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Aggregate output
the total quatitiy of goods and services produced by an economic system during a given period. TERM 2
Business
DEFINITION 2 Organization that prodives goods or services to earn profit. TERM 3
Profits
DEFINITION 3 Difference between a business's revenues and its expenses TERM 4
External
Environment
DEFINITION 4 Everything outside an organizations boudaries that might affect it. TERM 5
Global Business
Environment
DEFINITION 5 the international forces that affect a business
Domestic Business
Environment
The environment in which a firm conducts its operations and derives its revenues TERM 7
Technological
Environment
DEFINITION 7 all the ways by which firms create value for their constituents TERM 8
Political-Legal
Environment
DEFINITION 8 The relationship between business and government. TERM 9
Sociocultural
Environment
DEFINITION 9 the customs, mores, values, and demographic characteristics of the society in which an organization functions TERM 10
economic environment
DEFINITION 10 relevent conditions that exist in the economic system in which a company operates
Physical Resources
tangible items organizations use in the conduct of their businesses TERM 17
Information Resources
DEFINITION 17 Data and other information used by businesses TERM 18
Planned Economy
DEFINITION 18 economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions. TERM 19
Market Economy
DEFINITION 19 an economy in which decisions regarding investment, production and distribution are based on supply and demand. TERM 20
Communism
DEFINITION 20 political system in which the government owns and operates all factors of production
Market
Mechanism for exchange between buyers and sellers of a particular good or service TERM 22
capitalism
DEFINITION 22 systems that sanctions that privaate ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive TERM 23
Mixed Market economy
DEFINITION 23 economic system featuring characteristics of both planned and market economies TERM 24
Privatization
DEFINITION 24 it is the process of transferring government enterprises into privately owned companies TERM 25
Socialism
DEFINITION 25 Planned economic systems in which the government owns and operates only selected major sources of production
Demand Curve
Graph showing how many units of a product will be demanded at different prices TERM 32
Supply Curve
DEFINITION 32 graph showing how many units of a product will be supplied at different prices TERM 33
Market Price
DEFINITION 33 Profit- maximizing price which the quantity of goods demanded and the quantity of goods supplied are equal TERM 34
Surplus
DEFINITION 34 situation in which quantity supplied exceeds quantity demand TERM 35
Shortage
DEFINITION 35 Situation in which quantity demanded exceeds queantity supplied
Private Enterprise
Economic system that allows individuals to pursue their own interests without undue government restrictions TERM 37
competition
DEFINITION 37 vying among businesses for the same resouces or customers TERM 38
perfect
competition
DEFINITION 38 market or industry characterized by numerous small firms producing an identical product TERM 39
Monopolistic Competition
DEFINITION 39 Market or industry characterized by numerous buyers and relatively numerous sellers trying to differentiate their products from those of competitors TERM 40
Oligopoly
DEFINITION 40 market or industry characterized by a handful of sellers with the power to influence the prices of their products
standard of living
the total quantity and quality of goods and services people can purchase with the currency used in their economic system TERM 47
Gross Domestic Product (GDP)
DEFINITION 47 Total value of all goods and services produced within a given period by a national economy through domestic factors of production TERM 48
Gross National Product
(GNP)
DEFINITION 48 Total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located TERM 49
Real GDP
DEFINITION 49 Gross Domestic Product adjusted to account for changes in currency values and price changes TERM 50
Nominal GDP
DEFINITION 50 Gross Domestic Product measured in current dollars or whith all components valued at current prices
Purchasing Power Parity
The principle that exchange rates are set so that the prices of similar product in different countries are about the same TERM 52
Productivity
DEFINITION 52 A measure of economic growth that compares how much a system produces with the resources needed to product it TERM 53
Balance of trade
DEFINITION 53 The economic value of all the products that a country exports minus the economic value of all the products it imports TERM 54
National Debt
DEFINITION 54 The amount of money the goverment owes its creditors TERM 55
stability
DEFINITION 55 condition in which the amount of money available in an economic system and the quantity of goods and services produced in it are growing at about the same rate
Fiscal Policies
Polices used by a government regarding how it collects and spends revenue TERM 62
Monetary Policies
DEFINITION 62 Policies used by a governmnet to control the size of its money supply TERM 63
Stabilization Policy
DEFINITION 63 Government economic policy intended to smooth out fluctuations in output and unemplyment and to stabilize prices TERM 64
Ethics
DEFINITION 64 Beliefs about what is right and wrong or good and ban in actions that affect others TERM 65
Ethical Behavior
DEFINITION 65 Behavior conforming to generally accepted social norms concerning beneficial and harmful actions
Unethical Behavior
Behavior that does not conform to generally accepted social norms concerning beneficial and harmful actions TERM 67
Business Ethics
DEFINITION 67 Ethical or unethical behaviors by employees in the context of their jobs TERM 68
Managerial Ethics
DEFINITION 68 Standards of behavior that guid individual mandagers in their work TERM 69
Social Responsibility
DEFINITION 69 the attempt of a business to balance its commitments to groups and indiciduals in its environment, including customers, other businesses, employees, investors, and local communities TERM 70
Organization Stakeholders
DEFINITION 70 Those groups, individuals, and organizations that are directly affected by the practices of an organization and who therefore have a stake in its performance
Defensive Stance
approach to social responsibility by which a company meets only minimum legal requirements in its commitments to group and individuals in its social environment TERM 77
Accommodative Stance
DEFINITION 77 Approach to social responisbility by which a company, if specifically asked to do so, exceeds legal minimums in its commitments to groups and individuals in its social environment TERM 78
Proactive Stance
DEFINITION 78 Approach to social responsibility by which a company actively seeks opportunities to contribute to the well-being of groups and individuals in its social environment TERM 79
Social Audit
DEFINITION 79 Systematic analysis of a firm's success in using funds earmaked for meeting its social responsiblity goals TERM 80
Small business Administration
DEFINITION 80 Government agency charged with assisting small businesses
Small Business
Independently owned business that has relatively little influence in its market TERM 82
Entreoreneur
DEFINITION 82 Businessperson who accepts both the risk and the opporunities involved in creating and operating a new business venture TERM 83
Entrepreneurship
DEFINITION 83 the process of seeking businesses opportunities under conditions of risk TERM 84
Business Plan
DEFINITION 84 Document in which the entrepreneur summarizes her or his business strategy for proposed new venture and how that strategy will be implemented TERM 85
Franchise
DEFINITION 85 Arrangement in which a buyer purchases the right to sell the good or service of the seller
General Partnership
Business with two or more owners who share in both the operation of the firm and the financial responsibility for its debts
