MGMT 1 Midterm

Compliance-based Ethics Codes

Ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers

The current Social Security system will ensure that the young people of today will have Social Security benefits in the future when they retire.

False

The evidence for climate change is questionable. Well-known U.S. companies are taking a wait-and-see approach toward addressing climate change.

False

The main difference between B2C and B2B e-commerce is that B2C uses only the Internet, while B2B combines e-commerce with traditional (bricks-and-mortar) outlets.

False

The only way a firm can increase its profits is to increase its sales revenue.

False

The principle of mercantilism encouraged nations to keep economics separate from politics.

False

Top management is also known as first-line management because it deals with key managerial decisions on a priority basis.

False

When it comes to human resource management issues, the federal government generally has taken a "hands off" approach since the early 1960s.

False

When writing a business plan, prospective entrepreneurs should remember to omit details regarding their experience and education since investors are only interested in the proposed business.

False

Equity Theory

Idea that employees try to maintain equity between inputs and outputs compared to others in similar positions

For a firm to be considered a multinational corporation, which of the following conditions must be true?

It must have manufacturing facilities and a physical presence in several countries.

Title VII of the Civil Rights Act of 1964 prohibits discrimination in hiring, firing, or compensation, based on race, religion, creed, sex, or national origin.

True

While telling an abusive joke about an ethnic group may not be unlawful, it is unethical.

True

Stagflation

Economy is slowing but prices are going up anyhow

Inflation

General rise in the prices of goods and services over time

Digital Natives

Young people who have grown up using the Internet and social networking

Internal Customers

Individuals and units within the firm that receive services from other individuals or units

Services

Intangible products

The Nissan automobile assembly plant in Tennessee is an example of foreign direct investment in the United States.

True

Contingent Workers

Workers who do not have the expectation of regular, full-time employment

Key Strategies for Reaching Global Markets

- Licensing - Exporting - Franchising - Contract Manufacturing - International Joint Ventures and Strategic Alliances - Foreign Subsidies - Foreign Direct Investment

Business Cycle Phases

1. Boom: business is booming 2. Recession: 2+ consecutive quarters of decline in the GDP 3. Depression: Severe recession, usually accompanied with deflation 4. Recovery: Economy stabilizes and starts to grow

Three Key Elements of General Partnerships

1. Common ownership 2. Shared profit and losses 3. Right to participate in managing operations of the business

Leaders Must...

1. Communicate a vision and rally others around that vision 2. Establish corporate values 3. Promote corporate ethics 4. Embrace change 5. Stress accountability and responsibility

Outline of a Business Plan

1. Cover letter 2. Executive summary 3. Company background 4. Management team 5. Financial plan 6. Capital required 7. Marketing plan 8. Location analysis 9. Manufacturing plan 10. Appendix

The Six D's to Decision Making

1. Define the situation 2. Describe and collect needed info 3. Develop alternatives 4. Decide which alternative is best 5. Do what is indicated (begin implementation) 6. Determine whether the decision was a good one, and follow up

Steps to Improve Employee Performance

1. Determine what rewards employees value 2. Determine each employee's desired performance standard 3. Ensure that performance standards are attainable 4. Guarantee rewards tied to performance 5. Be certain that employees consider the rewards adequate

Sole Proprietor Advantages

1. Ease of starting and ending the business 2. Being your own boss 3. Pride of ownership 4. Leaving a legacy 5. Retention of company profits 6. No special taxes

Types of Business Environments

1. Economic and Legal 2. Technological 3. Competitive 4. Social 5. Global Business

Objectives of the North American Free Trade Agreement

1. Eliminate trade barriers and facilitate cross-border movement of goods and services 2. Promote conditions of fair competition 3. Increase investment opportunities 4. Provide effective protection and enforcement of intellectual property rights (copyrights and patents) 5. Establish a framework for further regional trade cooperation 6. Improve working conditions in North America

Controlling Steps

1. Establish clear performance standards 2. Monitoring and recording actual performance or results 3. Comparing results against plans and standards 4. Communicating results and deviations to the appropriate employees 5. Taking corrective action when needed and providing positive feedback for work well done

Steps of Appraisal

1. Establish performance standards 2. Communicating those standards 3. Evaluating performance 4. Discussing results with employees 5. Taking corrective action 6. Using the results to make decisions

Difficulties for Small Businesses in Global Business

1. Financing is often too difficult to find 2. Would be exporters don't know how to get started and don't know the cultural differences between markets 3. Bureaucratic paperwork can threaten to buy a small business

Benefits of Licensing

1. Firm can gain revenues it would not otherwise have generated in its home market 2. Foreign licenses often must purchase start-up materials, supplies, and consulting services from the licensing firm. 3. Licensors spend little or no money to produce and market their products

Franklin Roosevelt's Additional Freedoms

1. Freedom of speech and expression 2. Freedom to worship in your own way 3. Freedom from want 4. Freedom from fear

Challenges of working at home

1. Getting new customers 2. Managing time 3. Keeping work and family tasks separate 4. Abiding by the city ordinances 5. Managing risk

Key Economic Indicators

1. Gross Domestic Product 2. Unemployment Rate 3. Price indexes

Qualifications of a S Corporation

1. Have no more than 100 shareholders 2. Have shareholders that are citizens or permanent residents of the U.S. 3. Have only one class of sock 4. Have 25% or less of income from passive sources (ex. rent, royalties, interest)

Disadvantages of Corporations

1. Initial cost 2. Extensive paperwork 3. Double taxation 4. Two tax returns 5. Size 6. Difficulty of termination 7. Possible conflict with stockholders and board of directors

Disadvantages of a Franchise

1. Large start-up costs 2. Shared profit 3. Management regulation 4. Coattail effects 5. Restrictions on selling 6. Fraudulent franchisors

