| A | B |
|---|
| business | an organization that produces or distributes a good or service for profit |
| production | making a product or providing a service |
| manufacturing firms | businesses that produce goods |
| service firms | businesses that provide assistance to satisfy specialized needs through skilled workers |
| finance | all money matters related to running a business |
| industrial businesses | firms that produce goods that are used by other businesses or organizations to make things |
| third world nations | countries that have few manufacturing firms and a population that is generally poor |
| commerical businesses | firms engaged in marketing, in finance, and in furnishing services |
| services | intangible products that use mostly labor to satisfy consumer needs |
| industry | all businesses within a category |
| global competition | the ability of profitmaking organizations to compete with other businesses in other countries |
| effectiveness | occurs when an organization makes the right decisions about what products or services to offer customers and how to produce and deliver them |
| efficiency | occurs when an organization produces needed goods or services quickly and at low cost |
| domestic goods | products made by firms in the United States |
| foreign goods | products made by firms in other countries |
| total quality management | a commitment to excellence that is accomplished by teamwork and continual improvement |
| output | the quantity produced within a given time |
| productivity | producing the largest quantity in the least amount of time by using efficient methods and modern equipment |
| mass production | use of up-to-date equipment and assembly line methods to produce large quantities of identical goods |
| downsize | cutting back on the goods and services provided and the number of employees |
| empowerment | letting workers decide how to perform their work tasks and offer ideas on how to improve the work process |
| gross domestic product | the total market value of all goods and services produced in a country in a year |
| underground economy | income that escapes being recorded in the GDP |
| entrepreneur | a person who starts, manages, and owns a business |
| small business | any business that is operated by one or a few individuals |
| franchise | a legal agreement in which a distributor buys the right to sell the franchising company’s product or service under the company’s name and trademark |
| franchisor | the parent company of a franchise agreement that provides the product or service |
| franchisee | the distributor of a franchised product or service |
| intrapreneur | an employee who is given funds and freedom to create a special unit or department within a company in order to develop a new product, process, or service |
| employee stock ownership plan | permits employees to directly own the company in which they work by allowing them to buy shares in it |
