Final Exam Flashcards
Consists of everything outside an organization that might affect it
External environment
Refers to the conditions of the economic system in which the organization operates
Economic environment
The total quantity of goods and services produced by an economic system during given period
Aggregate output
Pattern of short term, ups and downs in an economy is called
Business cycle
Refers to the total value of all goods and services produced within a given period By a national economy.
GDP 
Means GDP per person
GDP per capita
Means that GDP has been adjusted
Real GDP
The principle that exchange rates are set so that the prices of similar products in different countries are about the same
Purchasing power parity
Is a measure of economic growth that compares how much a system produces with the resources needed to produce it
Productivity
The economic value of all the products that a country exports minus the economic value of its imported products
Balance of trade
The amount of money the government owes its creditors
National debt
Spent more money each year, then it took in
Budget deficit
Evident, when the amount of money injected into an economic system, outstrips the increase in actual output
Inflation
Measures changes in the cost of a basket of goods and services that a typical family buys
Consumer price index
Involve the collection and spending of government revenue
Fiscal policies
Focus on controlling the size of the nations money supply
Monetary policies
Reflects the relationship between business and government
Political legal environment
Includes the customs, values, attitudes, and demographic characteristics of the society in which a company operates
Socio-cultural environment
Restricts the total number of certain products that can be imported into a country
Quota
The ultimate form of quota
Embargo
Tax charged on imported products
Tariff
The practice of protecting domestic business at the expense of free market competition
Protectionism
Selling a product abroad for less than a comparable price charged in the home country
Dumping
The process of planning, organizing, leading, and controlling on enterprises, financial, physical, human, and information resources to achieve the organizations goals
Management
The process of determining the firms goals, and developing a strategy for achieving those goals
Planning
Involves mobilizing the resources required to complete a particular task
Organizing
Involves the interactions between managers and their subordinates, as they work to meet a firms objectives
Leading
The process of monitoring a firms performance to make sure it is meeting it’s goals
Controlling
The executives who guide the fortunes of companies. Common titles, our president, vice president, chief, operating officer, chief executive officer, chief financial officer. They are responsible to the board of directors and shareholders of the firm for its overall performance and effectiveness.
Top managers
Still occupy positions of considerable autonomy and importance. Title, such as plant manager, operations, manager, and division manager are typical.
Middle manager
Spend most of their time working with, and supervising the employees who report to them. com entitles include supervisor, office, manager, and group leader.
First line managers
The process of affectively aligning an organization with its external environment. The starting point in strategic management is setting goals that a business wants to achieve.
Strategic management
Identifies the various businesses a company will be in and how they will relate to each other
Corporate level strategy
Identifies the ways a business will compete in its chose in the line of products or services
Business level strategy
Identify the basic courses of action, each department will pursue so that it contributes to the businesses overall goals
Functional strategies
Plan to establish a profitable and sustainable competitive position
Competitive strategy
Comprehensive information system for collecting, analyzing, and communicating financial information
Accounting
An organized procedure for identifying, measuring, recording, and retaining financial information, so that it can be used in accounting statements and management reports
Accounting information system
Is concerned with external users of information, such as consumer groups, Union, shareholders, and government agencies
Financial accounting system
Serves internal users, hint form of accounting
Managerial accounting
Maybe used to track down, hidden funds in business firms
Forensic accountants
Are salaried employees who deal with a company’s day today accounting needs
Private accountants
Balance, sheets, income statements, and statement of cash flows
Financial statements
Supply detailed information about the accounting equation factors. Assets, liabilities, and owners equity.
Balance sheets
Net profits minus dividend payments to shareholders
Retained earnings
Is the formal recording, and reporting of revenues in the financial statements
Revenue recognition
Measure the firms ability to meet its debt obligations
Solvency ratios
Reflects a firms ability to generate cash to meet, obligations through the normal, order the process of selling inventories and collecting revenues from customers
Current ratio
The amount of a product a company can produce under normal working conditions
Capacity
Designed for smooth production flows, that avoid inefficiencies, eliminate, unnecessary inventories, and continuously improve production processes
Lean production systems
Are one type of line production that brings together all the needed materials and parts at the precise moment they are required for each production stage
Just in time production systems
Includes all the activities, unnecessary for getting high-quality goods and services into the marketplace
Total quality management
A company compares its current performance against its own past performance
Benchmarking
The flow of information, materials, and services
Supply chain
The strategy of pink suppliers in distributors to perform certain business processes, or to provide needed materials or services
Outsourcing
The specifications of the jobs to be done within a business, and how these jobs relate to one another
Organizational structure
Illustrates the company structure and show employees where they fit into the firms operations
Organizational charts
In this organization, top management retains the right to make most decisions that need to be made
Centralized organization
More decision making authority is delegated to managers at lower levels in the hierarchy
Decentralized organization
Flows up and down the chain of command
Line authority
Based on special expertise and usually involves advising line managers in areas, such as law, accounting, and human resources
Staff authority
Authority granted to committees or work teams that play Central rolls in the firms daily operations
Committee and team authority
The various units in the organization are formed based on the key functions that must be carried out to reach organizational goals
In the functional structure
Divides the organization into several divisions, each of which operates at a semi autonomous unit and profit centre
Divisional structure
Involves forming a team of specialist from different functional areas of the organization to work on a specific project
Project organization
Combination of two separate structures, that can work better than either approach alone
Matrix structure
What are the seven strengths of teamwork?
