Bus Econ 700+ Terms

 

Table of Contents
CHAPTER 1 – Taking Risks and Making Profits within the Dynamic Business Environment  (Questions 1 – 53) 3
CHAPTER 2 – Understanding how economics affects business.  (Questions 54-111) 10
CHAPTER 3 – Doing global business in global market  (Questions 112-165) 18
CHAPTER 4 – Demanding ethical and socially responsible behavior  (Questions 166-194) 26
CHAPTER 5 – How to form a business  (Questions 195-23) 30
CHAPTER 6 – Entrepreneurship and Starting a Small Business  (Questions 237-280) 36
CHAPTER 7 – Management and Leadership  (Questions 281-341) 43
CHAPTER 8 – Adapting Organizations to Today’s Markets  (Questions 342-399) 50
CHAPTER 9 – Production and Operations Management of Goods and Services  (Questions 400-449) 57
CHAPTER 10 – Motivating Employees  (Questions 450-500) 63
CHAPTER 11 – Hiring Employees (Questions 501-539) 124
CHAPTER 12 – Dealing with Employee-Management Issues and Relationships (Questions 540-585) 130
CHAPTER 13 – Marketing: Helping Buyers Buy (Questions 586-644) 136
CHAPTER 14 – Developing and Pricing Goods and Services (Questions 645-685) 145
CHAPTER 15 – Distributing products (Questions 686-721) 151
CHAPTER 16 – Using effective promotions (Questions 722-771) 156
CHAPTER 16 – Using effective promotions (Questions 772 -830) 163
CHAPTER 18 – Financial Management (Questions 831-880) 172
CHAPTER 19 – Using Securities Markets for Financing & Investing (Questions 881-944) 179
CHAPTER 20 – Money, financial institutions, and the Federal Reserve (Questions 945-1000) 186

  CHAPTER   1 –       BUSINESS TRENDS: CULTIVATING A BUSINESS IN DIVERSE GLOBAL ENVIRONMENTS


1 Business Any activity that seeks to provide goods and services to others while operating at a profit 1 4 Done
2 Business Environment (BEVs) The surrounding factors that either help or hinder the development of businesses. 1 8 Done
3 Climate Change Movement of the temperature of the planet over time 1 19 Done
4 Databases An electronic storage file that enables stores to monitor what you buy and helps them to know what to carry in stock 1 15 Done
5 Demography The statistical study of the population in terms of size, density and characteristics like age, race, gender and income 1 17 Done
6 E-Commerce The buying and selling of goods on the internet 1 14 Done
7 Empowerment Giving front-line workers the responsibility, authority and freedom to respond quickly to customer requests 1 17 Done
8 Entrepreneur A person who risks time and money to start and manage a business 1 4 Done
9 Factors of Production The resources used to create wealth like: land, capital, entrepreneurship, and knowledge 1 9 Done
10 Goals of nonprofit organizations The goals of nonprofit organizations are social and educational, not profit oriented. The Red Cross, for instance, responds to thousands of natural and human made disasters each year including fires, earthquakes, hurricanes, floods and accidents. 1 8 Done
11 Goods Tangible products such as computers, food, clothing, cars, and appliances 1 4 Done
12 Greening The trend towards saving energy and producing products that cause less harm to the environment 1 19 Done
13 High Quality of Life Having a high quality of life means having the freedom, safety, health, and leisure to enjoy the satisfaction that goods and services can provide. 1 6 Done
14 Identity theft Gathering of individuals’ personal information, such as Social Security and credit card numbers, for illegal purposes 1 15 Done
15 Insourcing Foreign companies opening offices and factories in the U.S 1 6 Done
16 Loss Occurs when a business’ expenses are more than its revenues 1 5 Done
17 Market Price The price determined by supply and demand 1 39 Done
18 Nonprofit Organization An organization whose goals are for the betterment of the community, not financial gains 1 7 Done
19 Outsourcing Contracting with other companies (often in other countries) to do some of the firm’s functions 1 6 Done
20 Outsourcing Purchasing goods and services from sources outside a firm rather than providing the within the company 1 6 Done
21 Producer Price Index (PPI) An index that measures prices at the wholesale level 1 48 Done
22 Productivity The amount of output you generate given the amount of input (ex: hours you work) 1 14 Done
23 Profit the amount of money a business earns above and beyond what it spends for salaries and other expenses 1 5 Done
24 Quality of life the general well-being of a society in terms of its political freedom, natural environment, education, healthcare, safety, amount of leisure and rewards that add to personal satisfaction 1 6 Done
25 Revenue the total amount of money a business takes in during a given period by selling goods and services 1 5 Done
26 Risk The chance an entrepreneur takes of losing time and money on a business that may not prove profitable. The chance of loss, the degree of probability of loss, and the amount of possible loss 1 5 Done
27 Services intangible products that can’t be held in your hand like education, healthcare, insurance, recreation and travel 1 4 Done
28 Stakeholders All the people who stand to gain or lose by the policies and activities of a business and whose concerns the businesses need to address 1 6 Done
29 Standard of Living (SoL) The amount of goods and services people can buy with the money they have 1 6 Done
30 Technology Everything from phones to copiers and the various software programs that make businesses more effective, efficient and productive 1 14 Done

  CHAPTER 2 – UNDERSTANDING HOW ECONOMICS AFFECTS BUSINESS

31 Brain Drain The loss of the best and brightest people to other countries 2 41 Done
32 Business Cycles Periodic rises and fall that occur in economies over time 2 48 Done
33 Capitalism All or most of the land, factories and stores are owned by individuals, not the government, and operated for profit 2 35 Done
34 Command Economies The GOVERNMENT largely determines what goods and services are produced, who gets them, and how the economy will grow 2 42 Done
35 Communism An economic and political system in which the government makes ALMOST all economic decisions and owns almost all the major factors of production 2 41 Done
36 Consumer Price index (CPI) Monthly statistics that measure the pace of inflation or deflation 2 47 Done
37 Cyclical Unemployment It occurs because of a recession or a similar downturn in the business cycle (the ups and downs of business growth and decline over time). This time of unemployment is the most serious. 2 46 Done
38 Deflation Prices are declining because too few dollars are chasing too many goods 2 47 Done
39 Demand The quantities of products consumers are willing to BUY at different prices 2 37 Done
40 Depression A severe recession 2 43 Done
41 Disinflation When the price increases are slowing (inflation rate declining) 2 47 Done
42 Economic concept of demand The economic concept of demand measures the quantities of goods and services that people are willing to buy 2 37 Done
43 Economics The study of how society employs resources to produce goods and services for consumption among various groups and individuals 2 30 Done
44 Fiscal Policy The federal government’s efforts to keep the economy stable by increasing or decreasing taxes or government spending 2 49 Done
45 Foundations of Capitalism 1. The right to own private property. 2. The right to own a business and keep all profits that the business generates. 3. The right of freedom of competition. 4. the right of freedom of choice 2 35 Done
46 Free Market Decisions about what and how much to produce are made by the market 2 44 Done
47 Free Market Economies Economic systems in which the market in which market supply determines what goods and services get produced, who produces them, and how the economy grows 2 42 Done
48 Frictional Unemployment Refers to those people who have quit working because they did not like the job, the boss or the working conditions and who have not found yet another job. It  also refers to those  people entering the labor market with the hope to find a first employment 2 46 Done
49 Gross Domestic Product (GDP) Total value of final goods and services produce in a country in a given year. As long as a company is within a country’s border, their numbers go into the country’s GDP 2 45 Done
50 Inflation The general rise in the prices of goods and services over time 2 47 Done
51 Invisible Hand When self-directed gain leads to social and economic benefits for the whole community 2 32 Done
52 Invisible Hand Theory As people improve their own situations in life, they help the economy prosper through the production of goods, services and ideas. 2 33 Done
53 Keynesian Economic Theory A government policy of increasing spending and cutting taxes could stimulate spending 2 50 Done
54 Macroeconomics Concentrates on the operation of a nation’s economy as a whole 2 30 Done
55 Market Price The price is determined by the supply and demand 2 38 Done
56 Market Prices (Equilibrium Point) Determined by supply and demand, this is the negotiated price 2 38 Done
57 Microeconomics Concentrates on the behavior of people and organizations in markets for particular products or services 2 30 Done
58 Mixed Economies Some allocation of resources is made by the market and some by the government 2 42 Done
59 Monetary Policy The management of the money supply and interest rates by the Federal Reserve Bank (the Fed) 2 51 Done
60 Monopolistic Competition The degree of competition in which a large number of sellers produce very similar products that buyers perceive as similar 2 39 Done
61 Monopoly A degree of competition in which only one seller controls the total supply of a product or service, and sets the price 2 39 Done
62 National Debt The sum of government deficits over time 2 49 Done
63 Oligopoly A degree of competition in which just a few sellers dominate the market 2 39 Done
64 Perfect Competition The degree of competition in which there are many sellers in a market and none is large enough to dictate the price of a product 2 39 Done
65 Producer Price Index An index that measures prices for goods and or services at wholesaler’s price 2 48 Done
66 Recession Two or more consecutive quarters of decline in the GDP 2 48 Done
67 Resource Development The study of how to increase resources and create conditions that will make better use of them 2 31 Done
68 Seasonal Unemployment It occurs where demand for labor varies over the year, as with the harvesting of the crops 2 46 Done
69 Socialism An economic system based on the premise that some basic businesses, like utilities should be owned by the government in order to more evenly distribute profits among the people 2 40 Done
70 Stagflation Economy is slowing but prices are going up 2 47 Done
71 Structural Unemployment It refers to unemployment caused by restructuring of firms or mismatch between the skills or location of job seekers and the requirements or location of available jobs 2 46 Done
72 Supply The quantities of products businesses are willing to SELL at different prices 2 37 Done
73 Unemployment Rate The percentage of civilians at least 16 years old who are unemployed and tried to find a job within the prior 4 weeks 2 46 Done

