Glossary

get feedback from all directions—from supervisors, reporting subordinates, coworkers, and even customers

measure, summarize, and communicate financial and managerial information and advise other managers on financial matters

process of collecting, recording, classifying, summarizing, reporting, and analyzing financial activities

process of generating financial statements, beginning with a business transaction and ending with the preparation of the report

Amounts the firm owes for credit purchases due within a year

Amounts owed to the firm by customers who bought goods or services on credit

Expenses, typically for wages and taxes, that have accumulated and must be paid at a specified future date within the year although the firm has not received a bill

used to measure the firm’s ability to pay its current liabilities without selling inventory

reflect the speed with which resources are converted to cash or sales

one that’s pegged to the increase or decrease of certain interest rates that your lender has to pay

bodies created by legislative act to carry out specific duties

paid, nonpersonal communication designed to create an awareness of a product or company

a marketing consulting firm that develops and executes promotional campaigns for clients

legal relationship between two parties in which one party acts on behalf of, and under the control of, another

programs and benefits designed to help employees meet family and home obligations while maintaining busy careers

a yearly document that describes a firm’s financial status.

prohibited conduct, asserting its objections to the behavior, and detailing penalties for violating the policy

performs particular tasks, including word processing, creating and managing spreadsheets, designing graphical presentations, and producing high-quality printed documents (desktop publishing)

An opportunity for managers and employees to discuss an employee’s performance and to set future goals and performance expectations

the third party studies the situation and arrives at a binding agreement

is the science of developing computer systems that can mimic human behavior

financial statement review

the power to make the necessary decisions

tend to make decisions without soliciting input from subordinates

Born between 1946-1964

summarizes a firm’s financial position at a specific point in time

Dividing consumers by such variables as attitude toward the product, user status, or usage rate

compare their performance on a number of dimensions with the performance of other companies that excel in particular areas

compensation other than salaries, hourly wages, or financial incentives

annual income given in addition to salary—are based on company-wide performance

the system used to record a firm’s financial transactions, is a routine, clerical process

union workers refuse to buy a company’s products and try to get other people to follow suit

some word, letter, sound, or symbol that would differentiate their product from similar products on the market

any added value generated by favorable consumer experiences

When you have a positive experience with a product—say, a laptop or a printer—you come away with a positive opinion of the entire product line and will probably buy more products

a promise made under the contract hasn’t been kept or an act hasn’t been performed

(have no profit or loss), total sales revenue must exactly equal all your expenses (both variable and fixed)

software, such as Microsoft’s Internet Explorer and Netscape Navigator, that locates and displays Web pages—opened up the Internet to a vast range of users

a document that itemizes the sources of his income and expenditures for the coming year, along with the relevant money amounts for each

the government spends more than it takes in

in any given year, the government takes in more money (through taxes) than it spends on goods and services (for things such as defense, transportation, and social services)

tracks total non-farm payroll employment from which the number of net new jobs created can be determined

The economic ups and downs resulting from expansion and contraction

is the application of ethical behavior in a business context

a document that identifies the goals of your proposed business and explains how these goals will be achieved

the maximum number of goods that it can produce over a given time under normal working conditions

The economic system in which most businesses are owned and operated by individuals

law resulting from judicial interpretations of statutory and other forms of law

the speed with which they can be converted to cash

which shows where your money has come from and where it’s slated to go

small teams of workers handle all aspects of building a component, a “family” of components, or even a finished product

most decision making is concentrated at the top

Whereas some private accountants hold the CPA designation, managerial accountants also have a professional certification program including passing an exam

an accountant must complete an approved bachelor’s degree program and pass a test prepared by the American Institute of CPAs (AICPA)

the authority relationships among people working at different levels of the organization

who oversees information and telecommunications systems

who reports to the CIO and oversees IT planning and implementation

principle that the public is best served through collective action.

law governing disputes between private parties (again, individuals or organizations)

which include a number of client machines (the ones used by employees for data input and retrieval) and a server (which stores the database and the programs used to process the data)

means performing computer tasks using services provided over the Internet

a document describing the principles and guidelines that all employees must follow in the course of all job-related activities

