key terms intro to business

entrepreneurship and knowledge

two factors of production that seem to contribute the most to a nations ability to create wealth are

planning financing

two key management functions that need particular attention when starting a business

loss

a business incurs a what if its costs and expenses exceed its revenues

intrapreneur

a creative person working within a corporation to launch new products and generate new profits is known as a

value of imports is less then the value of exports

a favorable balance of trade occurs when the value of

comparative advantage

a nation has a what in the production of a good or service if it can produce that good or service more effectively or efficiently than it can produce other goods

integrity

a what based ethics code defines corporate values creates a supportive environment and stresses shared accountability among employees

compliance

a what based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers

conventional corporation

a what is a state chartered legal entity with authority to act and to have liability separate from its owners

merger

a what is two firms combining to form one company

vertical

a what merger unites firms at different stages of related businesses

invisible hand

adam smith believed that countries would prosper if businesspeople were free to start and run their own businesses. businesspeople would make a profit by providing the goods services and ideas that others in the economy wanted and they would hire others to help increase those profits leading to social and economics benefits for many this idea was called the

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

insider trading

an unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends

entrepreneur

an what is a person who assumes the risk of starting a business

swot

analysis used to help companies evaluate their internal strengths and weaknesses and develop an awareness of external threats and opportunities

business

any activity that seeks to provide goods and services to other while operating at a profit is considered a

executive summary

bankers and potential investors are likely to read what first

micropreneurs

business owners who prefer to maintain their businesses at a manageable size are called

minimal government spending because it keeps taxes to a minimum

businesses favor

incubators

centers that offer new businesses low-cost offices with basic business services

embargo

complete ban on the import or export of a certain product or the stopping of all trade with a particular country

learned by observing the actions of others in the organization

corporate values are

monopoly

degree of competition in which only one seller controls the total supply of a product or service, and sets the price

corporate responsibility

dimension of social responsibility that includes everything from hiring minority workers to making safe products

corporate policy

dimension of social responsibility that refers to the position a firm takes on social and political issues is referred to as corporate policy

overpopulation

economist thomas malthus believed that what would limit economic progress

venture capitalist

firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a

market

free market is one in which decisions about what to produce and in what quantities are made by

quality of life

general well-being of a society in terms of its political freedom, natural environment, education, health care, safety, amount of leisure, and rewards that add to the satisfaction and joy that other goods and services provide

licensing

granting a foreign company the right to manufacture your product or to use your firms trademark in return for a fee is called

businesses owned by minority women are going at a faster rate than businesses owned by men

how is the profile of business owners changing

conceptual skills

involve the ability to picture the organization as a whole and the relationship among its various parts. they enable a leader to develop a vision

quality of life

is a measure of the general well-being and satisfaction derived from a variety of factors including political freedom safety education and a clean environment

economics

is the study of how a society employs its limited resources to produce goods and services and how it distributes them among competing groups and individuals

autocratic leader

makes managerial decisions without consulting other

capitalism

most of the means of production and distribution are privately owned and operated for profit

ethical behavior

obeying the law is the first step towards

absolute advantage

occurs when a country has a monopoly on producing a product or is able to produce it at a cost well below that of all other countries

product differetiation

on its website papa johns pizza compares itself to the competition with the following message "better ingredients better pizza" the company wants to achieve

acquisition

one companys purchase of the property and obligations of another company is called an

mission statement

outlines the fundamental purposes of an organization

stockholder

owner of a corporation is known as a

limited partner

owner who invests money in the business buy does not have any management responsibility or liability for losses beyond the investment

right to own private property

patrick lives in a nation whose government embraces capitalism. he owns his own home and car as well as his own business and building patrick maintains ownership due to

market

people with unsatisfied wants and needs who have both the resources and the willingness to buy make up a

franchisee

person who buys a franchise

tactical planning

process of developing detailed short-term statements about what is to be done, who is to do it and how it is to be done

social audit

purpose of an what is to evaluate an organizations progress towards implementing programs that are socially responsible and responsive

ethics

refers to standards of moral behavior

exporting

selling of products to another country

trade deficit

since 1975 the U.S. has had a

enterprise zones

specific geopgraphic areas to which governments try to attract private business investment by offering lower taxes and other government support

consumer priceindex

statistical measure of the pace of inflation or deflation

demography

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

resource development

study of how to increase the amount of available resources and create conditions that will make better use of these resources is known as

tariff

tax imposed on imports

standard of living

the amount of goods and services people can buy with the money they have is called their

productivity

the amount of output generated given the amount of input

perfect competition

the market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product

oligopolies

the markets for laundry detergents soft drinks and automobiles are dominated by just a few sellers economists would classify these markets as examples of

dumping

the president of auto parts of america corporation recently testified before congress urging them to limit the flow of imported automobile parts into the united states he contended that these imports were priced lower than foreign producers were charging for them in their own countries he believes foreign producers are

factors of production

the resources that contribute to the creation of wealth are known as

balance of payments

the what is the difference between money flowing into a country from exports and money leaving the country for imports plus money flows coming from other factors such as tourism foreign aid military expenditures and foreign investment

sole proprietorship

the what is the most common form of business ownership

corporate philanthropy

we describe charitable donations by corporations to nonprofit organizations as

risk

what is the chance a business owner will lose the time and money invested in a business that proves to be unprofitable

recession

when the economy experiences two of more consecutive quarters of decline in the GDP it has entered into a recession

fiscal policy

when the federal government makes an effort to keep the economy stable by increasing or decreasing taxes or government spending it is exercising

conglomerate merger

when two companies in completely unrelated industries agree to become one firm the result is called a

knowledge

which of the following is a factor of production

limited liability of owners

which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships

is it balanced

which of the following questions will help individuals and organizations when deciding if their decisions are ethical

whistleblower

which of the following terms describes someone who reports illegal or unethical behavior

culture

which of the following terms describes the set of values beliefs rules language and institutions held by a specific group of people

vision

working with management and employees a CEO uses conceptual skills to develop a what of where the company can be in the future

business plan

written document that details the business idea the target market and the businesss competitive advantage financial resources available for the business and the qualitfication of the management

general partnership

zach and mac own an auto repair business which they operate as coowners both take an active role in the management of the business and each accepts unlimited liability zach and mac operate as a