KEY TERMS FALL 2023 Flashcards
Business
an organization that strives for a profit by providing goods and services desired by its customers
Goods
tangible items manufactured by businesses
Services
intangible offerings of businesses that can’t be held, touched, or stored
Traditional Purpose of a Business
to maximize the value of the firm to its owners
Shareholder
owns a share of a company’s stock
Profit
the difference between the amount earned and the amount spent in buying, operating, or producing something
Stakeholder
Anyone involved with or affected by an organization
Functional Areas of Business
accounting, finance, management, mis, marketing, supply chain management
Value Proposition
the unique benefit a company provides customers who buy their products or services
Corporate Culture
an organization’s beliefs and behaviors, which affect how the managements, employees, and customers interact
Cross-Functional Teams
groups of people who belong to different functional/expertise domains
Information Technology
the equipment and techniques used to manage and process information
Information Security
the processes and tools designed and deployed to protect sensitive business information from modification, disruption, destruction, and inspection
Data
raw, unorganized facts that can be moved and stored
Database
an organized collection of data stored and accessed electronically
Internet
a large, usually public, network of interconnected computers
Intranet
an internal corporate-wide area network that uses internet technology to connect computers and link employees in many locations and with different types of computers
Enterprise Resource Planning Systems
a computerized resource-planning system that incorporates information about the firm’s suppliers and customers with its internally generated data
Chief Information Officer/Chief Technology Officer
an executive with responsibility for managing all information/technology resources in an organization
Database Management Systems
software that allows you to quickly and easily enter, store, organize, select, and retrieve data in a database
Information Systems
systems that allow users to leveraging technology, information, and people to further organizational goals
Supply Chain
the entire sequence of securing inputs, producing goods, and delivering goods to consumers
Supply Chain Management
the process of smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services
Procurement
the action of obtaining equipment or supplies for a business
Operations
the design, execution, and control of operations that convert resources into desired goods and services and implement a company’s business strategy
Logistics
the coordination of a complex operation involving a large amount of people, facilities, or supplies
Inventory Management
the determination of how much of each type of inventory a firm will keep on hand and the ordering, receiving, storing, and tracking of inventory
Inputs
natural resources, raw materials, human resources, and capital
Outputs
products and services
Production
the creation of products and services by turning inputs into outputs
Supply Chain Sustainability
the management of environmental, social, and economic impacts, and the encouragement of good governance practices, throughout the lifecycles of goods and services
Accounting
the process of collecting, recording, classifying, summarizing, reporting, and analyzing financial activities
Financial Accounting
accounting that focuses on preparing external financial reports that are used by outsiders to asses the financial strength of a business
Managerial Accounting
accounting that provides financial information that managers inside the organization can use to evaluate and make decisions about current and future operations
Auditing
the process of reviewing the records used to prepare the financial statements and issuing a formal auditor’s opinion indicating whether the statements have been prepared in accordance with accepted accounting rules
Certified Public Accountant (CPA)
an accountant who has completed an approved bachelor’s degree program, passed a test prepared by the American Institute of CPAs, and, met state requirements
Balance Sheet
a financial statement that summarizes a firm’s financial position at a specific point in time
Assets
things of value owned by a firm
Liabilities
what a firm owes to its creditors; also called debts
Owner’s equity
the total amount of investment in the firm minus any liabilities; also called net worth
Accounting equation
assets = liabilities + owner’s equity
Income Statement
a financial statement that summarizes a firm’s revenues and expenses and shows its total profit or loss over a period of time
Revenues
the dollar amount of a firm’s sales plus any other income it received from sources such as interest, dividends, and rent
Expenses
the costs of generating revenues
Cost of Goods Sold
the total expense of buying or producing a firm’s goods/services
Gross Profit
the amount a company earns after paying to product or buy its products but before deducting operating expenses
Financial Management
the art and science of managing a firm’s money so that it can meet its goals
Financial Planning
preparing the financial plan, which projects revenues, expenditures, and financing needs over a given period
Investment
investing the firm’s funds in projects and securities that provide high return in relation to their risks
Financing
obtaining funding for the firm’s operations and investments and seeking the best balance between debt and equity
Commercial Banks
profit-oriented financial institutions that accept deposits, make business and consumer loans, invest in government and corporate securities, and provide other financial services
Investment Bankers
firms that act as intermediaries, buying securities from corporations and governments and reselling them to the public
Stockbroker
a person who is licensed to buy and sell securities on behalf of clients
Equity
a form of business financing consisting of funds raised through the sale of stock
Initial Public Offering (IPO)
a company’s first sale of stock to the public
Common Stock
a security that represents an ownership interest in a corporation
Dividends
payments to stockholders from a corporation’s profits
Debt
a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period
Bonds
long-term debt obligations issued by corporations and governments
Interest
a fixed amount of money paid by the borrower to the lender on a regular schedule
Earnings Per Share (EPS)
the ratio of net profit to the number of shares of common stock
outstanding; measures the number of dollars earned by each share of stock
Public Company
a company with shares of sticks traded in the public, typically on a stock exchange
Share Price
the price of a single share of a company’s stock
Ticker Symbol
a unique abbreviation used to identify the shares of a publicly traded company
Marketing
the process of discovering the needs and wants of potential buyers and customers and then providing goods and services that meet or exceed their expectations
5Ps
product, price, promotion, place, people
Product
goods, services, ideas
Price
something given in exchange for a product
Place
some method of getting the product from the creator of the product to the customer
Promotion
methods for informing and influencing customers to buy the product
Marketing Segmentation
the process of separating, identifying, and evaluating the layers of a market in order to identify a target market
Target Market
the specific group of consumers toward which a firm could direct its marketing efforts
