Fichas
BCOR199
Fichas del conjunto (190)
- 1Organizations that provide goods or services that are then sold to earn profitsBusiness
- 2The difference between a business’s revenues and its expensesProfits
- 3Consists of everything outside an organization’s boundaries that might affect it (plays a major role in determining the success or failure of any organizationExternal Environment
- 4Major dimensions and elements of the external environment that affect businesses today:Domestic Business Environment
Global Business Environment
Technological Environment
Political-Legal Environment
Sociocultural Environment
Economic Environment - 5Environment in which a firm conducts its operations and derives its revenuesDomestic Business Environment
- 6International forces that affect a business (International trade agreements, international economic conditions, political unrest, etc.)Global business environment
- 7All the ways by which firms create value for their constituents. (Human knowledge, work methods, physical equipment, electronics and telecommunications, and various processing systems that are used to perform business activities)Technological environment
- 8The relationship between business and government, usually in the form of government regulation of business.Political-legal environment
- 9Customs, mores, values, and demographic characteristics of the society in which an organization functions (determine the goods and services, as well as standards of business conduct, that a society is likely to value and accept).Sociocultural environment
- 10Relevant conditions that exist in the economic system in which a company operatesEconomic environment
- 11The nation in which it does most of its businessHome country
- 12A nation’s system for allocating its resources among its citizens, both individuals and organizationsEconomic system
- 13The resources that a country’s businesses use to produce goods and servicesFactors of production
- 14What are the 5 factors of production?1. Labor
2. Capital
3. Entrepreneurs
4. Physical resources
5. Information resources - 15Physical and intellectual contributions people make while engaged in economic production.Labor (Human resources)
- 16The financial resources needed to operate a business. (You need this to operate a business and then to keep it running and growing)Capital
- 17A person who accepts the risks and opportunities entailed in creating and operating a new businessEntrepreneur
- 18The tangible things that organizations use to conduct their business. (Natural resources, raw materials, offices, storage and production facilities, parts and supplies, computers and peripherals, and a variety of other equipment)Physical resources
- 19Data and other information used by businesses (market forecasts, specialized knowledge of people, and economic data)Information resources
- 20Relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisionsPlanned economy
- 21Individual producers and consumers control production and allocation by creating combinations of supply and demandMarket economy
- 22A system in which the government owns and operates all factors of production. The government would assign people to jobs; it would also own all business and control business decisions (what to make, how much to charge, etc.)Communism
- 23A mechanism of exchange between the buyers and sellers of a particular good or service.Market
- 24The political basis of market processes, which allows the private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentiveCapitalism
- 25The operation of demand and supplyEconomic basis of market processes
- 26Most countries rely on some form of this, which features characteristics of both planned and market economiesMixed Market Economy
- 27The process of converting government enterprises into privately owned companiesPrivatization
- 28The government owns and operates selected major industriesSocialism
- 29The willingness and ability of buyers to purchase a product (good or service)Demand
- 30The willingness and ability of producers to offer a good or service for saleSupply
- 31Buyers will purchase (demand) more of a product as its price drops and less of a product as its price increases.Law of demand
- 32Producers will offer (supply) more of a product for sale as its price rises and less of a product as its price drops.Law of supply
- 33Assessment of the relationships among different levels of demand and supply at different price levelsDemand and supply schedule
- 34Shows how many products will be demanded (bought) at different pricesDemand curve
- 35Shows how many products will be supplied (offered for sale) at different pricesSupply curve
- 36The price at which the quantity of goods demanded and the quantity of goods supplied are equalMarket price (equilibrium price)
- 37A situation in which the quantity supplied exceeds the quantity demandedSurplus
- 38The quantity demanded is greater than the quantity suppliedShortage
- 39One that allows individuals to pursue their own interests with minimal government restriction (requires the presence of 4 elements: Private property rights, freedom of choice, profits, and competition.)Private enterprise system
- 40What are the 4 parts of the Private Enterprise System?Private Property Rights
Freedom of choice
Profits
Competition - 41Ownership of the resources used to create wealth is in the hands of the individualsPrivate property rights
- 42You can sell your labor to any employer you choose. You can also choose which products to buy, and producers and usually choose whom to hire and what to produceFreedom of choice
- 43The lure of profits (and freedom) leads some people to abandon the security of working for someone else and to assume the risks of entrepreneurship. Anticipated profits also influence individuals’ choices of which goods or services to produceProfits
