General Business Key Terms

Question 1

Business

Answer 1

An organization that strives for a profit by providing goods and services desired by its customers

Question 2

Goods

Answer 2

Tangible items manufactured by businesses

Question 3

Services

Answer 3

Intangible offerings of businesses that can’t be held, touched, or stored. Ex: doctors, lawyers, hairstylists

Question 4

Traditional Purpose of a Business

Answer 4

To maximize the value of the firm to its owners (maximize shareholders wealth)

Question 5

Shareholder

Answer 5

Owns a share of a company’s stock. Could be an individual, company, or and institution. Has the right to vote a major decisions made by the company.

Question 6

Profit

Answer 6

The difference between the amount earned and the amount spent in buying, operating, or producing something. Revenue minus expenses.

Question 7

Stakeholder

Answer 7

Anyone involved with or affected by an organization - such as shareholders, customers, employees, etc.

Question 8

Functional Areas of Business

Answer 8

Accounting, finance, management, management information systems, marketing, supply chain management

Question 9

Value Proposition

Answer 9

The unique benefit a company provides customers who buy their products or services

Question 10

Corporate Culture

Answer 10

An organization’s beliefs and behaviors, which affects how the management, employees, and customers interact

Question 11

Cross-functional Teams

Answer 11

Groups of people who belong to different functional/expertise domains