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BUS101 Saylor Adcamy
Unit 1.1 Section 1-6
| Question | Answer |
|---|---|
| Stakeholder | A person or organization with a legitimate interest in a given situation, action, or enterprise. |
| Corporation | A group of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members. |
| Corporate Social Responsibility (CSR) | A company's sense of responsibility towards the community and environment in which it operates, expressed through waste reduction, educational contributions, and earning adequate returns on resources. |
| Profit Maximization | The main purpose of a business, as argued by economist Milton Friedman, is to maximize profits for its owners, particularly stockholders in publicly-traded companies. |
| Economic Value Added | A measure that suggests the challenge for a business is balancing the interests of various parties affected by its operations, which can sometimes conflict. |
| Social Progress | An emerging theme for businesses that emphasizes the importance of maintaining high levels of social responsibility. |
| Stakeholder Theory | The belief that individuals with legitimate interests in a business should influence its operations, including consumers and community members. |
| Business Contract Theory | The perspective that a business is a community of participants organized around a common purpose, often likened to a representative democracy. |
| Market Needs | The demands and requirements of consumers that businesses aim to address through their products and services. |
| Nonprofit Organization | An entity that operates for a purpose other than making a profit, often focused on social, educational, or charitable goals. |
| Business | An organization or entity engaged in commercial, industrial, or professional activities with the aim of generating profit. |
| Contract Theory | A perspective that views a business as a community of participants who have legitimate interests and rights regarding how the business is run. |
| Innovation | The process of translating an idea or invention into a good or service that creates value or for which customers will pay. |
| Double-Bottom Line Capitalism | A business approach that aims to achieve both financial profit and social benefit, emphasizing the importance of creating social progress alongside economic success. |
| Business as Property | The viewpoint that a business is the private property of its owners, who have the right to manage it as they see fit, with limited rights for workers and consumers. |
| Economic Value Added (EVA) | A measure of a company's financial performance that shows the net profit after deducting the cost of capital, used to assess the true economic profit of a business. |
| Sustainable Financial Returns | Profits that are achieved while considering the long-term impacts on stakeholders, ensuring that the business can continue to operate and thrive in the future. |
| Efficiency | The extent to which time and resources are utilized effectively to achieve an intended task. |
| Resource | An asset used to achieve an objective, which can include raw materials, personnel, or financial capital. |
| Division of Labor | The assignment of specific responsibilities for organizational components to individual workers or groups. |
| Specialization | A form of division of labor where responsibility for a specific task is assigned to a designated expert in that field. |
| Delegation | The process by which managers transfer authority and responsibility to subordinate positions within an organization. |
| Organizational Structure | The arrangement of roles, responsibilities, and communication within an organization that determines how activities are directed to achieve goals. |
| Functional Authority | The formal power that managers have over specific activities within an organization, allowing them to make decisions related to their area of expertise. |
| Goal Orientation | The alignment of individual and organizational objectives to ensure that all efforts contribute to the overall aims of the organization. |
| Coordination | The process of organizing the activities of different departments or individuals to ensure they work together effectively towards common goals. |
| Departmentalization | The way an organization divides its activities into different departments, each responsible for a specific function or task. |
| Functional Departmentalization | An approach that organizes departments based on specialized functions or skills, such as marketing, finance, and human resources. |
| Divisional Departmentalization | A structure that organizes departments around specific products, programs, or geographical locations, allowing for focused management. |
| Matrix Departmentalization | A hybrid organizational structure that combines functional and divisional approaches, facilitating collaboration across different departments. |
| Team Departmentalization | An arrangement where departments are formed to accomplish specific tasks or projects, promoting flexibility and innovation. |
| Network Departmentalization | A structure where departments operate independently while providing essential functions to a central organization, enhancing agility and responsiveness. |
| Market Orientation | A business approach that prioritizes understanding and meeting consumer needs and preferences in product development and marketing strategies. |
| Market Research | The process of gathering, analyzing, and interpreting information about a market, including consumer behavior and preferences. |
| Market Segmentation | The division of a market into distinct subgroups of consumers with similar characteristics or motivations, allowing for targeted marketing efforts. |
| Demand | The desire and ability of consumers to purchase goods or services at a specific price, influencing market dynamics. |
| Transaction | The exchange of goods or services for money, representing a fundamental economic activity in markets. |
| Market Participants | Individuals or entities engaged in buying and selling goods or services within a market, affecting supply and demand. |
| Supply and Demand | Economic principles that describe the relationship between the availability of a product and the desire for that product, determining its price. |
| Physical Market | A tangible location where buyers and sellers meet to exchange goods, such as a shopping mall or farmers' market. |
