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

Human resources, material resources, informational resources, and financial resources.

They provide services.

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Go-between; mediator.

Yes

The remains after all business expenses have been deducted from sales revenue.

Sales revenue - expenses

The study of how wealth is created and distributed.

The system through which a society creates and distributes wealth.

A system in which individuals own and operate the majority of businesses that provide goods and services.

A system in which the government owns and controls the means of production.

A system where factors of production are owned and directed by the state.

Capitalist

They include both capitalism and socialism.

Factors of production.

Land, labor, and capital.

They provide public services not provided by businesses.

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An economic system in which the government controls a country's economy.

Socialism and communism.

Competing on sales for potential customers.

Large number of small that businesses that sell the same type of products with the same characteristics.

- It is easy to enter leave the market

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Quantity of a product producers are willing to sell.

Quantity of a product buyers are willing to purchase.

The price at which the amount that buyers wish to buy equals the amount that sellers wish to sell.

A one seller market.

- No competition

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A large number of small businesses that sell similar products.

- Similar products, different characteristics.

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A few large business that sell identical or very similar products.

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- Sizable investment needed to enter.

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A system in which people buy and sell goods by exchanging one item for another; no money is involved.

The manufacture of goods in the household setting; a production system that gave way to the factory system.

A method of production that brought many workers and machines together into one place.

In production, a system in which each worker performs a single part of an entire process.

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

A system of moral principles.

The application of moral standards to business situations.

Business people are expected to refrain from knowingly deceiving, misrepresenting, or intimidating others.

Business people should put the welfare of others and the company above their own welfare.

Situation in which an employee must choose between a business's welfare and personal gain.

Business communications that are false, misleading, or deceptive are both illegal and unethical.

- Governmental

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- Code of Ethics

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Informing the press or government officials about unethical practices within one's organization.

A set of guidelines for maintaining ethics in the workplace.

The duty to do what is best for the good of society.

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"Let the buyer beware."

- Business is a part of society. Therefore, they cannot ignore social issues.

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- The focus should be on providing a return on investments.

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A product must be safe and should warn us of dangers.

Consumers have access to complete information about a product before they buy it.

Consumers should have access to a variety of products and services at competitive prices.

Consumers have the right to complain about a product and to be listened to.

The right to be fully informed about their rights as consumers.

Consumers are entitled to convenience, courtesy, and responsiveness from manufacturers and sellers.

A group of people with physical or cultural traits different from those of the dominant group in the society.

A program that requires companies doing business with the federal government hire minority, female, and handicapped employees.

Contamination of Earth's land, water, and air.

A federal agency that enforces laws affecting human and environmental health.

- How to restore contaminated land.

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Facilities that burn trash at high temperatures.

Excessive noise due to traffic, aircraft, and machinery.

- High levels of pollutants still remain.

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- Aviation emissions of carbon dioxide are contributing to global warming.

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1. Secure the commitment of top executives.

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A report of what the organization has done and is doing with regard to social issues.

A business that buys, sells, and trades across national boundaries.

The ability to produce something more efficiently than any other nation.

The ability to produce a good at a lower cost than another nation.

Selling or shipping materials to other nations.

Taking in materials into one's own country.

The difference between a country's total exports and total imports.

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Good

Bad

Tax on a foreign product entering the country.

Generate income for the government.

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Taxes placed on foreign goods, making them less attractive to consumers and thus protecting domestic industries from foreign competition

Selling large quantities of goods in another country below prices in the home market.

Nontax policies that governments enact to discourage imports.

A nontariff barrier that limits the amount of a good that can be imported.

A nontariff barrier that halts trading with a particular nation or in a particular product.

A nontariff barrier that restricts foreign currency.

A nontariff barrier that lowers the value of a nation's currency relative to the currencies of other nations.

The overwhelming amount of government rules, regulations, and paperwork.

1. Find product

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Agreement where one firm permits another to produce & market its product and use its brand name in return for payment.

Expansion with little investment.

- Image impacted if standards not upheld.

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Partnership set up for a specific purpose for a short period of time.

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- Immediate market knowledge.

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- Complexity of agreements.

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An alliance formed as a part of a plan with important aims.

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Firms that develop international trade and serve as intermediaries between international businesses.

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Firm's own production and marketing facilities in one or more foreign nations.

There is a complete control over operations.

It's risky.

An international barter transaction.

Avoids restrictions on converting domestic currency to foreign currency.

A firm that operates on a worldwide scale without ties to any specific nation or region.

164 nations dedicated to reducing or eliminating trade barriers.

Administers the rules governing trade between its 164 members. Helps international business conduct their business and ensure that trade flows smoothly.

