Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Intro to Businesss
DSST Introduction to Business Definitions (Wise Owl Guide) A-D
| Term | Definition |
|---|---|
| Absolute advantage | Country has a monopoly on producing a product and can produce it at a lesser price |
| Absolute liability | Responsibility of a producer of any harm that is caused by a product (regardless if it was foreseeable) |
| Accountability | Accepting consequences of actions |
| Accounting | Recording, classifying, summarizing and interpreting financial events |
| Accounting system | Computer program for accounting |
| Accounts payable (AP) | Bills due as part of the normal course of business (e.g. liabilities): invoiced but not paid |
| Accounts receivable (AR) | Debts owed to a business, usually from sales on credit; this is a business asset, the sum of the money owed by customers that have no paid |
| Accrual-based accounting | Business accounting, assuming accounts payable |
| Accumulated depreciation | Reduces the accounting value (book value) of assets |
| Acquisition costs | Incremental costs involved in a new customer |
| Actuaries | People that predict future losses based on history |
| Adaptive firm | Ability to respond to and address changes in their market, environment, and/or industry |
| Advertising | Paid communication selling a product |
| Affirmative action | Favored employment for minorities |
| Agency shop agreement | Employee must pay union dues |
| Agent | Negotiates, purchases, and/or sells, but no title to goods |
| Alternative dispute resolution | Resolving disputes through mediation and arbitration |
| American Federation of Labor (AFL) | Craft union |
| Analytics | Process of making decisions based on evidence |
| Area of job freedom | Area of discretion over job |
| Arbitrator | Neutral third-party who resolves disputes |
| Articles of incorporation | Legal document with names and address of corporation and purpose of company |
| Artificial intelligence | Computers mimicking human thought |
| Asset turnover | Sales divided by total assets |
| Assets | Property owned by a business |
| Assimilation | Minority members must learn ways of majority |
| Assumed similarity | The assumption that others are like oneself |
| At-risk pay | Pay not received if employee does not meet targets |
| Attitude | A frame of mind that predisposes a reaction (three components: thoughts; feelings, behavior) |
| Attribution theory | Explains how we judge people differently based on the attribute we give their behavior |
| Attribution | Judgments on behavior |
| Attrition | Gradual and natural reduction (e.g., retirements) |
| Augmented skills | Skills helpful to expatriate managers |
| Authoritarianism | Power and status exist in an organization |
| Authority | The right to tell people what to do |
| Authorization card | Statement signed by employee empowering union to negotiate on their behalf |
| Autonomy | Degree to which a job gives freedom, independence, scheduling and procedures |
| Balance of payments | Different of value in exports/imports |
| Balance sheet | Reports financial position at a specific date |
| Baseline information | Existing operation levels used to compare |
| Bases of power | Sources of power that leaders use (persona, legitimate, expert, reward, and coercive) |
| Back end (website) | Development section of a website |
| Benchmarking | Measures products/services/practices against competitors |
| Blog | Online journal |
| Blue chip stocks | High quality company stock |
| Boiled frog phenomenon | Small changes are unnoticed (a frog will stay in a pot of water as it slowly comes to a boil) |
| Bond | Indebtedness contract issued by a corporation or government that promises future payment |
| Boundary spanners | Employees with strong communication skills within and outside their group |
| Bounded rationality | People only have time to process a certain amount of information |
| Brainstorming | Group encouraging creative and quick thinking without judgement or evaluation of ideas |
| Brand | Name, term, sign, symbol, and/or design used to differentiate goods from competitors |
| Brand equity | Benefit a brand name brings |
| Breach of contract | Failing to follow terms of contract |
| Break-even analysis | When revenues equal expenditures; based on fixed costs, variable costs and unit price |
| Break-even point | Output of break-even analysis )how many sales have to occur to break-even |
| Broker | Go-between for buyer and seller |
| Brokerage firm | Organization that buys and sells securities |
| Bundling | Marketing two or more items in a single package |
| Bureaucratic control | Control based on rules and heirarchy |
| Bureaucratic organization | Classical management of authority, records and separation of management and ownership |
| Burden rate | Sum of employer costs over and above salaries (including employer taxes, benefits, etc) |
| Business | Profit seeking by providing goods/services |
| Business law | Legal code that governs businesses |
| Business mission | Brief description of an organization's purpose (mission statement) |
| Business plan | Written document explaining a venture (nature of business, market, advantages, and resources) |
| Buy-sell agreement | Agreement where one or more of the entrepreneurs wants to sell their interest |
| Buying on margin | Buying stocks with borrowed broker money |
| C Corporation | Classical legal entity of a business, shields personal liability and provides non-tax benefits |
