Management Unit 1: Business and Its Environment Flashcards

Terms Definitions
Baby boom
refers to the high birth rate period from 1045-1965
Baby bust
refers to the low birth rate period following the baby boom period
an organization that produces or distributes a good or service for a profit
Business ethics
a collection of principles and rules of conduct based on what is right and wrong for an organization
Capital goods
buildings, tools, machines and other equipment that are used to produce other goods but do not directly satisfy human wants
an economic political system in which private citizens are free to go into business for themselves to produce whatever they choose to produce and to distribute what they produce as they please
Command economy
an economic system in which the method for determining what, how, and for whom goods and services are produced is decided by a central planning authority
Commercial business
firms engaged in marketing, finance and in furnishing services
forced socialism where all or almost all of the productive resources of a nation are owned by the government
Comparable worth
paying worker equally for jobs with similar but not identical job requirements
rivalry among sellers for consumers' dollars
Consumer goods
products produced for sale to individuals and families for personal use
refers to the number of similar products that will be bought at a given time at a given price
Domestic goods
products made by firms in the United States
cutting back on the goods and services provided and therby shrinking the size of a firm and the number of employees
Economic system
an organized way for a country to decide how to use its productive resources
Economic want
the desire for scarce material goods and services
the body of knowledge that relate to producing and using goods and services that satisfy human wants
occurs when an organization makes the right decisions in deciding what products or services to offer customers or other users
occurs when a organization produces needed goods or services quickly at low cost
letting workers decide how to perform their work tasks and offer ideas on how to imporve the work process
a person who starts, manages, and owns a business
Factors of production
land, labor, capital goods and management-the four basic resources that are combined to create useful goods and services
deals with all money matters related to running a business
Foreign good
products made by firms in other countries
a legal agreement between a company and a distributor to sell a product or service under special conditions
the distributor of a franchised product or service
the parent company of a franchise agreement that provides the product or service
Glass ceiling
an invisible barrier to job advancement
Global competition
the ability of profit-making organizations to compete with other businesses in other countries
Gross Domestic Product (GDP)
the total market value of all goods produced and services provided in a country in a year
Industrial business
firms that produce goods that are often used by other businesses or organizations to make things
an employee who is given funds and freedom to create a special unit or department within a company in order to develop a new product, process, or service
the human effort either physical or mental that goes into the production of goods and services
Labor force
most people aged 16 or over who are avialable for work whether employed or unemployed
Labor participation rate
the percentage of the labor force either employed or actively seeking employment
Manufacturing firm
businesses that produce goods
Market economy
an economic system that determines what, how and for whom goods and services are produced by coordinating individual choices through arrangements that aid buying selling goods and services
the process of planning and executing the conception pricing promotion and distribution of ideas goods and services to create exchnges that satisfy individual and organizations objectives
Mass production
an assembly process in which a large number of products is produced each of which is identical to the next
Mixed economy
an economic system in which a combination of a market and command economy is blended together to make decisions about what how and for whom goods and services are produced
exists when competition is lacking for a product or service or when producers are in a position to control the supply and price of goods or services
the quantity or amount produced within a given time
when a state or country transfers its authority to provide a good or service to individuals or businesses
Service firm
business that provide assistance to satisfy specialized needs through skilled workers
Social responisbility
the duty of a business to contribute to the well-being of society
an economic-political system in which the government controls and regulates the means of production
the owners, customers, suppliers, employees, creditors, government, the general public and other groups who are affected by firm's action
refers to the number of similar products that will be offered for sale at a particular time and at a particular price
Total Quality Management (TQM)
a commitment to excellence that is accomplished by teamwork and continual improvement
Underground economy
income that escapes being recorded in the GDP
the ability of a good or service to satisfy a want
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