BUS MCE Test 1

Angels

Private individuals who invest their own money in potentially hot new companies before they go public.

Franchise

The right to use a specific business's name and sell its products or services in a given territory

Effectiveness

meeting the objective

Gross Domestic Product (GDP)

total value of final goods and services produced in a country in a given year

Efficiency

using the smallest amount of resources possible

Accounting

•Daily sales, expenses, and profits •Inventory control, customer records, and payroll

Human Resources

•Deciding labor needs •Recruiting and selecting the right people •Training and development for growth •Rewards and culture for retention Motivating for performance

Manager

-A person that uses influence to set and achieve goals. -A person who directly supervises, supports, and activates work effort to achieve performance goals of individuals, groups, and organizations.

Partnership

A business in which two or more persons combine their assets and skills.

Cooperative

A business owned and controlled by the people who use it—producers, consumers, or workers with similar needs who pool their resources for mutual gain

state capitalism

A combination of freer markets and some government control

Franchisor

A company that develops a product concepts and sells others the rights to make and sell the products.

Organization

A deliberate arrangement of people brought together to accomplish a specific purpose.

Oligopoly

A few sellers dominate the market

Planning

A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.

Entrepreneur

A person or team that risks time and money to start and manage a business

Deflation

A situation in which prices are declining

C Corporation

A state-chartered legal entity with authority to act and have liability separate from its owners.

S Corporation

A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships.

Conceptul Skills

Ability to: -think analytically -work with abstract ideas -solve complex problems

Technical Skills

Ability to: -use expertise -perform tasks with proficiency -apply strong skill set to operations

Human Skills

Ability to: -work well with others -relate to people -develop social capital -build and manage relationships

Free-market capitalism

All or most of the factors of production and distribution are privately owned and operated for profit

General Partnership

All owners share in operating the business and in assuming liability for the business's debts.

Stakeholders

All the people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address.

Productivity

Amount of goods or services that can be produced with a given amount of input (often measure in time)

Productivity

Amount of output generated given amount of input

Communism

An economic and political system in which the government makes almost all economic decisions and owns almost all the major factors of production

Socialism

An economic system based on the premise that some, if not most, basic businesses (e.g., steel mills, coal mines, utilities) should be owned by the government so that profits can be more evenly distributed among the people.

Nonprofit

An organization whose goals do not include making a personal profit for its owners or organizers

Top Manager

An upper-level executive who guides and controls the overall fortunes of an organization.

Business

Any activity that seeks to provide goods and services to others while operating at a profit

Stakeholders

Any constituencies in an organization's environment that are affected by that organization's decisions and actions.

Francise Agreement

Arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory

Microeconomics

Behavior of people and organizations in particular markets (e.g., cost/benefit calculations, purchasing decisions, etc.)

Governance

Board of Directors, Board of Trustees

Financing

Budgeting for marketing activities,obtaining the necessary funds needed for operations,and providing financial assistance to customers so they can purchase the business products and service.

Economic boom

Business is booming

Pure Risk

Can only result in loss with no chance of profit (e.g., threat of fire, accident, or theft)

Speculative Risk

Can result in either profit or loss (e.g., buying new machinery, acquiring more inventory, etc.)

Risk

Chance of loss, degree of probability of loss, amount of possible loss

Operating Costs

Costs involved with operating the organization

Positional Social Power

Derived from the formal roles (i.e., particular office or rank) you hold in an organization, a social system, or society

Personal Social Power

Derived from your unique personal attributes and skills that lead others to respect, idolize, adore, trust, like and/or view you as an expert and knowledgeable

Crowdfunding

Donation based or debt-investment (peer-to-peer lending).

General Partner

General partner is an owner (partner) who has unlimited liability and is active in managing the firm.

command economies

Government largely determines what goods and services gets produced, who gets them, and how the economy grow

Influence

Having an effect or impact on the actions, behavior, opinions, etc., of another or others

Price Indexes(2 Types)

Help gauge the health of the economy by measuring levels of inflation, disinflation, deflation, and stagflation. Consumer Price Index (CPI) Producer Price Index (PPI)

Resource Development

How to increase resources and to create conditions that will make better use of those resources

limited partnership/partner

Includes one or more general partners and one or more limited partners.

