Complete List of Terms and Definitions for BCOR MIDTERM

Terms Definitions
factors of production landlaborcapitalentrepreneurshipknowledge/information technology natural, human, and financial resources
marketing mix productpriceplace promotion
types of pricing demand-orientedcost-orientedprofit-orientedcompetition-oriented
management involoves coordinating employees' actions to achieve the firm's goals, organizing people to work efficiently, and motivating them to achieve the business's goals. production and manufacturing is another element plan, organize, staff, control tasks required to carry out the work of the company or organization
organizational structures for international trade/ business  import/export
contract manufacturing/ outsourcing
joint ventures
strategic alliances 
FDI (foreign direct investment)
Multinational corporation
i like fun cuz jews ski fucking madly
The role of government -Agriculture-Commerce-Education-Energy-Health and Human Services-Homeland Security-Housing and urban development-Interior-Labor-Transportation-Treasury-Environmental Protection-Drug Control
Bookkeeping day-to-day recording of business transactions responsible for obtaining and recording the information that accountants require to analyze a firm's financial position
accounting the recording, measurement, and interpretation of financial information used in making business decisions 
basic principals: relevant, reliable, consistent, comparable 
consumerism the activities that independent individuals, groups, and organizations undertake to protect their rights as consumers
3 types of global firms internationalmulti-nationaltransnational
environmental factors (environmental scan - 5 factors) social economictechnologicalcompetitiveregulatory
equality vs efficiency equality vs. fairness -Egalitarian Ideas in politics but INEQUALITY in the end result/ Economic system -Right to Compete vs. Right to Succeed -Arthur Okun- UNIVERSAL ENTITLEMENTS= Free, Universal, Non-transferable (NOT involved in Economy)
Supply the number of products-goods and services- that businesses are willing to sell at different prices at a specific time
private accountants accountants employed by large corporations, government agencies, and other organizations to prepare and analyze their financial statements
Business individuals or organizations who try to earn a profit by providing products that satisfy people's needs
Competition the rivalry among businesses for consumers' dollars
free market capitalism motivated by self interest
inflation The occurrence of widespread price increases (too much money chasing same amt of goods) measured by the consumer price index
finance primary responsibility of the owners to provide financial resources for the operation of the business all activities concerned with obtaining money and using it effectively
direct investment the ownership of overseas facilities
budget an internal financial plan that forecasts expenses and income over a set period of time principal value of a budget lies in its breakdown of cash inflows and outflows. expected operating expenses (cash outflows such as wages, material costs, and taxes) and operating revenues (cash inflows in the form of payments from customers) over a set period of time are carefully forecast and subsequently compared with actual results
product life cycle (1) introduction(2) growth(3) maturity(4) decline
the promotional mix APSDP advertisingpublic relationssales promotiondirect marketingpersonal selling
selective perception filtering of exposure, comprehension, and retention
cognitive dissonance feeling of postpurchase psychological tension or anxiety
franchisor a company that develops a product concept and sells others the rights to make and sell the products
certified management accountants private accountants who, after rigorous examination, are certified by the national association of accountants and who have some managerial responsibility
managerial accounting the internal use of accounting statements by managers in planning and directing the organization's activities Management - managers Owners, Partners Board of Directors Department heads Employees 
public goods social benefits are greater than private benefits 
underproduced in a free market 
world trade organization (WTO) international organization dealing with the rules of trade between nations
European Union a union of european nations established in 1958 to promote trade among its members, one of the largest single markets today
owner's equity equals assets minus liabilities and reflects historical values
liabilities debts that a firm owes to others
accounting cycle the four-step procedure of an accounting system: examining source documents, recording transactions in an accounting journal, posting recorded transactions, and preparing financial statements
small business any independently owned and operated business that is not dominant in its competitive area and odes not employ ore than 500 people strength= ability to innovate and bring significant benefits to customers, job creation. Advantages independencecostsflexibility focusreputationDisadvantageshigh stress levelhigh failure rateundercapitalization managerial inexperience or incompetenceinability to cope with growth
unlimited liability the responsibility of business owners for all of the debts of the business YOU are completely responsible for all the debts,Losses, and costs of a business. This means your personal savings canBe seized to cover business costs
Efficiency the state or quality of being efficient; competency in performance
Socialism an economic system in which the government owns and operates basic industries but individuals own most businesses business ownership-the government owns and operates major industries; individuals own small businessescompetition is restricted in major industries; encouraged in small business profits- earned by small businesses may be reinvested in the business; profits from government owned industries go to the government product availability and price- consumers have some choice of goods and services, prices are determined by supply and demandemployment options- some choice of careers; many people work in government jobs. ex: sweden, israel egalitarianism- equal distribution of income and social services