A business owned by one person.

Sole proprietor

72% (23 million)

- Easy to start and cancel

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- Unlimited liability

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A business owned by two or more people.

2

Partnership in which partners share equally in both responsibility and liability

A partnership that includes at least one general partner who actively manages the company and accepts unlimited liability and one limited partner who gives up the right to actively manage the company in exchange for limited liability.

Legal documents that set forth the basic agreement between partners.

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9% (3 million)

- Easy to start

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- Unlimited liability

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A business that is owned by many investors.

19% (6 million)

The process of forming a corporation.

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Share of ownership in a corporation.

A person who owns a corporation's stock.

A corporation whose stock is owned by relatively few people and is not sold to the general public.

A corporation whose stock can be bought and sold by any individual.

Contract between the company and the state; state recognizes the artificial person.

The primary form of ownership in a corporation. You get a vote in how to run the corporation. Each year the stockholders have a meeting where they vote on various issues and elect members to the Board of Directors.

Gives its holders certain privileges that common stockholders don't have. If a company pays dividends, preferred stockholders are paid before common ones. Unfortunately, they don't get to vote.

Profit distributed over shareholders quarterly.

A group of people elected by the stockholders of a corporation to set the policies for the corporation.

Set corporate goals, develop plans, and are esponsible for firm's overall operation.

Both

The chairman of the board, president, executive vice presidents, corporate secretary, treasurer, and any other top executive appointed by the board of directors

1. Stockholders elect board of directors

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- Limited liability

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- Government regulation and increased paperwork

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Taxed like partnership. Avoids double taxation, offers limited liability

Institution that functions much like a business, but does not operate for the purpose of generating profits.

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Temporary association to perform a specific task requiring a large amount of capital.

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The purchase of one corporation by another; essentially an acquisition.

Ownership change that occurs when one company purchases large quantities of outstanding stock in another company, thereby giving controlling interest to the acquiring company.

The combination of two or more firms competing in the same market with the same good or service.

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Two or more firms involved in different stages of producing the same good or service.

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The joining of firms in completely unrelated industries.

A business that is independently owned and operated for profit and is not dominant in its field.

Number of employees and average annual sales.

Over 70% of small businesses expected to fail within first five years.

The desire to create a new business.

- Planning

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- Several years to profit

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Yes (2.5 times more)

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Force larger firms to become more efficient and responsive.

A description of the goals of a business and how it will operate.

Governmental agency that assists and protects the interests of small businesses.

A business operated under an authorization to sell or distribute a company's goods or services in a particular area.

Granting of a franchise.

The giver of the franchise.

The receiver of the franchise.

Two franchisors offer their products together.

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- Well controlled distribution of products

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- Failure of the franchisee to operate properly

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- Opportunity to start a proven business with limited capital

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- Franchisor retains much control over activities

Process of coordinating people and resources to achieve the goals of an organization

Establishing goals and deciding how to accomplish them.

Expected result over a one-to-ten year period.

Expected result over a shorter period of time.

Designed to achieve long-term goals.

A smaller scale plan developed to implement a strategy.

A type of plan designed to implement tactical plans.

Plan for unexpected problems (backup).

Top management, middle management, and first-line management.

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Identify problems, generate alternatives and select the best solution.

Ability to deal effectively with other people.

A special skill to accomplish a specialized activity.

Ability to speak, listen and write effectively.

Ability to think in abstract terms.

The ability to influence others.

A leadership style when workers told what to do and how to do it.

Choosing an alternative that is not the best, but it solves the problem.

A group of people who work together to achieve goals.

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A diagram that shows the relationships between personnel in an organization.

The process of specifying the tasks, duties, and responsibilities of a job.

The dividing of a organization into separate units.

The number of employees reporting to a supervisor.

Assigning part of a manager's work and power to others.

Authority is concentrated at the upper levels.

Authority is spread in the lower levels.

A list of who reports or answers to whom.

Separation of activities into distinct tasks and assigning these to different people.

Moving employees from one specialized job to another.

An increase in job tasks and responsibilities.

- Standard operating procedures

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- A high level of interaction required

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Flexibility and higher morale.

An organization structure that creates dual lines of authority (vertical and horizontal; the employees of the organization have more than one boss).

Chain of command conflicts, poor communications, and unclear responsibilities.

A type of organizational structure viewed as less hierarchical , more decentralized, and more flexible than other structures.

High turnover, low morale, and reliance on outside contractors.

An informal communication network along which unofficial information flows.

Process of making large quantities of a product quickly and cheaply.

The ability of being useful (products).

