systems by employees and vendors. Ethical issues also involve organizational use of information systems to protect the privacy and confidentiality of employee and customer data and records. Another ethical issue is the use of computer technology to monitor employees while they are working.

volume objectives

objects based on pricing decisions on market share, the percentage of a market controlled by a certain company or product.

stock split

occurs when a company decides to divide its existing shares of stock into multiple shares.

employee separation

occurs when a worker leaves his or her job, voluntarily or involuntarily. Sometimes an employee is terminated because of poor job performance or unethical behavior. Downsizing is the process of reducing the number of employees within a company in order to cut costs and achieve a leaner organization. However, some negative effects include anxiety and lost productivity among remaining workers; expensive severance packages; and a domino effect in the local economy. Outsourcing involves transferring jobs from inside a firm to outside the company. While some expenses may be cut, a company may experience a backlash in performance and public image.

tender offer

offer made by a company to the target company's shareholders specifying a price and the form of payment

global business strategy

offering a standardized, worldwide product and selling it in essentially the same manner throughout a firm's domestic and foreign markets

functions of e-commerce

offers companies a global reach, customization, interactivity between a business (or its products) and its customers, right-time and integrated marketing, and cost savings.

what is a government bond?

one issued by the U.S. Treasury

replacement decisions

one that considers whether to replace an existing asset with a new one.

channel conflict

onflict between two or more members of a supply chain, such as a manufacturer, wholesaler, or retailer.

process control systems

operational support system to monitor and control physical processes

Transaction Processing System (TPS)

operational support system to record and process data from business transactions

Deflation

opposite of inflation, occurs when prices continue to fall

International Monetary Fund (IMF)

organization created to promote trade, eliminate barriers, and make short-term loans to member nations that are unable to meet their budgets

world bank

organization established by industrialized nations to lend money to less-developed countries

International Accounting Standards Board (IASB)

organization established in 1973 to promote worldwide consistency in financial reporting practices

Financial Accounting Standards Board (FASB)

organization responsible for evaluating, setting, or modifying GAAP in the United States

International Organization for Standardization (ISO)

organization whose mission is to develop and promote international standards for business, government, and society to facilitate global trade and cooperation

relationship marketing

organization's attempt to develop long-term, cost-effective links with individual customers for mutual benefit. Good relationships with customers can be an effective strategy for a company. By identifying current purchasers and maintaining a positive relationship with them, an organization can efficiently target its best customers, fulfill their needs, and create loyalty. Information technologies, frequency and affinity programs, and one-on-one efforts all help build relationships with customers.

public relations

organization's communications and relationships with its various public audiences

not-for-profit corporations

organizations whose goals do not include pursuing a profit

Application Service Provider (ASP)

outside supplier that provides both the computers and the application support for managing an information system

balance of payment

overall money flows into and out of a country.

what is the structure of the finance function at a typical company?

person in charge of the finance function of a company has the title of chief financial officer (CFO) and generally reports directly to the company's chief executive officer. Reporting to the CFO are the treasurer, the controller, and the vice president for financial management.

classic entrepreneur

person who identifies a business opportunity and allocates available resources to tap that market

social entrepreneur

person who recognizes societal problems and uses business principles to develop innovative solutions.

lifestyle entrepreneur

person who starts a business to reduce work hours and create a more relaxed lifestyle.

serial entrepreneur

person who starts one business, runs it, and then starts and runs additional businesses in succession.

telemarketing

personal selling conducted entirely by telephone, which provides a company's marketers with a high return on their expenditures, an immediate response, and an opportunity for personalized two-way conversation

creative selling

persuasive type of promotional presentation

What is a budget?

planning and control tool that reflects the company's expected sales revenues, operating expenses, cash receipts, and cash outlays.

the importance of planning

planning process identifies organizational goals and develops the actions necessary to reach them. Planning helps a company turn vision into action, take advantage of opportunities, and avoid costly mistakes. Strategic planning is a far-reaching process. It views the world through a wide-angle lens to determine the long-range focus and activities of the organization. Tactical planning focuses on the current and short-range activities required to implement the organization's strategies. Operational planning sets standards and work targets for functional areas such as production, human resources, and marketing

utility

power of a good or service to satisfy a want or need.

ways that technology has changed business

powerful and less-expensive growth options for companies. As technology and business have become increasingly interwoven, technology has forever changed the face of many businesses and industries, including music, entertainment, transportation, automobiles, healthcare, hospitality, and retail.

