| A | B |
|---|
| business | an organization that produces or distributes a good or service for profit |
| production | involves making a product or providing a service |
| manufacting firms | businesses that produce goods |
| service firms | businesses that provide assistance to satisfy specialized needs through skilled workers |
| finance | deals with all money mattters related to running a business |
| supply | refers to the number of similar products that will be offered for sale at a particular time and at a particular price |
| demand | refers to the number of similar products that will be bought at a given time at a given price |
| 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 numbers of poor people who possess few goods |
| commercial businesses | firms engaged in marketing, in finance, and in furnishing services |
| industry | a word often used to refer to all businesses within a category |
| services | activities of value that do not result in the ownership of a physical product |
| global competition | the ability of profit-making organizations to compete with other businesses in other countries |
| effectiveness | occurs when an organization makes the right decisions in deciding what products or services to offer customers 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 U.S. |
| foreign goods | products made by firms in other countries |
| total quality management (TQM) | a commitment to excellence that is accomplished by teamwork and continual improvement |
| output | the quantity, or amount, produced within a given time |
| productivity | refers to producing the largest quantity in the least time by using efficient methods and modern equipment |
| mass production | an assembly process in which a large number of products is produced, each of which is identical to the next |
| downsize | cutting back on the goods and services provided and thereby shrinking the size of a firm and the number of employees |
| empowerment | lets workers decide how to perform their work tasks and offer ideas on how to improve the work process |
| gross domestic product (GDP) | the total market 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 | the term applied to any business that is operated by one or few individuals |
| franchise | a legal agreement between a company and a distributor to sell a product or service under special conditions |
| franchisor | the parent company of a franchise agreement that provides the product or service |
| franchisee | the distributor or 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 cevelope a new product, process, or service |
| employee stock ownership plan (ESOP) | permits employees to directly own the company in which they work by allowing them to buy shares in it |