| Non-Physical Market | A virtual marketplace, often online, where transactions occur without a physical presence, such as e-commerce platforms. |
| Illegal Market | A market that operates outside of legal regulations, dealing in prohibited goods or services, such as drugs or arms. |
| Market Trends | The upward or downward movement of a market over time, used to analyze and meet consumer needs. |
| Market Size | An estimate of the total potential customers or segments within a market, crucial for understanding market potential. |
| Concept Testing | A method used to evaluate reactions to a product idea before it is fully developed. |
| Focus Groups | Small group discussions that gather opinions and feedback about a product or idea prior to its release. |
| Test Screenings | Preview events where a product, such as a film, is shown to audiences before its official release. |
| Tracking Studies | Research that measures audience awareness and engagement with a product over time. |
| Profit | The financial gain calculated as the difference between a firm's revenue and its expenses. |
| Value | The present worth of a firm's current and future profits, reflecting its overall financial health. |
| Normal Profit | The total opportunity costs of a venture, representing the minimum earnings necessary to keep resources in their current use. |
| Economic Profit | The difference between total revenue and all costs, including both explicit and implicit costs. |
| Game Theory | A branch of mathematics that analyzes strategic interactions where individuals or organizations make decisions to maximize returns. |
| Gross Profit | The revenue from sales minus the cost of goods sold, excluding other expenses. |
| EBITDA | A measure of a company's overall financial performance that looks at earnings before interest, taxes, depreciation, and amortization. |
| EBIT | The profit a company makes from its operations, excluding interest and taxes. |
| EBT | The income of a company before taxes are deducted, also known as net profit before tax. |
| Net Profit | The total earnings of a company after all expenses, including taxes, have been deducted from revenue. |
| Economic Value | A measure of the benefit derived from a good or service, often expressed in monetary terms. |
| Consumer Surplus | The difference between the value a consumer places on a good and the market price they pay for it. |
| Stockholder | An individual or entity that owns shares in a company and has a fiduciary interest in its profitability. |
| Fiduciary Duty | A legal or ethical relationship of trust between parties, where one party is obligated to act in the best interest of another. |
| Exchange Mechanism | The process through which value is linked to price, revealing the willingness of buyers to pay and sellers to accept. |
| Present Value | The current worth of a firm's future profits, which is crucial for determining its overall value. |
| Market Stakeholders | Individuals or groups that engage in direct economic transactions with a business, such as customers, suppliers, and employees. |
| Non-Market Stakeholders | Groups or individuals who do not engage in direct economic exchange with a business but are affected by its actions, such as the general public and activist groups. |
| Corporate Responsibility | The idea that businesses should operate in a way that considers the interests and well-being of all stakeholders, not just focusing on profit. |
| Primary Stakeholders | Another term for market stakeholders, referring to those directly involved in economic transactions with the business. |
| Secondary Stakeholders | Another term for non-market stakeholders, referring to those indirectly affected by the business's operations. |
| Nonprofit Organization (NPO) | An entity that operates for purposes other than generating profit, focusing on community needs and services. |
| Surplus Revenue | Excess income generated by an NPO that must be reinvested into the organization for its growth and sustainability. |
| Corporate Governance | The system by which companies are directed and controlled, including the relationships among stakeholders. |
| Joint Outcomes | The benefits that can be maximized for all stakeholders when a business addresses the needs of multiple parties simultaneously. |
| Brand Value | The worth of a company based on its brand image and reputation, which can be affected by stakeholder satisfaction. |
| Activist Groups | Organizations that advocate for social or political change, often influencing corporate behavior. |
| NGOs (Non-Governmental Organizations) | Independent organizations that operate without government influence, often focusing on social issues and advocacy. |
| Coalition | A group formed by multiple stakeholders to work together towards common goals and interests. |
| Debt Holders | Individuals or institutions that lend money to a company and have a financial stake in its success. |
| Fiduciary | A legal obligation to act in the best interest of another party, often in the context of managing assets or funds. |
| Jurisdiction | The area or scope within which a legal authority can exercise its power. |
| Dividend | A distribution of a portion of a company's earnings to its shareholders, typically issued on a regular basis. |
| 501(c) Status | A section of the U.S. Internal Revenue Code that grants tax-exempt status to certain nonprofit organizations. |
| Membership Organization | A type of nonprofit where members have voting rights and can influence the organization's governance. |
| Board-Only Organization | A nonprofit governed solely by a self-selected board, with limited powers for any external members. |
| Tax-Exempt Status | A designation that allows an organization to be exempt from federal income tax and potentially other taxes. |
| Supporting Organization | A type of nonprofit that operates similarly to a foundation but has a more complex structure and favorable tax status. |
| Incorporation | The legal process of forming a corporation, which establishes a nonprofit as a distinct legal entity. |
| Financial Reporting | The process of disclosing an organization's financial performance and position, often required for transparency. |
| Community Outreach | Activities undertaken by nonprofits to engage with and serve the needs of their local communities. |
| Charitable Organization | A type of nonprofit that provides services or support for charitable purposes, often qualifying for special tax benefits. |
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