CHAPTER 3 – DOING BUSINESS IN THE GLOBAL MARKET

74 Absolute Advantage A country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries 3 62 Done
75 Balance of payments The difference between money coming into a country (from exports) and money leaving the country (from imports) plus other money flow 3 65 Done
76 Balance of Trade The total value of a nation’s exports compared to its imports measured over time 3 64 Done
77 Central American Free Trade Agreement (CAFTA) Passed in 2005, created a free-trade zone with Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua 3 79 Done
78 Common Market A regional group of countries with a common external tariff, no internal tariffs and coordinated laws to facilitate exchange among members 3 77 Done
79 Comparative Advantage Theory (CAvT) A country should sell the products it produces most efficiently and buy from other countries the products it cannot produce as efficiently 3 61 Done
80 Contract Manufacturing A foreign company produces private-label goods to which a domestic company then attaches its own brand name or trademark. A form of outsourcing 3 69 Done
81 Counter Trading Complex form of bartering in which several countries each trade goods or services for other goods or services 3 74 Done
82 Devaluation Lowers the value of a nation’s currency relative to others 3 74 Done
83 Dumping Selling products in a foreign country at lower prices than those charged in the producing country 3 65 Done
84 Effectiveness Producing the desired result 3   Done
85 Efficiency Producing goods and services using the least amount of resources 3   Done
86 Embargo A complete can on the import or export of a certain product or the stopping of all trade with a particular country 3 76 Done
87 Exchange Rate The value of one nation’s currency relative to the currencies of other countries 3 74 Done
88 Exporting Selling products to another country 3 61 Done
89 Foreign Direct Investment (FDI) The buying of permanent property and businesses in foreign nations 3 70 Done
90 Foreign Subsidiary A company owned in a foreign country by another company called the parent company. The most common form of FDI 3 70 Done
91 Free Trade The movement of goods and services among nations without political or economic barriers 3 61 Done
92 General Agreement on Tariffs and Trade A global forum for reducing trade restrictions on goods, services, ideas and cultural problems 3 77 Done
93 Import Quota Limits the number of products in certain categories a nation can import 3 76 Done
94 Importing Buying products from another country 3 61 Done
95 Joint Venture A partnership in which two or more companies join to undertake a major task 3 70 Done
96 Licensing When a firm (licensor) provides the right to manufacture its produce or use its trademark to a foreign company (licensee) for a fee (royalty) 3 66 Done
97 Multinational Corporation (MC) A company that manufactures and markets products in many different countries and has multinational stock ownership and management 3 71 Done
98 North American Free Trade Agreement (NAFTAs) Ratified in 1994 created a free trade are among the US, Canada & Mexico 3 78 Done
99 Sovereign Wealth Funds (SWFs) Investment funds controlled by governments holding large stakes in foreign companies 3 71 Done
100 Strategic Alliance A long term partnership between two or more companies established to help each company build competitive market advantages 3 70 Done
101 Tariffs Taxes on imports 3 76 Done
102 Trade Deficit When the value of a country’s exports is less than that of its imports 3 64 Done
103 Trade Protectionism The use of government regulations to limit the import of goods and services 3 76 Done
104 Trade Surplus When the value of a country’s exports is more than that of its imports 3 64 Done
105 World Trade Organization (WTO) An independent entity of 152 member nations whose purpose is to oversee cross-border trade issues and global business practices. It replaces that General Agreement on Tariffs and Trade and is assigned the duty to mediate trade disputes among countries members 3 77 Done

CHAPTER 4 – DEMANDING ETHICAL AND SOCIAL RESPONSIBLE BEHAVIOR

106 Compliance Based Ethics Code (CBEC) Emphasizes preventing unlawful behavior by increasing control and by penalizing wrongdoers 4 96 Done
107 Corporate Philanthropy Includes charitable donations 4 99 Done
108 Corporate Policy The position a firm takes on social and political issues 4 100 Done
109 Corporate Responsibility Includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely and providing a safe work environment 4 100 Done
110 Corporate Social Initiatives Includes enhanced forms of corporate philanthropy 4 99 Done
111 Corporate Social Responsibility (CSR) The concern businesses have for the welfare of society 4 98 Done
112 Ethics The standards of moral behavior. Behaviors that are accepted by society as right versus wrong 4 95 Done
113 Insider Trading Insiders using private company information to further their own fortunes or those of their family and friends 4 101 Done
114 Integrity Based Ethics Code Defined the organization’s guiding values, create an environment that supports ethically sound behavior and stress a shared accountability among employees 4 96 Done
115 Social Audit A systematic evaluation of an organization’s progress toward implementing programs that are social responsible and responsive 4 104 Done
116 Whistleblowers Insiders who report illegal or unethical behavior 4 97 Done

CHAPTER 5 – HOW TO FORM A BUSINESS

117 Acquisition One company’s purchase of the property and obligations of another company 5 129 Done
118 Conglomerate Merger The joining of firms in completely unrelated industries 5 129 Done
119 Conventional © Corporation A state chartered legal entity with authority to act and have liability separate from it owners 5 121 Done
120 Corporation A legal entity with authority to act and have liability separate from its owners 5 115 Done
121 Franchise The right to use a specific business’s name and sell its products or services in a given territory 5 131 Done
122 Franchise Agreement An arrangement whereby someone with a good idea , for a business, sells the right to use the business’s name and sell a product or service to others in a given territory 5 131 Done
123 Franchisee A person who buys a franchise 5 131 Done
124 Franchiser A person who owns a franchise and sells it to others 5 131 Done
125 Franchising A contractual agreement whereby someone with a good idea for a business sells others the right to use the name and sell a product/service in a given area 5 131 Done
126 General Partner An owner or partner who has unlimited liability and is active in managing the firm 5 117 Done
127 General Partnership A partnership in which all owners share in operating the business and in assuming liability for the business’s debts 5 117 Done
128 Horizontal Merger The joining of two companies or firms in the same industry 5 129 Done
129 Leverage buyout An attempt by employees, managers, or a group of investors to purchase an organization’s primarily through borrowing 5 130 Done
130 Limited Liability The responsibility of an owner of a business for losses only up to the amount they invest; limited partners and shareholders have limited liability 5 117 Done
131 Limited Liability Company (LLCs) A company similar to an S corporation but without the special eligibility requirements 5 126 Done
132 Limited Liability Partnership (LLPs) A partnership limiting the risks of partners of losing their personal assets to only their own acts and emissions  and to the acts and emissions of people under their supervision 5 118 Done
133 Limited Partner A owner investing money in the business but not having any managerial responsibility or liability for losses beyond the investment 5 117 Done
134 Limited Partnership (LPs) A partnership with one or more general partners and one or more limited partners 5 117 Done
135 Master Limited Partnership (MLP) A partnership that looks much like a corporation  (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax 5 117 Done
136 Merger The result of two firms forming one company 5 127 Done
137 Partnership A legal form of business with two or more owners 5 114 Done
138 Protective Tariffs Raise the retail prices of imports so domestic goods are competitively priced 5   Done
139 S Corporation A unique government creation that looks like a corporation but it is taxed like sole proprietorships and partnerships 5 125 Done
140 Sole Proprietorship  Business owned and usually managed by one person 5 114 Done
141 Unlimited liability The responsibility of a business owner for all the debts of the business 5 116 Done
142 Vertical Merger The joining of two companies involved in different stages of related businesses 5 129 Done

CHAPTER 6 – ENTREPRENEURSHIP AND STARTING A SMALL BUSINESS

143 Affiliate Marketing An internet-based marketing strategy in which a business rewards an individual or other business (affiliates) for each visitor or customer the affiliate sends to its Web site 6 155 Done
144 Business Plan A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owner(s) 6 164 Done
145 Enterprise zone Specific geographic areas to which government try to attract private business investment by offering lower taxes and other government support 6 156 Done
146 Entrepreneurial Team A group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make and market a product 6 150 Done
147 Entrepreneurship Accepting the risk of starting and running a business 6 146 Done
148 Incubators Centers that offer new businesses low-cost offices with basic business services 6 156 Done
149 Intrapreneur Creative people working as intrapreneur within an organization 6 155 Done
150 Market People with unsatisfied wants and needs who have both the resources and the willingness to buy 6 166 Done
151 Micropreneurs Entrepreneurs willing to accept the risk of starting and managing the type of business that remains small letting them do the kind of work they want to do and offers tem a balanced lifestyle 6 150 Done
152 National Deficit The amount of money the federal government spends beyond what it gathers in taxes 6   Done
153 National Surplus When government takes in more than it spends 6   Done
154 Recovery When the economy stabilizes and starts to grow. This leads to an economic boom. 6   Done
155 Revenue Tariffs Raise money for governments 6   Done
156 Service Corps of Retired Executives (SCORE) An SBA office with volunteers from industry, trade associations, and education who counsel small business at no cost (except for expenses) 6 168 Done
157 Small business A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by Small Business Administration) in terms of employees or annual receipts 6 157 Done
158 Small business administration (SBA) A U.S. government agency advising and assisting small businesses by providing management training and financial advice and loans 6 165 Done
159 Small Business Investment Company Program (SBIC) A program though which private investment companies licensed by SBA lend money to small businesses 6 165 Done
160 Venture Capitalists Individuals or companies that invest in new businesses in exchange for partnership in those businesses 6 165 Done