| Cafeteria-style fringe benefits | Allows employers to choose benefits they want up to a certain amount of money |
| Call provision | Gives bond owner right to retire before maturity |
| Cannibalization | Sales of a new product or service decrease sales from existing product or services |
| Capital assets | Long-term assets (e.g. equipment) |
| Capital budget | Long-term spending plan for returns that are expected to cover more than one year |
| Capital expenditure | Spending on capital assets |
| Capital input | Money being invested into business (not loans) |
| Capitalism | Economic system where businesses are private |
| Cash-and-carry | Wholesaler services mostly smaller retailers with limited products, sell for cash |
| Cash | Bank account balance and other liquid assets |
| Cash basis | Accounting system |
| Cash flow | Difference between cash receipts and disbursements |
| Cash flow budget | Cash flow during a specified period |
| Cash flow statement | Shows actual cash inflow and outflow over period; one of three main financial statements |
| Central driving forces (CDF) model | Entrepreneurial-based model that considers positives/negatives of three areas of the venture; founders, opportunities, and resources |
| Centralization | Authority in a central location |
| Centralized network | Team communication where team members communicate through a spokesperson |
| Certainty | Degree that all outcomes are known |
| Certificate of deposit (CD) | Notes issued by a bank that earns a set amount of interest; cannot be withdrawn before maturity date without incurring penalty |
| Certification | Process of NLRN recognizing union |
| Certified public accountant (CPA) | Accountant that passes a series of exams in order to practice accounting for the public |
| Channels of distribution | Middlemen that transport goods |
| Charismatic leader | Leaders with the ability to motivate |
| Click-through rate | Divides number of users who clicked an ad by the number of times the ad was delivered; measures success of an online advertising campaign |
| Closed-shop agreement | Employees have to be members of a union before being hired |
| Co-branding | Pairing of two brand names on a single item/service |
| Coinsurance clause | Requires business to carry insurance equal to a certain percent of the buildings actual value |
| Collection days | Average number of days between invoicing and payment |
| Collective bargaining | Union and business agreements |
| Commercial and consumer finance companies | Organizations that offer short-term loans at higher interest rates |
| Commercial bank | Profit-making organization that takes deposits and loans money for interest making profit |
| Commercial paper | Short-term corporate IOU |
| Commission | Percent paid to salesperson for sale of product |
| Commodity exchange | Exchanges specific goods (e.g., sugar) |
| Common law | Unwritten body of law based on judge decisions |
| Common market | Regional country group with no tariffs |
| Common stock | Basic ownership in a company |
| Communist system | Resource allocation government controlled |
| Comparable worth | Like jobs and skills like pay |
| Comparative advantage theory | Countries should buy from places that produce a product/service more efficiently and focus on what they can do more efficiently |
| Competition-oriented pricing | Pricing based on competitors |
| Competitive advantage | Aspects of a product that makes it better than competitors |
| Competitive entry wedges | Strategic reasons to pursue an idea, four basic wedges; new product, parallel competition, franchise entry or twists |
| Completed store transactions | Total number of transactions on a website |
| Compressed workweek | Working more hours in a day (10), but less days a week (4) |
| Computer-aided design (CAD) | Computer use to help design products |
| Computer-aided engineering | Computer use to help design robots, machine tools and other items |
| Computer-aided manufacturing (CAM) | Computer help with the manufacturing of products |
| Computer hardware | All tangible equipment that stores data |
| Computer software | Instructions for computer |
| Concentrated target marketing | Marketing that focuses on key target market segment |
| Conceptual skills | Ability to see organization with big picture |
| Conglomerate merger | Joining of unrelated firms |
| Congress of Industrial Organization (CIO) | Unskilled worker union who broke away from AFL in 1935 (rejoined in 1955) |
| Consideration | Something of value in a legal contract |
| Consumerism | Social movement to increase rights of consumers |
| Consumer price index (CPI) | Monthly statistic measuring change in price of about 400 commonly bought goods |
| Containerization | Process of packing and sealing number of items into one easily moved unit |
| Contingency planning | Preparing for alternative actions |
| Contract | Legal agreement |
| Contract law | Laws that pertain to legal agreements |
| Contractual distribution system | Binding of members to cooperate with contract |
| Conversion rate | Percent of unique visitors on a website that take a desired action (e.g., purchase a product) |
| Convertible bond | Bond that can be converted into stock |
| Cooperative | Organization owned by the members/customers who pay annual members ship and share the products |
| Copyright | Exclusive right to intellectual material |
| Core marketing strategy | Reason to buy to a target market |
| Corporate distribution system | One firm owns all companies in a distribution system |
| Corporate philanthropy | Public good that firm is involved in |
