| A | B |
|---|
| Often in business the greater the risk, the greater the | potential reward |
| If revenue is $1,000 and and expenses are $300 what is net profit/loss | $700 net profit |
| economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the market determines how much is sold at what prices | market |
| the strategy of using borrowed funds to increase the rate of return for stockholders | Leverage |
| two consecutive three-month periods of decline in a country's gross domestic product. | recession |
| customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activities of a business | stakeholders |
| If the demand for a product declines, what happens to the price of the product | price decreases. |
| resources that contribute to the creation of wealth | factors of production |
| small firm can demonstrate THIS by donating all reusable and recyclable goods and having a neighborhood clean-up day | corporate social responsibility |
| telling about your company's unethical practices to the press for instance | whistle-blowing |
| THIS behavior covers a wider range of conduct than legal behavior. | ehtical |
| government agency with the power to investigate complaints of discrimination and to sue firms practicing employment discrimination | Equal Employment Opportunity Commission(EEOC) |
| Type of competitive market where companies produce similar, but not identical, products. | monopolistic competition |
| By definition, every country has THIS type of advantage in some product | comparative |
| Purchasing products or materials in other nations and bringing them into one's own country | importing |
| a statistic used to compute the pace of inflation or deflation | consumer price index |
| import restriction based on the number of items allowed to be imported in a year | import quota |
| contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee | Licensing |
| the differences among people in a work force | Cultural diversity |
| THIS agency manages the U.S. money supply and interest rates | Federal Reserve Bank (the Fed) |
| a firm that has made sizeable investments and has a physical presence in several foreign countries as a manufacturer and marketer of products and services | multinational corporation |
| three countries participating in NAFTA | Canada, Mexico, and the United States |
| simplest form of business owned and operated by one person | sole proprietorship |
| THIS form of business ownership is taxed as an individaul NOT double taxed like corporations | sole proprietorships |
| the owner is responsible for all business debts | Unlimited liability |
| detailed written document that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications | business plan |
| Legally, a partnership must have at least ONE of these | general partner |
| the management function that involves determining whether an organization is progressing toward its goals, rewarding employees for doing a good job, and taking corrective action when they are not | Controlling |
| primary disadvantage of both a sole proprietorship and a partnership that a corporation overcomes | Unlimited liability |
| A statement that describes the company's fundamental purposes. | mission statement |
| When starting a corporation, people submit articles of incorporation to THIS office | secretary of state |
| Its claims on dividends are paid before those of common stock | preferred stock |
| top governing body of a corporation | board of directors |
| The fact that companies must pay taxes on their earnings, and then stockholders pay taxes on their dividends is called THIS. | double taxation |
| A merger between two firms that make and sell similar products in similar markets | horizontal merger |
| In business this is called having a "Plan B." | contingency planning |
| giving employees the authority and responsibility to respond quickly to customer requests | Empowerment |
| Volunteers from THIS organization are usually retired business people from different industries | SCORE |
| An organization that is THIS will give regional managers a great deal of freedom to decide exactly what types of products to stock and how to best market them | decentralized |
| The parent company versus the company that is using its name, products, etc. | franchisor; franchisee |
| process of rating an organization's practices, processes, and products against the best of the world | benchmarking |
| Planning, organizing, leading/motivating, and controlling are the 4 functions of THIS | management process |
| changed the direction of research away from Taylor's scientific management toward the study of human-based management | Hawthorne studies |
| THIS type of managment views employees are like machines that must be programmed to perform in a certain way | scientific management |
| manager who has the ability to see the big picture of an organization and to understand how the various parts of the organization can fit together | conceptual skills |
| leadership style advocating that a leader makes all decisions and tells subordinates what to do and how to do it is THIS type | authoritarian |
| dividing an organization into marketing, human resources, accounting, and production departments is example of departmentalization by THIS | function |
| assignment of part of a manager's work and authority to a worker | delegation |
| head of the marketing department supervises twelve people in a department is an example of THIS | span of management |
