Business Management Chapter 1 Vocab

Downsize

cutting back on the goods and services provided and thereby shrinking the size of a firm and the number of employees.

Foreign Goods

products made by firms in other countries

Service Businesses

provide services rather than products to customers

Business

the practice of making one's living by engaging in commerce.

Global Competition

Exists when firms originate, produce, and market their products and services worldwide.

Gross Domestic Product (GDP)

The sum total of the value of all the goods and services produced in a nation

Franchise

A business established or operated under an authorization to sell or distribute a company's goods or services in a particular area

Franchisor

A business that leases its trade name and operating system to another person

Output

A marketable product of a farming operation, such as cash crops, livestock, etc.; the result of the production process.

Efficiency

A measure of how well or how productively resources are used to achieve a goal

Effectiveness

A measure of the appropriateness of the goals an organization is pursuing and the degree to which they are achieved.

Productivity

A measure of the goods and services produced within a particular country.

Intrapreneur

A person in a corporation who is given the freedom and resources to initiate products, business ventures, etc.

Franchisee

A person who buys a franchise

Entrepreneur

A person who starts up and takes on the risk of a business

Finance

Activities involved in planning for, obtaining, and managing a company's funds.

Marketing

Activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders and society at large

Industry

All the businesses that make one kind of product or offer one kind of service.

Innovation

An improvement of an existing technological product, system, or method of doing something.

Underground Economy

Buying and selling of goods and services that is concealed from the government to avoid taxes or regulations or because the goods and services are illegal

Empowerment

Capacity to influence and potentially lead, gained in part by speaking with competence and confidence.

Production

Converting materials into completed salable garments/products.

Industrial Businesses

Produce goods used by other businesses or organizations to make things.

Domestic Goods

Products made by firms in the home country

Commercial Businesses

firms engaged in marketing, in finance, and in furnishing services.