Business 5101 Praxis: Marketing and Management, Business Praxis 2 5101: Law and International Business, Praxis Business Education- Information Technology, Praxis Business Education- Entrepreneurship, Praxis Business 5101 Economics Section, Business P...

Negligence

When a party does not show a reasonable amount of care. One can be liable for this. Failure to take proper care in doing something

Class Action Law

When all members of a group of persons who have suffered the same or similar injury join together in a single lawsuit against the alleged wrongdoer. The group must be so numerous that it is impracticable to bring all members before the court individually.

Conducting International Business through Franchising

When an individual leases the ability to replicate a business model and brand. Generally, the individual will create a business that is a replica of a successful one. For an example: franchising a restaurant (McDonald)

Cost- benefit Analysis

a decision-making process in which you compare what you will sacrifice and gain by a specific action. A process to complete when making decisions in business.

Management by Objectives (MBO)

a management model that aims to improve performance of an organization by clearly defining objectives that are agreed to by both management and employees.

US Department of Health and Human Services

and FDA plays a large part in protecting consumers by overseeing the safety of food, drugs, and medical devices. They require extensive testing on drugs to ensure both efficacy and safety

double income taxation

corporation pays taxes and shareholders pay taxes on income received; a taxation principle referring to income taxes paid twice on the same source of earned income

What do scatter plots show?

correlation; The relationship between two variables. They are often used as follow-ups to a cause-and-effect analysis

Methods to evaluate financial performance

cost-volume-profit analysis (CVP), and Break-even analysis, Return on Investment

indirect costs

costs that are the result of a firm's general operations and are not directly tied to any specific cost object

variable costs

costs that vary with the quantity of output produced

web design

creation and visual design of documents displayed on the world wide web

Current Liquidity Ratio

current assets / current liabilities; (cash + accounts receivable + marketable or short-term securities) / current liabilities; higher the ratio the better

Global market

customers from all over the world

Home equity loans

home owners can borrow against the appraised value of their already purchased homes; may use for large expenses

marginal costs

how much it costs to make one more unit of something

demand

how much of a good or service buyers want

supply

how much of a good or service the market has to offer to buyers

elasticity

how one variable changes in response to another

Piracy

illegal copywriting, distribution of software

Receipts

income received from the sale of goods and/or services; also, slips of paper documenting a purchase.

Types of taxes

income tax (tax on $ earned @ job) property tax (tax on real estate) sales tax (tax on goods/services) Federal Insurance Contributions Act (FICA) Medicare taxes Gains taxes

inelastic

increased price will result in increased revenue

skimming

initial price is high then goes down

Auto loans are typically

installment loans and tied to the car; can pay off slowly, but can lose the car if not paid

life insurance:

insurance paid to named beneficiaries when the insured person dies

compound interest

interest earned on both the principal amount and any interest already earned

Sales Research

involves looking at the sales numbers and the strategies the company was taking when sales were high as well as when they were low.

Etiquette

is a code of polite conduct.

Business Correspondence

is a form of written communication used for business purposes. It is usually made between organizations, within the organization, or between clients and the organization.

Business Letters

is usually a letter from one company to another, or between such organizations and their customers, clients and other external parties. The overall style of letter depends on the relationship between the parties concerned.

economies of scope

it is cheaper to produce a range of products rather than just one. The company can take advantages of overhead already spent

scarce resources

land, labor, and capital

factors of production

land, labor, capital, and entrepreneurship

company size

larger companies get lower per unit cost

Statutory Laws

laws passed by a state or the federal legislature.

Entity

something that has a real or independent existence

Compensation

something, typically money, awarded to someone as a recompense for loss, injury, or suffering.

Customer Service

specifically refers to human or mechanical activities firms undertake to help satisfy their customers' needs and wants.

economic indicators

statistics that provide information about economic activity

International Business

the buying, selling, and trading of goods and services across national boundaries.

Business rules and programs

things that employees are either required to do or are forbidden from doing; defines or constrains some aspect of business; intended to assert structure

general partnership

two or more people own a business, both are personally liable, income reported on partners tax returns

s corporation

type of corporation not subject to double taxation, shareholders pay taxes, income and losses flow through to each shareholder

c corporation

type of corporation subject to double income taxation; the firm's working plan for achieving its vision, prioritizing objectives, competing successfully, and optimizing financial performance with its business model

deflation

when the general price of goods and services go down

inflation

when the general price of goods and services goes u

Joint Ventures

when two or more companies join forces - sharing resources, risks, and profits, but not actually merging companies - to pursue specific opportunities. The company may form an actual business entity together.

What are intangible assets?

Not physical-brand names, intellectual property- are high in value

Lawsuits

Occurs when one party brings a case against another party in a court of law. Cases in which a court is asked to settle a dispute

Team Structure

an organizational structure in which the entire organization is made up of work teams.

Company description

explanation of who you are and what your goals are and how you operate

Blogs

online journals where people and companies post their thoughts and other content, usually related to narrowly defined topics. A regularly updated website or web page, typically one run by an individual or small group, that is written in an informal or conversational style.

oligopoly

only a small amount of businesses supplying a product so there is limited competition

How are retained earnings calculated?

retained earnings + net income - stockholder dividends = final retained earnings.

Opportunity Cost

the most desirable alternative given up as the result of a decision. The loss of potential gain from other alternatives when one alternative is chosen. What a producer gives up by choosing different options. Example: If a producer can make a dozen cookies in an hour or a dozen brownies in an hour for the same cost and he chooses to make the cookies, then the dozen brownies are the ___________.

Formal Structure

the official structure of the organization. The exact chain of leadership and the formal hierarchy.

What is cash flow?

the total amount of money being transferred into and out of a business; revenues and/or expenses

Sales forecast

the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts.

marginal benefits

the utility or satisfaction an individual gets from one more unit of a service or good. amount a person will pay for an extra unit

price

where supply equals demand on the demand curve

An employee earns $2,000 per month in gross pay, buy pays $104.36 for health insurance, 9% in federal taxes, 3% for state taxes, and 2% for local taxes. What is the employee's net pay?

$1615.64

Insider Trading

Occurs when someone makes a trade while having "insider" information that makes it unfair to other investors.

1000 MG

1 GB

1000 bytes

1 KB

1000 KB

1 MG

1000 GB

1 TB

types of health insurance

1. Individual Policies: Usually ineligible to receive government paln; high premiums and limited benefits. 2. Group Policies: Provides coverage for employees under a single contract. This type of coverage is characterized by greater benefits, and low premiums. 3. Government Plans: Available to large groups of people who meet specific eligibility criteria. TRICARE, Medicare, Medicaid, and Worker's Compensation are examples. HMO and PPO (preferred provider plan)

Calculate Profit Margin

1. Total costs - sales revenue If sales of a product made $10,000 for the company and costs $8000, then raw profit will be $2,000. 2. Gross profit / Revenue $2,000 / $10,000 = 0.2 or 20% profit margin

Calculate annual profits from sales data

1. add up all of the revenues 2. add up all of the costs (returns, depreciation, interests, etc) 3. subtract total costs from revenue Best place to get all this information is from the income statement, which lists revenues and expenses

Calculate Standard Deviation

1. calculate the mean 2. get the total sum (E) by calculating the square of the total summation (E) of the number multiplied by the mean and adding all the results together 3. divide answer from step 2 by the range of factors minus 1 (1,2,3,4) 1. mean = 2.5 2. E= (1*2.5)^2=2.25 (2*2.5)^2=.25 (3*2.5)^2=.25 (4*.25)^2=2.25 E= 5 3. SD=sq.root(5/4-1)=1.29

Top- Level Management

All managers who are responsible for the entire company. The managers in charge running the organization as a whole and making the major decisions for the company.

Payroll records must be kept for how long?