 CHAPTER 7 – MANAGEMENT AND LEADERSHIP

161 Autocratic Leadership Leadership style that involves making managerial decisions without consulting others 7 191 Done
162 Brain Storming Coming up with as many solutions to a problem as possible, in a short period of time with no censoring idea 7 186 Done
163 Contingency Planning The process of preparing alternative courses of actions that may be used if the primary plans does not achieve the organization’s objectives 7 184 Done
164 Controlling A management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not 7 181 Done
165 Decision Making Choosing among two or more alternatives 7 185 Done
166 Enabling Giving workers the education and tools they need to make decisions 7 192 Done
167 External Customers Dealers, who buy products and services to sell to others, and ultimate customers or end users, who buy products for their own personal use 7 194 Done
168 Free Rein Leadership Leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives 7 192 Done
169 Goals  The broad, long term accomplishment and organization wishes to attain 7 181 Done
170 Hierarchy a system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person 7 207 Done
171 Human Relations Skills Skills that involve communication and motivation and enable managers to work through and with people 7 188 Done
172 Internal Customers Individuals and units within the firm receiving services from other individuals or units 7 194 Done
173 Knowledge Management (KM) Finding the right information, keeping that information in a readily accessible place, and making the information known to everyone in the firm 7 192 Done
174 Leading Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization’s goals and objectives 7 180 Done
175 Management The process used to accomplish organizational goals through planning, organizing, leading, implementing and controlling people and other resources 7 179 Done
176 Middle Management The level of management including general managers, supervision managers, and branch and plant managers responsible for tactical planning and control 7 187 Done
177 Mission Statement An outlie of the fundamental purposes of an organization 7 181 Done
178 Objectives Specific, short term statements detailing how to achieve the organization’s goals 7 181 Done
179 Operational Planning The process of setting work , standards and schedules necessary to implement the company tactical objectives 7 184 Done
180 Organization Chart A visual device that shows relationship among people and divides the organization’s work; it shows who is accountable for the completion of specific work and who reports to them 7 187 Done
181 Organizing A management function that includes designing the structure of the organization and creating condition and systems in which everyone and everything work together to achieve the organization’s goals and objectives 7 180 Done
182 Participation (Democratic) Leadership Leadership style consisting of managers and employees working together to make decisions 7 191 Done
183 Planning A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives 7 179 Done
184 PMI Listing all the pluses for a solution on one column and all the minuses on the other and the implication on the third column 7 186 Done
185 Problem Solving The process of solving the everyday problems that occur. Problem solving is less formal than decision making and, usually, calls for a quicker action 7 186 Done
186 Staffing A management function  including hiring, motivating, and retaining the best people available to accomplish the objectives of the company 7 189 Done
187 Strategic Planning The process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals 7 183 Done
188 Supervisory Management Managers who directly are responsible for supervising workers and evaluating their daily performance 7 188 Done
189 SWOT Analysis A planning tool used to analyze the strengths, weaknesses, opportunities and threats of an organization 7 182 Done
190 Tactical Planning The process of developing detailed, short term statements about what is to be done, who is to do it, and how it is to be done 7 184 Done
191 Technical Skills Skills that involve the ability to perform tasks in a specific discipline  or department 7 188 Done
192 Top Management Highest level of management, consisting of the president and other key company executives who develop strategic plans 7 187 Done
193 Transparency The presentation of a company’s facts and figures is a way that is clear and apparent to all stakeholders 7 190 Done
194 Vision An encompassing explanation of why the organization exists and where it is trying to head 7 181 Done

CHAPTER 8 –ADAPTING ORGANIZATION TO TODAY’S MARKET

195 Benchmarking Comparing an organization’s practices, processes, and products against the world’s best 8 218 Done
196 Bureaucracy An organization with many levels of managers who sets rules and regulations and oversee all decisions. A system of rules and regulations making processes very tedious and detailed through various interconnected and interdependent stages of approval and acceptance 8 207 Done
197 Centralized Authority An organizational structure in which decision making authority is maintained at the top level of management at the company’s headquarters 8 208 Done
198 Chain of Command The line of authority that moves from the top pf a hierarchy to the lowest level 8 207 Done
199 Core Competencies Those functions that the organization can do as well as or even better than any other competition in the world 8 218 Done
200 Cross Functional Self-Managed Teams Groups of employees from different departments who work together on long-term basis 8 216 Done
201 Decentralized Authority An organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be 8 208 Done
202 Departmentalization The dividing of organizational functions into separate units 8 210 Done
203 Digital Natives Young people who have grown up using the internet and social networking 8 219 Done
204 Economies of scales The situation in which companies can reduce their production costs if they can purchase their raw materials in bulks; the average cost of goods goes down as production levels increase 8 205 Done
205 Flat organization structure An organization structure that has few layers of management and a broad span of control 8 209 Done
206 Formal Organization The structure that details lines of responsibility, authority, and position; that is the structure shown in the organization chart 8 221 Done
207 Informal Organization The system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization; that is  the human side of the organization that does not appear in an organizational chart 8 221 Done
208 Inverted Organization An organization that has contact people at the top and the chief and executive officer at the bottom pf the organizational chart 8 220 Done
209 Line Organization An organization with direct two-way lines of communication, authority and responsibility running from the top to the bottom of the structure with all people reporting to only one supervisor 8 213 Done
210 Line Personnel Employees part of the chain of command that is responsible for  achieving the goals of the company 8 213 Done
211 Matrix Organization An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure 8 215 Done
212 Organizational or Corporate Culture   8 220 Done
213 Overtime   8 217 Done
214 Real Time The present moment of the actual time in which something takes place 8 217 Done
215 Restructuring Redesigning an organization so that it can more effectively and efficiently serve its customers 8 219 Done
216 Shop Stewards Union officials who work permanently in an organization and represent employee interests on a daily basis 8 226 Done
217 Span of Control The optimum number of subordinates a manager supervises or should supervise 8 208 Done
218 Staff Personnel Employees advising and assisting line personnel in meeting their goals 8 213 Done
219 Tall organization structure An organizational structure in which the pyramidal organization chart would be quite tall because of various levels of management 8 209 Done
220 Virtual Corporation A temporary networked organization made up of replaceable firms that join and leave as needed 8 217 Done

CHAPTER 9 – PRODUCTION AND OPERATION MANAGEMENT

221 Assembly Process That part of the production process that puts together components 9 235 Done
222 Computer Aided Design (CAD) The use of computer software in the design of products 9 236 Done
223 Computer Aided Manufacturing (CAM) The use of computer software in the manufacturing of products 9 236 Done
224 Computer Integrated Manufacturing (CIM) The uniting of CAD and CAM 9 236 Done
225 Continuous Process A production process in which long production runs turn out finished goods over time 9 235 Done
226 Critical Path Ina PERT network, the sequence of tasks that takes the longest time to complete 9 247 Done
227 Enterprise Resources Planning (ERP) A new version of materials requirement planning (MRP) that combines the computerized functions of all the divisions and subsidiaries of the firm – such as finance, human resources, and order fulfillment – into a single integrated software program that uses a single database 9 242 Done
228 Facility Layout The physical arrangement of resources (including people) in the production process 9 241 Done
229 Facility Location The process of selecting a geographic location for a company’s operation 9 238 Done
230 Flexible Manufacturing Designing machines to do multiple tasks so that they can produce a variety of products 9 237 Done
231 Form Utility The value producers add to materials in the creation of finished goods and services 9 234 Done
232 Gantt Chart Bar chart showing production managers what projects are being worked on and what stage they are in at any given time 9 247 Done
233 Intermittent Process A production process in which the production run is short and the machines are changed frequently to make different products 9 235 Done
234 ISO 14000 A collection of the best practices for managing an organization’s impact on the environment 9 246 Done
235 ISO 9000 The common name given to quality management and assurance standards 9 246 Done
236 Just in Time Inventory Control (JIT) A production process in which a minimum of inventory is kept on the premises and parts , supplies, and other needs are delivered just in time to go on the assembly line 9 244 Done
237 Lean Manufacturing The production of goods using less of everything compared to mass production 9 237 Done
238 Mass Customization Tailoring products to meet the needs of individual customers 9 237 Done
239 Material Requirement Planning (MRP) A computer-based operations management system using sales forecast to ensure that needed parts and materials are available at the right time and place 9 242 Done
240 Operations Management A specialist area in management that converts or transforms resources (including human resources) into goods and services 9 233 Done
241 Process Manufacturing That part of the production process that physically or chemically changes materials 9 235 Done
242 Production The creation of finished goods or services using the factors of production such as land, labor, capital, entrepreneurship, and knowledge 9 232 Done
243 Production Management The term used to describe all the activities mangers do to help their firms to create goods 9 232 Done
244 Program Evaluation and Review Techniques (PERT) A method for analyzing the tasks involved in completing a given product, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project 9 247 Done
245 Purchasing The function in a firm searching for quality material resources, finding the best suppliers, and negotiating the best price for goods and services 9 244 Done
246 Quality  Consistently producing what the customer wants while reducing errors before and after delivery to customer 9 244 Done
247 Six Sigma Quality A quality measure that allows only 3,4 defects per million opportunities 9 244 Done
248 Statistical Process Control (SPC) The process of taking statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set of standards 9 245 Done
249 Statistical Quality Control (SQC) The process some managers use to continually monitor all phases of the production process to ensure that quality is being built into the product from the beginning 9 244 Done
250 Telecommuting Working from home via computer and modem 9 240 Done

CHAPTER 10 – MOTIVATING EMPLOYEES

251 Equity Theory The idea that employees try to maintain equity between inputs and outputs  compared to others in similar positions 10 268 Done
252 Expectancy Theory Victor Vroom’s theory that the amount of effort employees exert on a specific task depends on the expectations of the outcome 10 267 Done
253 Extrinsic Reward Something given to you by someone else in recognition for good work; extrinsic rewards include pay increases, praise, and promotions 10 257 Done
254 Goal Setting Theory The idea that setting ambitious but obtainable and achievable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback , and facilitated by organizational conditions 10 267 Done
255 Hawthorne Effect The tendency of people to behave differently when they know they are being studied 10 260 Done
256 Hygiene Factors In Herzberg’s theory of motivating factors, job factors that an cause dissatisfaction if missing but that do not necessarily motivate employees if increased 10 262 Done
257 Intrinsic Reward The personal satisfaction an employee feels when performing well and completing the task assigned 10 256 Done
258 Job Enlargement A job enrichment strategy that involves combining a series of tasks into ne challenging and interesting assignment 10 270 Done
259 Job Enrichment A job enrichment strategy that emphasizes motivating the worker through the job itself 10 270 Done
260 Job Rotation A job enrichment strategy that emphasizes moving the worker from one job to another 10 270 Done