Cloud Computing

powerful servers store applications software and databases for users to access the software and databases via the web using anything from a PC to a smart phone

equilibrium price

prevailing market price at which you can buy an item.

Price

price is the exchange value of a good or service

Stock Quote

price of a specific stock and performance information

odd pricing

pricing method using uneven amounts, which sometimes appear smaller than they really are to consumers

breakeven analysis

pricing-related technique used to determine the minimum sales volume a product must generate at a certain price level to cover all costs.

Small Business Administration (SBA)

principal government agency concerned with helping small U.S. firms

Generally Accepted Accounting Principles (GAAP)

principles that encompass the conventions, rules, and procedures for determining acceptable accounting practices at a particular time

on which economic system is the U.S. economy based?

private enterprise system

double-entry bookkeeping

process by which accounting transactions are recorded. Each transaction must have an offsetting transaction

financial system

process by which funds are transferred between those having excess funds (savers) and those needing additional funds (users). Savers and users are individuals, businesses, and governments. Savers expect to earn a rate of return in exchange for the use of their funds. Financial markets, financial institutions, and financial instruments (securities) make up the financial system. Although direct transfers are possible, most funds flow from savers to users through the financial markets or financial institutions, such as commercial banks. A well-functioning financial system is critical to the overall health of a nation's economy

vendor managed inventory

process in which the producer and the retailer agree that the producer (or the wholesaler) will determine how much of a product a buyer needs and will automatically ship new supplies when needed

management

process of achieving organizational objectives through people and other resources

planning

process of anticipating future events and conditions and determining courses of action for achieving organizational objectives.

organizing

process of blending human and material resources through a formal structure of tasks and authority; arranging work, dividing tasks among employees, and coordinating them to ensure implementation of plans and accomplishment of objectives.

logistics

process of coordinating flow of goods, services, and information among members of the supply chain

branding

process of creating an identity in consumers' minds for a good, service, or company; a major marketing tool in contemporary business.

benchmarking

process of determining how well other companies perform business functions or tasks.

skunkworks

project initiated by a company employee who conceives the idea, convinces top management of its potential, and then recruits human and other resources from within the firm to turn it into a commercial project

specialty advertising

promotional items that prominently display a company's name, logo, or business slogan.

Certified Public Accountant (CPA)

public accountant who meets specified educational and experiential requirements and has passed a comprehensive examination on accounting theory and practice, auditing, law, and taxes

consumerism

public demand that a business consider the wants and needs of its customers in making decisions.

Accural Accounting

recognizes revenues and expenses when they occur, not when cash actually changes hands. Most companies use accrual accounting to prepare their financial statements

Statement of Owner's Equity

record of the change in owners' equity from the end of one fiscal period to the end of the next

restrictive monetary policy

reduces the money supply to curb rising prices, overexpansion, and concerns about overly rapid economic growth by increasing the cost of borrowing.

devaluation

reduction in a currency's value relative to other currencies or to a fixed standard.

evolution of the marketing concept

refers to a companywide customer orientation with the objective of achieving long-run success. This concept is essential in today's marketplace, which is primarily a buyer's market, meaning buyers can choose from an abundance of goods and services. Marketing now centers on the satisfaction of customers and building long-term relationships with those customers.

corporate culture

refers to an organization's principles, beliefs, and values. It is typically shaped by a company's founder and perpetuated through formal programs such as training, rituals, and ceremonies, as well as through informal discussions among employees. Corporate culture can influence a company's success by giving it a competitive advantage.

E-commerce

refers to conducting business via the Internet.

Define business ethics

refers to the standards of conduct and moral values involving decisions made in the work environment.

productivity

relationship between the number of units produced and the number of human and other production inputs necessary to produce them.

work team

relatively permanent group of employees with complementary skills who perform the day-to-day work of organizations

recycling

reprocessing of used materials for reuse.

list the three tools the Fed uses to control the supply of money and credit

reserve requirements, the discount rate, and open market operations

exchange control

restriction on importation of certain products or against certain companies to reduce trade and expenditures of foreign currency.

Why do large, established companies support intrapreneurship?

retain an entrepreneurial spirit and to promote innovation.

profits

rewards earned by businesspeople who take the risks involved in blending people, technology, and information to create and market want-satisfying goods and services.

most basic right under the private enterprise system

right to private property

Entrepreneur

risk taker in the private enterprise system, a person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business

trade promotion

sales promotion geared to marketing intermediaries rather than to final consumers

goal-setting theory

says that people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement.