Flow-Through Entity

Income is passed straight to its shareholders or owners

venture capitalists

Individuals or companies that invest in new business in exchange for partial ownership of those businesses.

Inflation

Inflation is the rate of increase in prices over a given period of time.

Conglomerate Merger

Joining of firms in completely unrelated industries

Horizontal Merger

Joining of two firms in the same industry

monopolistic competition

Large number of sellers produce very similar products that buyers nevertheless perceive as different

Limited Partner

Limited partner is an owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment.

Front-line management

Lowest level of management in the hierarchy; responsible for the work of the operating employees only and does not supervise other managers.

Middle Manager

Manager responsible for implementing the strategies and working toward the goals set by top managers.

perfect competition

Many sellers but none is large enough to dictate the price of a product

Free-market economies

Market largely determines what goods and services gets produced, who gets them, and how the economy grows.

Cost of goods sold

Measure of the cost of merchandise sold or cost of resources used for producing items

Double taxation

Must file and pay taxes on corporate level and individual level

Acquisition

One company's purchase of the property and obligations of another company

Monopoly

One seller controls the total supply of a product or service, and sets the price.

Macroeconomics

Operation of a nation's economy as a whole (e.g., GDP, unemployment rate, price indexes)

Consumer Market

People with unsatisfied wants and needs who have both the resources and willingness to buy.

Unemployment Rate

Percentage of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks.

franchisee

Person who buys a franchise

Limited Liability

Responsibility of a business's owners for losses only up to the amount they invest

Merger

Result of two firms forming one company

Depression

Severe recession, usually accompanied by deflation

Demand

The quantity of products that people are willing to buy at different prices at a specific time

Accountability

The requirement of one person to answer to a higher authority

Mixed Economies

Some decisions about allocation of resources are made by the market and some decisions are made by the government.

Demography

Statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income.

Profit

The amount of money earned above and beyond what it spends

Vertical Merger

The joining of two companies involved in different stages of related business

unlimited liability

The owner is personally and fully responsible for all losses and debts of the business.

Equilibrium Point

The price determined by supply and demand ("Market Price")

Management

The process of getting things done effectively and efficiently, with and through people.

Supply

The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time

Economics

The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals

Revenue

Total amount of money a business takes in during a given period by selling goods or services

Recession

Two or more consecutive quarters of decline in the GDP

Small Business Administration (SBA)

US government agency that advises and assists small businesses by providing management, financial advice, and loans

upside-down pyramid

View of organizations that puts consumers at the top and positions upper levels of management as supporters of lower levels of management

Loss

When a business expenses are more than its revenues

Recovery

When economy stabilized and starts to grow, eventually leading to economic boom.

Globalization

World trade

Stagflation

a period of slow economic growth and high unemployment (stagnation) while prices rise (inflation)

Disinflation

a reduction in the rate of inflation

Informational

•Exchanging and processing information •Ex: monitoring and disseminating

Interpersonal

•Interacting with people •Ex: building relationships, influencing

Corporation

•Legal entity that is separate and distinct from its owners •"artificial being" - entity that exists only in the eyes of the law •Shareholders have rights to profits (dividends or appreciation of stock) but are not held personally liable for company's debts

Limited Liability Company (LLC)

•Like S Corp, but without the special eligibility requirements •Owner(s) can be a person, partnership, or corporation •Owners are not personally liable •Pay self-employment tax •Pay personal tax or corporate tax •LLC ownership isnottransferable (no stock)

Operations

•Manufacturing plan •Supply chain considerations

Sole Proprietorship

•Owned, and usually managed, by one person •Owner manages all areas of the business •Usually, fewer benefits and lower wages for employees •Most common form of business

Decisional

•Using information to make decisions •Ex: resource allocation, address opportunities