261 Management by Objectives (MBO) The system of Peter Duker of goal setting and implementation; it involves a cycle of discussion, review, and evaluation of objectives among top and middle level managers, supervisors, and employees 10 267 Done
262 Maslow Hierarchy of Needs Theory of motivation based on unmet human needs from basic physiological needs to safety, social and esteem needs to self-actualization needs 10 260 Done
263 Motivators In the theory of motivating factors of Herzberg, motivators are job factors causing employees to be more productive and giving them more satisfaction 10 262 Done
264 Principle of Motion Economy Theory developed by Frank and Lillian Gilbreth claiming that every job can be broken down in a series of elementary motions, portions or tasks 10 257 Done
265 Reinforcement Theory Theory that positive and negative reinforcers motivate a person to behave in certain ways 10 268 Done
266 Scientific Management Studying workers to find the most efficient ways of doing things and then teaching people these techniques 10 257 Done
267 Time Motion Studies Studies , begun by  Frederick Taylor of which tasks must be performed to complete a job and time needed to do each task must ne standardized 10 257 Done

CHAPTER 11 – HUMAN RESOURCES MANAGEMENT; FINDING AND KEEPING THE BEST EMPLOYEES

268 Affirmative Action Employment activities designed to right the wrongs by increasing opportunities for minorities and women 11 286 Done
269 Apprentice Program Training programs involving a period during which a learner works alongside an experienced employee to master the skills and procedures of a craft 11 298 Done
270 Cafeteria Style Fringe Benefits Fringe benefits plan that allows employees to choose the benefits they want up to a certain dollar amount 11 306 Done
271 Compressed Work Week (CWW) Work schedule that allows an employee to work a full number of hours per week but in fewer days 11 307 Done
272 Contingent Worker Workers who do to have the expectations of regular full-time employment 11 296 Done
273 Core Time In a flextime plan, the period where all employees are expected to beat their job stations 11 306 Done
274 Flextime Plan Work schedule that give employees some freedom to choose when to work; as long as they work the required number of hours 11 306 Done
275 Fringe Benefits Benefits such as sick leave pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages 11 305 Done
276 Human Resources Management (HRM) The process of determining human resource needs and then recruiting , selecting, developing, motivating , evaluating, compensating, and scheduling employees to achieve organizational goals 11 285 Done
277 Job Analysis A study of what is done by employees who hold various job titles 11 290 Done
278 Job Description a summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions 11 291 Done
279 Job Sharing An arrangement whereby two part-time employees share one full-time job 11 308 Done
280 Job Simulation The use of equipment that duplicated job conditions and tasks so that trainees can learn skills before attempting them on the job 11 299 Done
281 Job Specification A written summery of the minimum qualifications required of workers to do a particular job 11 291 Done
282 Management Development the process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time 11 300 Done
283 Mentor An experienced employee supervising, coaching, and guiding lower-level employees by introducing them to the right people and, generally, being their organizational sponsor 11 300 Done
284 Networking The process of establishing and maintaining contacts with key managers in one’s own organization and other organizations and using those contacts to weave strong relationships that serve as informal development system 11 300 Done
285 Off-the-job training Training that occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development 11 299 Done
286 On-line Training Training programs in which employees complete classes via the Internet 11 299 Done
287 On-the-job training Training at the workplace that lets the employee learn by doing or by watching others’ for a while and then imitating them 11 298 Done
288 Orientation The activity that introduces new employees to the organization; to fellow employees; to their immediate supervisors; and to the policies, practices and objectives of the firm 11 298 Done
289 Performance Appraisal An evaluation measuring employee’s performance against established standards in order to make decisions about promotions, compensation, training or termination 11 301 Done
290 Recruitment The set of activities used to obtain a sufficient number of the right people at the right time 11 292 Done
291 Reverse Discrimination Discrimination against whites or males in hiring or promoting 11 287 Done
292 Selection The process of gathering information and deciding who should be hired, under legal guidelines, for the best interest of an individual or a corporation 11 293 Done
293 Training and Development All attempts to improve productivity by increasing an employee’s ability to perform. Training focuses on short term skills, whereas development focuses on long term liabilities 11 297 Done
294 Vestibule Training Training done in schools where employees are taught on equipment similar to that used on the job 11 299 Done

CHAPTER 12 – DEALING WITH EMPLOYEE-MANAGEMENT ISSUES AND RELATIONSHIPS

295 Agency Shop Agreement Clause in a labor management agreement that says employers may hire nonunion workers; employees are not required to join the union but must pay a union fee 12 324 Done
296 American Federation of Labor (AFL) An organization of craft unions that championed fundamental labor issues and was founded in 1886 12 320 Done
297 Arbitration The agreement to bring in an impartial third party (a single arbitrator or a panel of arbitrators) to render a binding decision in a labor dispute 12 327 Done
298 Bargaining Zone The range of options between the initial and final offer that each party will consider before negotiations dissolve or reach an impasse 12 326 Done
299 Certification Formal process whereby a union is recognized by the National Labor Relations Board (NLRB) as the bargaining agent for a group of employees 12 321 Done
300 Closed Shop Agreement (CSA) Clause in a labor-management agreement that specifies workers must be members of a union before being hired (it was outlawed by the Taft-Harley Act of 1997) 12 323 Done
301 Collective Bargaining The process whereby union and management representatives form a labor-management agreement, or contract, for workers 12 321 Done
302 Congress of Industrial Organizations (CIO) Union organization of unskilled workers broke away from the American Federation of Labor (AFL) in 1935 and rejoined in 1955 12 320 Done
303 Cooling Off Period When workers in a critical industry return to their job while the union and the management continue negotiations 12 328 Done
304 Craft Union An organization of skilled specialists in a particular craft or trade 12 319 Done
305 Decertification The process by which workers take away a union’s right to represent them 12 321 Done
306 Givebacks Concessions made by union members to management; gains from labor negotiations are given back to management to help employees remain competitive  and, thereby, save jobs 12 329 Done
307 Grievance A charge by employees that management is not abiding by the laws of the negotiated labor-management agreement 12 325 Done
308 Industrial Unions (Ius) Labor organizations of unskilled and semi-skilled workers in mass production industries such automobiles and mining 12 320 Done
309 Injunction A court order directing someone to do something or to refrain from doing something 12 329 Done
310 Knights of Labor The first national labor union formed in 1869 12 320 Done
311 Lockout An attempt by management to put pressure on unions by temporarily closing the business 12 329 Done
312 Mediation The use of a third party, called a mediation who encourages both sides in a dispute to continue negotiating and often makes suggestions for resolving disputes 12 326 Done
313 Negotiated Labor Management Agreement (NLMA) or Labor Contract Agreement that sets the tone and clarifies the terms under which management and labor agree to function over a period of time 12 323 Done
314 Open Shop Agreement Agreement in right-to-work states that gives workers the option to join or not join a union, if one exists in the workplace 12 324 Done
315 Primary Boycott When a union encourages both its members and the general public not to buy the products of a firm involved in a labor dispute 12 328 Done
316 Right-to-work Laws Legislation giving workers the right ,under an open shop, to join or not join a union if it present 12 324 Done
317 Secondary Boycott An attempt by labor to convince other to stop doing business with a firm that is prohibited by the Taft-Harley Act 12 329 Done
318 Sexual Harassment Unwelcome sexual advance, requests for sexual favors, and other conduct (verbal or physical) of a sexual nature that creates a hostile work environment 12 335 Done
319 Shop Rewards   12 326 Done
320 Strike A union strategy in which workers refuse to go to work; the purpose is to further workers’ objectives after an impasse in collective bargaining 12 327 Done
321 Strikebreakers Workers hired to do the job of striking workers until the labor dispute is solved 12 329 Done
322 Union An employee organization that has the main goal of representing members in employee-management bargaining new job-related issues 12 318 Done
323 Union Security Clause Provision is a negotiated labor-management agreement that stipulates  that employees who benefit from a union must either officially join or at least pay dues to the union 12 323 Done
324 Union Shop Agreement Clause in a labor-management agreement that says workers do not have to be members of a union to be hired, but must agree to join the union within a prescribed period 12 324 Done
325 Yellow Dog Contract A type of contract that requires employees to agree as a condition of employment not to join a union prohibited by the Norris-LaGuardia Act of 1932 12 320 Done

CHAPTER 13 – MARKETING: DEVELOPING AND IMPLEMENTING CUSTOMER-ORIENTED MARKETING PLANS

326 Benefit Segmentation Dividing the market by determining which benefits of the product to talk about 13 362 Done
327 Brand Name A word, letter or group of words or letters that help to distinguish one seller’s goods and services from those of competitors 13 353 Done
328 Business-to-Business Market (B2B) All the individuals and organizations that want goods and services to use  in producing other goods and services or to sell, rent or supply goods or services to others 13 359 Done
329 Consumer Market All the individuals or households that want goods or services for personal consumption or use 13 359 Done
330 Customer Relationship Management The process of learning as much as possible about customers and doing everything you can over time to satisfy them – or even exceed their expectations – with goods or services 13 349 Done
331 Demographic Segmentation Dividing the market by age, gender, income and education level 13 362 Done
332 Environmental Scanning The process of identifying the factors affecting marketing success 13 357 Done
333 Focus Group A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues 13 356 Done
334 Geographic Segmentation Dividing the market by cities, counties, states or regions 13 362 Done
335 Marketing The activity , set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for consumers, clients, partners, and society at large 13 346 Done
336 Marketing Concept A three-part business philosophy:(1) a customer orientation, (2) a service orientation, and (3) a profit orientation 13 348 Done
337 Marketing Mix The ingredients going into a marketing  product such as product, price, place and promotion 13 350 Done
338 Marketing Research The analysis of markets to determine opportunities and challenges , and to find information needed to make good decisions 13 354 Done
339 Marketing Segmentation The process of dividing the total market into groups whose members have similar characteristics 13 360 Done
340 Mass Marketing Developing products and promotions to please large groups of people 13 362 Done
341 Niche Marketing The process of finding small but profitable market segments and designing or finding products for them 13 362 Done
342 One-to-one Marketing Developing a unique mix of goods and services for each individual customer 13 362 Done
343 Primary Data Data gathered personally and not coming from other sources like internet or books 13 356 Done
344 Product Any physical good or service or idea that satisfies a want or need plus anything that would enhance the product in the eyes of consumers, such as the brand name 13 362 Done
345 Promotion All the techniques the sellers use to inform people about and motivate them to buy the products or services 13 354 Done
346 Psychographic Segmentation Dividing the market using groups values, attitudes, and interests 13 362 Done
347 Relationship Marketing Marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements 13 363 Done
348 Secondary Data Information that has already been completed by others and published in journals and books and made available 13 355 Done
349 Target Marketing Marketing directed towards those groups (market segments) an organization decides it can serve profitably 13 361 Done
350 Test Marketing The process of testing products among potential users 13 352 Done
351 Volume (or Usage) Segmentation Dividing the market by usage or volume of use 13 362 Done

