BUS 101 - Materials for Test 1 PDF

Value the relationship between the price of a good or a service and the benefits that it offers its customers Business any organization or activity that provides goods and services in an effort to earn a profit ❖ Profit money that a business earns in sales (or revenue) minus expenses ❖ Loss Wh...

Value the relationship between the price of a good or a service and the benefits that it offers its customers Business any organization or activity that provides goods and services in an effort to earn a profit ❖ Profit money that a business earns in sales (or revenue) minus expenses ❖ Loss When a business incurs expenses that are greater than its revenue Standard of living* The quality and quantity of goods and services available to a population Quality of life* The overall sense of well-being experienced by either an individual or a group The 5 eras of business Industrial Revolution Entrepreneurship era Production era Marketing era Relationship era Non-profits business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain Factors of production: ❖ Four fundamental elements: natural resources, capital, human resources, and entrepreneurship that businesses need to achieve their objectives What are the 5 types of business environment? (on test) Economic Environment Social environment Competitive environment Global environment Technological environment Business technology any application of information technology that is integrated into the operation of a business. Competitive Advantage The benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries Opportunity cost The opportunity of giving up the second-best choice when making a decision Absolute advantage The benefit a country has in a given industry when it can produce more of a product than other nations using the same amount of resources Balance of Trade A basic measure of the difference in value between a nation’s exports and imports, including both goods and services Trade surplus Overage that occurs when the total value of a nation’s exports is higher than the total value of its imports Trade deficit Shortfall that occurs when the total value of a nation‘s imports is higher than the total value of its exports Sociocultural differences Among cultures in language, attitudes, and values Exchange Rates A measurement of the value of one nation’s currency relative to the currency of other nations Countertrade International trade that involves the barter of products for products rather than for currency Infrastructure A country’s physical facilities that support economic activity Protectionism Economic policy of shielding an economy from imports, reasons to create trade restrictions Tariffs taxes levied against imports Quotas limitations on the amount of specific products that may be imported from certain countries during a given time period Embargo a complete ban on international trade of a certain item, or a total halt in trade with a particular nation Foreign outsourcing contracting with foreign suppliers to produce products, usually at a fraction of the cost of domestic production Importing buying products from another country Exporting selling products to another country World Trade Organization (WTO) a permanent global institution to promote international trade and to settle international trade disputes Free trade the unrestricted movement of goods and services across international borders Ethics A set of beliefs about right and wrong, good and bad − Related to individuals and their day-to-day decision making A country’s legal system provides a solid starting point for examining ethical standards Universal ethical standards Ethical norms that apply to all people across a broad spectrum of situations − Trustworthiness − Respect − Responsibility − Fairness − Caring − Citizenship Business ethics The application of right and wrong, good and bad, in a business setting Ethical dilemma A decision that involves a conflict of values; every potential course of action has some significant negative consequences. Code of ethics A formal, written document that defines the ethical standards of an organization and gives employees the information they need to make ethical decisions across a range of situations Whistle-blowers Employees who report their employer’s illegal or unethical behavior to either the authorities or the media Social responsibility The obligation of a business to contribute to society. Stakeholders Enlightened companies carefully consider the priorities of all stakeholders as they make key decisions. Consumerism A social movement that focuses on four key consumer rights: (1) the right to be safe, (2) the right to be informed, (3) the right to choose, (4) the right to be heard Corporate philanthropy All business donations to nonprofit groups, including money, products, and employee time Cause-related marketing Marketing partnerships between businesses and nonprofit organizations, designed to spike sales for the company and raise money for the nonprofit Corporate responsibility Business contributions to the community through the actions of the business itself rather than donations of money and time Sustainable development Doing business to meet the needs of the current generation, without harming the ability of future generations to meet their needs. Social audit A systematic evaluation of how well a firm is meeting its ethics and social responsibility goals Communication: The transmission of relevant information between a sender and a recipient Noise: Any interference that causes the message you send to be different from the message your audience understands Communication barriers*: Obstacles to effective communication, typically defined in terms of physical, language, body language, cultural, perceptual, and organizational barriers − Intercultural communication*: Communication among people with differing cultural backgrounds nonverbal communication Communication that does not use words. Common forms of nonverbal communication include gestures, posture, facial expressions, tone of voice, and eye contact. active listening Attentive listening that occurs when the listener focuses their complete attention on the speaker. communication channels The various ways in which a message can be sent, ranging from one-on-one in-person meetings to internet message boards. Bias A preconception about members of a particular group. Common forms of bias include gender bias; age bias; and race, ethnicity, or nationality bias. active voice when the subject of your sentence is doing the action described by the verb. passive voice when the subject of your sentence is not doing the action described by the verb. Dynamic delivery*: Vibrant, compelling presentation delivery style that grabs and holds the attention of the audience