3 years for all employees

Board of Governors of Federal Reserve

7 members appointed by the President, confirmed by the senate and serve 14 years. Typically economists. Create and implement monetary policy, decides on amount of money to loan member banks and to set the rate of interest on loans, over sees bank mergers and acquisitions of American banks and any international member banks. Reports to congress

bit(binary digit)

A 0 or 1 used by the binary number system.

Excel

A MS application that allows a user to create spreadsheet documents.

FrontPage

A MS application that allows a user to create web pages.

Access

A Microsoft application used to create a database.

Who issues GAAP through pronouncements?

Financial Accounting Standards Board (FASB)

Going Concern

A business assumes it will continue to operate for many years. At retirement the owner will sell the business to someone else who will continue its operation. This is an example of the application of this accounting concept.

adapter card

A card used by the CPU to communicate with devices inside and outside the case.

Network

A chain of communication that connects places.A group or system of interconnected people or things.

CMOS setup

A chip on the motherboard that contains a very small amount of memory, or RAM enough to hold configuration, or setup, information about the computer The chip is powered by a battery when the PC is turned off. Also called

expansion cards

A circuit board inserted into a slot on the motherboard to enhance the capability of the computer.

Municipal Courts

A city court, usually divided into traffic and criminal divisions.

Internet Protocol (IP)

A communication standard that enables computers to route communications traffic from one network to another as needed.a set of rules governing the format of data sent over the Internet or other network. Is the method or protocol by which data is sent from one computer to another on the Internet.

International Trade Benefits

A company has a new market to sell. It can increase its sales and tremendously profit by reaching customers. Company may have surplus supply. Customer can enjoy product that are not available domestically.Products can be sold for less money, at a cheaper price to become more competitive. Less dependency on a single market, if something goes wrong, the item will still be available.

Depreciation:

A decrease or loss in value

Decentralized Structure

A design structure that relies on all employees to collect and communicate information, in order to make decisions and recommend changes. A team and the decisions are made at different levels.

perpetual inventory system

A detailed inventory system in which a company maintains the cost of each inventory item, and the records continuously show the inventory that should be on hand; very popular - always lets a company know available stock in real time and if to reorder as necessary

Zip file

A document that has been compressed to take up less space on a computer and to make it quicker to download.

Truth in Lending Act (TILA)

A federal law requiring lenders to provide residential loan applicants with estimates of the total finance charges and the annual percentage rate (APR).

Fair Debt Collection Practices Act (FDCPA)

A federal law, enacted in 1978, that regulates debt collection activities.A federal law that protects debtors from unfair methods and practices by collection agents.

factoring company

A financing method in which a business owner sells accounts receivable at a discount to a third-party funding source to raise capital, cash management tool of many companies

What do liquidity ratios measure?

A firm's ability to meet cash needs as they arise; the more liquid assets it has compared to short-term liabilities, the more liquid it will be.

Maslow's Hierarchy of Needs

A five tiered approach to needs and motivation.

Contracting Manufacturing

A foreign company produces private-label goods to which a domestic company then attaches its own brand name or trademark. A form of outsourcing. A popular method of entering a foreign market.

Workers' Compensation

A form of insurance paid by the employer providing cash benefits to workers injured or disabled in the course of employment.

program

A general term used to describe any action performed by a computer.

MS Office

A group of Microsoft applications that includes word processing, database, spreadsheet, and presentation software, as well as others, depending upon the package choices.

chipset

A group of chips on the motherboard that controls the timing and flow of data and instructions to and from the CPU.

Product lines

A group of related products a company offers.

What is a frequency table?

A grouping of qualitative data into mutually exclusive classes showing the number of observations in each class.

CAD

A means of creating architectural or mechanical designs using a computer.

Voice over Internet Protpcol (VoIP)

Allows voice and multimedia to be constantly delivered and received from one party to another. For instances, a person can watch a live newscast on a phone. It allows voice and multimedia to go over the internet and other internet Protocol Networks (IP). Example: Skype It is inexpensive an offers high bandwidth efficiency. It can be run on inexpensive standard interfaces like personal computers.

Continuous Processes Production System

A method of production in which products are continually produced.

central processing unit (CPU)

Also called a microprocessor or processor. The heart and brain of the computer, which receives data input, processes information, and executes instructions.

DIMM (dual inline memory module)

A miniature circuit board installed on a motherboard to hold memory. DIMMs can hold up to 2 GB of RAM on a single module.

expansion slots

A narrow slot on the motherboard where an expansion card can be inserted. Expansion slots connect to a bus on the motherboard.

Federal Trade Commission

A national agency that protects consumers by taking complaints about unfair practices and stopping forbidden acts such as anti-competitive mergers.

quote sampling

A nonprobability sampling technique in which researchers divide the population into groups and then arbitrarily choose participants from each group

Judgement Sampling

A nonprobability sampling method in which participants are selected according to an experienced individual's belief that they will meet the requirements of the study

Cost-volume-profit (CVP) analysis

A part of managerial economics and looks at how alterations in the cost (fixed and variable) and sales volume change the profit of a company.

Creating a personal budget

A personal budget can be created through a series of straightforward steps. First, one should set a manageable time span for the budget. Once the timing is set, the individual should formulate his ultimate financial goals. Creating a financial reserve is important in case there is an unexpected expense. He should decide how much money he wants to have left for his reserve or other savings. Next, the individual should calculate income. He must be careful to take out money for taxes, interest, and automatic fees. He should then make budget line items for recurring fees that are unavoidable such as rent, mortgage payments, car payments, etc. Next, he should add in needs such as food. He should consider how much he spends in each category and formulate ways to save. He should then add in other items such as leisure activities and unnecessary items. As time passes, he can make adjustments as necessary

Product

A physical good or an intangible service. An article or substance that is manufactured or refined for sale.

Capital Expenditure Budget

A plan for purchasing major capital items, such as equipment or a physical plant, with a useful life greater than 1 year and exceeding a minimum cost set by the organization. Covers investments in long-term projects and capital assets.

Business Memorandum

A relatively informal form of communcation used in businesses to spread information, give announcements, explain company happenings, and provide similar functions. It is often sent out to a lot of people at once and does not generally contain confidential information.

Quicken

A software application that allows the user to track expenses and income, much like a checkbook.

Publisher

A software program from MS that allows the user to perform desktop publishing functions to create different documents.

Just in Time (JIT) Inventory System

A system in which parts or supplies arrive at an organization when they are needed, not before.

Sales tax:

A tax on a sale of merchandise or services

General Agreement on Tariffs and Trade (GATT)

A treaty was formed after World War II to help the economy. An international trade agreement that has taken bold steps to lower tariffs and promote free trade worldwide. WTO took over in 1995.

Effective Communication

A two way information sharing process which involves one party sending a message that is easily understood by the receiving party.

specific identification method

An actual physical-flow costing method in which particular items sold and items still in inventory are specifically costed to arrive at cost of goods sold and ending inventory; this method assigns the cost of a product with the actual cost paid for that specific product... cars for example.

Strategic Alliances

An agreement among two or more independent firms to cooperate for the purpose of achieving common goals such as a competitive advantage or customer value creation. They work together on a project, but the firms remain independent.

Advertising

A written or spoken media message designed to interest consumers in purchasing a product or service.

probability sampling

A type of sampling in which every element in the population being studied has a known chance of being selected for study

Calculate compound interest

A=P(1+r / n)^nt A= investment's future value with interest P= Principle R= Annual Interest Rate N= How many times interest is compounded annually T= how long the money has been invested in years

cards

Adapter boards or interface cards placed into expansion slots to expand the functions of a computer, allowing it to communicate with external devices such as monitors or speakers.

Consumer Product Safety Improvement Act

Address safety in toys, chemicals in products, and more. The government tests products, makes safety standards, and bans products its deem unsafe.

What is the sixth step in the accounting cycle?