Advantages of Corporations

1. Limited liability 2. Ability to raise more money for investment 3. Size 4. Perpetual life 5. Ease of ownership change 6. Ease of attracting talented employees 7. Separation of ownership from management

Advantages of an LLC

1. Limited liability 2. Choice of taxation 3. Flexible ownership rules 4. Flexible distribution of profits and losses 5. Operating flexibility

Advantages of a Franchise

1. Managing and marketing assistance 2. Personal ownership 3. Nationally recognized name 4. Financial advice and assistance 5. Lower failure rate

Advantages of Partnerships

1. More financial resources 2. Shared management and pooled/complementary skills and knowledge 3. Longer survival 4. No special taxes

Disadvantages of an LLC

1. No stock 2. Limited lifespan 3. Fewer incentives 4. Taxes 5. Paperwork

Selection Process

1. Obtaining complete application forms 2. Conducting initial and follow up interviews 3. Giving employment tests 4. Conducting background investigations 5. Obtaining results from physical exams 6. Establishing trial (probationary) periods

Why people take the entrepreneurial challenge

1. Opportunity 2. Profit 3. Independence 4. Challenge

Advantages of a Small Business in International Trade

1. Overseas buyers often enjoy dealing with individuals rather than large corporate bureaucracies 2. Small companies can usually begin shipping much faster 3. Small companies provide a wide variety of suppliers 4. Small companies can give customers personal service and undivided attention, because each overseas accountant is a major source of business to them

Degrees of Competition

1. Perfect 2. Monopolistic 3. Oligopoly 4. Monopoly

Four Functions of Management

1. Planning 2. Leading 3. Organizing 4. Controlling

Human Resource Planning Process

1. Preparing a human resource inventory of the organization's employees 2. Preparing a job analysis 3. Assessing future human resource demand 4. Assessing future labor supply 5. Establishing a strategic plan

Four Basic Rights

1. Right to own property 2. Right to own a business and keep all that business's profits 3. Right to freedom of competition 4. Right to freedom of choice

Four Basic Rights

1. Right to safety 2. Right to be informed 3. Right to choose 4. Right to be heard

What it takes to be an entrepreneur

1. Self directed 2. Self nurturing 3. Action oriented 4. Highly energetic 5. Tolerant of uncertainty

Benefits of a Joint Venture

1. Shared technology and risk 2. Shared marketing and management expertise 3. Entry into markets where foreign companies are often not allowed unless goods are produced locally

Motivation and Performance

1. Skill Variety 2. Task identity 3. Task significance 4. Autonomy 5. Feedback

Four Major Hurdles to Successful Global Trade

1. Sociocultural forces 2. Economic and financial forces 3. Legal and regulatory forces 4. Physical and environmental forces

Skills needed at Various Levels of Management

1. Technical Skills 2. Human Relation Skills 3. Conceptual Skills

Steps to Improve U.S. Business Ethics

1. Top management must adopt and unconditionally support an explicit corporate code of conduct 2. Employees must understand that expectations for ethical behavior begin at the top and that senior management expects employees to act accordingly 3. Managers and others must be trained to consider the ethical implications of all business decisions 4. An ethics office must be setup with which employees can communicate anonymously 5. Outsiders such as suppliers, subcontractors, distributors, and customers must be told about the ethics program 6. Ethics code must be enforced with timely action if any rules are broken

Fayol's Principles

1. Unity of command 2. Hierarchy of authority 3. Division of labor 4. Subordination of individual interests to the general interest 5. Authority 6. Degree of centralization 7 Clear communication channels 8. Order 9. Equity 10. Esprit de corps: a spirit of pride and loyalty should be created

Disadvantages of Partnerships

1. Unlimited Liability 2. Division of profits 3. Disagreements among partners 4. Difficulty of termination

Sole Proprietorship Disadvantages

1. Unlimited liability: Responsibility of business owners for all of the debts of the business 2. Limited financial resources 3. Management difficulties 4. Overwhelming time commitment 5. Few fringe benefits 6. Little growth 7. Limited lifespan

General Agreement on Tariffs and Trade (GATT)

1948 Agreement that established an international forum for negotiating mutual reductions in trade restrictions

Bull's-Eye, a regional discount retailer, carefully watches and compares its operations with the operations of its closest rivals. This firm does: 1. outsourcing. 2. functional positioning. 3. core competency ranking. 4. competitive benchmarking

4. Competitive benchmarking

Small Business Administration (SBA)

A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans

Cooperative

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

Small Business

A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Administration) in terms of employees or annual receipts

Sole proprietorship

A business that is owned, and usually managed, by one person

Corporate Social Responsibility (CSR)

A business's concern for the welfare of society

Foreign Subsidiary

A company owned in a foreign country by another company, called the parent company

Franchisor

A company that develops a product or service concept and sells its rights to to make and sell the products

Business Plan

A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s)

When managers disregard ethical concerns, the likely result is:

A general mistrust between workers and management.

Entrepreneurial Teams

A group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product

Job Enlargement

A job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment

Corporation

A legal entity with authority to act and have liability separate from its owners

Partnership

A legal form of business with two or more owners

Strategic Alliance

A long-term partnership between two or more companies established to help each company build competitive market advantages

Planning

A management function that includes anticipating trends and determining the best strategies and tactics to achieve

Organizing

A management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives

Gross Output (GO)

A measure of total sales volume at all stages of production. Usually about 2x GDP and better indicator of the business cycle and more consistent with economic growth theory

Job Enrichment

A motivational strategy that emphasizes motivating the worker through the job itself

Joint Venture

A partnership in which two or more companies (often from different companies) join to undertake a major project

Master Limited Partnership (MLP)

A partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids corporate income tax.

