Business Key Terms and Functions

Enterprise Resource Planning Systems

A computerized resource-planning system that incorporates information about the firm's suppliers and customers.

Balance sheet

A financial statement that summarizes a firm's financial position at a specific point in time.

Income statement

A financial statement that summarizes a firm's revenues and expenses.

Internet

A large network of interconnected computers.

MBTI

A personality assessment that identifies natural preferences on four different scales.

Chief Information Officer (CIO) / Chief Technology Officer (CTO)

An executive with responsibility for managing all information and technology resources in an organization.

Shareholder

An individual, company, or institution that owns a share of a company's stock.

Intranet

An internal corporate-wide network that uses internet technology to connect computers and link employees.

Business

An organization that provides goods and services for profit.

Database

An organized collection of data stored and accessed electronically.

Stakeholder

Anyone involved with or affected by an organization.

Debt

Borrowed funds that must be repaid with interest.

Equity

Funds raised through the sale of stock in a business.

Services

Intangible offerings of businesses that can't be held, touched, or stored.

Inputs

Natural resources, raw materials, human resources, and capital.

Talent

Naturally recurring behavior patterns, thought patterns, and beliefs that make you effective and efficient.

Financial planning

Preparing the financial plan that projects revenues, expenditures, and financing needs.

Outputs

Products and services.

Financing

Raising money for the firm's operations and investments.

Data

Raw, unorganized facts that can be moved and stored.

Database management system

Software that allows users to enter, store, organize, select, and retrieve data in a database.

Investment

Spending money on projects and securities that provide high returns.

Management information systems

Systems that leverage technology, information, and people to further organizational goals.

Goods

Tangible items manufactured by businesses.

Strengths

The ability to provide consistent, near-perfect performance in a given activity.

Procurement

The action of obtaining equipment or supplies for a business.

Financial management

The art and science of managing a firm's money to meet its goals.

Finance

The art and science of managing a firm's money.

Marketing mix

The combination of product, price, place, promotion, and people that make up marketing strategies.

Logistics

The coordination of a complex operation involving people, facilities, or supplies.

Production

The creation of products and services by turning inputs into outputs.

Operations

The design, execution, and control of operations that convert resources into goods and services.

Inventory management

The determination of how much inventory to keep on hand and the tracking of inventory.

Profit

The difference between revenue and expenses.

Information technology

The equipment and techniques used to manage and process information.

Management process

The functions of planning, organizing, leading, and controlling.

Supply chain sustainability

The management of environmental, social, and economic impacts throughout the lifecycles of goods and services.

Critical thinking

The process of analyzing information and constructing arguments to reach conclusions.

Accounting

The process of collecting, recording, summarizing, and analyzing financial activities.

Marketing

The process of discovering customer needs and providing goods and services to meet those needs.

Management

The process of guiding the development, maintenance, and allocation of resources.

Market segmentation

The process of identifying and evaluating layers of a market to identify a target market.

Supply chain management

The process of smoothing transitions along the supply chain to satisfy customers with quality products and services.

Information security

The processes and tools designed to protect sensitive business information.

Supply chain

The sequence of securing inputs, producing goods, and delivering goods to customers.

Target market

The specific group of consumers toward which a firm directs its marketing efforts.

Owners' equity

The total amount of investment in the firm minus any liabilities.

Assets

Things of value owned by a firm.

Traditional purpose of a business

To maximize the value of the firm to its owners.

Liabilities

What a firm owes to its creditors.