Business Management Final Exam Study Guide

Theory X
Business Management theory that assumes people are basically lazy and will avoid working if they can.
Theory Y
Business management theory that assumes people find satisfaction in their work
Theory Z
Business management theory that integrates Japanese and American business practices.
Total Quality Management
a system of management based on involving all employees in a constant process of improving quality and productivity by improving how they work
Personality
the combination of all the unique qualities that make you who you are.
Clayton Act of 1914
makes it illegal to charge different prices to different wholesale customers.
Wheeler-Lea Act
bans unfair or deceptive acts or practices, including false advertising.
Federal Food, Drug, and Cosmetic Act
1938 bans the sale of impure, improperly labeled, falsely guaranteed, and unhealthful foods, drugs, and cosmetics.
Sole Proprietor
a business owned by a single individual, or proprietors
Partnership
an association of two or more persons who jointly own a for-profit business
Corporation
a business formed under state or federal statutes that is authorized to act as a legal person
Social Responsibility
the obligation that individuals or business have to help solve social problems
Property tax
a tax levied against the property, buildings, or land owned by a business.
American with Disability Act
companies cannot discriminate against persons with disabilities.
Opportunity Cost
the loss associated with the best opportunity that is passed up.
Absolute Advantage
the ability to produce more of a good than another producer with the same quantity of inputs.
Comparative Advantage
states that producers should produce the goods they are most efficient at producing and purchase from others the goods they are less efficient at producing
Cover Letter
sent with resume as a brief introduction; emphasizes accomplishments most relative to a job
Equilibrium Price
the price at which supply equals demand
Networking
talking to people who may offer you job leads, contacts, or other information
Recession
phase of the business cycle in which growth falls for two three-mo nth periods in a row.
Unions
groups of worker who collectively bargain for rights such as higher wages and better working conditions
Tariff
tax on imports
Trademark
word, name, symbol, or slogan a business uses to identify its own goods and set them apart from others.
Entrepreneurs
person who launches and runs his or her own business
Copyright
the protection provided to a creative work
Monopoly
occurs when one party maintains total control over a type of industry
Patent
the document the federal government issues to inventors and companies that give them the exclusive right to make, use and sell their inventions for 17 years.
Stakeholders
a company’s employees, customers, suppliers, and the community
Glass Ceiling
invisible barrier tha prevents women and minorities from moving up in the business world
Internation Trade
exchange of goods and services by different countries
Intellectual property
ownerships of ideas, such as inventions books, movies, and computers program
Embargo
total ban on the import of a good from a paricular country
Economics
study of how societies decide what to produce, how to produce it, and how to distribute what they produce
Quota
restrictions on the quantity of a good that can enter a country
Balance of Trade
the difference between the value of the goods a country exports and the value of the goods it imports.
Free Trade Area
a region within which trade restrictions are reduced or eliminated.
Global Economy
an economy in which companies compete actively with business from all over the world.
Economic indicators
data that show how the economy is performing
Scarcity
too few resource available for everyone in the world to consumes as much as he or she would like
Imports
goods and services that are purchased aboard
Exports
goods and services sold abroad
NAFTA
North America Free Trade Agreement
Breakeven
reveals how many units of a good or service a business needs to sell before it begins earning a profit
Ethical Dilemma
are situations in which the ethical course of action is not clear.