Franchisee

A person who buys a franchise

SWOT Analysis

A planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats

Small Business Investment Company (SBIC) Program

A program through which private investment companies licensed by the Small Business Administration lend money to small businesses

Conventional (C) Corporations

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

Job Analysis

A study of what is done by employees who held various job titles

Job Description

A summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions

Virtual Corporation

A temporary networked organization made up of replaceable firms that join and leave as needed

S Corporation

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

Job Specifications

A written summary of the minimum qualifications required of workers to do a particular job

One of the four primary functions of management is: A. controlling. B. marketing. C. financing. D. designing.

A. Controlling

Maria recently purchased 100 shares of stock in Idle Time Gaming, Inc. Maria is a(n) ______________ of this company. A. owner B. manager C. creditor D. partner

A. Owner

Milo currently has a good job and can afford a decent apartment and plenty of food. Due to significant political unrest and recent street violence in his town, he is considering uprooting himself and applying for a visa to move to another country. According to Maslow, Milo's concern reflects a desire to satisfy his: 1. physiological needs. 2. safety needs. 3. social needs. 4. self-actualization needs.

A. Physiological needs

Any debts or damages incurred by a firm organized as a sole proprietorship are: A. the responsibility of the owner. B. limited to the amount the owner has invested in the firm. C. paid for out of a reserve contingency fund that sole proprietors are required by law to set up. D. normally covered by liability insurance.

A. The responsibility of the owner

Which of the following statements is the best description of how scientific management viewed employees? A. Employees are like machines that must be programmed to perform in a certain way. B. Most employees are creative and intelligent individuals who should be given a great deal of freedom and flexibility in how they perform their jobs. C. Employees will only exert their maximum effort if they believe that their goals are attainable. D. Employees are individuals who do not respond in the same way to a particular management style.

A. employees are like machines that must be programmed to perform in a certain way.

A common characteristic of most entrepreneurs is that they:

Accept the risks involved in starting and managing a business.

Entrepreneurship

Accepting the risk of starting and running a business

Max Weber's Principles

Added... 1. Job descriptions 2. Written rules, decision guidelines, and detailed records 3. Consistent procedures, regulations, and policies 4. Staffing and promoting based on qualifications

Absolute Advantage

Advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries

North American Free Trade Agreement (NAFTA)

Agreement that created a free-trade area among the U.S., Canada, and Mexico

Training and Development

All attempts to improve productivity by increasing an employees ability to perform, training focuses on short term skills, where as development focuses on the long term skills

Stakeholders

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

Profit

Amount of money a business earns above and beyond what it spends for salaries and other expenses

Affiliate Marketing

An Internet based marketing strategy in which a business rewards individuals or other businesses (affiliates) for each visitor or customer the affiliate sends to its website

Service Corps of Retired Executives (SCORE)

An SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses)

Franchise Agreement

An arrangement whereby somebody 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

Job sharing

An arrangement whereby two part time employees share one full time job

Leveraged Buyout (LBD)

An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing

Communism

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

Vision

An encompassing explanation of why the organization exists and where it's trying to head

Performance Appraisal

An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination

Mentor

An experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people ad generally being their organizational sponsor

Producer Price Index (PPI)

An index that measures prices at the wholesale level

Matrix Organization

An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line and staff structure

Centralized Authority

An organization structure in which decision making is maintained at the top level of management at the company's headquarters

Decentralized Authority

An organization structure in which decision-making is delayed to lower-level managers more familiar with local conditions than headquarters management could

Tall Organization Structure

An organization structure in which the pyramidal organization chart would be quite tall because of the various levels of management

Flat Organization Structure

An organization structure that has few layers of management and a broad span of control

Inverted Organization

An organization that has contact with people at the top and the chief executive officer at the bottom of the organization chart

Line Organization

An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization with all people reporting to only one supervisor

Multinational Corporation

An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management

Mission Statement

An outline of the fundamental purposes of an organization outlining: - The organization's self concept - It's philosophy - Long term survival needs - Customer needs - Social responsibility - Nature of the product or service

General Partner

An owner (partner) who has unlimited liability and is active in managing the firm

Limited Partner

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

Business

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

Probably the most controversial program enforced by the Equal Employment Opportunity Commission concerns: A. mandatory retirement. B. affirmative action. C. equal pay reporting. D. green card requirements for illegal aliens.

B. Affirmative Action

In a bureaucratic organization: A. departments communicate with each other on a regular basis. B. employees follow strict rules and regulations. C. customer satisfaction is the number one priority. D. first-line workers are empowered to respond to the needs of customers.

B. Employees follow strict rules and regulations

Kyra recently quit a job with a large corporation to start her own business. While she realizes that her decision comes with risk, she is excited at the chance to be independent and by the challenges of running her own firm. Kyra is an example of a(n): A. intrapreneur. B. entrepreneur. C. venture capitalist. D. raconteur.

B. Entrepreneur

The first step in the performance appraisal process is to: A. perform a human resource inventory. B. establish performance standards. C. analyze the jobs to see what tasks must be performed. D. meet with employees and discuss the overall objectives of the firm.

B. Establish performance standards

Entrepreneurs applying for a bank loan should realize that bankers will: A. expect to receive a share of ownership in the business in exchange for their loan. B. expect the entrepreneur to provide a business plan. C. generally make loans only to small businesses in dot-com related industries. D. offer only short-term financing.

B. Expect the entrepreneur to provide a business plan

Zach and Mac own an auto repair business that they operate as co-owners. Both take an active role in the management of the business, and each accepts unlimited liability. Zach and Mac operate as a ________. A. joint venture B. general partnership C. limited partnership D. cooperative

B. General partnership

State and city governments have promoted facilities where new businesses can open up shop and share common services such as secretarial, accounting, and legal services. Due to their remarkable success rate, _______________ continue to grow in popularity. A. enterprise zones B. incubators C. intrapreneurial development centers D. venture farms

B. Incubators

The further up the managerial ladder a person moves, the __________ his or her original job skills become. A. more important B. less important C. stronger D. more tactical

B. Less important

Which of the following is an advantage of a line organization in a large business? A. It does not require specialists to advise people along the line. B. Responsibility and authority are clearly defined. C. Each worker has several supervisors. D. It is very flexible.

