Intro to Business Final Flashcards
any activity which seeks to earn a profit by providing a good or service
business
the amount a business earns over and above what it spends for salaries and other expenses
profit
the chance a business owner will lose the time and money invested in a business and be unprofitable
risk
a country’s ___ refers their general well-being and satisfaction derived from political freedom, safety, education, and a clean environment
quality of life
amount of goods and services people can buy with the money they have
standard of living
the resources that contribute to the creation of wealth
factors of production
2 factors of production that seem to contribute the most making countries rich
entrepreneurship and knowledge
successful businesses are keenly focused on their
customers
tangible products such as computers, food, and cars
goods
health care, insurance, recreation, and other intangible products
service
the importance of entrepreneurs to our economy is found in their:
ability to create jobs for others
areas which feature low taxes and government support in an effort to encourage entrepreneurship
enterprise zones
successful entrepreneurs are self-nurturing. This means they:
are able to replenish their own enthusiasm
___ works within existing corporations while ___assume the risks of starting a business
intrapreneurs
entrepreneurs
the small business administration defines a small business as a firm that:
is independently owned
about 80% of all americans find their first jobs in
small businesses
conversations with people who start their own business often reveal:
they got their business idea from a previous job
when preparing the executive summary section of a business plan, it is important to remember that:
the goal is to capture the attention of bankers and other investors who receive many business plans every day
accepts the risk of starting and running a business
entrepreneur
2 reasons people may accept the risk of owning a business
self-satisfaction and independence
an entrepreneurial team consists of
experienced managers from different areas of business
the personal satisfaction people feel when they have done a job well done is an ___ reward
intrinsic
rewards that come from someone else in recognition of good work
extrinsic
father of scientific management
Frederick Taylor
Frank and Lillian Gilbreth developed the principle of ___, which said that every job could be broken down into a series of elementary motions
motion economy
a basic idea of ___ was to conduct time-motion studies to find the best way to perform each task, then teach people to use these methods
scientific management
new employees at a manufacturer are carefully trained to use the most efficient production methods. they are placed on an assembly line and expected to perform the same task day after day, using the methods taught. the work is boring but the pay is good. this approach is consistent with the principles of ___
scientific management
the hawthorne studies were conducted by ___ and his colleagues from Harvard
Elton Mayo
the original goal of the hawthorne studies was to determine:
the level of illumination that was associated with optimum productivity
the concept that a hierarchy of human needs could be used to explain motivation was developed by
Abraham Maslow
to feel accepted and loved is a ___ need
social need
Herzberg found that the factors that provided the highest level of motivation were mostly associated with
job content
Herzberg found that good pay :
was a hygiene factor rather than a motivator
Douglas McGregor described two very different sets of managerial attitudes about employees, which he called:
Theory X and Theory Y
theory ____ managers see employees as being lazy and unwilling to accept responsibility
X
management by objectives was developed by
Peter Drucker
the reports and financial statements prepared by accountants:
provide info that can be used by decision-makers both inside and outside the organization
the prep of financial statements for people outside for people outside the firm (creditors, unions, suppliers, and others) is the goal of:
financial accounting
the 3 key financial statements of a business are the:
balance sheet, income statement, and statement of cash flows
financial statement that reports the company’s revenues and selling costs over a period of time>
income statement
the balance sheet is composed of the following types of accounts:
assets, liabilities, and owners equity
refers to how fast an asset could be converted into cash
liquidity
the fundamental accounting equation sates that assets equal:
liabilities plus owners’ equity
the calculation of revenue minus cost of goods sold will give the firm its
gross margin
a cash flow statement identifiers the cash receipts and disbursements for a firm that result:
from its operations, investments, and financing
the “bottom line” of an income statement shows the firms:
net income or net loss
the art of getting things done using organizational resources
management
one of the four primary functions of management
marketing
the management function concerned with anticipating future trends and determining the best strategies to achieve an organizations goals and objectives is known as
planning
___ is the management function of creating a vision for the organization and guiding, training, coaching, and motivating employees to help achieve the goals and objectives of the organization
leading
when managers determine that an organization is not making sufficient progress toward achieving its goals and objectives and they develop corrective measures, they are involved in:
controlling
___ skills involve a managers ability to picture the organization as a whole and the relationship among its various parts
conceptual
