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Intro to Business > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

Business

A

an organization that strives for a profit by providing goods & services desired by its customers

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2
Q

Goods

A

Tangible Items

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3
Q

Services

A

Intangible items that cannot be held, touched, or stores

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4
Q

Standard of Living

A

the output of goods & services that people can buy

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5
Q

Quality of Life

A

general level of human happiness based on life expectancy, educational standards, health, sanitation, & leisure time

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6
Q

Risk

A

potential to lose time & money or not be able to accomplish an organization’s goals

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7
Q

Revenue

A

money received by providing services or selling goods

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8
Q

Profit

A

money left over after covering costs

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9
Q

Loss

A

when costs are higher than revenue

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10
Q

Factors of Production

A

natural resources, labor (human resources), capital, and entrepreneurship, Knowledge

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11
Q

Natural Resources

A

commodities that are useful inputs in their natural state

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12
Q

Labor (human resources)

A

economic contributions of people working with their mind & muscle

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13
Q

Capital

A

tools, machinery, equipment, & buildings used to produce goods & services and get them to consumers

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14
Q

Entrepreneur

A

people who combine the inputs of natural resources, labor, and capital to produce goods & services with the intention of making a profit or accomplishing a not-for-profit goal

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15
Q

Knowledge

A

combined talents and skills of the workforce; primary driver of economic goal

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16
Q

External Business Environment

A

sectors that create a unique set of challenges and opportunities for business; ex: technological, economic, global, political/legal, demographic, social, & competitive

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17
Q

Demographic

A

the study of people’s vital statistics: age, gender, race & ethnicity, & location

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18
Q

Economic Systems

A

combination of policies, laws, & choices made by its government establishing systems that determines what services and goods are produced and where they are allocated

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19
Q

Economics

A

the study of how a society uses scarce resources to produce & distribute goods and services

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20
Q

Macroeconomics

A

the study of the economy as a whole

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21
Q

Microeconomics

A

focuses on individual parts of the economy - household/firms

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22
Q

Macroeconomic goals

A
  • economic growth
  • full employment
  • price stability
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23
Q

Economic Growth

A

an increase in a nation’s output of goods and services

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24
Q

Gross Domestic Product (GDP)

A

the total market value of all final goods & services produced within a nation’s borders each year

25
Q

Business Cycles

A

upwards and downward changes

26
Q

Recession

A

a decline in GDP that lasts for 2 consecutive quarters (3 months)

27
Q

Full Employment

A

having jobs for people who want to and can work

28
Q

Unemployment Rate

A

indicates the % of the total labor force not working but is actively looking for work

29
Q

Frictional Unemployment

A

short term unemployment that is not related to the business cycle

30
Q

Structural Unemployment

A

unrelated to the business cycle but is involuntary

31
Q

Cyclical Unemployment

A

occurs when a downturn in the business cycle reduces the demand for labor throughout the economy

32
Q

Seasonal Unemployment

A

occurs during specific times of the year in certain industries

33
Q

Inflation

A

the average of all prices of foods & services is rising

34
Q

Purchasing Power

A

the value of what money can buy; function of inflation & income

35
Q

Demand-Pull Inflation

A

when the demand for goods & services is greater than the supply

36
Q

Cost-Push Inflation

A

increases in production costs, which then push up the prices of final goods & services

37
Q

Consumer Price Index (CPI)

A

an index of the prices of a “market basket” of goods & services purchased by typical urban consumers

38
Q

Producer Price Index (PPI)

A

measures the price paid by producers and wholesalers for various commodities

39
Q

Monetary Policy

A

a government’s programs for controlling the amount of money circulating in the economy & interest rates

40
Q

Federal Reserve Systems (Feds)

A

central banking system, prints money & controls how much of it will be in circulation

41
Q

Federal Funds Rate

A

the interest rate charged on overnight loans between banks

42
Q

Contractionary Policy

A

the Fed restricts, or tightens, the money supply by selling government securities or raising interest rates; used to reduce inflation

43
Q

Expansionary Policy

A

the Fed increases, or loosens, growth in the money supply; increases inflation

44
Q

Fiscal Policy

A

taxation and spending

45
Q

Federal Budget Deficit

A

when the government spends more than it collects in taxes

46
Q

Federal Budget Surplus

A

revenue exceeds spending

47
Q

National Debt

A

accumulated total of past deficits

48
Q

Demand

A

the quantity of a good/service that people are willing to buy at various prices

49
Q

Demand Curve

A

a graph showing the relationship between price & demand; slopes downward and to the right

50
Q

Supply

A

the quantity of a good/service that businesses will make available at various prices

51
Q

Supply Curve

A

relationship between various prices and the quantities a business will supply; slopes upwards and to the right

52
Q

Market Structures

A

Pure Monopoly, Oligopoly, Monopolistic Competition, Perfect Competition

53
Q

Barriers to Entry

A

factors that prevent a new firm from competing equally with existing firms

54
Q

Collusion (illegal)

A

firms coordinating their pricing and output decisions

55
Q

Antitrust Cases

A

legal challenges arising out of laws designed to control anti-competitive behavior

56
Q

Relationship Management

A

involves building, maintaining, & enhancing interactions with customers and other parties to develop long-term satisfaction through mutually beneficial partnerships

57
Q

Supply Chain Management

A

building strong bonds with suppliers

58
Q

Relationship Marketing

A

building strong bonds with customers

Intro to Business (12 decks)

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