B. Responsibility and authority are clearly defined

The organizational structure of a corporation permits: A. the company management to elect the Board of Directors. B. stockholders to elect the Board of Directors. C. stockholders to elect the officers and management team. D. employees (by committee) to elect the officers of the company.

B. Stockholders to elect the Board of Directors

Javier is the sole proprietor of a golf shop. Because he is a sole proprietor, any profit Javier's business earns is: A. totally tax-free. B. taxed only as Javier's personal income. C. taxed twice, once as business income, then again as Javier's personal income. D. taxed only if and when it is distributed to investors.

B. Taxed only as Javier's personal income

The strategy of investors who are attempting a leveraged buyout is to: A. shape up the company for quick resale. B. use debt to finance the buyout of the firm's stockholders and gain control of the firm themselves. C. secure ownership of all of the existing stock in a company by issuing and selling large amounts of new stock. D. use investment tax credits from the government to acquire all of the physical assets owned by the firm.

B. Use debt to finance the buyout of the firm's stockholders and gain control of the firm themselves

Keaton is an intrapreneur for a multinational electronics company. As an intrapreneur Keaton: A. is expected to recruit new managerial talent for his firm. B. will use the firm's existing resources to develop new products. C. is concerned mainly with improving the firm's public image. D. will concentrate on creating new ventures that can be spun off to become independent firms.

B. Will use the firm's existing resources to develop new products

Thomas Malthus

Believed that there are too many people in the world to sustain with the resources available (Macroeconomics)

Fringe Benefits

Benefits such as sick leave-pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages

Microeconomics

Branch of economics that looks at the behavior of people and organizations in particular markets

Macroeconomics

Branch of economics that looks at the operation of a nation's economy as a whole

Importing

Buying products from another country

MC Qu. 194 Successful entrepreneurial teams:... Successful entrepreneurial teams: A. quickly organize themselves like large corporations. B. assign only one person to new product innovation. C. bring a variety of talent to the business venture. D. outsource most of the details of innovation.

C. Bring a variety of talent to the business venture

Which of the following best describes the difference between an intrapreneur and an entrepreneur? A. Intrapreneurs start nonprofit organizations while entrepreneurs start profit-seeking businesses. B. Intraprenuers are practical while entrepreneurs are creative. C. Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business. D. Intrapreneurs limit their efforts to financial investments, while entrepreneurs are involved in the management of all areas of a business.

C. Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business

When Brian started his auto mechanic shop, his business plan included a(n) _______________ that showed the relationships among employees in his organization and the lines of authority and responsibility. A. business view map B. department categorization C. organization chart D. operating matrix grid

C. Organization chart

Which of the following statements is characteristic of entrepreneurs? A. They like certainty. B. They have the ability to visualize a clear path. C. They look at problems and see opportunities. D. They prefer to be inventive rather than worry about whether the invention solves a customer need.

C. They look at problems and see opportunities

Vaughn Studios organizes its operations by activity, such as production, marketing, accounting, and finance. Vaughn utilizes _____________ departmentalization in order to maximize their efficiency. A. product B. customer C. functional D. standardized

C. functional

Core Inflation

CPI - Food + Energy Costs

Integrity-based Ethics Codes

Ethical standards that define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees

Incubators

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

Decision Making

Choosing among two or more alternatives

State Capitalism

Combination of freer markets and some government control

Brainstorming

Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas

Successful entrepreneurs are self-nurturing. This means they: A.look to others for strength and encouragement. B. self-finance their business with no assistance from others. C. perform all business operations by themselves. D. believe in themselves and their ideas.

D. Believe in themselves and their ideas

When two firms which do not participate in the same industries, for example, a software company and a fast food restaurant company, decide to merge, the result is called a ____________ merger. A. vertical B. horizontal C. linear D. conglomerate

D. Conglomerate

Benchmarking

Comparing an organization's practices, processes, and products against the world's best

Embargo

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

Countertrading

Complex form of bartering in which several countries may be involved, each trading goods for goods or services for services

While speaking with his sales force, the director of sales explains, "Anyone caught violating a sales law will be fired." After studying business ethics, you recognize this remark as a reference to the firm's __________ ethics.

Compliance-based

The tiny nation of Tinian is extremely efficient in the mining of tin. However, its climate and terrain makes it difficult to produce corn. According to the theory of comparative advantage, Tinian should:

Concentrate its production on tin and buy corn from an efficient producer.

Which of the following would be most closely tied to the idea that employee motivation requires that the rewards for completing a task are sufficient to justify the effort? A. Theory Z B. Theory X C. equity theory D. expectancy theory

D. Expectancy Theory

Travis has agreed to invest $16,000 in a partnership with his sister and brother-in-law. He does not intend to actively work in the partnership, nor does he wish to risk any of his own assets other than the $16,000 he initially invests. The partnership has agreed to permit him to share in the profits. As an expert on forms of business ownership, you know that Travis is a ______________ in this partnership. A. general partner B. preferred stockholder C. secondary partner D. limited partner

D. Limited partner

Nike _________________ its products in foreign countries, where labor is cheap and production sites are owned by other companies. This strategy allows Nike to experiment in new markets without incurring large start-up costs involved with building their own production facilities.

