Chapter 1: Principles of Business, Marketing, and Finance

business
An organization that produces or distributes a good or service for profit.
production
involves making a product or providing a service.
manufacturing firms
businesses that produce goods.
service firms
businesses that provide assistance to satisfy specialized need through skilled workers.
finance
deals with all money matters related to running a business.
industrial business
firms that produce goods that are often used by other businesses or organizations to make things.
third world nations
countries that are underdeveloped, have few manufacturing firms, and a large number of poor people who possess few goods.
commercial businesses
firms engaged in marketing, in finance, and in furnishing services.
services
intangible products that result from a high degree of labor input and that satisfy consumer needs.
industry
a word often used to refer to all business within a category.
global competition
the ability of profit-making organizations to compete with other business in other companies.
effectiveness
occurs when an organization makes the right decision in deciding what products or services to offer customers or other users
efficiency
occurs when an organization produces needed goods or services quickly at a low cost.
domestic goods
products made by firms in the United States.
foreign goods
products made by firms in other countries.
total quality management
a commitment to excellence from the list price that is given accomplished by teamwork and continual improvement.
output
the quantity, or amount, produced within a given time.
productivity
producing the largest quantity in the least amount of time by using efficient methods and modern equipment.
mass production
an assembly process in which a large number of products is produced, each of which is identical to the next.
downsize
cutting back on the goods and services provided and thereby shrinking the size of a firm and the number of employees.
empowerment
letting workers decide how to perform their work tasks and offer ideas on how to improve the work progress.
gross domestic product
the total market value of all goods produced and services provided in a country in a year.
underground economy
income that escapes being recorded in the GDP.
entreprenuer
a person who starts, manages, and owns a business.
small business
the term applied to any business that is operated by one or few individuals.
franchise
a legal agreement between a company and a distributor to sell a product or service under special conditions.
franchisor
the parent company of a franchise agreement that provides a product or service.
franchisee
the distributor of a franchised product or service.
intrapenrenuer
an employee who is given funds and freedom to create a special unit or department within a company in order to develop a new product or service.
employee stock ownership plan
a benefit plan that gives company stock as bonuses or allows employees to purchase stock at a discount.