The process of settling differences and establishing mutually agreeable conditions under which employees will work

getting paid for quantity of sales

are monetary awards intended to meet the primary goal of legal action in tort cases

companies adopt policies that acknowledge the wishes of the public

the effect of earning interest on your interest

Rather than work eight hours a day for five days a week, you might elect to earn a three-day weekend by working ten hours a day for four days a week

software package to design not only the engine but also the board itself and many of its components

software system determines the steps needed to produce the component and instructs the machines that do the work

systems have taken the integration of computer-aided design and manufacturing to a higher level—and are in fact revolutionizing the production process.

the ability to reason abstractly and analyze complex situations

the decision process that individuals go through when purchasing or using products

buyers who want the product for personal use

measures the rate of inflation by determining price changes of a hypothetical basket of goods, such as food, housing, clothing, medical care, appliances, automobiles, and so forth, bought by a typical household

managers identify those aspects of the business that are most likely to be adversely affected by change

hired to supplement a company’s permanent workforce. Most of them are independent contractors, consultants, or freelancers who are paid by the firms that hire them

the commitment to making constant improvements in the design, production, and delivery of goods and services

an exchange of promises or an exchange of a promise for an act, and because it involves an exchange, it obviously involves at least two parties

process of comparing actual to planned performance and taking necessary corrective action

What principles should guide our actions as we build and operate the business

presents a model of corporate responsibility based on a company’s relationships with its stakeholders

deals with actions that affect a variety of parties in a company’s environment

total expense of buying or producing the firm’s goods or services

how much it costs to make a product and then set a price by adding a profit to the cost

a document accompanying your résumé that explains why you’re sending your résumé and highlights your qualifications

violations of statutes for which the law imposes punishment)

prohibits and punishes wrongful conduct, such as assault and battery, murder, robbery, extortion, and fraud

ways of doing things that evolve through shared values and beliefs

Liabilities due within a year of the date of the balance sheet

ratio of total current assets to total current liabilities

structure because it enables them to better serve their various categories of customers. Thus, Johnson & Johnson’s two hundred or so operating companies are grouped into three customer-based business segments: consumer business (personal-care and hygiene products sold to the general public), pharmaceuticals (prescription drugs sold to pharmacists), and professional business (medical devices and diagnostics products used by physicians, optometrists, hospitals, laboratories, and clinics)

determine value by considering the three factors that many marketers call the customer value triad: quality, service, and price

a marketing strategy that focuses on using information about current customers to nurture and maintain strong relationships with them

which transmit digital data (numeric data, text, graphics, photos, video, and voice) from one computer to another using a variety of wired and wireless communication channels

the process of searching and analyzing large amounts of data to reveal patterns and trends that can be used to predict future behavior

a centralized database in which data from several databases are consolidated and organized so that they can be easily analyzed

electronic collections of related data that can be accessed by various members of the organization

which pulls money out of your checking account whenever you use the card to buy something or get cash from an ATM

measure the degree and effect of the firm’s use of borrowed funds (debt) to finance its operations

measures the relationship between the amount of debt financing (borrowing) and the amount of equity financing (owners’ funds)

which spreads decision making throughout the organization

is an interactive system that collects, displays, and integrates data from multiple sources to help managers make nonroutine decisions

process in which you must define a problem, analyze possible solutions, and select the best outcome

the party charged in the complaint—may be an individual (such as your roommate) or an organization (such as a business)

They reject allegations of wrongdoing and refuse to take responsibility, arguing that fixing the problem or addressing the issue isn’t their job

provides a set amount of money each month to retirees based on the number of years they worked and the income they earned

The employee contributes money each pay period to his or her retirement account, and the employer matches a portion of the contribution