Contract manufacturers

Outsourcing

Contracting with other countries' companies to do some or all of the functions of a firm, like its production or accounting tasks

Franchising

Contractual agreement whereby someone with a good idea for a business sells others the rights to use the business's name and sell a product or service in a given territory in a special manor

Many of the toy products sold in the United States are imported from Taiwan because the Taiwanese can produce these products more efficiently than U.S. companies. This is an example of:

Cooperative advantage.

Andrew's company is a bureaucratic organization. Andrew is likely to encounter which of the following conditions? A. Real time decisions B. Cross-functional teams C. Empowerment of first-line employees to better serve customers D. Many layers of management

D. Many layers of management

Leading

Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organizations goals and objectives

Intrapreneur

Creative people who work as entrepreneurs within corporations

The first step in the human resources planning process is to: A. prepare a forecast of human resource needs. B. assess future labor demand. C. prepare job specifications for each position within the organization. D. prepare a human resource inventory.

D. Prepare human resource inventory

Every month Sam Tabor is assigned a different job at Russo & Daughters Financial Consulting. Sam enjoys the task variety and finds that switching jobs on a regular basis keeps the work from becoming boring. Russo & Daughters is using a technique known as job: A. branching. B. sharing. C. shopping. D. rotation.

D. Rotation

Enterprise zones are: A. government-owned properties that are available for entrepreneurial ventures at a reduced cost. B. similar to incubator facilities but strictly run by city and state governments. C. blighted areas that contain toxic materials making them unsuitable for business operations. D. specific locations across the U.S. where entrepreneurs can set up shop and receive tax breaks for operating in these areas.

D. Specific locations across the U.S. where entrepreneurs can set up shop and receive tax breaks for operating in these areas

External Customers

Dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use

Monopolistic Competition

Degree of competition in which a large number of sellers produce very similar products that buyers nevertheless perceive as different

Oligopoly

Degree of competition in which just a few sellers dominate the market

Monopoly

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

Perfect Competition

Degree of competition in which there are many sellers in a market and none is large enough to dictate the price of a product

Demand Curve

Demand to the dirt

Balance of Payments

Difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investment

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

Reverse Discrimination

Discrimination against whites or males in hiring or promoting

Public schools, charities and government agencies generally _________.

Do not seek to earn a profit

Socialism

Economic system based on the premise that some, if not most, basic businesses should be owned by the government so that profits can more evenly distributed among the people.

Capitalism

Economic system in which all or most of the factors of production and distribution are privately owned and operated for profit.

Mixed Economies

Economic system in which some allocation of resources is made by the market and some by the government

Command Economies

Economic system in which the government largely decides what goods and services will be produced, who will get them, and how the economy will grow

Database

Electronic storage file for information

Staff Personnel

Employees who advise and assist line personnel in meeting their goals

Line Personnel

Employees who are part of the chain of command that is responsible for achieving organizational goals

Affirmative Action

Employment activities designed to "right past wrongs" by increasing opportunities for minorities and women

A very critical last step in the process of establishing an ethics code is ________.

Enforcement

Micropreneurs

Entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle

Adam Smith

Envisioned creating more resources so everyone could become wealthier. He believed freedom was vital to the survival of any economy.

Emily recently quit her job at a major corporation because she saw little chance for advancement. Although she is still searching for a new position, Emily believes the economy is healthy and she hears that several firms are hiring people with her qualifications. Which of the following statements about Emily's current situation is most accurate? Emily is:

Example of Frictional Unemployment

Free Market Economies

Exist when a market largely determines what goods and services get produced, who gets them, and how the economy grows

The SWOT analysis focuses only on the internal activities of the firm, while a PERT analysis is used to review the external environment in which the firm operates.

False

The Hum-dinger Corporation recently instituted a corporate ethics code. The president of the company realizes that ethical relationships are based on:

Fairness and Honesty

Although changes in the CPI provide interesting insights into the overall performance of the economy, these changes have little practical impact on the lives of ordinary people.

False

An example of foreign direct investment would be Pepsi granting a Japanese firm the use of its formula and trademark, for a fee.

False

As opposed to venture capitalists, angel investors prefer to target their investments in new firms requiring large sums of money.

False

Ethical behavior involves the clear and easy choice of right and wrong actions toward others.

False

History shows that free-market capitalism leads to a fair and equitable distribution of wealth.

False

If a sole proprietorship fails, the owner may lose whatever was invested in the business; however, the owner's personal assets are not at risk.

False

If the government wants to jump-start the economy resulting in more consumer spending, it will raise taxes.

False

If you plan to meet face-to-face with a banker or venture capitalist, it is not necessary to submit a business plan.

False

In a limited partnership, the general partners should encourage the limited partners to take a more active role in the operations of the business. After all, the limited partner has comparable liability in the business, even though he/she may not be a partner for as long a period of time as the general partners.

False

In order to establish a C corporation, it is a requirement that investors run the company, whereas in an S corporation, this is not the case.

False

Jacques has eliminated the risk of entrepreneurship by preparing a detailed business plan.

False

Jenny is a creative and intelligent person who likes to work independently on challenging projects. Jenny would be most effective when working for a Theory X manager.

False

Joshua wants to run his own business. A friend suggested that an inexpensive way to get started is to buy a franchise, where he will have the freedom to run it exactly as he sees fit. As a recent student of business, you concur with this advice.

False

Legal behavior is directly related to our relationships with others, while ethical behavior is not.

False

Mark successfully completed a very challenging assignment given to him by his supervisor at work. The feeling of accomplishment and satisfaction Mark experienced is an example of an extrinsic reward.

False

Objectives should be expressed as broad, general principles rather than as specific short-term results.

False

Only large firms have the resources needed to successfully compete in the global environment.

False

Since patent and copyright laws are the same in all nations, they are not of much impact to firms that compete globally.

False

Taking a firm private means turning a profit-seeking corporation into a nonprofit corporation in order to avoid a hostile takeover.