Adjust journal entries

North American Free Trade Agreement (NAFTA)

Agreement that was signed by the United States, Mexico, and Canada. Agreement that created a free-trade area among the United States, Canada, and Mexico.

Advertising Research

Aims to make advertising more effective.

World Trade Organization (WTO)

An International organization related to trade rules between different countries. a trade organization that replaced the old General Agreement on Tariffs and Trade (GATT).

Message Boards

An Internet site where people can post and read messages, usually on a specific topic or area of interest.Customers can look up threads with topics similar to their issues and might get the answer to the problem without needing to contact customer service themselves

WYSIWYG

An acronym meaning that what appears on the screen is what will be printed.

cost accounting

An area of accounting that involves measuring, recording, and reporting product costs; analyzes cost-volume-profit connections, activity-based costing, and cost behavior. It helps managers decide how much to charge for certain processes or services because they will know how much it costs.

Trade Deficit

An imbalance in international trade in which the value of imports exceeds the value of exports.

Average cost method:

An inventory costing method that uses the weighted-average unit cost to allocate the cost of goods available for sale to ending inventory and cost of goods sold; Good for a company with non-perishables and is steadier and more reliable.

floppy drive

An older secondary storage device sometimes found inside the case.

Matrix Structure

An organizational structure that simultaneously groups people and resources by function and by product. Employees are grouped by function and product for maximum efficiency. Teams are often employed. For instance, if a company sells both cars and boats, they might have a car sales department and a boat sales department.

What is the second step in the accounting cycle?

Analyze each transaction to see how the accounts will be affected.

Fundamental Accounting Equation

Assets = Liabilities + Owners' equity; this is the basis for the balance sheet

What does a balance sheet detail?

Assets: things of value in order of their liquidity (cash, accounts receivable, inventory, plant and equipment, investment property, and more. Liabilities: Accounts payable, promissory notes, corporate bonds, deferred tax liabilities, and more. Equity (net worth of the company's capital): It is the difference between assets and liabilities.

Business Memorandum Format

At the top it should state "Memorandum" underneath that, flush left will be the word "To:" along with the addressee (s) Underneath that and still flush left will be "FROM:" with the sender's name.. If there are any CCs, this will be under that. Below that will be "Date:" with the date. "SUBJECT:" is under that. Finally, the body of the memo will be underneath, written in block format. A properly formatted memo is professional and succinct.

Auto and property insurance

Automobile insurance covers drivers in the case of an occurrence that causes some sort of damage or harm. Many states force drivers to have insurance. There are many different types of policies with different coverage levels. Liability coverage provides benefits to damages suffered by other drivers. Collision coverage is for cars involved in an accident. People often have a deductible, or money they have to pay first. Premiums are the amount a driver pays monthly or regularly to maintain coverage. Comprehensive insurance also covers cars damaged without a collision such as from vandalism or weather-related events. Property insurance provides coverage against a wide variety of risks and includes fire insurance, earthquake insurance, home insurance, and flood insurance. Open perils is a type that includes all causes except those exempted, whereas named perils lists the types of causes for the insurance. There are many plans with different premiums, coverage, deductibles, and exclusions. Replacement insurance will give benefits so people can replace the lost items, whereas actual cash value takes off for depreciation. People should evaluate the potential risk and costs of insurance when deciding on the plan that is right for them.

Two inventory costing methods:

Average cost and specific identification methods

Break even equation

BE equals fixed costs/(selling price -variable cost)

This financial statement is one of the major ones showcasing a moment in time.

Balance Sheet: showcases assets, liabilities, and ownership equity with the assumption A=L+E

factors that could affect personal credit

Bankruptcy has a major impact on personal credit. Chapter 7, 11 and 13 bankruptcies remain on credit reports for as long as a decade, although Chapter 13 may come off in seven years. Negative reports about delinquent accounts that lower credit may stay for seven years, although positive closed accounts can stay for longer. Credit can go down with collections and these can stay for seven years, as well. Credit score can even be slightly lowered when an individual just applies for credit and this can last two years. Late payments also lower credit rating. Balances on credit cards can cause credit rating to drop, thus if an individual is only making minimum payments, he will have a lower credit rating and thus less ability to get and use credit. Inflation may make it harder for some people to pay their credit cards. Credit cards are governed by many laws and regulations.

Constitutional Law

Based on the Constitution and on Supreme Court decisions interpreting the Constitution. Refers to how the United States Constitution is interpreted and implemented.

Two common types of debt securities?

Bonds and banknotes

What does the statement of cash flows cover?

Cash gained and used in operating activities, investing activities, financing activities, and supplemental information. It will list the increase and decrease of cash for each activity (operating, investing, financing, and supplemental information), and will show the net increase in cash from all, beginning of the month, and at the EOM

Factors that influence decisions in marketing

Business Ethics, Sociocultural Factors, Culture Difference,

Networks Structure

Business functions that can be accomplished with less const and/ or better quality by others are outsourced.

break-even analysis

Calculates when the expenses of a company are covered and there is a profit

What are mutual funds?

Businesses that take money from a variety of investors and put it in a portfolio of bonds, socks, securities, and assets. A person who buys into a mutual fund will hold a portion of ownership of the portfolio and reap the rewards when the portfolio gains value; diversifies investment.

A market in which product availability exceeds demand is called a:

Buyer's Market

What is computerized system accounting?

Calculations are inputted into a computer

Diagrams

Can give a visual explanation of a concept. A simplified drawing showing the appearance, structure, or workings of something; a schematic representation.

Graphs and Charts

Can give a visual representation of the subject.

Presentations

Can have one or more goals, it gives information to the audience. (Employees, Stockholders, the public, or another group, but the company may be presenting information about itself, its products, current news, or more). Use to report data, convince an audience of something. Often done in employee meetings.

International Trade Drawbacks

Can lead to job losses and company failures domestically. It will be challenging for domestic companies to catch up with foreign companies. Concerns about working conditions; some countries has little regulations, people may work in unsafe and unsanitary conditions. Children, workers are working countless hours for little pay. Product may be of lower quality or even hazardous when jobs are outsourced. A company may also face barriers to trade such as tariffs, quotas, and cultural resistance. Domestic companies that have good practices and fairly compensated employees may have difficulty competing with international companies that do not.

Stereotyping

Can occur in which people believe certain things about a person just because of who they are.

Copyrighted Software

Can't be legally duplicated for distribution to others.

How does cash and accrual accounting differ?

Cash accounting is more advantageous as it gives the business a better idea of cash on hand, but may not show correct profits; however, accrual accounting will show correct profits, but won't reflect actual cash flow.

Two major types of accounting systems

Cash and accrual accounting

What is the eighth step in the accounting cycle?

Closing the books

What are bonds?

Certificates of debt that carry a promise to buy back the bonds at a higher price at a later time; investor is loaning money to an institution, in exchange the investor will get money for lending the money. Less risky form of investing, but does not promise as large a return as stocks and are limited in return - less risk, but less reward.

Court of General Jurisdiction

Circuit Court, Superior Courts or Courts of Common Pleas. These are specialize courts in many states. Including family courts and juvenile courts. More serious cases, such as those with more serious crimes or higher stakes civil cases.

Currency

Coins and paper bills used as money. When a country purchases items from another country, they first change their money over to that ____________.

What is the first step of the accounting cycle?

Collect and verify source documents: attain all source documents associated with financial transactions: receipts, checks, and bank statements.

Who requires GAAP?

Companies regulated by the US Securities and Exchange Commission (SEC)

What do bar graphs show?

Comparisons between catagories

Product Mixes

Comprises all the products a company offers.

Debugging

Correcting errors in software.

Direct Costs

Costs that can be specifically identified with a particular project or activity.

fixed costs

Costs that do not vary with the quantity of output produced

Federal Warranty Laws

Covers written and implied warranties.