When the price level goes down (which rarely happens)

the process of entrusting work to subordinates

is the quantity of a product that buyers are willing to purchase at various prices

how much people are willing to pay

generally seek input from subordinates while retaining the authority to make the final decisions

divides the market into groups based on such variables as age, marital status, gender, ethnic background, income, occupation, and education

grouping specialized jobs into meaningful units

allocation of the asset’s original cost to the years in which it is expected to produce revenues

a recession lasts a long time (perhaps a decade or so), while unemployment remains very high and production is severely curtailed

products that differ somewhat, or are perceived to differ, even though they serve a similar purpose

providing focus and direction to others and motivating them to achieve organizational goals

pays an income to an insured person when he or she is unable to work for an extended period

occurs when a person is treated unfairly on the basis of a characteristic unrelated to ability

products held temporarily while they’re en route to their final destinations

made up of several smaller, self-contained units, or divisions, which are accountable for their own performance

To keep the accounting equation in balance, every transaction must be recorded as two entries.

cutting costs by eliminating jobs

refers simply to the basic obligation that one person owes another—the duty not to cause harm or an unreasonable risk of harm

conducting business over the Internet

ratio of net profit to the number of shares of common stock outstanding

is a statistic that provides valuable information about the economy

The means by which a society (households, businesses, and government) makes decisions about allocating resources to produce products and about distributing those products

is the study of the production, distribution, and consumption of goods and services

process transactions and transmit purchasing documents directly from one IS to another

which means that both you and your employer have the right to terminate the employment relationship at any time

someone who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it

those who take the risks and reap the rewards associated with starting a new business enterprise

enforces a number of federal employment laws

The point at which the two curves intersect

which focuses on our perceptions of how fairly we’re treated relative to others

to know right from wrong and to know when you’re practicing one instead of the other

right-versus-wrong” decision—one in which there is a right (ethical) choice and a wrong (unethical or illegal) choice

is a morally problematic situation: You have to pick between two or more acceptable but often opposing alternatives that are important to different groups

When you make a decision that’s unmistakably unethical or illegal

that rate employee performance according to the predetermined criteria

which provides ready access to strategic information that’s customized to their needs and presented in a convenient format

is a one- to three-page overview of the business plan

which proposes that employees will work hard to earn rewards that they value and that they consider obtainable

When the actual amount of an expenditure is more than he had budgeted for, he records it as an “unfavorable” variance

costs of generating revenues.

are programs that mimic the judgment of experts by following sets of rules that experts would follow

is created when a seller affirms that a product meets certain standards of quality, description, performance, or condition

forces over which marketers have much less control

costs that don’t show up as part of the market price for a product

is an intranet that’s partially available to certain parties outside the organization

A business uses resources to produce things, we also call these resources factors of production

the price he could get by selling them at present, not the price he paid for them or the price that he could get at some future time

a serious or “inherently evil” crime punishable by imprisonment

They’re responsible for safeguarding the company’s assets and handling its funds in a trustworthy manner

involves planning for, obtaining, and managing a company’s funds

prepare financial statements to help users, both inside and outside the organization, assess the financial strength of the company

focuses on preparing external financial reports that are used by outsiders; that is, people who have an interest in the business but are not part of the company’s management

is a private organization that is responsible for establishing financial accounting standards used in the United States

To ensure accuracy and consistency in the way financial information is reported, accountants in the United States follow

The ongoing process of managing your personal finances in order to meet goals that you’ve set for yourself or your family.

states the relationship between financial data on a percentage basis

sales, payments, purchases,

Internet technologies that is controlled by this software program

supervise employees and coordinate their activities to make sure that the work performed throughout the company is consistent with the plans of both top and middle management

relies on the government’s powers of spending and taxation. Both taxation and government spending can be used to reduce or increase the total supply of money in the economy

long-term assets used by the firm for more than a year

the total cost doesn’t change as the quantity of goods sold changes

product stays in one place and the workers (and equipment) go to the product

one on which the interest rate remains the same regardless of changes in market interest rates—than with an ARM

which makes it possible to change equipment setups by reprogramming computer-controlled machines that can be adapted to produce a variety of goods. Such flexibility is particularly valuable to makers of customized products