 


 

CHAPTER 14 – DEVELOPING AND PRICING GOODS AND SERVICES

352 Brand A name, symbol, or design (or combination of thereof) that identifies the goods or services of one seller or group of sellers  and distinguishes them from the goods and services of competitors 14 382 Done
353 Brand Association (Bass) The linking of a brand to other favorable images 14 386 Done
354 Brand Awareness (Bawa) How quickly or easily a given brand name comes to mind when a product category is mentioned 14 384 Done
355 Brand Equity (Beq) The value of the brand name and associated symbols 14 384 Done
356 Brand Loyalty (Bly) The degree to which customers are satisfied , like the brand, and are committed to further purchase 14 384 Done
357 Brand Manager A manager who has direct responsibility for one brand or one product line; called a product manager in some firms 14 382 Done
358 Break-even Analysis (BEA) The process used to determine profitability at various levels of sales 14 393 Done
359 Bundling Grouping two or more products together and pricing them as a unit 14 382 Done
360 Commercialization   14 387 Done
361 Competition Based Pricing (CBP) A pricing strategy based on what all the other competitors are doing. The price can be set at, above or below competitors’ prices 14 392 Done
362 Concept Testing Taking a product idea to consumers to test their reactions 14 387 Done
363 Convenience Goods and Services Product that the consumer want to purchase frequently and with a minimum effort 14 378 Done
364 Corporate Distribution System (CDSSys) A distribution system in which all the organizations in the channel of distribution are owned by one firm 14 415 Done
365 Dealer (Private Labels) Brands Products that do not carry the manufacturer’s name but carry the distributor or retailer name instead. 14 383 Done
366 Everyday Low Pricing (EDLP) Setting prices lower than competitors and then not having any special sales 14 393 Done
367 Generic Goods Non branded products that usually sell at a stable discount compared to national or private label brands 14 383 Done
368 High-Low Pricing Strategy Setting prices that are higher than EDLP stores but have many special sales where the prices are lower than competitors’ 14 393 Done
369 Industrial Goods Products used in the production of other products. Sometimes called business goods or B2B goods 14 380 Done
370 Knock Off Brands Illegal copies of national brand-name goods 14 383 Done
371 Manufacturer’ Brand Names The brand names of manufacturers that distribute products nationally or internationally 14 383 Done
372 Penetration Strategy Strategy in which a product is priced low to attract many customers and discourage competition 14 393 Done
373 Price Leadership The strategy to which one  or three dominant firms set the pricing practices that all competitors in an industry follow 14 392 Done
374 Product Analysis Making cost estimates and sales forecasts to get a feeling for profitability of new product ideas 14 387 Done
375 Product Differentiation The reaction of real or perceived products’ differences 14 378 Done
376 Product Life Cycle A theoretical model of what happens to sales and profits for a product class over time; the four phases of the cycle are introduction, growth, maturity and decline 14 388 Done
377 Product Line a group of products that are physically similar or are intended for a similar market 14 377 Done
378 Product Mix The combination of product lines offered by a manufacturer 14 377 Done
379 Product Screening A process designed to reduce the number of new product ideas being worked on at any one time 14 386 Done
380 Psychological Pricing Pricing goods and services at price points that make the product appear less than t is 14 394 Done
381 Shopping Goods and Services Those products that consumer buys only after comparing  value, quality, price, and style from a variety of sellers 14 378 Done
382 Skimming Price Strategy Strategy in which a new product is priced high to make optimum profit while there’s little competition 14 393 Done
383 Specialty Goods and Services (SGSs) Consumer products with unique characteristics and brand identity. Because these products are perceived as having no reasonable substitute, the consumer puts forth a special effort to purchase them 14 379 Done
384 Target Costing Designing a product so that it satisfies customers and meets the profit margins desired by the firm 14 391 Done
385 Total Fixed Costs All the expenses that remain the same no matter how many products or services are made or sold 14 393 Done
386 Total Product Offer Everything that consumers evaluate when declining whether to buy something; also called a value package 14 375 Done
387 Trademark   14 382 Done
388 Unsought Goods and Services Products or services consumer are unaware of, have nor necessarily thought of buying, or find that they need to solve unexpected problem 14 379 Done
389 Value Good quality at fair price. When consumers calculate the value of  product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs 14 374 Done
390 Variable Costs Costs that change according to the level of production 14 393 Done

CHAPTER 15 – DISTRIBUTING PRODUCT

391 Administered Distribution System A distribution system in which producers manage all of the marketing functions at the retail level. 15 416 Done
392 Agents/Brokers Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but do not take title to the goods 15 409 Done
393 Cash-and-Carry Wholesalers Wholesalers that serve mostly smaller retailers with a limited assortment of products 15 409 Done
394 Channel of Distributors (CoDs) A whole set of marketing intermediaries such as agents, brokers, wholesalers, and retailers, that join together in transport and share goods in their path (or channel) from producers to consumers 15 402 Done
395 Contractual Distribution System A distribution system in which members are bound to cooperate through contractual agreement 15 415 Done
396 Direct Marketing Any activity that directly links manufacturers or intermediaries with the ultimate consumer 15 415 Done
397 Direct Selling Selling to consumers to their homes or where they work called also doo-to-door selling 15 414 Done
398 Drop Shippers Wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer 15 414 Done
399 Electronic Retailing Selling goods and services to ultimate consumers over the internet 15 409 Done
400 Exclusive Distribution Distribution that sends products to only one retail outlet in a given geographic area 15 412 Done
401 Freight Forwarder An organization that puts many small shipments together to create a single large shipment that can be transported cost-effectively to the final destination 15 412 Done
402 Inbound Logistics The area of logistics that involves bringing new materials, packaging, other goods and services, and information from suppliers to producers 15 419 Done
403 Information Utility Adding value to products by opening two-way flow of information between marketing participants 15 418 Done
404 Intensive Distribution Distribution putting products into as many retail outlets as possible 15 408 Done
405 Intermodal Shipping The use of multiple modes of transportation to complete a single long distance movement of freight 15 412 Done
406 Logistics The marketing activity that involves planning, organizing, implementing and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit 15 421 Done
407 Marketing Intermediaries Organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C) 15 418 Done
408 Materials Handling (MH) The movement of goods within a warehouse, from warehouses to the factory floor, and to the factory floor to the various workstation 15 402 Done
409 Merchant Wholesalers (MWSs) Independently owned firms that take title to the goods they handle 15 418 Done
410 Outbound Logistics The area of logistics managing the flow of finished products and information to business buyers and ultimate consumers (people like you and me) 15 409 Done
411 Place Utility Adding value to products by having them where people want them 15 419 Done
412 Possession Utility Doing whatever is necessary to transfer ownership from one party to another , including providing credit, delivery, installation, guarantees, and follow-up service 15 407 Done
413 Rack Jobbers Wholesalers furnishing racks or shelves full of merchandise to retailers, display products, and sell on consignment 15 408 Done
414 Retailers Am organization selling to ultimate customers 15 409 Done
415 Reverse Logistics The area of logistics that involves bringing goods back to manufacturer because of defects or for recycling materials 15 403 Done
416 Selective Distribution Distribution sending products to only a preferred group of retailers in an area 15 419 Done
417 Service Utility Adding value by providing fast, friendly service during and after sale and by teaching customers how best use products over time 15 412 Done
418 Supply Chain (or Value Chain) The sequence of linked activities that must be performed by various organizations to move goods from sources of raw materials to ultimate consumers 15 408 Done
419 Supply-Chain Management The process of managing the movement of raw materials, parts, working progress, finished goods, and related information through all the organizations involved in the supply chain; managing the return of such goods, if necessary; and recycling materials when appropriate 15 416 Done
420 Telemarketing The sale of goods and services by telephone 15 413 Done
421 Time Utility adding value to products by making them available when they are needed 15 407 Done
422 Utility In economics, the want satisfying ability and value, that organizations add to goods or services when the products are made more useful or accessible to consumers than they were before 15 407 Done
423 Wholesaler A marketing intermediary that sells to other organizations 15 403 Done

CHAPTER 16 – USING EFFECTIVE PROMOTION

424 Advertising Paid, no personal communication through various media by organizations and individuals who are in some way identified in the advertising message 16 431 Done
425 Blog An online diary(Web Blog) that look like a web page but it is easier to create and update by posting text, photos, or links to other sites 16 445 Done
426 Infomercial A full length TV program devoted exclusively to promoting goods or services 16 435 Done
427 Integrated Marketing Communication (IMC) A technique combining all promotional tools into one comprehensive and unified promotional strategy 16 430 Done
428 Interactive Promotion Promotion process allowing marketers to go beyond a monologue, where sellers try to persuade buyers to buy things, to a dialogue in which buyers and sellers work together to create mutually beneficial exchange relationships 16 436 Done
429 Personal Selling the face-to-face presentation and promotion of goods and services 16 437 Done
430 Pick Economy Consumers picking out their products from online outlets  or doing online comparison shopping 16 447 Done
431 Podcasting A means of distributing audio and video programs via the Internet that lets users subscribe to a number of files, known as feeds, and then hear or view them at the time they choose 16 445 Done
432 Product Placement Pitting products into TV shows and movies where they will be seen 16 434 Done
433 Promotion Mix The combination of promotional tools  used by a firm 16 430 Done
434 Prospect A person with the means to buy product, the authority to buy, and the willingness to listen to a sales message 16 438 Done
435 Prospecting Researching potential buyers and choosing those most likely to buy 16 438 Done
436 Public Relations (PR) The management function evaluating  public attitudes, changes, policies and procedures in response to public’s requests, and executes a program of action and information to earn public understanding and acceptance 16 441 Done
437 Publicity Any information about an individual product or organization that is distributed to the public through the media and that is not paid for or controlled by the seller 16 441 Done
438 Pull Strategy Promotional strategy in which heavy advertising and sales, promotion efforts are directed towards customers so that they will request the product from the retailers 16 447 Done
439 Push Strategy Promotional strategy in which the producer uses advertising , personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise 16 447 Done
440 Qualifying In the selling process, making sure that people have a need for the product, the authority to buy, and the willingness to listen to a sale message 16 438 Done
441 Sales Promotion The promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities 16 442 Done
442 Sampling A promotional tool in which a company lets consumers have a small sample of a product for no charge 16 444 Done
443 Trial Close A step in the selling process that consists of a question statement that moves the selling process toward the actual close 16 439 Done
444 Viral Marketing The term now used to describe everything from paying customers to say positive things on the internet to setting up multilevel selling schemes whereby consumers’ get commissions for directing friends to specific Web sites 16 445 Done
445 Word-of-Mouth Promotion A promotional tool that involves people telling other people about products  or services they have purchased 16 444 Done