True costs of credit

Credit has a much higher cost than many consumers realize, especially if they are only paying the minimum amount and have high interest on credit cards. The cost of the interest is based on the annual percentage rate (APR) and the amount. For instance, if someone buys a television for $100 on a credit card with 20 percent APR and paid it in one year, then they would pay $120. The interest would be the APR multiplied by the principal amount. This calculates to $100 × 20% (0.2), or $20 interest. Sometimes the credit cards have such a low monthly minimum payment that it does not even cover the interest. If people are only paying the minimum, they might continue to owe more and more money. For instance, if in the last example the minimum payment was only $10 a year, then after the year, the consumer would still owe $110. Then the interest for that year would be $110 × 20%, or $22. The exact cost of the credit depends on APR and how long it takes a person to repay the loan.

How do credits affect accounts in bookkeeping?

Credits make liability, income, and equity accounts go up and asset and expense accounts go down.

Labor Laws

Deals with many aspects of the relationship between employer and employee such as working conditions, wages, and discrimination.

How do debits affect accounts in bookkeeping?

Debits make assets and expense accounts go up and income, liability, and equity accounts go down.

peripheral device

Devices that communicate with the CPU but are not located directly on the motherboard, such as the monitor, floppy drive, printer, and mouse.

What is a trial balance?

Document showing the ending balances of ledger accounts, prior to final financial documents-if accounts are off-balanced the company has opportunity to adjust.

What does GAAP standardize/cover?

Economic activity measurement, timing disclosures, and how financial statements are prepared and presented.

Internet Modalities Used in Business

Email, Message boards, Listservs,Instant Message, Chat Rooms

Communication Modalities

Emails, phone calls, and in person meetings

Bottom level of pyramid

Encompass psychological needs. These are what a human needs to survive such as food, water, air, and sleep.

Benefits to computerized system accounting:

Faster, less man hours, minimize errors/accidents and data can easily be backed up

Federal Insurance Contributions Act (FICA)

Federal law that requires workers and their employers to contribute to Social Security and Medicare

Read Me

Files with installation instructions and last-minute release notes.

What are securities (investment)?

Financial assets that can be traded. These investments include many different types, including stocks and bonds, and are not tangible items; two types of debt securities are bonds and banknotes; securities are advantageous because they can provide a great deal of ROI, the risk is the disadvantage - greater the risk, greater the reward.

What does Financing activities show on statements of cash flow?

Financing activities includes balance changes in stockholders' equity and long-term liability accounts like preferred stock.

BIOS (basic input/output system)

Firmware that can control much of a computer's input/output functions, such as communication with the floppy drive and the monitor.

Inventory Costing Systems

First in, First out (FIFO) and Last in, First out (LIFO)

Different types of assets

Fixed, variable, intangible, tangible

Douglas McGregor's Theory X Assumptions

Focuses on three main assumptions regarding employee motivation and behavior. First, one must assume the employees, by their inborn nature, do not like to work and will try to do as little as possible. It assumes money as the sole motivating factors for employers. Assumes the person does not possess ambition and employees worry only about themselves.

Benefit of a weak dollar

Foreign goods cost less, so importing may increase while exporting or domestically-produced items go down. Prices can go down as well.

Marketing Information Systems (IMS)

Helps marketers make good decision. It collects and analyzes internal and external data and then sends out that information so marketers can better the data; application software; marketing databases; and system support.

2 types of ledgers

General and subsidiary

What is GAAP?

Generally accepted accounting principles. A set of rules and practices, having substantial authortitative support, that accounting profession recognizes as a general guideline for a financial reporting purposes; standardized how income statements, balance sheets, and cash flow statements are prepared

Federal Court System

Generally divided into circuits and districts, with at least one per state. Many Federal lawsuits are heard in those.

Board of directors

Governing body of an incorporated firm. Its members are elected normally by the subscribers (stockholders) of the firm (generally at an annual general meeting or AGM) to govern the firm and look after the subscribers' interests

Adaptive Structure

Has multifunctional teams instead of rigid hierarchy.

Factors that influence cost of living

Housing prices (vary on area), family size, inflation

What do activity ratios measure?

How balance sheet accounts can be transformed into sales or cash. It shows a firm's efficiency.

What is liquidity?

How easy it is to turn an item into cash without losing any money

How does cash and accrual accounting affects taxes?

If an item is purchased in delivered in one month (accrual), but paid for in another month (cash), this affects where it is recorded for tax purposes.

How are frequency tables used in business?

If one needed to find out how often sales reached a certain level, they could put the data into a frequency table and see how often that occurred.

Benefit and drawbacks of a weak dollar

If the dollar is weak, it has less purchasing power and it becomes more expensive to import fro foreign countries. As prices increase. consumers spend less. Fuel costs tend to go up. Inflation can occur because of this. Central banks might raise interest rates to attract investors. A benefit of a weak dollar is that a trade deficit could decrease and domestic job growth can occur, especially in industries like manufacturing.

What is equity?

In business, it shows what the owner has contributed in addition to retained earnings; ownership minus debts

Hierarchical menus

In windows and Mac OS organize frequently needed commands into compact, efficient submenus

This financial statement shows company profitability over a period of time

Income Statement; lists revenues from primary activities (operating revenue) such as sales revenues, service revenues, and revenues from secondary activities; also shows expenses in primary activities, such as those used during normal operation, and expenses from secondary activities like interest.

Where does statement of retained earnings generate its information?

Income statement; subsequently used for the balance sheet

Fixed Interest Rate Loan

Interest payment that remains constant for the duration of the loan.

Product Life Cycle

Introduction stage, make people aware of the product and create a market. Growth stage, the company tries to get more market share. Decline Stage, sales decline. Companies may choose to keep the product with or without changes.

Two popular financial ratios?

Inventory turnover ratio and total assets turnover ratio

What does Investing activities show on statements of cash flow?

Investing activities include balance changes of long term assets like buildings and equipment.

Distribution System

Involves getting a product from the production line to the customer, it contains various parts. First is ordering processing. Next is materials handling, finally, transportation must be done to get the finished goods to consumers as quickly and inexpensively as possible.

Traditional Inventory System

Involves ordering materials and storing them until they are needed.

Telephone

Is commonly used, especially when it is a quick question that needs immediate attention. A system that converts acoustic vibrations to electrical signals in order to transmit sound, typically voices, over a distance using wire or radio.

Powerpoint

Is one of the most commonly used presentation software programs and allows presenters to create detailed slides of photograph, charts, graphs, and more to enhance the presentation.

Emails

Is used very often for a wide variety of business matters because of its ease, speed, and convenience. Messages distributed by electronic means from one computer user to one or more recipients via a network.

Douglas McGregor's Theory Y Assumptions

It assumes that employees can be self motivated and enjoy work just like they might enjoy play. It is natural to them. They can control themselves, and accept and search for responsibility and work to accomplish goals on their own. They desire success at work, managers do not have to exercise strict control to force employees to work.

What does a statement of retained earnings showcase?

It showcases how a business' retained earnings change over a period of time.

When a transaction occurs, where is the first place it is recorded?

Journal

Civil Law

Laws dealing with private rights of individuals (defamation, breach of contract, negligence). Violation results in damages or injunction. A dispute between two parties.

Paternalistic Leadership Style

Leaders who treat their employees as family members. They are consultative and act in the best interests of their employees. The manager act almost as a parent and the employees as children, who trust and are loyal to their leader.

Conducting International Business through Licensing

Licensing occurs when one business makes an agreement with another, giving special permission to make the product in a foreign country. It might involve the resources to do it or the right. This might include a copyright, skills of managers, patents, technology and more.

Video Conferencing

Live conferences over the Internet that includes voice, video, and or text.

What is depreciation?

Loss of value for any reason.

Activity Based Management

Managers examine activities to evaluate costs and value added.

