Business Chapter 1

Helpfulness: 0
Set Details Share
created 9 years ago by andrewcmartinez
2,446 views
show moreless
Page to share:
Embed this setcancel
COPY
code changes based on your size selection
Size:
X
Show:
1

sustainability

meeting the needs of the present without compromising the ability of future generations to meet their own needs

2

social media

the online interaction that allows people and businesses to communicate and share ideas, personal information, and informations about products or services.

3

service economy

an economy in which more effort is devoted to the production of services than to the production of goods

4

e-business

the organized effort of individuals to produce and sell through the internet, for a profit, the products and services that satisfy society's needs

5

specialization

the separation of a manufacturing process into distinct tasks and the assignment of the different tasks to different individuals

6

factory system

a system of manufacturing in which all the materials, machinery, and workers require to manufacture a product are assembled in one place

7

domestic system

a method of manufacturing in which an entrepreneur distributes raw materials to various homes, where families process them into finished goods to be offered for sale by the merchant entrepreneur

8

barter

a system of exchange in which goods or services are traded directly for other goods or services without using money

9

standard of living

a loose, subjective measure of how well off an individual or a society is, mainly in terms of want satisfaction through goods and services.

10

natural monopoly

an industry requiring huge investments in capital and within which any duplication of facilities would be wasteful and thus not in the public interest.

11

monopoly

a market or industry with only one seller, and there are other barriers oto keep other firms from entering the industry.

12

oligopoly

a market or industry in which there are few sellers

13

product differentiation

the process of developing and promoting differences between one's products and all competitive products.

14

market price

the price at which the quantity demanded is exactly equal to the quantity supplied. (refer to figure 1.7)

15

demand

the quantity of a product that buyers are willing to purchase at each of various prices

16

supply

the quantity of a product that producers are willing to sell at each of various prices

17

perfect (pure) compeition

the market situation in which there are many buyers and sellers of a product, and no single buyer or seller is powerful enough to affect the price of that product

18

competition

rivalry among businesses for sales to potential customers

19

National debt

the total of all federal deficits

20

Fiscal policy

government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending

21

monetary policies

Federal Reserve decisions that determine the size of the supply of money in the nation and the level of interest rates

22

depression

a severe recession that lasts longer than a typical recession and has a larger decline in business activity when compared to a recession

23

recession

two or more consecutive three-month periods of decline in a country's GDP

24

business cycle

the recurrence of periods of growth and recession in a nation's economic activity

25

producer price index (PPI)

an index that measures prices that producers receive for their finished goods

26

consumer price index (CPI)

a monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area

27

unemployment rate

the percentage of a nation's labor force unemployed at any time

28

deflation

a general decrease in the level of prices

29

inflation

a general rise in the level of prices

30

Gross Domestic Product

the total dollar value of all goods and services produced by all people within the boundaries of a country during a one year period.

31

productivity

the average level of output per worker per hour

32

command economy

an economic system in which the government decides what goods and services will be produced, how they will be, for whom will they, and who owns and controls the major factors of production

33

consumer products

goods and services purchased by individuals for personal consumption

34

mixed economy

an economy that exhibits elements of both capitalism and socialism

35

Market economy

an economic system in which businesses and individuals decide what to produce and buy, and the market determines quantities sold and prices

36

Invisible hand

a term created by Adam Smith to describe how an individual's personal gain benefits others and a nation's economy

37

Capitalism

derived from Adam Smith, an economic system in which individuals own and operate the majority of businesses that provide goods and services

38

Entrepreneur

a person who risks time, effort, and money to start and operate a business

39

What are the four factors of production?

CELL! Capital, Entrepreneurship, Land, Labor

40

factors of production

resources used to produce goods and services

41

economy

the way in which people deal with the creation and distribution of wealth

42

macroeconomics

the study of the national economy and the global economy

43

microeconomics

the study of the decisions made by individuals and businesses

44

Economics

the study of how wealth is created and distributed

45

Stakeholders

all the different people or groups of people who are affected by the policies and decisions made by an organization

46

Profit

what remains after all business expenses have been deducted from sales revenue

47

Business

the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs

48

Managers must be able to perform five basic management functions?

planning, organizing, leading, motivating, and controlling

49

Cultural Diversity (workplace)

differences among people in a workforce owing to race, ethnicity, and gender

50

Free Enterprise

The system of business in which individuals are free to decide what to produce, how to produce it, and at what price to sell it