Virtual Private Network (VPN)

secure connections between two points on the Internet

reducing barriers to international trade

seek to promote international trade by reducing barriers among nations. Examples include the World Trade Organization, the World Bank, and the International Monetary Fund. Multinational economic communities create partnerships to remove barriers to the flow of goods, capital, and people across the borders of members. Three such economic agreements are the North American Free Trade Agreement (NAFTA), CAFTA-DR, and the European Union.

dumping

selling products abroad at prices below production costs or below typical prices in the home market to capture market share from domestic competitors

Accounting Cycle

set of activities involved in converting information and individual transactions into financial statements

Limit order

sets a maximum price (if the investor wants to buy) or a minimum price (if the investor wants to sell)

preferred stock

shares that give owners limited voting rights, and the right to receive dividends or assets before owners of common stock

common stock

shares that give owners voting rights but only residual claims to the firm's assets and income distributions

conflict of interest

situation in which an employee must choose between a business's welfare and personal gain.

Conflict

situation in which one person or group's needs do not match those of another, and attempts may be made to block the opposing side's intentions or goals.

budget deficit

situation in which the government spends more than the amount of money it raises through taxes.

microloans

small-business loans often used to buy equipment or operate a business.

as productivity rises....

so does an economy's growth and the wealth of its citizens. In a recession, productivity stalls or possibly declines. Changes in general price levels—inflation or deflation—are important indicators of an economy's general stability. The U.S. government measures price-level changes by the Consumer Price Index. A nation's unemployment rate is an indicator of both overall stability and growth. The unemployment rate shows, as a percentage of the total labor force, the number of people actively seeking employment who are unable to find jobs.

economics

social science that analyzes the choices people and governments make in allocating scarce resources.

spyware

software that secretly gathers user information through the user's Internet connections without his or her knowledge, usually for advertising purposes

three criteria used to judge whether a company might be considered admirable

solid profits, consistent growth, a safe and challenging work environment, high-quality goods and services, and business ethics and social responsibility.

team norm

standard of conduct shared by team members that guides their behavior

International Financial Reporting Standards (IFRS)

standards and interpretations adopted by the IASB

Business Ethics

standards of conduct and moral values regarding right and wrong actions in the work environment.

balance sheet

statement of a company's financial position—what it owns and claims against its assets—at a particular point in time

cybercrime

stealing or altering data in several ways

triple bottom line

strategic business approach used by companies to evaluate performance by placing equal value on financial, social, and environmental factors.

Competitive pricing

strategy that tries to reduce the emphasis on price competition by matching other companies' prices and concentrating their own marketing efforts on the product, distribution, and promotional elements of the marketing mix.

what are the three main tactics used by unions to win support for their demands?

strikes (walkouts), picketing, and boycotts.

organization

structured group of people working together to achieve common goals

Macroeconomics

study of a nation's overall economic issues, such as how an economy maintains and allocates resources and how a government's policies affect the standards of living of its citizens.

Microeconomics

study of small economic units, such as individual consumers, families, and businesses.

Gross Domestic Product (GDP)

sum of all goods and services produced within a country's boundaries during a specific time period, such as a year.

What is mass production?

system for manufacturing products in large quantities through effective combinations of employees with specialized skills, mechanization, and standardization.

mass production

system for manufacturing products in large quantities through effective combinations of employees with specialized skills, mechanization, and standardization.

Management by Objectives (MBO)

systematic approach that allows managers to focus on attainable goals and to achieve the best results based on the organization's resources.

mixed market economies

systems that draw from both types of economies, to different degrees.

what is cognitive conflict and how does it affect teams?

team members disagree because their different experiences and expertise lead them to different views of the problem and its solutions. Cognitive conflict is characterized by a willingness to examine, compare, and reconcile differences to produce the best possible solution.

four types of capital

technology, tools, information, and physical facilities

what is the leading advertisement medium in America?

television is the leading advertising medium in the United States.

problem-solving team

temporary or permanent combination of workers who gather to solve a specific problem.

global economic challenges encountered by businesses today

ten key global risks in today's economy: (1) asset bubble in a major economy (2) deflation in a major economy (3) failure of a major financial mechanism or institution (4) failure/shortfall of critical infrastructure (5) fiscal crises in key economies (6) high structural unemployment or underemployment (7) illicit trade (8) trade tensions (9) energy price shock (10) unmanageable inflation

family leave

the Family and Medical Leave Act of 1993 states that employers with 50 or more employees must provide unpaid leave up to 12 weeks annually for any employee who wants time off for the birth or adoption of a child, to become a foster parent, or to care for a seriously ill relative, spouse, or self.

what is the role of the Securities and Exchange Commission?

the Securities and Exchange Commission investigates suspicions of unethical or illegal behavior by publicly traded firms.