 CHAPTER 17 – UNDERSTANDING ACCOUNTING AND FINANCIAL INFORMATION

446 Accounting The recording, classifying , summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions 17 456 Done
447 Accounting Cycle A six steps procedure that results in the preparation and analysis of the major financial statements 17 462 Done
448 Accounts Payable Current liabilities involving money owed to others for merchandise or services purchased on credit but not yet paid for 17 466 Done
449 Annual Report A yearly statement of the financial conditions, progress and expectations of an organization 17 458 Done
450 Assets Economics resources of value owned by the company that can be turned into cash should the need arise 17 466 Done
451 Auditing The job or reviewing and evaluating the records used to prepare company’s financial statement 17 460 Done
452 Balance Sheet   17 465 Done
453 Bonds Payable Long-term liabilities that represent money lent to the firm that must be paid back 17 467 Done
454 Bookkeeping The recording of business transactions 17 462 Done
455 Cash Flow The difference between cash coming in and cash going out of a business 17 472 Done
456 Certified Internal Auditor (CIA) An accountant who has a bachelor’s degree and two years of experience in internal auditing, and who has passed an exam administered by the Institute of Internals’ Auditors 17 460 Done
457 Certified Management Accountant (CMA) A professional accountant who has met certain educational and experience requirements, passed a qualifying exam in the field, and been certified by the Institute of Certified Management Accountant 17 458 Done
458 Certified Public Accountant (CPA) An accountant who passes a series of examinations established by the American Institute of Certified Public Accountant (AICPA) 17 459 Done
459 Cost of Goods Sold (or Cost of Goods Manufactured) A measure if the cost or merchandise sold or cost of raw materials and supplies used for producing items for resale 17 469 Done
460 Current Assets Items that can and will be converted into cash within a year 17 466 Done
461 Depreciation The systematic write-off of the cost of a tangible asset over its estimated useful life 17 469 Done
462 Double-entry Bookkeeping The concept of writing every business transaction in two places 17 462 Done
463 Financial Accounting Accounting information and analysis prepared for people outside the company or business 17 458 Done
464 Financial Statement A summary of all the transactions that have occurred over a particular period 17 463 Done
465 Fixed Assets Assets that are relatively permanent, such as land, building and equipment 17 466 Done
466 Fundamental Accounting Equation Assets = Liabilities + Owners’ Equity 17 464 Done
467 Government and Not-for-Profit Accounting Accounting system for organizations whose purpose is not generating profit but serving taxpayers, and others according to a duly approved budget 17 461 Done
468 Gross Profit (or Gross Margin) How much a firm earned by buying  or making and selling merchandise 17 469 Done
469 Income Statement The financial statement that show a firm’s profit or loss after costs, expenses, and taxes. It summarizes all of the resources that have come into the firm (revenue), all the resources that have left the firm, and the resulting net income 17 468 Done
470 Independent Audit An evaluation and unbiased opinion about the accuracy of a company’s financial statements 17 460 Done
471 Intangible Assets Long-term assets  – like patents, copyrights, trademarks – that have no real physical form but do add value to a firm or business 17 466 Done
472 Journal The record book or computer program where accounting data are first entered 17 462 Done
473 Ledger A specialized accounting book or computer program in which information from accounting journals is accumulated into specific categories and posted so that managers can find all the information about one account in the same place 17 462 Done
474 Liabilities What the business owes to others (debts) 17 466 Done
475 Liquidity How fast an asset can be converted into cash 17 466 Done
476 Managerial Accounting Accounting used to provide information and analysis to managers within the  organization to assist them in decision making 17 457 Done
477 Net Income or Net Loss Revenue that is left over after all costs and expenses including taxes are paid 17 468 Done
478 Note Payable (NP) Short-term or long-term liabilities that a business promises to repay by a certain date 17 467 Done
479 Operating Expenses Costs involved in operating a business such as rent, utilities, and salaries 17 469 Done
480 Owners’ Equity The amount of business that belongs to the owners minus liabilities owed by the business 17 467 Done
481 Private Accountant An accountant working for  a single firm , government agency, or on profit organization 17 458 Done
482 Public Accountant An accountant who provides his or her accounting services to individuals or businesses on a fee basis 17 459 Done
483 Ratio Analysis The assessment of the financial condition and accounting performance of a firm through calculation and interpretations of financial ratios developed from the firm’s financial statements 17 473 Done
484 Retained Earnings The accumulated earnings from a firm’s profitable operations that were kept in the business and not paid out to stockholders in dividends 17 467 Done
485 Statement of Cash Flow Financial statement reporting cash receipts and disbursement related to a firm’s three major activities – operations, investment, and financing 17 471 Done
486 Tax Accountant An accountant trained in tax law and responsible for preparing tax returns or developing ta strategies 17 461 Done
487 Trial Balance a summary of all the data in the account ledgers to show wither the figures are correct and balanced 17 462 Done

CHAPTER 18 – FINANCIAL MANAGEMENT

488 Budget A financial plan that sets forth management’s expectations and, on the basis of those expectations, allocates the sue of specific resources throughout the firm 18 490 Done
489 Capital Budget A budget that highlights a firm’s spending plans for major asset purchases that often require large sums of money 18 490 Done
490 Capital Expenditures Major investments in either tangible long-terms assets such as land, buildings, and equipment to intangible assets such as patents, trademarks, and copyrights 18 495 Done
491 Cash Budget A budget that estimates a firm’s projected cash inflows and outflows that the firms can use to plan for any ash shortages or surpluses during a given period 18 490 Done
492 Cash Forecast Forecast that predicts the cash inflows and outflows in future periods, usually months or quarters 18 489 Done
493 Commercial Finance Company (CFC) Organization that make short-term loans to borrowers who offer tangible assets as collateral 18 499 Done
494 Commercial Paper Unsecured promissory notes of $100,000 and up that mature (come due) in 270 days or less 18 500 Done
495 Cost of Capital The rate of return a company must ear in order to meet the demands of its lenders and expectations of its equity holders 18 505 Done
496 Debt Financing Funds raised through various forms of borrowing that must be repaid 18 495 Done
497 Equity Financing Money raised from within the firm, or from operations through the sale of ownership in the firm (stock) 18 495 Done
498 Factoring The process of selling accounts receivable for cash 18 499 Done
499 Finance The function in a business that acquires funds for the firm and manages these funds within the firm 18 486 Done
500 Financial Control A process in which a firm periodically compares its actual revenues costs, and expenses with its projected ones 18 491 Done
501 Financial Management The job of managing a firm’s resources so it can meet its goals and objectives 18 486 Done
502 Financial Managers Managers who make recommendations to top executives regarding strategies for improving the financial strength of a firm 18 486 Done
503 Indenture Terms The terms of agreement in a bond issue 18 503 Done
504 Leverage Raising needed funds through borrowing to increase a firm’s rate of returns 18 505 Done
505 Line of Credit A given amount of unsecured short-term funds a bank will lend to a business provided the funds are readily available 18 498 Done
506 Long-term Financing Funds needed for more than a year and, usually from 2 to 10 years 18 496 Done
507 Long-term Forecast Forecast predicting revenues, costs, and expenses for a period longer than 1 year and sometimes as far as 5 to 10 years into the future 18 490 Done
508 Operating (or Master) Budget The budget that ties together all of a firm’s other budgets; it is the projection of dollar allocations to various costs and expenses needed to run or operate the business, given projected revenues 18 490 Done
509 Promissory Note A written contract with a promise to pay a supplier a specific sum of money at a definite time 18 497 Done
510 Revolving Credit Agreement A line of credit that is guaranteed but usually comes with a fee 18 498 Done
511 Risk/Return Trade Off The principle stating that the greater the risk the lender takes in making a loan, the higher the interest rate required 18 502 Done
512 Secured Bond A bond issued with some form of collateral 18 503 Done
513 Secured Loan A loan backed by something valuable, for example, property or land or 18 498 Done
514 Short-term Financing Funds needed for a year or less 18 496 Done
515 Short-term Forecast Forecast that predicts revenue, costs, and expenses for a period of one year or less 18 489 Done
516 Term-loan Agreement a promissory note that requires the borrower to repay the loan in specific installments 18 502 Done
517 Trade Credit The practice of buying goods or services now and paying them later 18 496 Done
518 Unsecured Bond A bond only backed by the reputation of the issuer; also called a debenture bond 18 503 Done
519 Unsecured Loan A loan that has not been backed by any specific asset 18 498 Done
520 Venture Capital Money that is invested in new or emerging companies that are perceived as having great profit potential 18 506 Done