Capability, cooperation, coordination, communication, cognition, coaching, conditions
Do teens need to work interdependently
Yes
Refers to the attitudes and beliefs that individuals bring to the team each day
Cooperation
At the heart of teamwork. It refers to the teamwork behaviours that a team needs to demonstrate to be highly effective. It is about having the right behaviour to succeed. It also is about actions over opinions.
Coordination
Refers to information exchange within a team, as well as with individuals and groups, not in the team the way a team blank drives its effectiveness
Communication
Refers to the extent to which team members possess a shared, or at least a complementary understanding about key factors. It’s about a shared understanding, for example, rolls, priorities, expectations.
Cognition
Refers to the context in which the team operates. It’s about the environment in which the team is embedded, they send signals that either support or inhibit, teamwork and performance.
Conditions
Knowing what drives team effectiveness, and knowing what good team members do
Teamwork savvy
Refers to the capacity to perform higher higher mental processes of reasoning, recalling, understanding, and problem-solving. It doesn’t refer to what someone knows.
Cognitive ability
Narcissism, Machiavelli, nihilism, and psychopathy
The dark triad
A business is an organization that seeks to blank by providing blank
Earn profit by providing goods and services
Profit is what remains after a business’s blank have been subtracted from its blank
Expenses and revenue
Profit is important to business owners, because
It provides motivation for risking time and money
What is a mechanism for exchange between buyers and sellers?
A market
The blank is the principle that buyers will purchase more of a product as it’s price drops
Law of demand
The equilibrium price is also called the
Market price
Market equilibrium is determined by the
Intersection of the demand curve, and the supply curve
The situation in which quantity supplied exceeds quantity demanded in a market is described as
Surplus
An economic system characterized by private property rights, freedom of choice, profits, and competition is best described as
Private enterprise
One characteristic of blank is that the going price is set exclusively by supply and demand, and is accepted by both seller and buyer
Perfect competition
Market or industry, characterized by a small number of very large firms that avoid direct price competition is best described as
Oligopoly
Canadian agriculture provides a good example of an industry in which there exists
Perfect competition
Fast food restaurants in Canada compete, under which kind of competitive conditions
Monopolistic competition
In Canada laws, such as the competition act forbid
Monopolies
What type of environment is everything outside and organizations boundaries that might affect it
External environment
An organizational boundary is what
separation of the organization from its environment
When the economy experiences two or more consecutive quarters of decline in GDP, we call this a
Recession
The total quality and quantity of goods and services that a country citizens can purchase with the currency used in its economic system
Standard of living
Refers to the total quantity of goods and services produced by an economic system during a given. PerioD
Aggregate output
Total of a country exports minus imports
Balance of trade
The amount of money, the government owes his creditors
National debt
Inflation in Canada is measured by
Consumer price index
Involves finding ways to use, technological innovations to create new products or services that can be sold in the marketplace
Applied research and development
The process of getting a new technology out of the lab and into the marketplace
Technology transfer
What type of economy is Canada?
Free trade
Which of the following factors is particularly important for the multinational firms
Political stability
Intense price, competition or elaborate advertising campaigns are examples of concerns, addressed, and what
Rivalry amongst existing competitors
Beliefs about what is right and wrong or good and bad
Ethics
A term often used to refer to ethical or unethical behaviours by a manager, or an employee of a business
Business ethics
Corporate social responsibility refers to the way in which a business tries to balance. It’s commitments to.
Organizational stakeholders
Movement designed to help workers in developing countries received your payment for their work is called
Fair trade
The view that accompanies only social responsibility is to make as much money as possible for its shareholders, as long as it doesn’t break any laws
Managerial capitalism
When companies get together to fix prices for their own advantage, it is called
Collusion
A measure developed to help companies, understand, manage, and communicate the social value of their activities for stakeholders is
Social return on investment SROI
An employee who discovers and tries to put an end to a company is unethical, illegal, or socially irresponsible actions by publicizing them
Whistle blower
The use of confidential information to gain from the purchase or sale of stock
Insider trading
An owner managed business that does not dominate in its market
Small business
Recently formed commercial organization, that provides goods and or services for sale
New venture
People who recognize and sees opportunities and accept the risks associated with creating an operating a new business venture
Entrepreneurs
People who exhibit entrepreneurial characteristics and create something new within an existing firm, are called
Intrapreneurs
97.9% of all businesses in Canada are considered.