| Corporate policy | Positions corporations take both within the company and within society |
| Corporate responsibility | Social responsibilities of a corporation (e.g., fair employment, minimize pollution) |
| Corporation | Two types (S or C); C is large and S is small and entity separate from owners |
| Corridor principal | Entrepreneurial venture may find it has changed focus from initial concept by continually responding and adapting to market |
| Cost of goods sold (COGS) | Cost of materials and production of goods a business sells (e.g., cost of acquisition, storage, transportation and packaging) |
| Cost of sales | Costs associated with producing sales |
| Cost-push inflation | Inflation caused by rising firm costs |
| Countertrading | Bartering among countries |
| Craft union | Labor organization skilled in a trade |
| Credit union | Nonprofit member-owned banks |
| Criminal loss protecting | Insurance against theft |
| Critical path | Longest path from beginning to production |
| Cross elasticity of demand | Change in the demand quantity of one product/service that impacts the demand for another |
| Cumulative preferred stock | Preferred stock accumulating unpaid dividends |
| Currency | Coin and paper money |
| Cyclical unemployment | Unemployment caused by recession |
| Damages | Monetary settlement of a court case |
| Data | Unanalyzed facts and figures |
| Data mining | Process of discovering meaningful data or patterns in a large data set |
| Debenture bonds | Unsecured bond |
| Debt and equity | Sum of liabilities and capital |
| Debt capital | Funds raised through loans and bonds |
| Debtor nation | Country that owes more money to a nation than the nation owes them |
| Decentralization | Power is dispersed in an organization |
| Decertification | Workers take away a union's right to represent |
| Decision-making model of leadership | Leadership style to match results with one of five leadership options (Vroom) |
| Decision support systems (DSS) | Computer program that helps with decision making processes |
| Decision tree | Graphical representation of decision-making |
| Decruitment | Techniques for reducing labor supply within the organization (layoffs, firings, transfers, and job-sharing) |
| Deductible clause | Insurance company will only pay after a certain amount of money is met by the insured |
| Delegation | Transferring authority to lower tiers in an organization |
| Delphi decision group | Questionnaires used and group members do not meet in-person (good for physical distance) |
| Demand | Quantity of products that public is willing to buy at different times at different prices |
| Demand curve | Graph of demand of product for price |
| Demand deposit | Checking account |
| Demand-oriented pricing | Pricing based on demand |
| Demand-pull inflation | Increasing prices based on demand |
| Democratic leader | Delegates and encourages participation, relies on expert and referent power to manage |
| Demographic segmentation | Divides market into like traits |
| Departmentalization | Basis of which groups are divided into departments in an organization |
| Depreciation | Estimation of the loss of value in assets over time |
| Depression | Severe recession |
| Deregulation | Removing laws that oversee organizations |
| Dialectic decision model (DDM) | Examining two or more proposals by subgroups for whole-group decision (debate) |
| Differentiated target marketing | Pursuing different market segments typically with different strategies |
| Differentiation | Creating competitive advantage |
| Direct marketing | Supplying product/service without intermediaries |
| Directing | Guiding and motivating others to achieve goals |
| Directory | Disk storage space divided into categories |
| Disabled individual | Physical or mental impairment, record of the impairment, and is regarded as having the impairment |
| Discharge | Separation of employee from company for a cause |
| Discipline | Punishment or orderly behavior in an organization or training that molds and strengthens |
| Discount bonds | Bonds selling below face value |
| Discount rate | Interest rate that Federal Reserve Banks charges other banks for loans |
| Discretionary income | Income that can be used for things other than essentials |
| Disposable incoe | Income after taxes available for essentials |
| Discrimination | Biased treatment based on criteria not relevant |
| Disparate treatment | Protected class has a different evaluation system than a non-protected class |
| Distress | Harmful stress characterized by feelings of inadequacy |
| Diversification | New offerings or introduction of new assetts |
| Divesture | Opposite of investment (e.g., selling assets) |
| Division of work | Levels of authority and functional units |
| Dividends | Money divided into owners of business for profit |
| Doing Business As (DBA) | Fictitious name to establish legal ownership of a company |
| Double-loop learning | Using current information about change to better prepare employees for future changes |
| Dow Jones Industrial Averages | Average cost of 30 industrial stocks |
| Downsizing | Planned elimination of jobs |
| Drop shippers | Wholesaler that solicits orders from retailers and ships them directly from suppliers (middlemen) |
| Dual distribution | Distributing products/services via more than one marketing channel that may compete for target market |
| Dumping | Selling products for less than production costs to a foreign country |
Created by:
JuliRae
Popular Business sets