gestao2 Flashcards
Business
An organization that provides goods or services to make profits.
Profits
The difference between revenue and expenses.
Domestic business environment
The environment in which a firm conducts its operations and derives revenue
-close to costumers
-strong relationship with suppliers
-distinguish
Global business environment
International forces that affect a business,
-trade agreements
-global economic conditions
-political unrest.
Technological environment
ways by which firms create value for their constituents
-human knowledge
-work methods
-telecommunications.
Economic environment?
Relevant conditions in the economic system where a business operates
-economic growth
-monetary policy
-consumer confidence.
What is the political-legal environment?
The relationship between business and government
-product identification laws
-employee hiring restrictions
-local zoning requirements.
Sociocultural environment
Customs, mores, values, and demographic characteristics of the society in which an organization functions
-standards of business conduct.
Economic system
System a nation uses to allocate its resources among citizens (individuals and organizations.)
Planned economy
An economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions.
-Lack of flexibility
-Lack of consumer choice
Characteristics of communism
-Assign people to jobs
-Own all businesses
-Control business decisions
-Idividuals contribute according to their abilities
-Individuals receive benefits according to their needs
-Government owns all factors of production
Mixed market economy
Characteristics from planned and market economies (some resources left to the free market and other scarcer resources are planed and organizes economy (defense, healthcare)
Market economy
Individuals control production and allocation decisions through supply and demand.
-market mechanism for exchange between buyers and and sellers of a particular good or service
-supply and demand determine prices and items produced
Private enterprise
Allows individuals to produce own interests with minimal government restrictions
Private property rights (ownership of resources to create wealth)
Freedom of choice (sell labour to any employer)
Profits (profits lure people to abandon stable work)
Competition (2+ business vie for some resources or costumers)
Privatization
The process of converting government enterprises into privately owned companies.
Demand
The willingness and ability of buyers to purchase a good or service at a given price (P↓ Qd↑).
Supply
Willingness and ability of sellers to sell a good or service at a given price (P↑ Qs↑).
Factors of production
Labor
Capital
Entrepreneurs
Physical resources
Information resources
Labor (factors of production)
Physical and mental capabilities of people as they contribute to economic production (human resources).
Capital (factor of production)
The funds and financial resources needed to operate a business (from starting it to keeping it running and growing).
Entrepreneur (factor of production)
An individual who accepts risks and opportunities involved in creating and operating a business.
Physical resources (factor of production)
Tangible items used by an organization to conduct business.
Information resources (factor of production)
Data and other information used by businesses (market forecasts, specialized knowledge, and economic data)
What are the degrees of competition?
Perfect competition
Monopolistic competition
Oligopoly
Monopoly