- 44If profits motivate individuals to start businesses, this motivates them to operate those businesses efficiently. This occurs when two or more businesses vie for the same resources or customers.Competition
- 454 degrees of competition in a private enterprise systemPerfect competition
Monopolistic competition
Oligopoly
Monopoly - 46Market or industry characterized by numerous small firms producing an identical productPerfect competition
- 47Market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors.Monopolistic competition
- 48Market or industry characterized by a handful of (generally large) sellers with the power to influence the prices of their productsOligopoly
- 49Market or industry in which there is only one producer that can therefore set the prices of its pricesMonopoly
- 50Industry in which one company can most efficiently supply all needed goods or servicesNatural Monopoly
- 51A statistic that helps assess the performance of an economyEconomic indicator
- 52Short-term pattern of economic expansions and contractionsBusiness cycle
- 53The total quantity of goods and services produced by an economic system during a given periodAggregate output
- 54The total quantity and quality of goods and services people can purchase with the currency used in their economic systemStandard of living
- 55Total value of all goods and services produced within a given period by a natural economy through domestic factors of productionGross Domestic Product (GDP)
- 56Total value of all goods and services produced by a natural economy within a given period regardless of where the factors of production are located.Gross National Product (GNP)
- 57Gross domestic product divided by total populationGDP Per Capita
- 58GDP adjusted to account for changes in currency values and price changesReal GDP
- 59GDP measured in current dollars or with all components valued at current pricesNominal GDP
- 60The principle that exchange rates are set so that the prices of similar products in different countries are about the samePurchasing Power Parity
- 61A measure of economic growth that compares how much a system produces with the resources needed to produce itProductivity
- 62The economic value of all the products that a country exports minus the economic value of all the products it importsBalance of trade
- 63The amount of money the government owes its creditorsNational debt
- 64The condition in which the amount of money available in an economic system and the quantity of goods and services produced in it are growing at about the same rateStability
- 65Occurs when widespread price increases occur throughout an economic systemInflation
- 66A measure of the prices of typical products purchased by consumers living in urban areasConsumer price index (CPI)
- 67The level of joblessness among people actively seeking work in an economic systemUnemployment
- 68A period during which aggregate output, as measured by GDP, declinesRecession
- 69A prolonged and deep recessionDepression
- 70Policies used by a government regarding how it collects and spends revenueFiscal Policies
- 71Policies used by a government to control the supply of its money supplyMonetary policies
- 72Government economic policy intended to smooth out fluctuations in output and unemployment and to stabilize pricesStabilization policy
- 73Beliefs about what’s right and wrong or good or bad in actions that affect othersEthics
- 74Behavior conforming to generally accepted social norms concerning beneficial and harmful actionsEthical behavior
- 75Behavior that does not conform to generally accepted social norms concerning beneficial and harmful actionsUnethical behavior
- 76Ethical or unethical behaviors by employees in the context of their jobsBusiness ethics
- 77Standards of behavior that guide individual managers in their workManagerial ethics
- 78Occurs when an activity may benefit the individual to the detriment of his/her employerConflict of interest
- 794 ethical norms:Utility
Rights
Justice
Caring - 80Two most common approaches to formalizing top management commitment to ethical business practicesAdopting written codes
Instituting ethics programs - 81The attempt of a business to balance its commitments to groups and individuals in its environment, including customers, other businesses, employees, investors, and local communitiesSocial Responsibility
- 82Those groups, individuals, and organizations that are directly affected by the practices of an organization and who therefore have a stake in its performance.Organizational stakeholders
- 83Most companies that strive to be responsible to their stakeholders concentrate first and foremost on 5 main groups:1. Customers
2. Employees
3. Investors
4. Suppliers
5. Local communities - 84When defining its sense of social responsibility, a firm typically confronts 4 areas of concern:1. Environment
2. Customers
3. Employees
4. Investors - 85Form of social activism dedicated to protecting the rights of consumers in their dealings with businessesConsumerism
- 86Illegal agreement between 2 or more companies to commit a wrongful actCollusion
- 87Responding with increased demand with overly steep price increasesPrice gouging
- 88Employee who detects and tries to put an end to a company’s unethical, illegal, or socially irresponsible actions by publicizing themWhistle-Blower
- 89Illegal practice of using special knowledge about a firm for profit or gainInsider Trading
- 90Approach to social responsibility that involves doing as little as possible and may involve attempts to deny or cover up violationsObstructionist Stance
- 91Approach to social responsibility by which a company meets only minimum legal requirements in its commitments to groups and individuals in its social environmentDefensive stance
- 92Approach to social responsibility by which a company, if specifically asked to do so, exceeds legal minimums in its commitments to groups and individuals in its social environmentAccommodative stance