Economics the study of how resources are distributed for the production of goods and services within a system
International Trade Barriers Economic- level of economic development, exchange rate
Technological- levels of development
Social/cultural- differences in culture 
legal/political- political instibilites, sanctions, laws, protectionism 
technological barriers Varying levels of technology and infrastructure developmentMarketing dataTelephone linesIT NetworkingDelivery Trucks
Financial Accounting external 
used by the company to report financial performance to any group outside of the business  
ex of users:government, lenders, investors, suppliers, consumers, unions
aquisition one company's purchase of the property and obligations of another company
types of branding (4 types) MMPM multiproduct brandingmultibrandingprivate brandingmixed branding
enterpreneurship the process of creating and managing a business to achieve desired objectives
social and cultural barriers Understanding differences among the cultures of countries -- VERY important Spoken and written languageBody language and personal spaceFamily roles… Social roles... Gender roles… Perception of timeReligious holidays and local customs
Ethics Beliefs about what is right and wrong or good or bad in actions that affect others
vertical merger the joining of two companies involved in different stages of related businesses 
ex: tire and car company combining 
conglomerate merger the joining of firms in completely unrelated industries
laissez-faire capitalism adam smiths idea- the government does not interfere in business
cash flow the movement of money through an organization over a daily weekly, monthly, or yearly basis
exit and voice POWER IN NUMBERS Exit= Quit, boycott, change brands, divest Voice= Protest, write letters, cause negative publicity
international business the buying, selling, and trading of goods and services across national boundaries must consider social and cultural barriers such as language, body language, holidays, local customs
whistleblowing the act of an employee exposing an employer's wrongdoing to outsiders, such as the media or government regulatory agencies
code of ethics formalized rules and standards that describe what a company expects of its employees
plagiarism the act of taking someone else's work and presenting it as your own without mentioning the source
exporting the sale of goods and services to foreign markets
dumping the act of a country of business selling products at less than what it costs to produce them permits quick entry into a market
exchange rate the ratio at which one nation's currency can be exchanged for another nations currency
trade deficit a nation's negative balance of trade, which exists when that country imports more products than it exports
Communism first described by karl marx as a society in which the people, without regard to class, own all the nation's resources. business ownership- most businesses are owned and operated by the government Competition- the government owns and operates everythingprofits- excess income goes to the governmentproduct availability and price- consumers have a limited choice of goods and services; prices are usually highemployment options-little choice in choosing a career; most people work for government-owned industries or farms. ex. cuba, north korea
Human Resources the physical and mental abilities that people use to produce goods and services; also called labor
Stakeholders groups that have a stake in the success and outcomes of a business Anyone affected or impacted by a company’s decisions or actions or policies
Mixed economies economies made up of elements fro more than one economic system
Demand the number of goods and services that consumers are willing to buy at different prices at a specific time
economic expansion the situation that occurs when an economy is growing and people are spending more money; their purchases stimulate the production of goods and services, which in turn stimulates employment
entrepreneur an individual who risks his or her wealth, time, and effort to develop for profit and innovative product or way of doing something
conventional C corporation a state-chartered legal entity with authority to act and have liability separate from its owners
international monetary fund organization established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation
asia-pacific economic cooperation an international trade alliance that promotes open trade and economic and technical cooperation among member nations
multi-national firms markets the same basic products in different countries using different strategies (multi-domestic marketing strategy)
selective retention consumers do not remember all the information they see, read, or hear, even minutes after exposure to it
mixed branding firm markets products under its own name(s) and that of a reseller because the segment attracted to the reseller is different from its own market
limited partner an owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment
Anti-trust mergers/ acquisations potential to raise prices and reduce competition 
franchise agreement an arrangement where by someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory
right to be informed consumers the freedom to review complete information about the product before they buy it
small business administration an independent agency of the federal government that offers managerial and financial assistance to small businesses
Financial resources the funds used to acquire the natural and human resources needed to provide products; also called capital
Master budgets "top down" master budges begin at the upper management level and filter down to the individual department level "bottom up" start at the department or project level and are combined at the chief executive's office.