Retirement Plans

May be contributory plans or noncontributory plans. Pension, Employee Stock Plan, 401K plan

What are variable assets

May be transformed to cash sooner; inventory of product and accounts receivable

State Trial Court

May consist of county courts, circuit courts, and city or municipal courts.

Trial Courts

May have limited jurisdiction, hearing lower criminal charges, cases involving juveniles, traffic issues, and some civil cases.

Student loans

Money borrowed to pay for education

Collective Bargaining

Negotiations between representatives of labor unions and management to determine pay and acceptable working conditions.

What is the return on equity ratio? What does it measure?

Net Income/Stockholders Equity; it measures profitability

Centralized Structure

One individual makes decisions for the company.

What does operating activities show on statements of cash flow?

Operating activities convert the business' net income to cash basis with the balance changes in the current liability and current assets accounts.

Functional Structures

Organizes the employees, tasks, and supervision in the company by function.

Public Company Accounting Oversight Board (PCAOB)

Oversees auditing professionals. The five-member body created by the Sarbanes-Oxley Act that was given the authority to set auditing standards in the United States.

price elasticity of demand formula

PED=(%change in the quantity demanded / (%change in the price)

startup BIOS

Part of system BIOS that is responsible for controlling the PC when it is first turned on. Startup BIOS gives control over to the OS once it is loaded.

Step by step Advertisement

Perform research to find out how best to advertise the product and their target market. Create a budget. Create the advertisements, often using a specific theme or idea. Decide on the type of media to be used and schedule it in the best way. Finally, set the campaign in motion.

Two major types of inventory systems:

Periodic and Perpetual

memory

Physical microchips that can hold data and programming, located on the motherboard or expansion cards. monitor - The most commonly used output device for displaying text and graphics on a computer.

Four Ps of Marketing

Place, Price, Promotion, Product

Pyramid- Shaped Hierarchy

Places basic needs at the bottom, which must be attained before higher levels are reached.

Function of Management

Planning, Organizing, Leading, Controlling

Security and Exchange Commission (SEC)

Plays a large role in protecting investors, and mantaining the integrity of the market, and aiding in the formatting of capital. Serve as a govt watchdog over the nations stock markets.

Vertical Integration

Practice where a single entity controls the entire process of a product, from the raw materials to distribution.

What is the fourth step in the accounting cycle?

Prepare a trial balance

What is the fifth step in the accounting cycle?

Prepare a worksheet: look for errors and make corrections called adjustments, which are tracked on a worksheet.

What is the seventh step in the accounting cycle?

Prepare financial statements

Sampling techniques and selection

Probability Sampling, Nonprobability sampling, random sampling, systematic sampling, stratified sampling, convenience sampling, judgement sampling, quote sampling

International Monetary Find (IMF)

Promotes economic stability in 188 member countries. It strives for international growth by giving advice in policies. It also helps developing nations reduce the level of poverty. It works to keep exchange rates stable and international trade balance. It provides financing to countries having difficulty and gives training and technical assistance.

Fair Packaging and Labeling Act (FPLA)

Requires commodity producers to label the name of the product, the identity and source of the manufacturer, the distributor or packer, and the net quantity. It strives to help consumers understand what they are getting.

Federal Trade Commission (FTC)

Protects consumers by stopping businesses from performing deceptive , unfair, and anti-competitive practices. It strives to stop fraud and other types of deception and keep competition fair by stopping anti- competitive mergers. It helps make policies and shares information with the legislature and government agencies. When wrongdoing is suspected, they will investigate and, at times, sue to stop it. They accept complaints about businesses regarding many matters including identity theft, deceptive advertising, and data security.

Mashups

Provide new services by combining data or functionality from two or more external sources.

Court System

Provides justice and settles disputes

health insurance

Provides money to pay for health care for illness, injury, or, in some cases, preventive care

periodic inventory system

Purchases account record is changed when the purchase is made, but the cost of goods sold (COGS) and inventory doesn't change until the accounting period closes.

Quotas

Put a restriction on the number of imports. limitations on the amount of specific products that may be imported from certain countries during a given time period

Food an Drug Administrative (FDA)

Requires testing on drugs to ensure their safety and efficacy.

flash ROM

ROM that can be reprogrammed or changed without replacing chips.

What is the third step in the accounting cycle?

Record transactions in journals

Damages

Refer to the money that may be given to the pliantiff from the defendant during a lawsuit.

non volatile memory

Refers to a kind of RAM that is stable and can hold data as long as electricity is powering the memory.

Liability

Refers to a party's legal responsibility for behaviors, actions, or inaction. If someone does not meet his or her duty, they could have a lawsuit brought against them.

Due Process

Refers to a person's right to have the state respect his legal rights. It is about providing fairness to those involved in legal matters such as by providing a notice of rights. The government must act fairly and in accord with established rules in all that it does(law) the administration of justice according to established rules and principles.

Burden of Proof

Refers to the prosecutor needing to show that the defendant is guilty "beyond a reasonable doubt."

Two forms of balance sheets:

Report Form and the Account Form

Downside to computerized system accounting:

Risk losing all data in a crash; security breach, if a single digit is incorrect then the rest will be wrong

investment options

Securities, Bonds, Stocks, Mutual Funds

Return on Investment (ROI)

Shows an investment's efficacy. It is calculated by ROI=(gain derived from investment - cost of the investment) / cost of the investment; used to compare different projects, will pick the higher percentage

Supplemental information on statement of cash flows?

Shows interest, income taxes, and major non-cash exchanges.

Production Budget

Shows the amount of products that should be made.

Why is the statement of cash flows important?

Shows what a company's cash position is, which can be different from its income if there are accounts that have not paid. Can show the company is managing cash wisely or having difficulty with it.

Sarbanes- Oxley Act and Bankruptcy Reform Act of 2005

Signed by President George W. Bush in 2002 and increased corporate responsibility and financial disclosure while fighting accounting and corporate fraud. It included new or improved standards for management firms, public accounting firms, and United States public company boards.

Batch Operations Production Method

Similar items are made together in batches. They proceed together through each stage of production and then all move to the next stage.

How is GAAP used for investors?

So investors understand what they are getting when they receive statements

firmware

Software that is permanently stored in a chip. The BIOS on a motherboard is an example of firmware.

Assets

Something valuable that an entity owns, benefits from, or has use of, in generating income.

Writing Business Letter

Starts with the senders address (but not the name), Sometime the address will be on the letterhead; otherwise it should be the first part. Date the letter was finished, written as month, day, and year. It should be two inches below the top and flush left (although some formats allow it to go into the center). Underneath will be the inside address, or the recipient's address, including the specific name and title of the addressee, always left justified. Salutation is under, including personal title. Next, the body (Block content, to the point, logical) Start with an opening and the main idea of the letter, followed by information supporting idea, final paragraph (Reiterate the point and ask for action) Closing and enclosures.

Major accounting document that outlines the influx and outflow of cash from a company:

Statements of cash flow

Corporate governance

Stockholders elect the members of a board of directors who oversee the operations of the corporation. Real power held by management group not stockholders who cooperate with a few major stockholders to ensure they remain in power.

What is equity security?

Stocks in which the investor purchases a small portion of a company.

secondary storage

Storage that is remote to the CPU and permanently holds data, even when the PC is turned off, such as a hard drive.

Factors that Affect Retailing Choices

Store location, Product mix, Atmosphere

Laissez-faire (Delagative) Style

Style of leadership is one in which the workers make all the decisions without any managerial control. This can be problematic if the workers cease to become productive because no one is holding them responsible.

Indirect Channel

Takes it through nonaffiliated retailers, wholesalers, or other parties.

examples of fixed assets

Tangible assets used to generate profit and will not be turned into cash within the year: "plant," land, computer equipment, furniture, cars, buildings, and equipment used to make products

Tariffs

Taxes on imported goods. The cost of imports is increased. Domestic production is cheaper.