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Form, place, time, and possession.

Changing the nature of the good (putting it in a more attractive form for customers).

Having a product where customers can buy it (this adds value).

Making products available when they're needed (this adds value).

Allowing consumers to take legal ownership of a product (this adds value).

- Consumed immediately

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1. Research and development

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Improving and adding features to a product.

Combining old and new research and putting the knowledge to use.

The development of a plan for converting an idea into an actual product.

The amount of products that can be produced in a given amount of time.

A group of closely related products manufactured by a single company.

The process of determining where products are to be produced.

Different operations required for different parts of a product.

When products undergo the same operations in the same sequence (assembly line).

Deciding the amount of products the facility will produce.

All activities involved in producing goods.

A manager who manages systems that convert resources into goods and services.

Select a time period, estimate a market demand, compare market demand to capacity, and adjust capacity to meet demand.

Activities involved in obtaining required materials.

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Keeping track of the amount of product on hand, sold, and on order.

Computerized systems.

Ensuring materials and resources are at the right place at the right time.

Ensuring that goods and services are produced in accordance with specifications (to make sure goods are suitable for sale).

The amount of production per worker per hour.

Manufacturing whose goal is to eliminate waste in all aspects of the process (saves time and money).

Make business investments in facilities, equipment, and training.

People who provide labor and skills in a business.

All activities involved in acquiring, maintaining, and developing an organization's human resources.

HR planning, job analysis, recruiting, selection, and orientation.

- How many employees?

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Employee relations, compensation, and benefits.

Training and development.

Increase the workforce.

Reduce the workforce.

Studying jobs to determine their various elements and requirements.

A short few sentences that describes the position and duties a person has.

Process of attracting qualified job applicants.

- Websites

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Promotion and transfer.

Gathering information and choosing the most appropriate applicant (most appropriate vs. most qualified).

- Resumes

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Acquainting new employees with the firm.

The process that a company uses to integrate new employees into an organization.

Payment employees receive for their labor.

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Rewards in addition to compensation.

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The process of preparing managers to assume increased responsibility in both present and future positions.

Working under the supervision of an experienced employee.

Training that replicates the work environment.

Meetings to discuss and exchange ideas.

Acting out the roles of others.

Large groups needing the same information.

The evaluation of employees' job performance.

- Allows managers to make objective HR decisions.

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Feedback from everyone a worker interacts with on a daily basis.

Men and women who do equal jobs must be paid the same wage.

Established a minimum wage and an overtime pay rate.

Prohibits discrimination in employment practices based on sex, race, color, religion, or national origin.

The internal process that energizes and directs behavior.

An employee's feelings about their job and about the firm itself.

1. Self-actualization

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Employees believe the rewards for accomplishing a task are worth the effort.

A theory that states that people will be motivated when they perceive that they are being treated fairly.

The theory that people will be motivated to the extent to which they accept specific, challenging goals and receive feedback that indicates their progress toward goal achievement.

Involves the restructuring of a job, usually with the employees' involvement and agreement to make it more interesting.

A systematic program of reinforcement to encourage desirable behavior.

1. Identify

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A schedule that allows workers to choose work hours that fit their particular needs.

All employees are expected to be at work.

Employees may choose whether to be at work.

Permanent employment in which individuals work less than a standard work week.

To share the responsibilities and duties of a single full time job with one or more other employees.

Working at home all or part of the work week.

Increasing employee participation in decision making.

Employees own the company by being stockholders.

gender, age.

personality.

location.

benefit expectations.

A particular group of consumers at which a product or service is aimed.

- Price

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A strategy that focuses on keeping and improving relationships with current customers.

A report, usually prepared by marketing, predicting future sales of a product.

low customer awareness and acceptance; sales rise gradually; high marketing costs, low profits. Make potential customers aware of product.

Rapid sales increase; lower price, lower profit. More competition. Improve product or expand product line. Reduce price; broaden distribution (placement).

Sales still increasing at slower rate, will decline in later stage. Price competition, more segmented market. Redesign packaging. Encourage new product uses; increase promotional efforts and personal selling

Sharp decrease in volume, profits continue to fall. Cover costs, maintain market share, reduce inventory. Retain or eliminate product.

All products that an organization sells.

A group of closely related product items.

Name, symbol, term, and design.

Use a different brand for each product.

Use the same brand for all or most of the products.

Highest possible price during the introduction.

Low price for a new product; quickly build market share.

Price through bargaining.

Temporary reduction on a systematic basis.

Temporary reduction on an unsystematic basis.

- Odd-number

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The process of systematically collecting, analyzing, and reporting financial information.

Assets - liabilities