computer-controlled equipment can easily be adapted to produce a variety of goods

allows a specified amount of pretax dollars to be used to pay for qualified expenses, including health care and child care

set guidelines that allow employees to designate starting and ending times

The value to consumers from changing the composition of a product

the buyer—you

the company that sells the franchise

The economic system in which most businesses are owned and operated by individuals

everyone who wants to work has a job

groups together people who have comparable skills and perform similar tasks

named after the designer, Henry Gantt, is an easy-to-use graphical tool that helps operations managers determine the status of projects

salaries of top managers and office support staff; utilities; office supplies; interest expense; fees for accounting, consulting, and legal services; insurance; and rent

To ensure accuracy and consistency in the way financial information is reported

To ensure accuracy and consistency in the way financial information is reported, accountants in the United States follow GAAP

born between the mid-1960s and the early-1980s

Born between 1976 and 2001

a company makes a product and sells it to a retailer who in turn resells it under its own name

dividing a market according to such variables as climate, region, and population density (urban, suburban, small-town, or rural

enables companies that operate in several locations to be responsive to customers at a local level

are major accomplishments that the company wants to achieve over a long period (say, five years)

your local car dealership sells goods (cars) and also provides services (automobile repairs)

includes all businesses that produce tangible goods

the third party studies the situation and arrives at a binding agreement

the market value of all goods and services produced by the economy in a given year

The amount a company earns after paying to produce or buy its products but before deducting operating expenses

the total dollar amount of a company’s sales

that we are motivated by the five unmet needs, arranged in the hierarchical order

which consists of all actions that an organization takes to attract, develop, and retain quality employees

Those factors that are not strong contributors to satisfaction but that must be present to meet a worker’s expectations and prevent job dissatisfaction

warranties that arise automatically out of transactions

programs designed to reward employees for good performance

summarizes the firm’s revenues and expenses and shows its total profit or loss over a period of time

Taxes owed for the current operating period but not yet paid

When actual income turns out to be higher than expected or budgeted income

buyers who want the product for use in making other product

is a group of related businesses: they do similar things and they compete with each other

When the overall price level goes up

the percentage change in a price index

Instead of providing users with software, a technology firm offering infrastructure as a service provides hardware, including servers, central processing units, network equipment, and disk space

patent or trademarked name

long-term assets with no physical existence

an intentional act that poses harm to the plaintiff

a wholesaler or retailer who helps move products from their original source to the end user

Might require further processing before it can be sold to a final consumer

enable us to use the Internet to communicate with others through e-mail, texting, instant messaging, online conferencing, and so on

the ability to get along with and motivate other people

If you advertise on TV, you’re hoping that people will listen, even though you’re interrupting them

is a private network using Internet technologies that’s available only to employees

Stock of goods being held for production or for sale to customers

This task requires that they strike a balance between two threats to productivity: losing production time because they’ve run out of materials, and wasting money because they’re carrying too much inventory

measures the speed with which inventory moves through the firm and is turned into sales

family of international standards for environmental management

family of international standards for quality management

identify the tasks, responsibilities, and skills that it entails, as well as the knowledge and abilities needed to perform it

lists the duties and responsibilities of a position

the policy of enhancing a job by adding tasks at similar skill levels

is the practice of adding tasks that increase both responsibility and opportunity for growth

Many companies practice a policy of job redesign to make jobs more interesting and challenging

allows employees to rotate from one job to another on a systematic basis, eventually cycling back to their original tasks

two people share one full-time position, splitting the salary and benefits of the position as each handles half the job

which lists the qualifications—skills, knowledge, and abilities—needed to perform the job

a listing of financial transactions in chronological order

the manufacturer arranges for materials to arrive at production facilities just in time to enter the manufacturing process

companies require suppliers to deliver materials to their facilities just in time for them to go into the production process

what you say about the product on your packaging—not only identifies the product but also provides information on the package contents: who made it and where or what risks are associated with it