Personal income taxes:

Taxes paid by households or individuals in households on all forms of income, including wages, rental income, interest income, and dividends (income from ownership of shares in a company); is the most important source of government tax revenues in many countries (especially economically more developed countries); imposed by federal government.

Comparative Advantages

The ability of a country to produce a good at a lower cost than another country can.

What is the accounting cycle?

The accounting cycle describes the steps in the accounting process.

Price

The amount of money exchanged for a good or service. A very important decision for a product because it can impact sales and opinions on the product.

Features of Successful Presentations

The audience should be able to understand the presentation. They need to relate, it should be concise. Presenter should not carry on about the same thing. Provide a good opening hook. Start with a quote or a story. Visual aid should look good, enhance with graphs, charts, photographs, and videos. Presenter should be skilled. Speak loud enough that every one can hear, keep eye contact, and engage in good body language. Confidence and should flow well and keep the audience attention.

What does the debt to equity ratio tell us?

The company's financial leverage

Product Based Structure

The company's global activities are organized along its various product divisions.

What is a subsidiary ledger?

The detail for a number of individual items that collectively make up a single general ledger account.

Product Research

The evaluation of product design, package design, product usage, and consumer acceptance of new and existing products.

What is a general ledger?

The general ledger provides in a single location the list of transactions affecting each account and the account's balance: A general ledger represents the formal ledger for a company's financial statements with debit and credit account records validated by a trial balance.

What is a debt security?

The investor is the lender.

What does the ledger contain?

The ledger contains different accounts like asset accounts, revenue accounts, expense accounts, liability accounts, and equity accounts.

data bus

The lines on the system bus that the CPU uses to send and receive data.

hard drive

The main secondary storage device of a PC, a small case that contains magnetic coated platters that rotate at high speed.

LIFO method (last in first out)

The most recent cost is assigned to the first items sold. For instance if five shirts were bought wholesale for $10, and the next five were bought for $12, the first five would be sold at $12 and then $10.

data path size

The number of lines on a bus that can hold data, for example, 8, 16, 32, and 64 lines, which can accommodate 8, 16, 32, and 64 bits at a time.

binary number system

The number system used by computers; it has only two numbers, 0 and 1, called binary digits, or bits.

bus

The paths, or lines, on the motherboard on which data, instructions, and electrical power move from component to component.

desktop publishing

The production of a document, usually incorporating both text and graphics.

Branding

The promotion of a product or service by identifying it with distinct characteristics (usually associated with public perception, quality or effectiveness). It is how the company distinguishes it product or products as differentiated and may include logos, names, graphic, shapes and more.

BIOS setup bit

Used to change some settings on the motherboard.

Booting

The remainder of the operating system is loaded into memory in this process.

Etiquette in Electronic Communications

They shouldn't use all capitals. They should make a proper introduction and closing and avoid emoticons. Make sure it is free of typos and grammatical errors. Proofread it just as they would proofread a regular letter. Do not bombard people with unnecessary emails. Senders should be careful about including someone in a chain of unnecessary emails. They should make use of BCC and not share people's addresses with others. They should write an appropriate subject line so people know what it is. Be careful about confidential information because users can easily forward them.

shrink wrap license

The software license that is invoked as soon as the plastic wrapping is removed from a new software package.

clock speed

The speed, or frequency, expressed in MHz, that controls activity on the motherboard and is generated by a crystal or oscillator located somewhere on the motherboard.

Total Costs (TC)

The sum of total fixed and total variable costs at each level of output

CMOS (complementary metaloxide semiconductor)

The technology used to manufacture microchips. CMOS chips require less electricity; hold data longer after the electricity is turned off, are slower, and produce less heat than earlier technologies. The configuration, or setup, chip is a CMOS chip.

extension

The three-letter (or more) addition to the name of a file indicating the type of application that produced the document.

Inventory Systems

Traditional, Just in time

Management Accounting

The type of accounting that focuses on reporting information to management; often referred to as accounting for internal users of accounting information.

Low- Level Management

These managers work to ensure that individual employees are meeting their performance goals in a way that aligns with the organizational goals, such as completing a set number of projects by a specific deadline or selling a set number of products within a certain period of time. ie. leads account manager. They spends their time leading, directing and supervising employees.

Goals

Those things you aim for that take planning and work. Things you want to accomplish.

Financing

To buy an item with credit; paying over time

Main purpose of managerial accounting?

To help managers make short-term decisions about business

What does cash accounting entail?

Transactions are counted when money is actually received or the expenses are paid out.

What does accrual accounting entail?

Transactions are counted when orders are made or delivered-even if no cash has been exchanged.

Cyber

Types of entrepreneurs, conduct business online

Home based

Types of entrepreneurs, establish business in the comfort of your home

Non profit

Types of entrepreneurs, profits are further invested into business

Serial

Types of entrepreneurs, start up and move on, like the thrill

Traditional

Types of entrepreneurs, take risk, own operate for profit

End user license agreement (EULA)

Typical software warranty

Fair Credit Reporting Act (FCRA)

U.S act that protects privacy of background information and ensures that information supplied is accurate. Federal law giving consumers the right to view and correct their credit information.

Machine Language

Uses numeric codes to represent the most basic computer operations-adding numbers, subtracting numbers, comparing numbers, repeating instructions, and so on.

Case Law

Verdicts of courts that can now be used in new court cases to help plead cases and define the law.

Democratic (Participative) Leadership Style

Very popular style,the manager does not make all the decisions, but instead shares them with the group.

Mortgages are a(n):

Voluntary lien; home loans that come from banks to allow the consumer to pay off over time; can result in foreclosure if not paid.

Variable loan

a loan in which the interest rate does not stay fixed but varies based on the market interest rate

Public domain software

Web sites, user groups, and other sources free for the taking.

Cash Surplus

When estimated income is greater than estimated expenses.

Primary Research

When marketers do original research. For an example: Giving out a new survey.

Horizontal Integrations

Where company buys out smaller companies forming one big company. Happens when a company attains a similar company.

Placement

Where you sell your product; the stores you choose and the location in the store that you choose.

World Bank

Works to reduce poverty by loaning money to developing countries for capital programs. This international financial organization is part of the United Nations. It promotes foreign investment, international trade, and capital investment. It also works to improve health and fight diseases such as AIDS, tuberculosis, and malaria by sending baccines internationally and other measures.

Foreign Subsidary

a company owned in a foreign country by another company, called the parent company. When a company opens a new subsidiary in a foreign country, either by starting one or buying an existing company.

Embargoes

a complete ban on the import or export of certain products. Occurs when a country restricts trade with a specific foreign country. It is often for political or economic reasons.

County Courts

a court that hears both civil and criminal cases involving less serious crimes or minor issues for one specific county.

Food and Drug Administration (FDA)

a federal agency responsible for regulating food and drug products sold to the public

Internet

a global computer network providing a variety of information and communication facilities, consisting of interconnected networks using standardized communication protocols

Unemployment Insurance

a government program that partially protects workers' incomes when they become unemployed.

Plaintiff

a person who brings a case against another in a court of law.

Business plan

a plan that includes, executive summary, company description, products and services, market analysis, strategy and implementation, organization and management, financial plan

Financial plan

a plan that incluedes an income, statement, balance sheet, cash flow statement, includes establishing financial control system, market research and revenue projections

SWOT analysis

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

Master Budget

a presentation of an organization's operational and financial budgets that represents the firm's overall plan of action for a specified time period. Encompasses all of the budgets of a company to give an entire view of the business as a whole.

Business planning

a process that assesses the business' current status, anticipates trends in the market and considers the financial implications of proposed plans.

search engine

a program that searches for and identifies items in a database that

Enterprise

a project or undertaking that is difficult, complicated, or risky.