- 93Approach to social responsibility by which a company actively seeks opportunities to contribute to the well-being of groups and individual in its social environmentProactive stance
- 94The establishment of laws and rules that dictate what organizations can and cannot doRegulation
- 95The use of persons or groups to formally represent an organization or group of organizations before political bodiesLobbying
- 96Special organizations created to solicit money and then distribute it to political candidatesPolitical Action Committees (PACs)
- 97The extent to which the organization conforms to local, state, federal, and international lawsLegal Compliance
- 98The extent to which the members of the organization follow basic ethical (and legal) standards of behaviorEthical Compliance
- 99The awarding of funds or gifts to charities or other worthy causesPhilanthropic Giving
- 1003 Formal organizational dimensions that can help manage social responsibility:1. Legal compliance
2. Ethical compliance
3. Philanthropic giving - 101Systematic analysis of a firm’s success in using funds earmarked for meeting its social responsibility goalsCorporate Social Audit
- 102Government agency charged with assisting small businessesSmall Business Administration (SBA)
- 103Independently owned business that has relatively little influence in its marketSmall Business
- 104Businessperson who accepts both the risks and the opportunities involved in creating and operating a new business ventureEntrepreneur
- 105The process of seeking businesses opportunities under conditions of riskEntrepreneurship
- 106One in which many firms compete according to relatively well-defined criteriaEstablished market
- 107A segment of a market that is not currently being exploitedNiche
- 108Any advantage that comes to a firm because it exploits an opportunity before any other firm doesFirst-Mover Advantage
- 109Document in which the entrepreneur summarizes his/her business strategy for the proposed new venture and how that strategy will be implementedBusiness plan
- 110Arrangement in which a buyer (franchisee) purchases the right to sell the good or service of the seller (franchiser)Franchise
- 111Group of small investors who invest money in companies with rapid growth potentialVenture Capital Company
- 112Government regulated investment company that borrows money from the SBA to invest in or lend to a small businessSmall Business Investment Company (SBIC)
- 113SBA program designed to consolidate information from various disciplines and make it available to small businessesSmall Business Development Center (SBDC)
- 1144 reasons for business failure:1. Managerial incompetence/inexperience
2. Neglect
3. Weak control systems
4. Insufficient capital - 1154 reasons for business success:1. Hard work, drive, dedication
2. Market demand for the products or services being provided
3. Managerial competence
4. Luck - 116Business owned and usually operated by one person who is responsible for all of its debtsSole proprietorship
- 117Legal principle holding owners responsible for paying off all debts of a businessUnlimited Liability
- 118Business with 2 or more owners who share in both the operation of the firm and the financial responsibility for its debtsGeneral Partnership
- 119Type of partnership consisting of limited partners and a general (or managing) partnerLimited Partnership
- 120Partner who does not share in a firm’s management and is liable for its debts only to the limits of said partner’s investmentLimited Partner
- 121Partner who actively manages a firm and who has unlimited liability for its debtsGeneral (or Active) Partner
- 122Form of ownership that sells shares to investors who receive profits and that pays taxes on income from profitsMaster Limited Partnership
- 123Form of ownership in which a group of sole proprietorships or partnerships agree to work together for common benefitsCooperative
- 124Business that is legally considered an entity separate from its owners and is liable for its own debts; owners’ liability extends to the limits of their investmentsCorporation
- 125Legal principle holding investors liable for a firm’s debts only to the limits of their personal investments in itLimited Liability
- 126Offer to buy shares made by a prospective buyer directly to a target corporation’s shareholders, who then make individual decisions about whether to sellTender Offer
- 127Situation in which taxes may be payable by both a corporation on its profits and by its shareholders on dividend incomesDouble Taxation
- 128Corporation whose stock is held by only a few people and is not available for sale to the general publicClosely Held (or Private) Corporation
- 129Corporation whose stock is widely held and available for sale to the general publicPublicly Held (or Public) Corporation
- 130Hybrid of a closely held corporation and a partnership, organized and operated like a corporation but treated as a partnership for tax purposesS Corporation
- 131Hybrid of a publicly held corporation and a partnership in which owners are taxed as partners but enjoy the benefits of limited liabilityLimited Liability Corporation (LLC)
- 132Form of ownership allowing professionals to take advantage of corporate benefits while granting them limited business liability and unlimited professional liabilityProfessional Corporation
- 133Form of corporation spanning national boundariesMultinational (or Transnational) Corporation
- 134Roles of shareholders, directors, and other managers in corporate decision making and accountabilityCorporate Governance
- 135Owners of shares of stock in a corporationStockholder (or Shareholder)
- 136Governing body of a corporation that reports to its shareholders and delegates power to run its day-to-day operations while remaining responsible for sustaining its assetsBoard of Directors
- 137Top management team of a corporationOfficers