| Getting paid $700.00 per week for instance is being paid on THIS system | salary pay system |
| a narrow span of management implies THIS while a wide span of management implies THIS | tall orgainzation Versus flat organization |
| section of the business plan that contains | executive summary |
| type of utility on which production and operations management focuses | form |
| U.S. economy is now characterized as THIS type | service |
| The board of governors of the Federal Reserve System determines THIS | U.S. monetary policy |
| If demand exceeds capacity a firm should use ANY measure to meet but DON'T turning away long-time THESE | customers |
| government agencies is responsible for encouraging the development of small business | Small Business Administration |
| THIS represents the most basic form of company ownership and includes voting rights and dividends | Common stock |
| two types of costs associated with inventory | Stock-out costs and holding costs |
| method of inventory control where suppliers deliver parts and raw materials production facility just as they are needed | just-in-time inventory control |
| largest floor-based stock exchange in the world | NYSE Euronext |
| firm's after tax profits that are distributed to stockholders | Dividends |
| Acquiring funds through borrowing represents | debt financing |
| document that gives a clear picture of a job position | job description |
| newspaper advertising, recruiting on college campuses, using employment agencies are all examples of THIS | external recruiting |
| the human resources department administers THIS program to introduce new employees to the organization. | Neew employee orientation |
| process of establishing and maintaining contacts with key managers in one's own organization and in other organizations, and using those contacts to establish strong relationships that serve as informal development systems | Networking |
| One example of employers benefit required by law to provide | unemployment insurance |
| tailoring products to meet the needs of a large number of individual customers | Mass customization |
| hierarchy of human needs was developed by | Maslow |
| The idea that satisfaction and dissatisfaction are distinct dimensions | motivation-hygiene theory |
| THIS allows employees to work whatever hours they choose during the week as long as they put in forty hours per week | flextime |
| A market segment toward which a company directs its marketing effort | target market |
| using collateral for a short term loan represents this type of loan | secured loan |
| product, price, distribution, and promotion | marketing mix |
| offering a rebate is THIS component of the marketing mix | promotion |
| a recession is an example of THIS factor affecting business | economic |
| process of systematically gathering, recording, and analyzing data concerning a particular marketing problem | marketing research |
| Important provisions of THIS act require the CEO and CFO of corporations to certify the accuracy of financial reports | Sarbanes-Oxley Act |
| Introduction, growth, maturity, decline are the order of THIS | product life cycle |
| everything a company makes of sells is known as this | product mix |
| stage in the evolution of new products in which the product is introduced in a limited way to determine buyers' reactions | test marketing |
| Location is very important in the marketing of THIS type of goods because consumers desire to purchase these goods with a minimum of shopping effort | convenience goods |
| creating a vision for others to follow, establishing corporate values and ethics, and transforming the way an organization does business so that it is more effective and efficient. | Leadership |
| American Glory owned by Walmart or Arizona Jean Co. brand of jeans, owned by JC Penney are examples of this | private brand |
| he first step in this is to set clear and appropriate standards | control process |
| number of units that must be sold for the total revenue to equal the total cost | breakeven quantity |
| strategy of charging the highest possible price for a product during the introduction stage of its life cycle | price skimming |
| line of authority that moves from the top of a hierarchy to the lowest level | chain of command |
| Due to more emphasis on empowerment and more talented and better-educated lower level management, THIS in organizations has increased | span of control |
| Assets = liabilities plus owners' equity | fundamental accounting equation |
| unfavorable balance of trade occurs when the value of imports exceeds THIS value | exports |
| The parts of this financial statement include Assets, liabilities, and owners' equity | balance sheet |
| .S. firms choose to hire skilled and unskilled workers in other countries to produce goods and services, rather than producing them in the United States | offshore outsourcing |
| stock of this corporation is not sold to the general public | closed corporation |
| If assets in a compnay are $100,000 and liabilities are $40,000 then what is owner's equity | $60,000 |
| refers to how quickly an asset can be converted into cash | Liquidity |
| This financial statement reports the profit or loss for the firm over a specified time period | income statement |
| This part of the Civil Rights Act of 1964 prohibits discrimination based on race, religion, sex, creed, or national origin in matters such as hiring, firing, training, and compensation. | Title VII |
| Borrowed money that will be used for more than one year | long-term financing |