an organized group of workers that bargains with employers to improve its members’ pay, job security, and working conditions

union membership as a percentage of payrolls

Statistics that report the status of the economy a few months in the past

policy of minimum governmental interference

“hands-off” approach and provide relatively little direction to subordinates

which is basically a body of enforceable rules and principles of conduct

how equipment, machinery, and people will be arranged to make the production process as efficient as possible

who can motivate your people to do well

ndicators that predict the status of the economy three to twelve months into the future

show increases and decreases in specific asset, liability, and owners’ equity accounts

violations of statutes for which the law imposes punishment)

when a company receives a patent giving it exclusive use of an invented product or process

the institutions and processes that actually enforce our rules and principles

if one party fails to do what he or she has promised to do, the other can ask the courts to enforce the agreement or award damages for injury sustained because the contract has been breached

amounts a firm owes to creditors

the speed with which assets can be converted to cash

measure the firm’s ability to pay its short-term debts as they come due

links computers that are in close proximity—in the same building or office complex

closing the workplace to workers

due more than one year after the date of the balance sheet

the big picture world external to a company over which the business exerts very little if any control

produce low-volume, high-variety goods according to customer specifications

involves planning for, organizing, leading, and controlling a company’s resources so that it can achieve its goals

extracts data from a database to compile reports, such as sales analyses, inventory-level reports, and financial statements, to help managers make routine decisions

making a group of people more effective and efficient with you than they would be without you.

companies admit that they need to take responsibility and action, so they look for practical long-term solutions.

prepare information, such as reports on the cost of materials used in the production process, for internal use only

a company sells one or more products under its own brand names

that goes beyond material planning to help monitor resources in all areas of the company

Within this industry, there are several groups of customers, each of which is a market

groups of potential customers with common characteristics that influence their buying decisions

your portion of total sales

Temporary investments of excess cash that can readily be converted to cash

is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large”

This basic philosophy—satisfying customer needs while meeting organizational goals

implementing strategies for creating, pricing, promoting, and distributing products that satisfy customers

the process of collecting and analyzing the data that are relevant to a specific marketing situation

gather and analyze relevant data, write reports, and present their findings and recommendations

Selecting a target market and
Developing your marketing mix—implementing strategies for creating, pricing, promoting, and distributing products that satisfy customers

combines the advantages of customized products with those of mass production

the practice of sending out messages to a vast audience of anonymous people

practice of producing high volumes of identical goods at a cost low enough to price them for large numbers of customers

the control process when operations managers decide not only which goods and how many will be produced, but when

relies on a computerized program both to calculate the quantity of materials needed for production and to determine when they should be ordered or made

the process of physically moving or carrying goods during production, warehousing, and distribution

employees from various functional areas (product design, manufacturing, finance, marketing, human resources, etc.) form teams to combine their skills in working on a specific project or product

an impartial third party assesses the situation and makes recommendations for reaching an agreement

They report to top management and oversee the activities of first-line managers. They’re responsible for developing and implementing activities and allocating the resources needed to achieve the objectives set by top management

a crime that’s not “inherently evil” but that is nevertheless prohibited by society

describes the purpose of your organization—the reason for its existence

with a leaning towards either free market or socialistic principles, rather than being purely one or the other

is exercised by the Federal Reserve System (“the Fed”), which is empowered to take various actions that decrease or increase the money supply and raise or lower short-term interest rates, making it harder or easier to borrow money

With lower interest rates, it’s cheaper to borrow money, and banks are more willing to lend it

more expensive to borrow—demand for goods and services will go down, and so will prices

sell differentiated products—products that differ somewhat, or are perceived to differ, even though they serve a similar purpose

there’s only one seller in the market

Those factors that are strong contributors to job satisfaction

that assist with local contract negotiations, organize new locals, negotiate contracts for entire industries, and lobby government bodies on issues of importance to organized labor

include public utilities, such as electricity and gas suppliers

expenses exceed revenues

revenues are more than expenses

called return on sales. It measures the percentage of each sales dollar remaining after all expenses, including taxes, have been deducted

amount left after deducting sales discounts and returns and allowances from gross sales

measure a firm’s overall liquidity and is calculated by subtracting total current liabilities from total current assets

