intro to business final vocab

MONOPOLY

a business has control of the market for a product or service

PROPRIETORSHIP

a business owned and run by just one person

DEFLATION

a decrease in the general level of prices

IMPROVEMENT

a designed change that increases the usefulness of a product, service, or process

ORGANIZATION CHART

a diagram that shows the structure of an organization

SMALL BUSINESS ADMINISTRATION (SBA)

a government agency that helps small business owners develop business plans and obtain financing and other support for their companies

BUDGET SURPLUS

a government may spend less than it takes in

BUDGET DEFICIT

a government may spend more than it takes in

EMBARGO

a government stops the export and import of a product

INFRASTRUCTURE

a nation's transportation, communication, and utility systems

ECONOMIC SYSTEM

a nations plan for answering the three economic questions

NON-RENEWABLE RESOURCE

a natural resource that cannot be replaced when used up

PRICE INDEX

a number that compares prices in one year with some earlier base year

RECESSION

a period in which demand begins to decrease, businesses lower production, unemployment begins to rise, and GDP growth slows for two or more quarter of the calendar year

PROSPERITY

a period in which most people who want to work are working, businesses produce goods and services in record numbers, wages are good, and the rate of GDP growth increases

CONSUMER

a person who buys and uses goods and services

DEPRESSION

a phase marker by a prolonged period of high unemployment, weak consumer sales, and business failures

GOAL

a precise statement of results the business expects to achieve

PARTNERSHIP

a separate legal entity formed by documents files with your state

CODE OF ETHICS

a set of rules for guiding the action of employees or members of an organization

MISSION STATEMENT

a short, specific written statement of the reason a business exists and what it wants to achieve

TARIFF

a tax that a government places on certain imported products

TRADEMARK

a word, letter, or symbol linked with a specific company or product.

PARTNERSHIP AGREEMENT

a written agreement among all owners

FRANCHISE

a written contract granting permission to operate a business to sell products and services in a set way

ARTICLES OF INCORPORATION

a written legal document that defines ownership and operating procedures and ownership and operating procedures and conditions for the business

BUSINESS PLAN

a wrtten description of the business idea and how it will be carried out, including all major business activities

SERVICES

activities that are consumed

JOINT VENTURE

an agreement between two or more companies to share a business project

CONTRACT

an agreement to exchange goods or services for something of value, usually money

INFLATION

an increase in the general level of prices

SMALL BUSINESS

an independent business with fewer than 500 employees

INNOVATION

an invention or creation that is brand new

MULTINATIONAL COMPANY (MNC)

an organization that does business in several countries

PUBLIC UTILITY

an organization that supplies a serviceor product vital to all people

INTERMEDIARIES

businesses involved in selling the goods and services or producers to consumers and other businesses

SERVICE BUSINESS

carries out the activities that are consumed by its customers

MIXED ECONOMY

combines elements of the command and market economies

BOND

debt for an organization

PROCEDURES

descriptions of the way work is to be done

CONTROLLING

determines to what extent the business is accomplishing the goals it set out to reach in the planning stage

BALANCE OF TRADE

difference between a country's total exports and total imports

INFLUENCE

enables a person to affect the actions of others

TRADEOFF

give up something to have something else

PATENT

gives the inventor the sole right to make, use, or sell the item for 17 year

TRADITIONAL ECONOMY

goods and services are produced the way it has always been done

EXPORTS

goods and services sold to other countries

QUOTA

governments set a limit on the quantity of a product that may be imported or exported within a given period

POLICIES

guidelines used in making consistent decisions

ORGANIZING

identifying and arranging the work and resources needed to achieve the goals that have been set

STAFFING

includes all of the activities involved in obtaining, preparing, and compensating the employees of a business

PRODUCERS

individuals and organizations that determine what products and services will be available for sale

PLANNING

involves analyzing information, setting goals, and making decision about what needs to be done

GDP

is the total dollar value of all final goods and services produced in a country during one year

IMPORTS

items bought from other countries

INFORMAL INFLUENCE

leadership role is not part of a formal structure

ECONOMIC RESOURCES

means through which goods and services are produced

GDP PER CAPITA

measure of economic growth or output per person

LONG-TERM FINANCING

money needed for the main resources of a business that will last for many years

VENTURE CAPITAL

money provided by large investors to finance new products and new businesses that have a good chance to be very profitable

SCARCITY

not having enough resources to satisfy every need

CONTINGENT WORKER

one who has no explicit or implicit contract for long-term employment

STOCK

ownership in a corporation

ANTITRUST LAWS

prevent other unfair business practices such as false advertising, deceptive pricing, and misleading labeling

ETHICS

principles of morality or rules about how businesses and their employees ought to behave

COPYRIGHT

protects the creative work of authors, composers, and artists

DEMAND

quantity of a good or service that consumers are willing and able to buy

SUPPLY

refers to the quantity of a good or service that businesses are willing and able to provide

TRADE BARRIERS

restriction to free trade

BUSINESS ETHICS

rules about how businesses and their employees ought to behave

PERSONAL INCOME

salaries and wages as well as investment income and goverenment payments to individuals

RETAIL SALES

sales of durable and nondurable goods bought by consumers

ENTREPRENEUR

someone who takes a risk in starting a business to earn a profit

CAPITAL PROJECTS

spending by businesses for items such as land, buildings, equipment, and new products

LEADERSHIP

the ability to motivate individuals and groups to accomplish important goals

START-UP FINANCING

the amount of money needed to open the business

BALANCE OF PAYMENTS

the difference between the amount of money that comes into a country and the amount that goes out of it

SOCIAL RESPONSIBILITY

the duty of a business to contribute to the well-being of a community

IMPLEMENTING

the effeort to direct and lead people to accomplish the planned work of the organization

SHORT-TERM FINANCING

the money needed to pay for the current operating activities of a business

BUSINESS CYCLE

the movement of the economy and back again

RECOVERY

the phase in which unemployment begins to decrease, demand for goods and services increases, and GDP begins to rise again

MARKET PRICE

the point where supply and demand are equal

UNEMPLOYMENT RATE

the portion of people in the labor force who are not working

ENTREPRENEURSHIP

the precess of starting, organizing, managing, and assuming the responsibility for a business

CAPITALISM

the private ownership of resources by individuals, rather than the government

MANAGEMENT

the process of accomplishing the goals of an organization through the effective use of people and other resources

ECONOMIC DECISION-MAKING

the process of choosing which wants will be satisfied

PRODUCTIVITY

the production output in relation to a unit of input, such as a worker

COMMAND ECONOMY

the resources are owned and controlled by the government

MARKET ECONOMY

the resoureces are owned and controlled by the people of the country

COMPETITION

the rivalry among businesses to sell their goods and services

OPPORTUNITY COST

the value of the next-best alternative that you did not choose

MANAGEMENT STYLE

the way a manager treats and involves employees

HUMAN RELATIONS

the way people get along with each other

WANTS

things that add comfort and pleasure to your life

NEEDS

things that are required in order to live

GOODS

things that you can see and touch

NATIONAL DEBT

total amount own by the federal government

EXCHANGE RATE

value of a currency in one country compared with the value in another