CHAPTER 19 – USING SECURITIESMARKET FOR FINANCING AND INVESTMENT OPPORTUNITIES

521 Bond a corporate certificate indicating that a person has lent money to a firm 19 521 Done
522 Buying Stock on Margin Purchasing stokes by borrowing some of the purchase cost from the brokerage firm 19 527 Done
523 Capital Gains The positive difference between the purchase price of a stock and the sale of those stock 19 527 Done
524 Common Stock The most basic form of ownership is a firm; it confers voting rights and the right to share in the firm’s profit through dividends, if offered by the company or firm’s board of directors 19 520 Done
525 Debenture Bonds Bods that are unsecured (for example, not backed by any collateral such as equipment) 19 523 Done
526 Diversification Buying several different investment alternatives to spread the risk of investing 19 525 Done
527 Dividends Part of a firm’s profit that the firm may distribute to stockholders as either cash payments or additional shares of stocks 19 519 Done
528 Dow Jones Industrial Average (The Dow) The average cost of 30 selected industrial stocks , used to give an indication of the direction (up or down) of the stock market over time 19 534 Done
529 Exchange-Traded Funds (ETFs) Collections of stocks that are traded on exchange but are traded more like individual stocks than like mutual funds 19 531 Done
530 Initial Public Offerings (IPOs) The first public offering of a corporation’s stock 19 514 Done
531 Institutional Investors Large organizations – such as pension funds, mutual bonds, and insurance companies – that invest their own  funds or the funds of others 19 515 Done
532 Interest The payment the issuer of the bond makes to the bondholders for use of the borrowed money 19 521 Done
533 Investment Bankers Specialists in finance and investment assisting in the issue and sale of new securities 19 515 Done
534 Junk Bonds High-risk, high-interest bonds 19 529 Done
535 Maturity Date The exact date the issuer of a bond must pay the principal to the bondholder 19 521 Done
536 Mutual Funds An organization buying stocks and bonds and then sell shares in those securities to people 19 530 Done
537 NASDAQ A nationwide electronic system that communicates over-the-counter trades to brokers 19 516 Done
538 Over-the-Counter Market (OTC) Exchange that provides a mean to trade stocks not listed on the national exchanges 19 515 Done
539 Preferred Stock Stock that gives to its owners preference in the payment of dividends and an earlier claim on assets than common stakeholders if the company is forced out of business and is assets are sold 19 520 Done
540 Program Trading Giving instructions to computers  to automatically sell if the price of a stock dips to a certain point to avoid potential loss 19 535 Done
541 Prospectus A condensed version of economic and financial information that a company must file with the SEC before issuing stock; the prospectus must be sent to prospective investors 19 517 Done
542 Securities and Exchange Commission (SEC) Federal Agency responsible with the regulation for regulating various exchanges 19 516 Done
543 Sinking Fund A reserve account in which the issuer of a bond periodically retires some part of the bond principal prior to maturity so that enough capital will be accumulated by the maturity date to pay off the bond 19 523 Done
544 Stock Broker A registered representative working as a market intermediary to buy and sell securities for clients 19 524 Done
545 Stock Certificate Evidence of stock ownership specifying the name of a company, the number of shares it represents, and the type of stock being issued 19 519 Done
546 Stock Exchange An organization whose members buy and sell (exchange) securities for companies and investors 19 515 Done
547 Stock Splits An action by a company that gives stockholders two or more shares of stock for each one they own 19 527 Done
548 Stocks Shares of ownership in a company 19 519 Done

CHAPTER 20 – MONEY, FINANCIAL INSTITUTIONS AND THE FEDERAL RESERVE

549 Banker’s Acceptance a promise that the bank will pay some specified amount at a particular time 20 563 Done
550 Barter The direct trading of goods or services for other goods or services 20 547 Done
551 Certificate of Deposit (CD) A time deposit (savings) account that ears interests to be delivered at the end of the certificate’s maturity date or time 20 555 Done
552 Commercial Bank (CB) A profit selling organization that receives deposits from individuals and corporations in the form of checking and savings accounts and then uses some of these funds to make loans 20 554 Done
553 Credit Unions Nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members 20 556 Done
554 Debit Card An electronic funds transfer tool that serves the same function as checks; it withdraws funds from a checking account 20 561 Done
555 Demand Deposit The technical name for a checking account; the money in a demand deposit can be withdrawn anytime on demand by the depositor 20 555 Done
556 Discount Rate The interest rate that the Fed charges for loans to member banks 20 551 Done
557 Electronic Fund Transfer System (EFT) A computerized system that electronically performs financial transactions such as making purchases, paying bills, and receiving paychecks 20 561 Done
558 Federal Deposit Insurance Corporation (FDIC) An independent agency of the U.S. government that insures bank deposits 20 559 Done
559 International Monetary Fund (IMF) Organization assisting  the smooth flow of money among nations 20 564 Done
560 Letter of Credit (LCs) A promise by the bank to pay one seller a given amount if certain conditions are met 20 563 Done
561 M-1 Money that can be accepted quickly and easily (coins and bank notes, checks, transfer’s checks, etc.) 20 548 Done
562 M-2 Money included in M-1 plus money that may take a little more time to obtain- like saving accounts, money market accounts, mutual funds, certificates of deposit, etc.) 20 548 Done
563 M-3 M-2 plus big deposits like institutional money market funds 20 548 Done
564 Money Anything people generally accept as payment for goods and services 20 546 Done
565 Money Supply The amount of money the Federal reserve Bank makes available for people to buy goods and services 20 548 Done
566 Nonbanks Financial organizations that accept no deposit but offer many of the services provide by regular banks pension funds, insurance-companies, commercial finance companies, consumer finance companies, and brokerage houses) 20 557 Done
567 Open-Market Operations The buying and selling of US government bonds by the Fed with the goal of regulating the money supply 20 551 Done
568 Pensions Fund Amounts of money put aside by corporations, nonprofit organizations or union to cover part of the financial needs of members when they retire 20 558 Done
569 Reserve Requirement A percentage of commercial banks’ checking and saving accounts that must be physically kept in the bank 20 550 Done
570 Saving and Loan Association (S&L) A financial institution that accepts both savings and checking deposits and provides home mortgage loans 20 556 Done
571 Saving Association Insurance Fund (SAIF) The part of the FDIC that insures holders of accounts in savings and loan associations 20 560 Done
572 Smart Card An electronic fund transfer tool that is a combination of credit card, debit card, phone card, driver’s license card, and more 20 562 Done
573 Time Deposit The technical name for a saving account; the bank can require prior notice before the owner withdraws money from time deposit 20 555 Done
574 World Bank The bank primarily responsible for financing economic development and is also known as the International Bank for Reconstruction and Development 20 563 Done

