General Business Terms

Question 1

Business

Answer 1

an organization that strives for a profit by providing goods and services desired by it’s customers

Question 2

Traditional Purpose of a Business

Answer 2

to maximize the value of the firm to its business, to maximize shareholders wealth

Question 3

Shareholder

Answer 3

owns a share of a company’s stock, shareholder can be an individual, a company, or an institution (financial, educational, medical, etc)

Question 4

Profit

Answer 4

the difference between the amount earned and the amount spent in buying, operating, or producing something.

Question 5

Stakeholder

Answer 5

anyone involved with or affected by an organization such as shareholders, customers, employees, community members, etc

Question 6

Functional Areas of a Business

Answer 6

Accounting, Finance, Marketing, Management, Supply Chain Management, MIS

Question 7

Value Proposition

Answer 7

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

Question 8

Corporate Culture

Answer 8

an organizations beliefs and behaviors which affect how the management, employees, and customers interact.

Question 9

Cross Functional Teams

Answer 9

groups of people who belong to different functional/ expertise domains