- 138Top manager who is responsible for the overall performance of a corporationChief executive officer (CEO)
- 139Strategy in which 2 or more organizations collaborate on a project for mutual gainStrategic Alliance
- 140Strategic alliance in which the collaboration involves joint ownership of the new ventureJoint Venture
- 141Arrangement in which a corporation holds its own stock in trust for its employees, who gradually receive ownership of the stock and control its voting rightsEmployee Stock Ownership Plan (ESOP)
- 142Large investor, such as a mutual fund or a pension fund, that purchases large blocks of corporate stockInstitutional Investor
- 143The union of 2 corporations to form a new corporationMerger
- 144The purchase of one company by anotherAcquisition
- 145Strategy whereby a firm sells one or more of its business unitsDivestiture
- 146Strategy of setting up one or more corporate units as new, independent corporationsSpin Off
- 147Process by which the world economy is becoming a single interdependent systemGlobalization
- 148Product made or grown abroad but sold domesticallyImport
- 149Product made or grown domestically but shipped and sold abroadExport
- 150Agreement to gradually eliminate tariffs and other trade barriers among the United States, Canada, and MexicoNorth American Free Trade Agreement (NAFTA)
- 151Agreement among major European nations to eliminate or make uniform most trade barriers affecting group membersEuropean Union (EU)
- 152Organization for economic, political, social, and cultural cooperation among Southeast Asian nationsAssociation of Southeast Asian Nations (ASEAN)
- 153International trade agreement to encourage the multicultural reduction or elimination of trade barriersGeneral Agreement on Tariffs and Trade (GATT)
- 154Organization through which member nations negotiate trading agreements and resolve disputes about trade policies and practicesWorld Trade Organization (WTO)
- 155Economic value of all products a country exports minus the economic value of all products it importsBalance of Trade
- 156Situation in which a country’s imports exceed its exports, creating a negative balance of tradeTrade Deficit
- 157Situation in which a country’s exports exceed its imports, creating a positive balance of tradeTrade Surplus
- 158Flow of all money into or out of a countryBalance of Payments
- 159Rate at which the currency of one nation can be exchanged for the currency of another nationExchange Rate
- 160A common currency shared among most of the members of the EUEuro
- 161The ability to produce something more efficiently than any other country canAbsolute Advantage
- 162The ability to produce some products more efficiently than othersComparative Advantage
- 163International competitive advantage stemming from a combination of factor conditions, demand conditions, relating and supporting industries, and firm strategies, structures, and rivalriesNational Competitive Advantage
- 164National Competitive Advantage derives from 4 conditions:1. Factor conditions
2. Demand conditions
3. Related and supporting industries
4. Strategies, structures, and rivalries - 165The practice of paying suppliers and distributors to perform certain business processes or to provide needed materials or servicesOutsourcing
- 166The practice of outsourcing to foreign countriesOffshoring
- 167Firm that distributes and sells products to one or more foreign countriesExporter
- 168Firm that buys products in foreign markets and then imports them for resale in its home countryImporter
- 169Firm that conducts a significant portion of its business in foreign countriesInternational Firm
- 170Firm that designs, produces, and markets products in many nationsMultinational Firm
- 171Foreign individual or organization that agrees to represent an exporter’s interestsIndependent Agent
- 172Arrangement in which firms choose foreign individuals or organizations to manufacture or market their products in another countryLicensing Arrangement
- 173Foreign office set up by an international or multinational firmBranch Office
- 174Arrangement in which a company finds a foreign partner to contribute approximately half of the resources needed to establish and operate a new business in the partner’s countryStrategic Alliance (Joint venture)
- 175Arrangement in which a firm buys or establishes tangible assets in another countryForeign Direct Investment (FDI)
- 176A person’s beliefs about the relative importance of the individual versus groups to which that person belongsSocial Orientation
- 177The beliefs that people in a culture hold about the appropriateness of power and authority differences in hierarchies such as business organizationsPower Orientation
- 178The feeling individuals have regarding uncertain and ambiguous situationsUncertainty Organization
- 179The manner in which people are motivated to work toward different kinds of goalsGoal Orientation
- 180The extent to which members of a culture adopt a long-term versus a short-term outlook on work, life, and other elements of societyTime Orientation
- 181Restriction on the number of products of a certain type that can be imported into a countryQuota
- 182Government order banning exportation or importation of a particular product or all products from a particular countryEmbargo
- 183Tax levied on imported productsTariff
- 184Government payment to help a domestic business compete with foreign firmsSubsidy
- 185Practice of protecting domestic business against foreign competitionProtectionism
- 186Law requiring that products sold in a particular country be at least partly made thereLocal Content Law
- 187Law or regulation governing business practices in given countriesBusiness Practice Law
- 188Association of producers whose purpose is to control supply and pricesCartel
- 189Practice of selling a product abroad for less than the cost of productionDumping
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