Instant Message

a real-time Internet communications service that notifies you when one or more people are online and then allows you to exchange, messages or files or join a private chat room with them.

random sampling

a sample that fairly represents a population because each member has an equal chance of inclusion

nonprobability sampling

a sampling technique in which there is no way to calculate the likelihood that a specific element of the population being studied will be chosen

Business procedures

a series of steps in relation to a business, taken together, to achieve a desired result. It is a particular way of accomplishing something as in a repetitive approach, process or cycle to accomplish an end result

Chat Rooms

a site on the internet where users can discuss topics in real time. An area on the Internet or other computernetwork where users can communicate, typically limiting communication to a particular topic. Convenient because multiple people can see the answers.

Emoticons/ Emogis

a small digital image or icon used to express an idea, emotion, etc., in electronic communication.

Cell Phones

a small telephone you can carry with you that operates through networks of radio antennas or space satellites.

cookie

a small text file of information that certain web sites attach to a users hard drive

Criminal Law

a system of law concerned with the punishment of those who commit crimes. Laws dealing with offenses against society (murder, rape, arson). Prosecuted by the government, violation results in fines or prison sentences Codes of behavior related to the protection of property and individual safety.

Incubator

a type of financial support providing resources such as money, technology, office space or marketing in exchange for equity ownership in business

stratified sampling

a variation of random sampling; the population is divided into subgroups and weighted based on demographic characteristics of the national population

bundle pricing

a variey of products are offered toegher

Whiteboards

a wipe-able board with a white surface used for teaching or presentations.

Commercial Paper

a written promise from one company to another to pay a specific amount of money.

Entrepreneurship

ability and willingness to take the risk of developing a business

perfect competition

all companies make the sam product; no one firm has a large market share and no control over pricing.

limited liability partnership

all partners have limited liability; each partner is not responsible for another partners misconduct or negligence

presentation software

allows you to organize the most important info into a series of slides

bandwidth

amount of data that can be transmitted in a set period of time; range of frequencies within a given band especially when transmitting

Sales Budget

an estimate of expected sales revenue for the budget period. A budget that shows the expected sales for a period of time.

Cash Deficit

an excess amount of expenses over income, resulting in insufficient funds as well as in decreased net worth.

Defendant

an individual or group being sued or charged with a crime.

FIFO method (first in first out)

an inventory costing method that assumes that the earliest goods purchased are the first to be sold; the oldest cost is assigned to the first item sold, then the next oldest cost to the next item sold. For instance, if five shirts were bought wholesale for $10, and then next five were bought for $12, then the first five sold would have the $10 cost and the next five would have the $12 cost.

Promotion

any form of communication used to inform, persuade, or remind. The act of marketing a product so that people become aware of it and hopefully want to purchase it.

Device drivers

are small programs that enable I/P devices keyboard, mouse, printer, and others to communicate with the computer.

IT Architecture

art and science of designing and delivering valuable technology strategy

diminishing returns

as one factor of input is increased, eventually the marginal or incremental output will start to decrease.

economies of scale

as the volume of output increases, it costs less per unit to produce it

Visual Aids

audiovisual materials that help a speaker reach intended speech goals. Can enhance a business presentation.

Listservs

automated mailing-list administrators that allow for easy subscription, cancellation, and delivery of emails to subscribers. An application that distributes messages to subscribers on an electronic mailing list.

penetration pricing

business offers a low cost initially to get customers and slowly raises it

Text to Speech (TTS)

converts normal language into speech

Gains taxes:

based on profit from a non-inventory asset such as bonds, stocks, property, and precious metals

Credit cards allow you to

borrow money for a short term at high interest; can keep a balance

robot

bot, crawler, spider- used to navigate the web by following hyperlinks

succinct

briefly and clearly expressed; Brief and concise.

Corporation

business organization that is considered a separate entity from it's owners, shareholders and board of directors; there is limited liability, shareholders are only liable up to the amount of their investment

Partnerships

business owned and operated by two or more principals for the purpose of making a profit. Jointly provide capital and labor in exchange for shared profit or loss.

Microenterprise

business with less than 10 employees

How are retained earnings defined?

business' accumulated net income with the dividends that were given to stockholders subtracted.

Retailers

businesses that sell directly to final consumers

Ecommerce

buying, selling, marketing, servicing, delivery and payment of goods and services over the internet

Organization and management team

contains an outline of the organization structure, identify owners, management team and board of directors

Independence

characteristic of entrepreneur, able to do it alone

Problem solving

characteristic of entrepreneur, able to solve problems

Creativity

characteristic of entrepreneur, being creative

Communication

characteristic of entrepreneur, communicate with others

Organization skills

characteristic of entrepreneur, juggle, multitask and manage

Risk taking

characteristic of entrepreneur, pursuing activity even if there is a chance for negative consequences

Initiative

characteristic of entrepreneur, willing to start without being pushed

cost leadership

company charges less for the product to attract more customers

differentiation

company produces a unique product

economy pricing

company strives to offer the lowest cost through the most basic items

Marketing Plans

comprehensive strategic and tactical frameworks for identifying and achieving a sport organization's marketing goals and objectives. It is vital for business, it gives direction. Incorporate important research, and serves as a guide for the marketing team.

COBOL

computer language for business

Executive summary

concise short, well written overview of a business plan

How is depreciation recorded?

debit depreciation expense, credit accumulated depreciation

equilibrium

demand is equal to supply.

common tax deductions

dependents, charitable contributions, or business expenses, which can reduce the amount of wages eligible to be taxed. Credits, which reduce taxes owed. Retirement plans.

telecommunications

developed to transmit information from one place to another, can be voice calls, data, text, image, image, video, occurs when exchange of information uses technology

Types of Costs

direct costs, indirect costs, fixed costs, variable costs, total costs

Payroll records

documentation used to process earnings payments and record each employee's pay history.

Factors that affect employment

economy, more people looking for jobs than jobs available, geography, industry, personal factors (education, skills, experience, etc)

Factors that influence income

education (degrees and certifications), experience, job market, prevailing wages in the field, economy, geography

Extranet

enables businesses to exchange information securely

Consumer Product Safety Act (1972)

encourage safety in product design and better quality control.

United States Department of Agriculture (USDA)

enforces standards for the quality and wholesomeness of meat, poultry, and eggs. Inspects and sets standards for meat, poultry, and canned fruits and vegetables.

Social Media

engagement refers to the acts of talking to, messaging or otherwise interacting with other people on social networks.

parallel port

female 25-pin port on a computer that can transmit data in parallel, 8 bits at a time, and is usually used with a printer. The names for parallel ports are LPT1 and LPT2.

scarce

fewer units available than the amount people want

profit margins

financial ratios that reflect the level of the firm's profits relative to its sales; used to compare companies of different sizes

sole proprietorship

form of business with one owner, no legal distinction between business and owner, taxes are one, owner is liable

Adam Smith

founder of modern economics; classical economics.

In double entry bookkeeping, what equation is used as the basis?

fundamental accounting equation (assets=liabilities + owner's equity)

Bootstrapping

funding a new business from personal savings

methods for managing personal credit and debt

get rid of high-cost debt like credit cards and loans. Divide budget into needs and wants and try to only focus on the needs; increase income; talk to creditors to come up with payment plan or reduction in debt.

Business Objectives

goals or end points to where the business is aiming

(SBA) Small Business Administration

grants or low interest loans through the government to start a new business; connects entrepreneurs with lenders and funding to help them plan, start and grow their business

byte

group of binary digits operated as a unit, equal to a unit of information

Virtual team

group of individuals working together from dispersed geographic locations

Entrepreneurial team

group of people that help spread the risk of a new business adventure and bring in different talents and skills

Property taxes are

levied on properties and are generally based on the amount the property is worth

scarcity

limited resources for unlimited wants in people

Intranet

local or restricted communications network

macroeconomics

looks at the entire economy GDP, prices and inflation

Authoritarian (Autocratic) Leadership

makes all the decisions, passes directives to subordinates, questioning is discouraged, and there is assumption that the leader knows everything. The rules and regulations are strict and the manager keeps firm control.