(accounting term for your wealth) is the difference between your assets and your liabilities

Within this market segment, you might want to subdivide further

Short-term loans from banks, suppliers, or others that must be repaid within a year

Amounts owed to the firm by customers or others to whom it lent money

are shorter-term performance targets that direct the activities of the organization toward the attainment of a goal

which is empowered to set workplace safety and health standards and to ensure that employers take appropriate steps to meet them

pricing products a few cents (or dollars) under an even number

This approach allows them to focus on learning without the distractions that would occur in the office

Means few sellers

expenses of running the business that are not related directly to producing or buying its products

provide detailed action steps to be taken by individuals or groups to implement the tactical plan and, consequently, the strategic plan

consists of all the activities involved in transforming a product idea into a finished product, as well as those involved in planning and controlling the systems that produce goods and services

The person who designs and oversees the transformation of resources into goods or services

are generally used by managers at lower levels of the organization—those who run day-to-day business operations and make fairly routine decisions

a diagram delineating the interrelationships of positions within the organization

an arrangement of positions that’s most appropriate for your company at a specific point in time

allocates resources (people, equipment, and money) to achieve a company’s plans

the way it introduces new employees to the organization and their jobs

having outside vendors

invest money in companies

Assets − Liabilities

Value created by transferring a product’s ownership

the container that holds your product—can influence a consumer’s decision to buy a product or pass it up

which grants you “the right to exclude others from making, using, offering for sale, or selling” the invention in the United States for twenty years

initially charge a low price, both to discourage competition and to grab a sizable share of the market

when there are many consumers buying a standardized product from numerous small businesses

discuss and evaluate employees’ work performance

Companies that ask for customers’ cooperation

one-on-one communication with customers or potential customers

(which stands for Program Evaluation and Review Technique) is designed to diagram the activities required to produce a good, specify the time required to perform each activity in the process, and organize activities in the most efficient sequence

an acronym, with each of the letters representing an aspect of the macro-environment that a business needs to consider in its planning

The responsibility for getting its products to customers

workers parading with signs outside a factory or an office building (or even a school)

to pay workers according to the quantity of product that they produce or sell

The value to a consumer of having a product available in a convenient location

the party filing the complaint—is usually a government body acting as a representative of society

enables you to take your business concept beyond the idea stage

the government exerts control over the allocation and distribution of all or some goods and services

managers set goals and determine the best way to achieve them

services that enable users to develop customized web applications

law resulting from judicial interpretations of statutory and other forms of law

setting prices artificially high to foster the impression that they’re offering a high-quality product

information already collected, whether by the company or by others, that pertains to the target market

Accountants employed to serve one particular organization

a company makes a product and sells it to a retailer who in turn resells it under its own name

which deals with private relationships among individuals and organizations. In addition, of course, there are numerous types of law that deal with the relationship of government to private individuals and other private entities, including businesses

An aspect of free market system where business owners can expect to own their land, buildings, machines, etc., and keep the majority of their profits, except for taxes

When businesses previously owned by the government move to private ownership

refers to the application of technology to monitor and control physical processes

If goods move through several steps during production, a company might opt for a process division structure

groups together workers or departments that perform similar tasks

is something that can be marketed to customers because it provides them with a benefit and satisfies a need

describes what the product might look like and how it might work

series of activities by which a product idea is transformed into a final product

means that a company is structured according to its product lines. General Motors, for example, has four product-based divisions: Buick, Cadillac, Chevrolet, and GMC

high-volume goods are produced efficiently by people, equipment, or departments arranged in an assembly line—that is, a series of workstations at which already-made parts are assembled

a claim of injury suffered because of a defective product

a new product is introduced to the market. With any success at all, it begins to grow, attracting more buyers. At some point, the market stabilizes, and the product becomes mature. Eventually, however, its appeal diminishes, and it’s overtaken by competing brands or substitute products. Sales decline, and it’s ultimately taken off the market