Marketing

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing creates time, place, and ownership utility by making the product available when and where consumers want to buy and by arranging for orderly transfers of ownership.

product mix

the assortment of product lines and individual goods and services that a firm offers to consumers and business users.

team level

the average level of ability, experience, personality, or any other factor on a team

Socioeconomic Model

the belief that business, as part of its role, owes its existence to improving the society in which it operates.

sustainable

the capacity to endure in ecology.

Private enterprise system

the economic system that rewards firms for their ability to identify and serve the needs and demands of customers - competition in the private enterprise system ensures success for companies that satisfy consumer demands - citizens: enjoy the right to private property, profits, freedom of choice, and competition - entrepreneurship drives economic growth

what are the five main sections of a business plan?

the five sections are the executive summary, introduction, financial section, marketing section, and résumés of principals.

server

the heart of a midrange computer network

personal selling

the most basic form of promotion: a direct person-to-person promotional presentation to a potential buyer.

Short-Term Funding Options

three major short-term funding options are trade credit, short-term loans from banks and other financial institutions, and commercial paper. Trade credit is extended by suppliers when a company receives goods or services, agreeing to pay for them at a later date. Trade credit is relatively easy to obtain and costs nothing unless a supplier offers a cash discount. Loans from commercial banks are a significant source of short-term financing and are often used to finance accounts receivable and inventory. Loans can be either unsecured or secured, with accounts receivable or inventory pledged as collateral. Commercial paper is a short-term IOU sold by a company. Although large amounts of money can be raised through the sale of commercial paper, usually at rates below those charged by banks, access to the commercial- paper market is limited to large, financially strong corporations.

Wide Area Network (WAN)

tie larger geographical regions together by using telephone lines and microwave and satellite transmission

embargo

total ban on importing specific products or a total halt to trading with a particular country

why do investors purchase common stock?

two primary motives for purchasing common stock. One is to receive dividends, cash payments to shareholders by the company. The other is potential price appreciation of the shares

benefit corporation

type of for-profit entity that includes a positive impact on society and the environment as part of its defined goals

how does a business protect its own information

use of a firewall, which is an electronic barrier between the company's internal network and the Internet.

Person Marketing

use of efforts designed to attract the attention, interest, and preference of a target market toward a person

production

use of resources, such as people and machinery, to convert materials into finished goods and services.

Quantum Computing

uses the principles of quantum physics to represent data and perform operations on these data

exchange rate

value of one nation's currency relative to the currencies of other countries.

category advisor

vendor that is designated by the business customer as the major supplier to assume responsibility for dealing with all the other vendors for a project and presenting the entire package to the business buyer.

Do other countries have organizations that play roles similar to those played by the Federal Reserve?

virtually all nations have central banks that perform many of the same functions that the U.S. Federal Reserve System does.

financial markets

where securities are bought and sold. The primary market for securities serves businesses and governments that want to sell new security issues to raise funds. Securities are sold in the primary market either through an open auction or via a process called underwriting. The secondary market handles transactions of previously issued securities between investors. The New York Stock Exchange is a secondary market. The business or government that issued the security is not directly involved in secondary market transactions. In terms of the dollar value of trading volume, the secondary market is about four to five times larger than the primary market.

demand

willingness and ability of buyers to purchase goods and services.

supply

willingness and ability of sellers to provide goods and service

Entrepreneurship

willingness to take risks to create and operate a business

Wi-Fi

wireless network that connects various devices and allows them to communicate with one another through radio waves

self-managed teams

work team that has the authority to decide how its members complete their daily tasks.

business plan

written document that provides an orderly statement of a company's goals, methods, and standards.

Purpose of a mission statement

written explanation of a company's purpose, the reason it exists, the customers it will serve, and how it is different from competitors. A mission statement guides the actions of company managers and employees function of evaluating an organization's performance against its objectives.