Data Loss Prevention (DLP)

making sure that end users do not send critical information outside a corporate network

Total Quality Management

managing the entire organization so that it excels on all dimensions of products and services that are important to the customer. This method strives for better internal process and increased customer satisfaction.

monopolistic competition

many different producers that sell similar, although not identical products; restaurants

Communication

means of connection between people or places, in particular.

Multiplexing

method by which signals are combined into one signal over a shared medium

Disbursements

money paid out

Non-verbal Communication

ncludes gestures, facial expressions, and body positions (known collectively as "body language"), as well as unspoken understandings and presuppositions, and cultural and environmental conditions that may affect any encounter between people.

International Trade

occurs when a firm exports goods or services to consumers in another country

Conflict of Interest

occurs when a person has two adversary interests, one of which might not be best for his or her business.

monopoly

one company is the only provider of a product

Target Market

one or more specific groups of potential consumers toward which an organization directs its marketing program.

data base

organized collection of information that can be accessed, managed and updated

Food Safety and Inspection Service (FSIS)

oversees the safety of meat and poultry. The public health agency in the U.S. Department of Agriculture responsible for ensuring that the nation's commercial supply of meat, poultry, and egg products is safe, wholesome, and correctly labeled and packaged.

Advertisment

paid announcement about a product or service designed to influence what you buy. Is a means of communication with the users of a product or service.

Strategy and implementation

part of plan: summarizing sales and marketing strategy and how you will implement with your operating plan

limited partnership

partnership agreement, general partner manages and is liable, limited partner has no rights to manage and only provides funding

What do circle graphs show?

parts of a whole

Active Listening

paying close attention to what someone is saying and communicating. The act of mindfully hearing and attempting to comprehend the meaning of words spoken by another in a conversation or speech.

What is manual system accounting?

people do the calculations by hand

Unemployment rate

percentage of the working force that is not currently employed

Entrepreneur

person who starts a business

Memory

physical microchips that can hold data and programming, located on the motherboard

aggregate supply and demand

price level for the country as a whole

Crowdfunding

raising money by soliciting donations from large groups of people, usually over the internet

CMOS RAM

region of memory that uses battery power to retain data after the PC is shut off.

Command line interface

requires the user to type commands that the computer responded to

Administrative Laws

rules and regulations created by administrative agencies to which legislative powers have been given by legislatures. It refers to the procedure that administrative agencies create. It is very tecnhical. Different agencies have different procedures and these must be fulfilled before a lawsuit can be brought.

Laws

rules of behavior established by a political authority and backed by state power.

Netiquette

rules when using the internet to stay safe; the correct or acceptable way of communicating on the Internet

promotional pricing

sales

systematic sampling

select some starting point and then select every Nth element in the population

What are stocks?

shares of ownership in a company; advantageous to the investor as there are no limits to what they can make - as the company does well, the investor does well. Diversification lessens the risk of losing everything.

microeconomics

shows how individuals and small organizations act and make decisions

Market analysis

shows industry knowledge and conclusions based on market research; studies the attractiveness and the dynamics of a special market within a special industry

Circular flow of economic model

simplified way money and products make their way through the economy

World wide web

system of interlinked, hypertext documents accessed through the internet that provided many resources and search tools

Middle Level Management

tactical managers - translate goals and plans developed into specific objectives and activities.Brings organizational plans to fruition.

Direct Channel

takes the product straight from the producer to the consumer.

Cross Training

team training in which team members understand and practice each other's skills so that they are prepared to step in and take another member's place.

Copy protected/ Digital rights management (DRM)

technology to ensue that they can't be duplicated with conventional copying techniques.

(WAN) Wide area network

telecommunications that extend over large geographic areas

Fax Machine

telephones transmitting pieces of paper electronically through telephone lines; these machines aid in communication when paper copies are needed.

Telecommuting

term used to describe working from home or while traveling with a computer linked to your place of employment

Promotions

the advancement of an employee to a position with greater responsibility.

programming

the ability to analyze and understand a problem and the ability to describe that problem to a computer so it can arrive at a solution

Absolute Advantage

the ability to produce a good using fewer inputs than another producer. For instances, if one country can make 10 shirts for the cost and effort that another country uses to make 5 shirts, then the country that can make more has the ____________.

Eye Contact

the act of looking directly into one another's eyes.

Business cycle

the continuous sequence of ups and downs in the economy; cycle of economic expansion and contraction

Balances of Trade

the difference in value between a nation's exports and its imports.

Copyright

the exclusive, legal right of a person to reproduce, publish, and sell his or her own literary, musical, or artistic creations

Business strategies

the firm's working plan for achieving its vision, prioritizing objectives, competing successfully, and optimizing financial performance with its business model

Business Policies

the guidelines developed by an organization to govern its actions. They define the limits within which decisions must be made; also deals with acquisition of resources with which organizational goals can be achieved

law of supply

the higher the price of a good, the more of it the producers are willing to make

law of demand

the higher the price, the lower the demand

Supreme Court

the highest federal in the United States, which shapes many laws. It hears a small number of very important cases.

Circuit Courts

the major trial courts in the state that handle felonies.

Distribution Channels

the path through which products or services get to customers.

Ethnocentrism

the practice of judging another culture by the standards of one's own culture.The belief that one's own group or culture is superior to all other groups or cultures. Racial or cultural prejudice.

Exchange Rates

the prices at which currencies trade

search engine optimization

the process of designing a website to maximize its placement in search engine results with particular keywords, thus increasing traffic to the site

Market Segmentation

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups.

Marketing Research

the process of planning, collecting, and analyzing data relevant to a marketing decision.

Marketing Mix

the set of tactical marketing tools - product, price, place, and promotion - that the firm blends to produce the response it wants in the target market.

Selling Process

the steps that the salesperson follows when selling, which include prospecting and qualifying, preapproach, approach, presentation and demonstration, handling objections, closing, and follow-up.

What is the debt to equity ratio?

total liabilities/total equity; if the number is high, there is a lot of debt

Work force

total number of people who are capable of work, employed and unemployed

Bartering

trading what you can do for what you need; exchange of goods or services for other goods or services without using money

What do line graphs show?

trends over time; connection between information

Informal Structure

unspoken but understood channels of communication, reflecting patterns that develop spontaneously.

convenience sampling

use results that are easy to get

word processing

used to manipulate a text document; the production, storage, and manipulation of text on a computer or word processor

spreadsheet software

used to organize and manipulate numerical data

database software

used to organize, manipulate and analyze data

Commodity

valuable product; a raw material or primary agricultural product that can be bought and sold, such as copper or coffee.

Consumer Protection Laws

variety of laws and goverment agencies protect the public against harmful products.

Voluntary Export Restraints

voluntarily imposed limits on the number or volume of products exported to a particular country. Self-applied rules that restrict what a country can export to another country.

Bankruptcy Reform Act of 2005

was created to lower Bankruptcy Code filing. Parties filing for bankruptcy would now need to get financial counseling first. In addition, undergo a "means test" to see if they qualified. Filers have to wait 8 years before using Chapter 7 bankruptcy again.

Leadership Styles

ways in which people express their leadership

Venture capitalists

wealthy individuals or groups who provide money to start or expand a business, but will only fund those with high growth potential

Angel investors

wealthy individuals who provide start up funding for entrepreneurs; capital provided may be a one time investment or an ongoing supply of money to carry through the difficult early stages

opportunity cost

what a company gives up by choosing a different path. gives a comparative advantage for a product

factors that determine whether to carry life insurance

who is counting on the income, how long dependents will rely on the income, the needs of the dependents, long-term savings - someone with life-savings will need less insurance

Wealth of Nations

written by Adam Smith