contract manufacturing the hiring of a foreign company to produce a specified volume of the initiating company's product to specification; the final product carries the domestic firm's name
joint venture the sharing of the costs and operation of a business between a foreign company and a local partner
inelastic demand few or if any alternatives, pay any price
ex: gasoline, drinking water
natural monopoly when a single firm can best serve society
budget deficit the condition in which a nation spends more than it takes in from taxes
multiproduct branding company uses one name for all its products in a product class
new-product process (7 steps) NISBDMC (1) new product strategy development(2) idea generation(3) screening and evaluation(4) business analysis(5) development(6) market testing(7) commercialization
purchase decision process (5 steps) (1) problem recognition(2) information search(3) alternative evaluation(4) purchase decision(5) postpurchase behavior
categories of product adopters (5) (1) innovators(2) early adopters(3) early majority(4) late majority(5) laggards
export agent a company may choose to deal with an intermediary when exporting goods overseasagents usually handle international transactions for other firms
trading company a firm that buys goods in one country and sells them to buyers in another country
horizontal merger the joining of two firms in the same industry
global marketing: growth factors DRGD(O) - decline in economic protectionism- rise in economic integration/free trade- global competition among global companies for global consumers- development of a networked global marketspace (new technology)- other contributing factors: political developments, development in developing countries
Gross domestic product (GDP) the sum of all goods and services produced in a country during one year
channeling markets along competitive lines -We DO NOT have an atomistic environment 1) If competition is not monitored  anticompetitive behavior, collusion -COLLUSION= Price Fixing -Reduces competition -Hurts consumer, no choices 2) Anti-Trust Activities- mergers/acquisitions -Potential to reduce competition when companies get too BIG -Companies can raise prices if they gain control -EXAMPLE: Merger between Whole Foods and Wild Oats 3) Natural Monopolies-When a single firm can best serve society (roads, subway transport, water, Telecom)-Government Regulation
market failures- externalities and common goods -Market may not accurately reflect the costs and benefits of a product-Could lead to public goods under-produced and externalities over-produced -EXTERNALITIES -Costs made my unrelated third parties (pollution, traffic congestion, resource depletion) -Overproduced in the Free Market- BECAUSE there is NO INCENTIVE to take on the unnecessary cost (Ex: Car companies producing wasteful cars- don’t have to be responsible for the extra pollution) -There are certain problems (defective medical hardware) that are too costly in money and in lives and takes too long to let the market correct on its own, therefore, the government steps in -PUBLIC GOODS -Has SOCIAL BENEFITS better than PRIVATE BENEFITS -EX: Public Parks, Utilities, Street Lights, Police/Fire Protection Defense, Clean Air -UNDERPRODUCED in the Free Market- not profitable SOCIAL COSTS (total costs) -Private Costs- Everything a business owner has to pay to create their product (rent, taxes, materials, etc.) -Externalities or External Costs- Secondary effects from business, like pollution SOCIAL COSTS= Private Costs + Externalities = Total Costs/ALL Costs
social responsibility (3 types) organizations are a part of a larger society and are accountable to that society for their actionsthree concepts of social responsibility:(1) profit responsibility: owners and stockholders(2) stakeholder responsibility: those who can affect achievement of its objectives(3) social responsibility: (1) to the preservation of the ecological environment and (2) to the general public
Resources used to produce goods and services 1. land (natural resources)2. labor (workers) 3. capital (machines, tools, buildings, equipment) 4. entrepreneurship (desire to take a risk and start a business) 5. knowledge/ information