False

Ted and Mark are partners in a dry cleaning business. They would like their brother Todd to join them. Unfortunately, partnership law states that only two partners can participate in a partnership.

False

Trade Surplus

Favorable balance of trade, occurs when the value of a country's exports exceeds that of its imports

Fiscal Policy

Federal government's effort to keep economy stable by increasing or decreasing taxes or government spending

Knowledge Management

Finding the right information, keeping the info in a readily accessible place, and making the info known to everyone in the firm.

As a business strategy, the strategy behind "dumping" is to __________.

Gain a foothold in a new market

Contract Manufacturing

Foreign country's production of private label goods to which a domestic company then attaches its brand name or trademark; part of the broad category of outsourcing

Cafeteria-style Fringe Benefits

Fringe benefits plan that allow employees to choose the benefits they want up to a certain dollar amount.

Empowerment

Giving frontline workers the responsibility, authority, freedom, training, and equipment they need to respond quickly to customer requests

Enabling

Giving the workers the education and tools they need to make decisions

Licensing

Global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (royalty)

The next wave of marketable innovations may involve new ways to produce and conserve energy. If we can turn new technology into marketable products and services that produce energy to run our businesses and homes, the U.S. could see a surge in output of goods and services. The Department of Economic Development would document this surge by measuring the ____.

Gross Domestic Product (GDP)

Cross-functional Self-Managed Teams

Groups of employees from different departments who work together on a long term basis

Top Management

Highest level of management consisting of the president and other key company executives who develop strategic plans

Purposefully understating your firm's income to avoid paying higher taxes is an example of:

Illegal Behavior

Ethical behavior will result in which of the following?

Improved self-esteem making us feel good about our decision.

Hygiene Factors

In Herzberg's theory of motivating factors, job factors that can cause dissatisfaction if missing but that doesn't necessarily motivate employees if included

Motivators

In Herzberg's theory of motivating factors, job factors that cause employees to be productive and give them satisfaction

Core Time

In a flextime plan, the period when all employees are expected to be at their job stations

Venture Capitalists

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

Whistleblowers

Insiders who report illegal or unethical behavior

World Trade Organization

International organization that replaced the General Agreement on Tariffs and Trade, and was assigned the duty to mediate trade disputes among nations

Sovereign Wealth Funds

Investment funds controlled by governments holding large stakes in foreign companies

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 ________.

Invisible Hand

Job Rotation

Job enrichment strategy that involves moving employees from one job to yet another

Participative (Democratic) Leadership

Leadership style that consists of managers and employees working together to make decisions

Autocratic Leadership

Leadership style that involves making managerial decisions without consulting others

Free-rein Leadership

Leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives

Laws represent the standards of ________ behavior.

Legal

Middle Management

Level of management that includes general managers, division managers, and branch and plant managers are responsible for tactical planning and controlling

Import Quota

Limit on the number of products in certain categories that a nation can import

Chain of Command

Line of authority that moves from top of the hierarchy to the lowest level

PMI

Listing all pluses for a solution in one column, all the minuses in another, and the implications in a third column

Which of the following people would tend to favor a communist economy?

Liz wants to live in a country where the government makes almost all of the economic decisions.

Devaluation

Lowering the value of a nation's currency relative to other countries

Staffing

Management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives

Controlling

Management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job and taking corrective action if they are not

Monetary policy

Management of money supply and interest rates by the federal reserve bank

Theory Z

Management professor William Ouchi compared Japanese management approach (Theory J) American management approach (Theory A) Recommended a blend between the two (Theory Z)

Supervisory Management

Managers who are directly responsible for supervising workers and evaluating their daily performance

In one of his weekly broadcasts, the Federal Reserve Chairman remarked that inflation had begun to tick upward. However, unemployment in the U.S. was still quite high and economic growth had slowed. With short-term interest rates close to 0 (zero), the Chair did not visualize that ____________ policy would be able to do anything for the high unemployment problem. He felt that _______ policy would be more useful for bolstering employment, but that would require local and state governments and the federal government to provide tax breaks for corporations.

Monetary;Fiscal

Consumer Price Index (CPI)

Monthly statistic that measures the pace of inflation and deflation

Free Trade

Movement of goods and services among nations without political or economic barriers

Limited Liability Partnership (LLP)

Partnership that limits partners' risk of losing their personal assets to only their own acts and omissions to the acts and omissions of people under their supervision

Limited Partnership

Partnership with one or more general partners and one or more limited partners

Unemployment Rate

Number of civilians at least 16 years old who are unemployed and tried to find a job in the last four years

Identity Theft

Obtaining of individuals personal information, such as social security and credit card numbers, for illegal purposes.

Acquisition

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

Free Market

One in which decisions about what and how much to produce are made by the market by buyers and sellers negotiating prices for goods and services

Span of Control

Optimum number of subordinates a manager supervises or should supervise

Non-profit Organization

Organization whose goals do not include making a personal profit and its owners or organizers

Bureaucracy

Organization with many layers of management who set rules and regulations and oversee all decisions

General Partnership

Owners share in operating the business and in assuming liability for the business's debt

Theory Y

People do like work They often seek responsibility Are motivated by a variety of rewards Their talents are often underused Want to and need to be empowered

Theory X

People do not like to work and will try to avoid it They prefer to be directed and dislike responsibility They have low ambition Motivation is based on fear and punishment

Frictional Unemployment

People who quit work because they didn't like the job, boss, or working conditions and who haven't found a job yet

Market

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

Business Cycle

Periodic rises and falls that occur in economies over time

Entrepreneur

Person who risks time and money to start a business

Management by Objectives (MBO)

Peter Drucker's system of goal setting and implementation; it involves a cycle of discussion, review, and evaluation of objectives among top and middle level managers, supervisors, and employees

Invisible Hand

Phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefit for all

Deflation

Prices are declining

Angel Investors

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

Networking

Process of establishing and maintaining contacts with key managers in one's own organization and other organizations and using these contacts to weave strong relationships that serve as informal development systems

Contingency Planning

Process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives

Which of the following is an advantage of utilizing technology?

