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Intro to Businesss

DSST Introduction to Business Definitions (Wise Owl Guide) A-D

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



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