APPENDIX 1 – EXTRA TERMINOLOGY FOR BUSINESS INTRODUCTION

575 Cooperative A business owned and controlled by the people who use it – producers, consumers, or workers with similar needs who pool their resources for mutual grain 6 157 Done
576 Administrative Agency Federal or state institution and other government organization created by the Congress or State legislatures with delegated power to pass rules and regulations within their mandated area of authority A 3 Done
577 Bankruptcy the legal process by which a person, a business, or a government entity unable to meet financial obligations is relieved of those obligations by a court that divides any assets among creditors, allowing creditors to get at least part of their money and freeing the debtor to begin anew A 14 Done
578 Breach of Contract (BOC) When one party fails to follow the terms of a contract A 10 Done
579 Business Law Rules, statues, codes, and regulations that are established to provide  legal framework within which business may be conducted and that are enforceable by court action A 2 Done
580 Common Law The body of laws that comes from decisions handed down by judges; also referred to as an unwritten law A 3 Done
581 Consideration Something of value; consideration is one the requirement of a legal contract A 9 Done
582 Consumerism A social movement that seeks to increase and strengthen the rights and powers of buyers in relations to sellers A 12 Done
583 Contract A legally enforceable agreement between two or more parties A 9 Done
584 Contract Law Set of laws that specifies what constitutes a legally enforceable agreement A 9 Done
585 Copyright A document that protects a creator’s rights to materials such as books, articles, photos, and cartoons A 7 Done
586 Damages The monetary settlement awarded to a person who is injured by a breach of contract A 10 Done
587 Express Warranties Specific representation by the seller that buyers rely on regarding the goods they purchase A 8 Done
588 Implied Warranties Guarantees legally imposed on the seller A 8 Done
589 Involuntary bankruptcy Bankruptcy procedures filed by a creditor against a debtor A 19 Done
590 Judiciary The branch of government chosen to oversee the legal system through the court system A 2 Done
591 Negligence In tort law, behavior that causes unintentional harm, injury or loss A 4 Done
592 Negotiable Instruments Form of commercial paper(such as checks) that are transferable among businesses and individuals and represent a promise to pay a specified amount A 8 Done
593 Patent A document that gives inventors exclusive rights to their invention for 20 years A 6 Done
594 Precedent Decisions judges have made an earlier case that guide the handling of new cases A 3 Done
595 Product Liability Part of tort law holding businesses liable for harm resulting from the production, design, sale, or use of products they market A 4 Done
596 Statutory Law State and federal constitutions, legislative enactments, treaties of the federal government, and ordinances – in short written law A 3 Done
597 Strict Product Liability Legal responsibility for harm or injury caused by a product regardless of fault A 5 Done
598 Taxes How the government at all level raise money A 13 Done
599 Tort A wrongful act that causes injury to another person’s body, body or reputation A 4 Done
600 Uniform Commercial Code (UCC) A comprehensive commercial law adopted every state in the USA, that covers sales laws and any other commercial law A 8 Done
601 Voluntary Bankruptcy Legal procedures initiated by a debtor A 15 Done
602 Broadband Technology (BBT) Technology that offers users a continuous connection to the Internet and allows them to send and receive mammoth files that include voices, videos and date much faster than ever before B 10 Done
603 Business Intelligence (BI) Any of the variety of software applications that analyzes an organization’s raw data and take out useful insights from it B 3 Done
604 Cloud Computing (CCP) A form of virtualization in which a company’s data and applications are stored at offsite data centers that are accessed over the Internet (cloud) B 13 Done
605 Cookies Pieces of information, such as registration data or user preferences, sent by a Web site over the Internet to a Web browser that the browser software is expected to save and send back to the server whenever the user returns to the Web site B 10 Done
606 Data Processing (DP) Name for business technology in the 1970s; included technology that supported an existing business and was primarily used to improve the flow of financial information B 2 Done
607 Extranet A semiprivate network that uses Internet technology and allows more than one company to access the same information or allows people on different servers to collaborate B 9 Done
608 Information System (IS) Technology that helps companies do business; includes such tools as automated teller machines (ATMs) and voice mail B 2 Done
609 Information Technology (IT) Technology that helps companies change business by allowing them to use new methods B 2 Done
610 Internet2 The private internet system that links government supercomputers centers and a select group of universities; it runs more than 12000 times faster than today’s public infrastructure and supports heavy-duty applications B 10 Done
611 Intranet A companywide network, closed to public access, that uses internet type technology B 9 Done
612 Network Computer System (NCS) (or client/server computing) Computer System that allows personal computers (clients) to obtain needed information from large databases in a central computer (the server) B 12 Done
613 Public Domain Software (or freeware) Software that is free for the taking B 14 Done
614 Shareware Software that is copyrighted but distributed to potential customers free of charge B 14 Done
615 Virtual Private Network (VPN) A private data network that creates secure connections or tunnels over regular internet lines B 9 Done
616 Virtualization A process that allows networked computers to run multiple operating system and programs through one central computer at the same time B 13 Done
617 Virus A piece of programming code inserted in to other programing to cause some unexpected and, for the victim, usually undesired results or events B 16 Done
618 WEB 2.0 The set of tools that allow people to build social and business connections, share information, and collaborate on projects online (information blogs, wikis, social networking sites and other online communities and virtual worlds) B 11 Done
619 Claim a statement of loss that the insured sends to the insurance company to request payment C 6 Done
620 Health Maintenance Organizations (HMOs) Health care organizations that require members to choose from a restricted list of doctors C 7 Done
621 Health Savings Account (HSAs) Tax-deferred savings accounts linked to low cost, high deductible health insurance policies C 9 Done
622 Insurable Interest The possibility of the policy holder to suffer a loss C 5 Done
623 Insurable Risk A risk that the typical insurance company is willing to cover C 5 Done
624 Insurance Policy A written contract between the insured and an insurance company that promises to pay for all or part of a loss C 6 Done
625 Law of Large Numbers Principle that if a large number of people are exposed to the same risk, predictable number of losses will occur during a given period of time C 6 Done
626 Mutual Insurance Company (MIC) A type of insurance company owned by its policy holders C 7 Done
627 Preferred Provider Organization (PPOs) Health Care organizations similar to HMOs except they allow members to choose their own physicians C 9 Done
628 Premium The fee charged by an insurance company for an insurance policy C 6 Done
629 Pure Risk The threat of loss with no chance for profit C 3 Done
630 Rule of Indemnity Rule saying that an insured person or organization cannot collect more than the actual loss from an insured risk C 6 Done
631 Self-Insurance The practice of getting aside money to cover routine claims and buying only “catastrophe” policies to cover big losses C 4 Done
632 Speculative Risk A chance of profit or loss C 2 Done
633 Stock Insurance Company A type of insurance owned by stockholders C 7 Done
634 Uninsurable Risk A risk no insurance company will cover C 5 Done
635 401(k) Plan A saving plan that allows you to deposit pretax dollars and whose earnings compound tax free until withdrawals, when the money is used as ordinary income tax rates D 14 Done
636 Annuity a contract to make regular payments to a person for life or for a fixed period D 10 Done
637 Disability Insurance Insurance that pays part of the cost of a long term sickness or an accident D 11 Done
638 Executor A person who assembles and values your estate, files income and other taxes, and distributes assets D 15 Done
639 Individual Retirement Accounts (IRAs) A tax-deferred investment plan that enables you (and your spouse, if you are married) to save pert of your income for retirement; a traditional IRA allows people who qualify to deduct from their reported income the money they put into an account D 12 Done
640 Roth IRA An IRA where you do not get upfront deductions or your takes as yu would with a traditional IRA, but the earnings grow tax-free and are also tax-free when they are withdrawn D 13 Done
641 Social Security The term use to describe the Old Age , Survivors and Disability Insurance Program established by the Social Security Act of 1935 D 12 Done
642 Tax Deferred Contributions Retirement account deposits for which you pay no current taxes, but the earning gained are taxed as regular income when they are withdrawn at retirement D 12 Done
643 Term Insurance Pure insurance protection for a given number of years D 10 Done
644 Umbrella Policy A broadly based insurance policy that saves you money because you buy all your insurance from one company D 11 Done
645 Variable Life Insurance Whole life insurance that invests the cash value of the policy in stocks or other high-yielding securities D 10 Done
646 Whole Life Insurance Life insurance that stays in effect until age 100 D 10 Done
647 Will A document that names the guardian for your children, sates how you want your assets distributed, and names the executor for your estate D 15 Done
648 Ballyhooed Talked about in an exaggerated way G 1 Done
649 Bear Market Situation where the stock market is declining in value and investors feel it will continue to decline G 1 Done
650 Been there, done that Prior experience G 1 Done
651 Bottom Line The last line in a profit and loss statement; it refers to net profit or loss G 1 Done
652 Brightest Days The best of time for a person or an organization G 1 Done
653 Bull Market Situation where the stock market is increasing and investors feel it will continue to grow G 1 Done
654 Cannibalize a Business One franchise pulls business away from another franchise G 2 Done
655 Center Stage A very important position G 2 Done
656 Climbed the ladder Promoted to higher position G 3 Done
657 Cooking the books Making accounting information look better than it actually is to outside observers and users of financial information of a company G 4 Done
658 Counting on it Expecting it G 5 Done
659 Economic Pie The money available in the economy G 6 Done
660 E-mail snooped When someone other than the addressee read e-mail messages G 6 Done
661 Free-for-all Atmosphere A situation where all order seems to be lost in conducting business G 8 Done
662 From Scratch From the beginning G 8 Done
663 Get in on the dough Take the opportunity to make some money G 8 Done
664 Go for the gold To work to be the very best (figuratively winning a gold medal) G 8 Done
665 Go out with me Go with me to dinner or to a movie or to other entertainment or support my business G 8 Done
666 Gone off the deep end Doing something risky, almost crazy – like jumping into the deep end of a swimming pool (when you can’t swim) G 8 Done
667 Goofing off Doing things at work not associated with the job, such as talking with others at the coffee G 8 Done
668 Hand over the keys Give access to others G 9 Done
669 Hard Copy Copy printed on paper G 9 Done
670 Heart The most important part of something; the central force or idea G 9 Done
671 Hot Second Immediately G 9 Done
672 If it is not broken do not fix it Do not risk making things worse by changing things that do not need to be changed G 9 Done
673 IOUs Debt; abbreviation for “I owe you” G 11 Done
674 Jumped head first Began quickly and eagerly without hesitation or proper consideration G 11 Done
675 Key Player Important participant G 11 Done
676 Kick back and Relax To take a rest G 11 Done
677 Know How A level of specific expertise G 11 Done
678 Latchkey Kids School-age children who come home to empty houses since all of the adults are at work G 11 Done
679 Level Playing Field Treating everyone equally G 11 Done
680 Ma Bell Telecommunication giant like AT&T G 12 Done
681 Marriage of software, hardware, etc. Combination of various technologies G 13 Done
682 Measuring Stick Tool used to evaluate or compare something G 13 Done
683 Mickey D’s Nickname for Mc Donald’s G 13 Done
684 Mine the knowledge Make maximum use of the knowledge the employees have G 13 Done
685 More than meets the eye More than one can see with his or her own eyes; much is happening that cannot be totally seen G 14 Done
686 Mouse-click Away Ease of doing something by using the computer and/or the internet G 14 Done
687 Muddy the water Making things even more difficulty than they currently are G 14 Done
688 Other side of the tracks The rea where people with less money live G 15 Done
689 Out of the office loop Out of the line of communication that occurs in the workplace G 15 Done
690 Pave the way Process of making a task easier G 15 Done
691 Peanut butter and Jelly Popular combination for sandwich; the two are seen as perfect complementary products G 15 Done
692 Perks Short for perquisites; compensation in addition to salary, such as a day care or a company car G 15 Done
693 Piece of the Action A share in the opportunity G 16 Done
694 Pink Slip A notice that you have lost your job G 16 Done
695 Pitch In To help as needed G 16 Done
696 Poster Child Best example G 16 Done
697 Pros and Cons Argument for and against something G 17 Done
698 Pump up the profits Making profits in a company appear larger than they actually are under recognized accounting rules G 17 Done
699 Quid pro quo Latin phrase meaning something given in return for something else G 18 Done
700 Quite a stir Something that causes a feeling of concern G 18 Done
701 Rules-of-the-road Orientation Introduction to the proper procedures within an organization G 18 Done
702 Sea of Information Lots of information, often too much to process G 19 Done
703 Shaky Ground Idea that possible problems may be ahead G 19 Done
704 Sherlock Holmes A famous detective who was particularly adept at uncovering information to solve difficult mysteries G 19 Done
705 Shoestring Budget A budget that implies the company is short on funds and only includes a minimal amount of financial expenditures (i.e., it is so thin as a shoestring) G 19 Done
706 Sift through mountains of information Sort through large amount of information G 19 Done
707 Sin Taxes Taxes used to discourage the use of certain goods like liquor and cigarettes G 19 Done
708 Smoking Gun An issue or other disclosure that could prove a person or an organization has done something wrong G 20 Done
709 Squeezing Franchisees’ Profits Tightening or reducing profits G 20 Done
710 State-of-art The most modern type available G 20 Done
711 Staying Afloat Staying in business during tough times G 20 Done
712 Telecom Short for telecommunications G 21 Done
713 Telephone Tag To leave a telephone message when you attempt to return a message left to you G 21 Done
714 Thorny Issue A issue that can cause pain or difficulty G 21 Done
715 Through grapevine Informal information communication; stories told by one person to the next but not confirmed by real facts G 22 Done
716 Time in the Trenches Working with the other employees and experiencing what they contend with as opposed to managing from an office and relying solely on reports about what is happening in the workplace G 22 Done
717 To take a break To slow done and do something besides work G 22 Done
718 Trigger Happy Term that refers to people reacting too fast to the circumstances facing them in a difficult situation G 22 Done
719 Turn a blind eye Ignoring something of importance G 22 Done
720 Turn the work off Stop working G 22 Done
721 Walk out of the door Leave the company and quit your job G 23 Done
722 Watching over your shoulder looking at everything you do G 23 Done
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