Productivity increases.

Restructuring

Redesigning an organization so it can move effectively and efficiently to serve its customers

Common Market

Regional group of countries that have a common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange; also called a trading bloc. i.e. European Union

Factors of Production

Resources used to create wealth: 1. Land 2. Labor 3. Capital 4. Entrepreneurship 5. Knowledge (Most important factor)

Seasonal Unemployment

Seasonal work varies over the year

Dumping

Selling products in a foreign country at lower prices that those charged in the producing country

Exporting

Selling products to another country

Limited Liability Company (LLC)

Similar to an S corporation but without special eligibility requirements

Economies of Scale

Situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase

Disinflation

Situation which price increases are slowing (Inflation rate declining)

Human Relation Skills

Skills that involve communication and motivation; they enable managers to work through and with people

Technical Skills

Skills that involve the ability to perform tasks in a specific discipline or department

Conceptual Skills

Skills that involve the ability to picture the organization as a whole and the relationship among its various parts

Tariff

Tax imposed on imports Protective: Raise retail price of imported products so that domestic goods are more competitively priced Revenue: Designed to raise money for the government

One reason the CPI is monitored very closely by government, businesses, and workers is that:

Some wages, interest rates, tax rates, and government benefits are tied to changes in the value of the CPI.

Extrinsic Reward

Something given to you by someone else as recognition for good work; extrinsic rewards include pay increases, praise, and promotions

Enterprise Zones (Enterprise Communities or Empowerment Zones)

Specific geographic areas to which government try to attract private business investment by offering lower taxes and other government support

Ethics

Standards of moral behavior, that is, behavior accepted by society as right vs. wrong

Departmentalization

The dividing of organizational functions into separate units

Demography

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

Some critics of corporate social responsibility view spending money on CSR as:

Stealing from investors

Formal Organization

Structure that details lines of responsibility authority, and position; that is, the structure show on organization charts

Time Motion Studies

Studies begun by Frederick Taylor, of which tasks must be performed to complete a job and the time needed to do each task

Economics

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

Resource Development

Study of how to increase resources and to create the conditions that will make better use of those resources

Scientific Management (Frederick Taylor)

Studying workers to find the most efficient ways of doing things and then teaching people those techniques

Principle of Motion Economy

Theory developed by Frank and Lillian Gillbreth that every job can be broken down into a series of elementary motions

The Fed is concerned that the economy is growing too rapidly. Given these concerns, it is likely to pursue policies to restrict the supply of money and raise interest rates.

True

National Debt

Sum of government deficits over time

Supply Curve

Supply to the sky

Hierarchy

System in which one person is at the top of the organization and there is a ranked or sequential ordering from top down of managers who are responsible to that person

Social Audit

Systematic evaluation of an organization's progress towards implementing socially responsible and responsive programs

Goods

Tangible products

When studying abroad last year, Blake found that his U.S. dollars did not stretch as far as he had hoped. Each time he exchanged U.S. dollars for euros, he gave up more U.S. dollars in exchange for less euros. The exchange rate indicates:

The Euro has gained strength against the dollar.

Orientation

The activity that introduces new employees to the organization to fellow employees; to their immediate supervisors; and to the policies, practices, and objectives of the firm

Standard of Living

The amount of goods and services people can buy with the money they have

Productivity

The amount of output you generate given the amount of input

Maslow's Hierarchy of Needs

Theory of motivation based on unmet human needs from basic physiological needs to safety social, and esteem needs to self actualization needs 1. Self actualization 2. Esteem needs 3. Social needs 4. Safety needs 5. Physiological needs

Goals

The broad, long-term accomplishments an organization wishes to attain

E-commerce

The buying and selling of goods over the internet. Two types of E-Commerce: 1. Business to Consumer (B2C) 2. Business to Business (B2B)

Foreign Direct Investment (FDI)

The buying of permanent property and business in foreign nations

Risk

The chance of loss, the degree of probability of loss and the amount of possible loss

Corporate Philanthropy

The dimension of social responsibility that includes charitable donations

Retired people will be draining the U.S. economy of wealth. This is due to:

The fact there are not enough workers in subsequent generations to support the ongoing drain of older persons into the Social Security system.

Quality of Life

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

Goal Setting Theory

The idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback and facilitated by organizational conditions.

Conglomerate Merger

The joining of firms in completely unrelated industries

Vertical Merger

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

Horizontal Merger

The joining of two firms in the same industry

Brain Drain

The loss of the best and brightest people to other countries... Leads to fewer inventions and less innovation.

Climate Change

The movement of temperature of the planet up or down over time

Employee training focuses on short-term skills, while employee development focuses on long-term abilities.

True

Intrinsic Reward

The personal satisfaction you feel when you perform well and complete your goals

Real Time

The present moment or the actual time in which something takes place

Transparency

The presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders

Market Price

The price determined by supply and demand

Human Resource Management (HRM)

The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals

Strategic Planning

The process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve these goals

Tactical Planning

The 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

Selection

The process of gathering information and deciding who should be hired, under the legal guidelines, for the best interest of the individual and the organization

Operational Planning

The process of setting work standards and schedules necessary to implement the company's tactical objectives

Problem Solving

The process of solving the everyday problems that occur. Problem solving is less formal than decision making and usually calls for quicker action

Management Development

The process of training and educating employees to become good managers and then monitoring the progress of their managerial skills overtime

Management

The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources

When the market price of a good is below the equilibrium price, and all other determinants are unchanged:

The quantity demanded will exceed quantity supplied

Supply

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

Demand

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

Limited Liability

The responsibility of a business's owners for losses only up to the amount they invested; limited partners and share holders

Merger

The result of two firms joining to form one company

Franchise

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

Recruitment

The set of activities used to obtain a sufficient number of the right people at the right time

Objectives

The specific, short-term statements detailing how to achieve the organization's goals.

