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