| A | B |
|---|
| Business | an organization that produces or distributes a good or service for profit |
| production | involves making a product or providing a service |
| manufacturing firms | businesses that produce goods. |
| service firms | business that provide assistance to satisfy specialized needs through skilled workers |
| finance | deals with all money matters related to running a business |
| industrial businesses | firms that produce goods that are often used by other businesses or organizations to make things |
| third world nations | countries that are underdeveloped, have few manufacturing firms, and have large number of poor people who possess few goods |
| commerical businesses | firms engaged in marketing, in finance, and in furnishing services |
| services | (1) activities of value that do not result in the ownership of a physical product. (2) Intangible products that result from a high degree of labor input and that satisfy consumer needs |
| industry | a word often used to refer to all businesses within a category |
| global competition | the ability of profit-making organizations to compete with other businesses in other countries. |
| effectiveness | occurs when an organization makes the tight decisions in deciding what product or services to offer customer or other users |
| efficiency | : occurs when an organization produces needed goods or services quickly 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 improvement. |
| output | The quantity or amount produced within a given time. |
| productivity | Producing the largest quantity in the least time by using efficient methods and modern equipment. |
| mass production | (1) an assembly process in which a large number of products id produced, each of which is identical to the nest; (2) occurs when up-to-date equipment and assembly line methods are used to produce large quantities of identical goods. |
| downsize | cutting back on the goods and service provided and thereby shrinking the size of a firm and the number of employees |
| empowerment | (1) letting workers decide how to perform their work tasks and offer ideas on how to improve the work process; (2) the authority given to individual employees to solve problem. |
| gross domestic product | the total value of all goods produced and services provided 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 a one or few individuals |
| franchise | a legal agreement between a company and a distributor to sell a product or service under speical conditions |
| franchisor | the parent company of a franchise agreement that provides the 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 | a benefit plan that fives company stock as bonuses or allows employee to purchase the stock at a discount. |
| franchisee | the distributor of a franchise product or service. |