Business Environment

The surrounding factors that either help or hinder the development of businesses

Informal Organization

The system that develops spontaneously as employees meet and form cliques, relationship, and lines of authority outside the formal organization; that is the human side of the organization that does not appear on any organizational

Hawthorne Effect

The tendency for people to behave differently when they know they are being studied

Keynesian Economic Theory

The theory that a government policy of increasing spending and cutting taxes could stimulate the economy in a recession

Gross Domestic Product (GDP)

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

Greening

The trend toward saving energy and producing products that cause less harm to the environment

Job Simulation

The use of equipment that duplicates job conditions and tasks so that trainees can learn skills before attempting them on the job

Exchange Rate

The value of one nation's currency relative to the currencies of other countries

The standard of living for a nation's people depends mainly on:

Their income and the prices of the goods and services they buy.

Comparative Advantage Theory

Theory that a country should sell to other countries those products that it produces most effectively and efficiently, and buy them from other countries those products that it cannot produce as effectively or efficiently

Reinforcement Theory

Theory that positive and negative reinforcements will motivate a person to behave in certain ways

The market price of apples is currently rising. In a free-market economy, the most likely explanation of this price change is that:

There is a shortage in the market for apples.

Employers should proceed cautiously when designing an employee incentive program that rewards employees strictly on increased sales.

True

Core Competencies

Those functions that the organization can do as well or better than any other organization in the world

Free trade results in a mutually beneficial exchange between and among nations.

True

In any given year, the United States' cash outflow to other nations exceeds its cash inflow from other nations.

True

Revenue

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

While scanning the movies section in your local online newspaper, you click on the business section by mistake. While you're there, you quickly scan a report that says government spending will again exceed tax revenues in the current year. This means that the:

Total national debt is likely to increase

Balance of Trade

Total value of a nation's exports compared to its imports over a particular period

Independence, challenge, and opportunity are among the key reasons given by those who assume the risks of entrepreneurship.

True

Job applications can ask about educational background and past job experience.

True

Managers make decisions about how to use organizational resources to accomplish goals.

True

One characteristic of an international joint venture is all parties sharing the risk of a major project.

True

Planning involves setting the organizational vision, goals and objectives.

True

Vestibule Training

Training done in schools where employees are taught on equipment similar to that used on the job

On the Job Training

Training program involving a period during which a learner works alongside an experienced employee to master the skills and procedures of a craft

Online Training

Training programs in which employees complete classes via the Internet

Off the Job Training

Training that occurs away from the workplace and consist of internal or external programs to develop any of a variety of skills to faster personal development

A major distinction between capitalism and socialism concerns the distribution of income.

True

A matrix team for an aerospace company may consist of a project manager, a finance expert, a marketing specialist, a member of production, and two design engineers.

True

A merger is a mutual agreement where a firm joins together with another firm, whereas an acquisition is when one firm purchases the assets and obligations of another firm.

True

A performance appraisal is an evaluation in which the performance level of employees is measured against established standards to make decisions about promotions, compensation, additional training, or firing.

True

An economist is examining how consumers in the automobile market have responded to recent price increases by car manufacturers. He is examining a microeconomic situation.

True

An effective business plan analyzes the competition and identifies the resources required to profitably serve a target market.

True

An integrity-based ethics code moves beyond legal compliance in order to create a "do-the-right-thing" climate.

True

Businesses use demographic studies to understand where people live, their lifestyles, and what they are likely to buy.

True

Defining a socially responsible company is complicated. Businesses differ from other businesses, as well as the people they serve, on what we mean by "socially responsible."

True

Departments are functional units within the business such as sales, accounting, finance, and marketing.

True

During the first year at the Millennium Company, management trainees spend two months in each of six different departments, where they have the opportunity to learn skills in each functional area, and also to decide where they have the best match. Job rotation is a motivational strategy used by contemporary organizations.

True

Structural Unemployment

Unemployment caused by restructuring of firms or mismatch between the skills (or location) of job seekers/requirements

Cyclical Unemployment

Unemployment due to a recession or similar downturn of the business cycle

Insider Trading

Unethical activity in which insiders use private company info to further their own fortunes or those of their family and friends

Trade Deficit

Unfavorable balance of trade occurs when the value of the country's imports exceeds that of its exports

Last year, the nation of Tigerland imported goods totaling $500 million and exported products totaling $386 million. Tigerland experienced a(n):

Unfavorable balance of trade.

Trade Protectionism

Use of government regulations to limit the import of goods and services

Expectancy Theory

Victor Vroom's theory that the amount of effort employees exert on a specific task depends on their expectations of the outcome

Organization Chart

Visual device that shows relationships among people and divides the organization's work; it shows who is accountable for the completion of specific work and reports to whom

Loss

When a business's expenses are more than its revenues

Equilibrium Point

Where the supply and demand curves intersect at

Organizational (or corporate) Culture

Widely shared values within an organization that provide unity and cooperation to achieve common goals

Compressed Workweek

Work schedule allows an employee to work a full number of hours per week but in fewer days

Flextime Plan

Work schedule that gives employees some freedom to choose when to work, as long as they work for the required number of hours

Corporate Social Initiatives

enhanced forms of corporate philanthropy directly related to the companies competencies

Business is under pressure from society to be more socially responsible. However, even the strongest advocates for corporate responsibility can't seem to agree:

on what social responsibility involves.