| A | B |
|---|
| business | organisation that produces or distributes a good or service for profit |
| profit | difference between earned income and costs |
| production | making a product or providing a service |
| manufacturing firms | create products that customers purchase to satisfy needs |
| service firms | use skills of employees to offer activities and assistance to satisfy customer needs |
| marketing | activities between business and customers involved in buying and selling goods and services |
| finance | deals with all of the money matters involved in running a business |
| supply | number of similar products that will be offered for sale at a particular time and price |
| demand | number of similar products that will be bought at a given time at a given price |
| industrial business | produce goods used by other businesses or organisations to make things |
| commercial business | engaged in marketing (wholesalers and retailers), in finance (banks and investment companies), and in providing services (medical, fitness, hotels) as primary business |
| service business | type of commercial business that use mostly labour to offer mostly intangible products to satisfy consumer needs |
| industry | word often used to refer to all businesses within a category doing similar work |
| dynamic | characteristic of business that means it is always changing |
| innovation | something entirely new |
| global competition | the ability of businesses from one country to compete with similar businesses in other countries |
| effectiveness | making the right decisions about what products or services to offer customers and the best way to produce and deliver them |
| efficiency | producing products and services quickly at low cost, without wasting time and materials |
| good managers | focus on both effectiveness and efficiency |
| domestic goods | products made by firms in the United States |
| foreign goods | products made by firms in other countries |
| total quality management (TQM) | commitment to excellence that is accomplished by teamwork and continual improvement of work procedures and products |
| output | quantity produced within a given time |
| productivity | producing the largest quantity in the least amount of time using efficient methods and modern equipment |
| specialisation | when workers work in one distinct area, while other workers work towards the same goal in different ways |
| mass production | started in 1900's, combines use of technology, specialised equipment, and an assembly line. |
| technology | equipment, manufacturing processes, and materials from which products are made. |
| downsize | reducing the amount and variety of goods and services produced, and the number of employees needed to produce them |
| empowerment | letting workers participate in determining how to perform their work tasks, and offer ideas on how to improve the work process of the company |
| re-engineering | redesigning the work flow through their organisation |
| gross domestic product (GDP) | total market value of all goods and services produced in a country in a year |
| underground economy | illegally sold materials, like counterfeit objects or drugs that aren't reported, income that escapes the GDP |
| entrepreneur | someone who starts, manages, and owns a business |
| small business | term used to describe companies that are operated by one or a few individuals |
| franchise | legal agreement in which an individual or small group of investors purchases the right to sell a company's product or service under the company's name or trademark |
| franchisor | the parent company of a franchise agreement that provides the product or service |
| franchisee | distributor of a franchised product or service |
| risk | possibility of failure |
| 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 |