Small businesses
The process of planning, organizing, leading and controlling and enterprises, financial, physical, human, and information resources to achieve the organizations goals
Management
The process of determining the firms goals, and developing a strategy for achieving them
Planning
Process of monitoring a firms performance, and making adjustments to make sure it’s meeting goals
Controlling
What involves mobilizing the resources required to complete a particular task
Organizing
Firms managers are responsible for overall performance and effectiveness, and for developing long-range plans for the company
Top managers
Manager is responsible for the production system that create goods and services
Operations
Managers to hire employees, train them, evaluate their performance, decide how they should be compensated, and deal with labour unions
Human resource
Managers responsible for deciding in implementing various systems together, process, gather, and disseminate information
 Information, managers
What type of skills help managers to find problems or opportunities and select the best course of action
Decision making skills
The ability to think in the abstract, diagnosed and analyze various situations, and see beyond the present situation requires managers to develop
Conceptual skills
Refers to the actions that people take as they try to get what they want
Organizational politics
When a manager makes a decision and remains committed to its implementation, in spite of clear evidence that it was a bad decision, what has occurred
Escalation of commitment
Plan, setting, short term, targets for daily, weekly, or monthly performance
Operational plans
A statement of how a company will achieve his purpose
Mission statement
Are used to identify and analyze organizational strengths, and weaknesses, and environmental or opportunities and threats as part of the strategy formulation
Swat analysis
Long-term goal derives directly from the firm’s mission statement
Strategic goal
This corporate level strategy involves focussing my company on one product or product line that it knows very well
Concentration
What are two basic integration strategies?
Divergent and convergent
Type of management that deals with an emergency that demands an immediate response
Crisis management
A comprehensive system for collecting, analyzing, and communicating financial information is called
Accounting
What type of accounting provides managers and heads of departments with key information that allows them to budget for short and long-term projects?
Managerial accounting
What would prompt a forensic accountant to suspect possible fraudulent practices?
Deviations from GAAP
What is the accounting equation?
Assets equals liabilities plus owners equity
Which of the following is like a snapshot because it shows the financial condition of a company at one point in time
Balance sheet
Which of the following shows the operating activities, investing activities, and financial activities, and is considered by investors and creditors to be extremely important
Statement of cash flows
Patents, trademarks, and copyrights are classified as
Intangible assets
Which of the following is the formal recording and reporting of income at the appropriate time in the earning cycle?
Revenue recognition 
This includes estimated receipts and expenditures for a future Period
Budget
What measures weather company is able to sell enough products and collect payments for products sold to pay its current debts
Current ratio
A company that produces only tangible products, such as textbooks, is involved in
Goods production
What is another term for operations?
Production
I’m assembly line is an example of
Goods production
Companies that have designed the production processes to be efficient and limited inventory to only what is necessary have what type of system
Lean production
Observing employees, monitoring their interactions with customers, and providing training in customer relations, skills are part of
Quality control
Why do companies use to reduce the need for storage space and save money on inventory, while allowing for all materials to be available when needed
Just in time production
Total quality management can be defined as
A business process, improvement method focussed on improving quality of all business processes and eliminating all defects
Supply chain management, each company focusses on the
Entire chain of relationships
Inventory control, and transportation options are part of which of the four P of marketing
Place
What does behavioural segmentation rely on to market items?
Behavioural variables
In which stage of new production development might a product be sold on a trial basis in limited areas,
Product testing and test marketing
A company has begun full scale, production of a new product and is establishing distribution channels and promotion plans. This is which stage of the new product development process.
Commercialization
Ensuring a business always has enough money on hand to pay bills and maintain human resources is called
Cash flow management
Accounts payable, and current inventories are examples of
Short term expenditures
Collateral is used to secure what type of short term loan
Secured loan
Guaranteed line of credit for which the firm pays the bank interest on funds, borrowed as well as a fee for extending the line of credit
Revolving credit agreement
Fact, Soli, by the issuing terms, promise to pay and is an option for only the largest, and most credit worthy firms
Commercial paper
This type of loaner agreement provides access to additional capital because you are backed by assets
Secured loan
Refers to the use of another individual or firm, such as an insurance company, to carry risk
Risk, avoidance
When conducting a break, even analysis, Rent and insurance are
Fixed costs
Pricing items in uneven dollar amounts is known as
Odd even pressing
When a company uses penetration pricing, it tends to set an initial price that that is
Low enough to establish the product in the market
Newspapers are adopting a new strategy to survive because the audience for news printed shrinking what is it called?
Digital first
Which of the following includes warehousing and transportation operations?
Physical distribution
Which is the least expensive mode of transporting products
By water
Is concerned with the specifications of the jobs to be done within a business and have these jobs relate to one another
Organizational structure
Is the reporting relationship within the company?
The chain of command
Is a separate company unit responsible for its own costs and profits
Profit centre
Works to integrate continuous improvement with continuous employee, learning and development
Learning organization