represents the funds an enterprise receives in exchange for its goods or services

the amount you earn on each product

which relies on a predetermined formula to distribute a share of the company’s profits to eligible employees

measure how well the firm is using its resources to generate profit and how efficiently it is being managed

when companies assign representatives from various functional areas who work together

the means by which you communicate with customers—may include advertising, personal selling, sales promotion, and publicity

is a physical model of the product

classifies consumers on the basis of individual lifestyles as they’re reflected in people’s interests, activities, attitudes, and values

Independent accountants who serve organizations and individuals on a fee basis

Criminal law, which we’ve already introduced, prohibits and punishes wrongful conduct.
Constitutional law concerns the laws and basic legal principles set forth by the U.S. Constitution.
Administrative law refers to statutes and regulations related to the activities of certain legal bodies known as administrative agencies. We’ll have more to say about administrative agencies and administrative law later in the chap

effort to garner favorable publicity for the company and their products

getting your company or your product mentioned in a newspaper or on TV

intended to deter similar injurious conduct in the future

The process of acquiring the materials and services to be used in production

the characteristics of a product or service that bear on its ability to satisfy stated or implied needs

employees who perform similar jobs work as teams, to identify quality, efficiency, and other work-related problems, to propose solutions, and to work with management in implementing their recommendations.

Products turned out during this phase are carefully inspected for residual flaws

calculating and interpreting financial ratios using data taken from the firm’s financial statements in order to assess its condition and performance

slowdown in economic activity

the economy starts growing again

is the process of identifying suitable candidates and encouraging them to apply for openings in the organization

patterns of formal communication

inputs used to produce outputs

the duty to perform a task

altering existing organizational structures to become more competitive under conditions that have changed

a document that provides a summary of educational achievements and relevant job experience

buy goods from producers and sell them to consumers, whether in stores, by phone, through direct mailings, or over the Internet

amounts left over from profitable operations since the firm’s beginning

It measures the return that owners receive on their investment in the firm, a major reason for investing in a company’s stock

represents the funds an enterprise receives in exchange for its goods or services

dollar amount of sales plus any other income received from sources such as interest, dividends, and rents

means that the outcome of the entrepreneurial venture can’t be know

the principle by which government legitimately exercises its authority only in accordance with publicly declared laws that are adopted and enforced according to established procedure

you're earning a salary regardless of the number of hours required to do it

price reductions given to customers that pay their bills early

a company provides an incentive for a potential customer to buy something

was designed to address the investing public’s lack of trust in corporate America. It redefines the public corporation–auditor relationship and restricts the types of services auditors can provide to clients

an employee’s actions fall within the scope of his employment under two conditions: (1) if they are performed in order to fulfill contractual duties owed to his employer and (2) if the employer is (or could be) in some control, directly or indirectly, over the employee’s actions

is a software program that scans Web pages containing specified keywords and provides a list of documents containing them

information already collected, whether by the company or by others, that pertains to the target market

labor, manufacturing, and housing

process entails gathering information on candidates, evaluating their qualifications, and choosing the right one

nclude salaries and commissions paid to salespeople and the costs of advertising, sales supplies, delivery, and other items that can be linked to sales activity, such as insurance, telephone and other utilities, and postage

Under the SCORE program, a businessperson needing advice is matched with someone on a team of retired executives who work as volunteers

includes all businesses that provide services but don’t make tangible goods

occurs when an employee makes “unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature” to another employee who doesn’t welcome the advances

to serve as go-betweens in disputes between workers and supervisors

When producers do not produce enough to satisfy demand

start off with the highest price that keenly interested customers would pay

is one that is independently owned and operated, exerts little influence in its industry, and (with a few exceptions) has fewer than five hundred employees

a government agency that provides assistance to small businesses

assists current and prospective small business owners with business problems and provides free training and technical information on all aspects of small business management

practice of including social media as part of a company’s marketing program

industries that provide essential services, such as utilities, banking, and health care, may be government owned

