Business Key Terms and Functions
Enterprise Resource Planning Systems
A computerized resource-planning system that incorporates information about the firm's suppliers and customers.
Balance sheet
A financial statement that summarizes a firm's financial position at a specific point in time.
Income statement
A financial statement that summarizes a firm's revenues and expenses.
Internet
A large network of interconnected computers.
MBTI
A personality assessment that identifies natural preferences on four different scales.
Chief Information Officer (CIO) / Chief Technology Officer (CTO)
An executive with responsibility for managing all information and technology resources in an organization.
Shareholder
An individual, company, or institution that owns a share of a company's stock.
Intranet
An internal corporate-wide network that uses internet technology to connect computers and link employees.
Business
An organization that provides goods and services for profit.
Database
An organized collection of data stored and accessed electronically.
Stakeholder
Anyone involved with or affected by an organization.
Debt
Borrowed funds that must be repaid with interest.
Equity
Funds raised through the sale of stock in a business.
Services
Intangible offerings of businesses that can't be held, touched, or stored.
Inputs
Natural resources, raw materials, human resources, and capital.
Talent
Naturally recurring behavior patterns, thought patterns, and beliefs that make you effective and efficient.
Financial planning
Preparing the financial plan that projects revenues, expenditures, and financing needs.
Outputs
Products and services.
Financing
Raising money for the firm's operations and investments.
Data
Raw, unorganized facts that can be moved and stored.
Database management system
Software that allows users to enter, store, organize, select, and retrieve data in a database.
Investment
Spending money on projects and securities that provide high returns.
Management information systems
Systems that leverage technology, information, and people to further organizational goals.
Goods
Tangible items manufactured by businesses.
Strengths
The ability to provide consistent, near-perfect performance in a given activity.
Procurement
The action of obtaining equipment or supplies for a business.
Financial management
The art and science of managing a firm's money to meet its goals.
Finance
The art and science of managing a firm's money.
Marketing mix
The combination of product, price, place, promotion, and people that make up marketing strategies.
Logistics
The coordination of a complex operation involving people, facilities, or supplies.
Production
The creation of products and services by turning inputs into outputs.
Operations
The design, execution, and control of operations that convert resources into goods and services.
Inventory management
The determination of how much inventory to keep on hand and the tracking of inventory.
Profit
The difference between revenue and expenses.
Information technology
The equipment and techniques used to manage and process information.
Management process
The functions of planning, organizing, leading, and controlling.
Supply chain sustainability
The management of environmental, social, and economic impacts throughout the lifecycles of goods and services.
Critical thinking
The process of analyzing information and constructing arguments to reach conclusions.
Accounting
The process of collecting, recording, summarizing, and analyzing financial activities.
Marketing
The process of discovering customer needs and providing goods and services to meet those needs.
Management
The process of guiding the development, maintenance, and allocation of resources.
Market segmentation
The process of identifying and evaluating layers of a market to identify a target market.
Supply chain management
The process of smoothing transitions along the supply chain to satisfy customers with quality products and services.
Information security
The processes and tools designed to protect sensitive business information.
Supply chain
The sequence of securing inputs, producing goods, and delivering goods to customers.
Target market
The specific group of consumers toward which a firm directs its marketing efforts.
Owners' equity
The total amount of investment in the firm minus any liabilities.
Assets
Things of value owned by a firm.
Traditional purpose of a business
To maximize the value of the firm to its owners.
Liabilities
What a firm owes to its creditors.