___ skills include the ability to preform tasks of a specific department or job such as selling (marketing) or bookkeeping (accounting)
technical
top managers make less use of ___ skills than supervisory manager
technical
the ___ style of leadership is characterized by making managerial decisions without consulting others
autocratic
managers who listen to their subordinates and allow them to participate in decision-making are using the ___ style of leadership
participative
____ is the process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organizational objectives
marketing
the greatest marketing need during the production era was for:
distribution and storage
time period immediately after the development of mass production assembly liines
selling era
the ____ is based on customer orientation, service orientation, and profit orientation
marketing concept
firms that have adopted ___ seek to do more than simply sella product; they seek to learn as much as possible about their costumers in order to satisfy them w goods and services over time
customer relationship management
many automobile dealers are:
attempting to use relationship marketing to create strong customer loyalty
a firms marketing mix of 4 components are called the 4
Ps
a firm gathers ___ data by conducting surveys, interviewing costumers, or mailing out questionaires
primary
___ consists of info that has already been researched by others and is published in journals or books or has been made available online
secondary data
the 2 major types of markets are the:
consumer market and the business to business market
the ___ market consists of individuals and organizations that want goods and services in order to produce goods and services or to sell, rent, or supply those goods to others
b2b
working with buyers to determine their individual needs
relationship marketing
the selling of products to another country
exporting
buying products from another country
importing
___ occurs when a country has a monopoly on producing a product or is able to produce it at a cost well below that of all other countries
absolute advantage
why does it make sense to trade with other nations
a nation will produce what it can produce most efficiently and effectively and buy from other nations what they can produce
an unfavorable balance of trade occurs when the value of:
imports exceeds the value of exports
the ___ is the difference bt money flowing into a country from exports and money flowing out for imports, plus the money flows coming from other factors such as tourism, foreign aid, military, and foreign investment
balance of payments
the practice of selling a product in foreign countries for a lower price than the good is sold in the producing country
dumping
the set of values, beliefs, rules, languages, and institutions held by a specific group
culture
is the use of government regulations to limit the import of goods and services
trade protectionism
the 2 basic types of tariffs are
revenue and protective
in an effort to protect domestic jobs, some countries will place a limit on the number of certain types of products that can be imported. these are called:
import quotas
refers to a complete ban on importing or exporting of products from a specific country
embargo
the enron scandal revealed ___ corporate behavior
illegal
refers to standards of moral behavior
ethics
ethical behavior covers a ___ range of conduct the legal behavior
wider
considering the potential impact on others prior to making a decision is consistent with ___ behavior
ethical
an ethical dilemma refers to a situation where you must
choose bt equally unsatisfactory alternatives
a ____-based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers
compliance
someone who report illegal or unethical behavior
whistleblower
corporate social responsibility describes the firms:
concern for the welfare of society
the purpose of an ___ is to evaluate an organization’s progress towards implementing programs that are socially responsible and responsive
social audit
a large national electronic stock trading market
NASDAQ
trades corporate stocks not listed on the national securities exchanges
over-the-counter market
a ___ certificate provides evidence of ownership in a specific corporation
stock
when investors purchase ___ stock, they receive a priority claim in the payment of dividends, as well as assets, if there business is liquidated. however, these investors do not vote
preferred
dividends are paid out of a corporations:
profit, after taxes
another name for the fixed rate of interest attached to a bond is the:
coupon rate
an unsecured bond, backed only by the well-respected name of the organization
debenture
the investor will receive the face value of the bond on the ___ dtae
maturity
when an investor places a buy order with a stockbroker, the broker contacts a ___ to complete the transaction
stock exchange member or dealer where stock is traded
creating a portfolio by buying several different types of investments to spread the risk of investing is called
diversification
the risk/return tradeoff investors assume means:
you will assume added risk, if you believe you can get a greater return
securities considered high quality and usually pay dividends
blue chip stocks
process where an investor borrows a % of the purchase price of stocks forms he blockage firm
buying on margin
in the securities markets, capital gains take place when:
a security sells for more than the original purchase price
corporations that want to attract more investors by lowering the selling price of their common stock might consider declaring a:
stock split
approx. what % of the population is successful in saving enough money for retirement to live comfortably?
10
which accounting statements would assist an individual in taking inventory of personal assets and liabilities
balance sheet