This type of service gives companies access to a large assortment of software packages without having to invest in hardware or install and maintain software on its own computers

which measures the number of people reporting to a particular manager

This twofold process of organizing activities into clusters of related tasks that can be handled by certain individuals or groups

anyone who, like owners, employees, customers, and the communities in which it does business, has a “stake” or interest in it

summary of the money flowing into and out of a firm, is the financial statement used to assess the sources and uses of cash during a certain period, typically one year

This technique monitors production quality by testing a sample of output to see whether goods in process are being made according to predetermined specifications

gives employees the right to buy a specific number of shares of company stock at a set price on a specified date

keep unsold products

acting responsibly

the process of developing a plan for satisfying an organization’s human resources (HR) needs

which is the process of establishing an overall course of action

involve actions that are inherently dangerous and for which a party may be liable no matter how carefully he or she (or it) performs them

nonunion workers who are willing to cross picket lines to replace strikers

are made to borrowers who don’t qualify for market-set interest rates because of one or more risk factors—income level, employment status, credit history, ability to make only a very low down payment

quantity of a product that sellers are willing to sell at various prices

the flow that begins with the purchase of raw materials and culminates in the sale of the product to end users

The process of integrating all the activities in the supply chain

When sellers would likely supply more of a product than buyers need

the principle of providing products today that don’t compromise the ability of future generations to meet their needs

analyzing an organization’s Strengths, Weaknesses, Opportunities, and Threats

The overall plan is broken down into more manageable, shorter-term components

cash, equipment, and buildings

how much consumers are willing to pay for a product. You then subtract the retailer’s profit. From this price—the selling price to the retailer—you subtract an amount to cover your profit

consumers who should be particularly interested in your product, who would have access to it, and who have the means to buy it

the ones you need to perform specific tasks

means that you regularly work from home (or from some other nonwork location)

getting fired

need recognition, information search, evaluation, purchase, and postpurchase evaluation

represents the daily price and quantity of apples sold by farmers at a local market

graphic representation of the correlation between the cost of a good or service and the quantity supplied for a given period

The value to a consumer of having a good or a service available at a convenient time

the principle whereby a dollar received in the present is worth more than a dollar received in the future

process of organizing and planning how to divide your time between specific activities

responsible for the health and performance of the organization. They set the objectives, or performance targets, designed to direct all the activities that must be performed if the company is going to fulfill its mission

is a civil wrong—an injury done to someone’s person or property

quality assurance, includes all the steps that a company takes to ensure that its goods or services are of sufficiently high quality to meet customers’ needs

registering the name with the U.S. Patent and Trademark Office

registered names that can be sold or licensed to others

which receives input data and converts them into output—information—intended for various users

exercise authority based on their rank in the organization

events that affect a business

mentor and develop subordinates, providing them with challenging opportunities, working one-on-one to help them meet their professional and personal needs, and encouraging people to approach problems from new perspectives

The ledger totals for each account are summarized in a trial balance, which is used to confirm the accuracy of the figures

the permanent separation of an employee from a company

the most commonly used measurement of unemployment

provides a broader picture of unemployment in the United States

the percentage of the labor force that’s unemployed and actively seeking work

a system of statutes designed to make commercial transactions consistent in all fifty states

requires only the manager’s subordinates to provide feedback

the entire range of activities involved in delivering value to customers

These are costs that vary, in total, as the quantity of goods sold changes

a Web site for marketing the books, software, and supplies provided by its partners, without taking physical possession of them

you’re paid according to the number of hours you work

is a guarantee that a product meets certain standards of performance

A computer that retrieves Web pages

(sometimes called distributors): intermediaries who buy goods from suppliers and sell them to businesses that will either resell or use them

covers a relatively large geographical area, its computers are connected by telephone lines, wireless technology, or even satellite

The Web is a subsystem of computers that can be accessed on the Internet using a special protocol, or language, known as hypertext transfer protocol (HTTP)