| Glossary
College Division image; link to college web site
College Division image; link to college web site
For LayoutFor Layout
For Layout
For LayoutFor Layout|For LayoutFor Layout|For LayoutContact Us
For Layout
For Layout
For Layout
For Layout
For Layout
> General Resources > Glossary
General Resources

Use these general resource documents and activities to help increase your success in this course. Some content requires software plugins. Visit our Plugin Help Center for help with downloading plugins.


A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

absolute advantage   the ability to produce a specific product more efficiently than any other nation

accessory equipment    standardized equipment used in a firm's production or office activities

account executive   an individual, sometimes called a stock-broker or registered representative, who buys and sells securities for clients

accountability   the obligation of a worker to accomplish an assigned job or task

accounting    the process of systematically collecting, analyzing, and reporting financial information

accounting equation    the basis for the accounting process: assets = liabilities + owners' equity

accounting program    a software package that enables users to record and report financial information

accounts payable    short-term obligations that arise as a result of making credit purchases

accounts receivable turnover    a financial ratio calculated by dividing net sales by accounts receivable

acid-test ratio    a financial ratio calculated by subtracting the value of inventory from the current asset amount and dividing the total by current liabilities

ad hoc committee    a committee created for a specific short-term purpose

administrative manager   a manager who is not associated with any specific functional area but who provides overall administrative guidance and leadership

advertising    a paid nonpersonal message communicated to a select audience through a mass medium

advertising agency    an independent firm that plans, produces, and places advertising for its clients

advertising media    the various forms of communication through which advertising reaches its audience

affirmative action program   a plan designed to increase the number of minority employees at all levels within an organization

agency shop    a workplace in which employees can choose not to join the union but must pay dues to the union anyway

agent    a middleman that expedites exchanges, represents a buyer or a seller, and often is hired permanently on a commission basis

alien corporation   a corporation chartered by a foreign government and conducting business in the United States

analytical process    a process in operations management in which raw materials are broken into different component parts

annual report   a report distributed to stockholders and other interested parties that describes a firm's operating activities and its financial condition

arbitration    the step in a grievance procedure in which a neutral third party hears the two sides of a dispute and renders a decision

arithmetic mean    the sum of all the values of a set of data divided by the number of items in the set

asset allocation   the process of spreading your money among several different types of investments to lessen risk

assets    the resources that a business owns

audit    an examination of a company's financial statements and accounting practices that produced them

authoritarian leader    one who holds all authority and responsibility, with communication usually moving from top to bottom

authority    the power, within an organization, to accomplish an assigned job or task

automatic vending    the use of machines to dispense products

automation    the total or near-total use of machines to do work

balance of payments   the total flow of money into the country minus the total flow of money out of the country over some period of time

balance of trade   the total value of a nation's exports minus the total value of its imports over some period of time

balance sheet    a summary of the dollar amounts of a firm's assets, liabilities, and owners' equity accounts at a particular time; same as statement of financial position

banker's acceptance    a written order for the bank to pay a third party a stated amount of money on a specific date

bargaining unit    the specific group of employees represented by a union

barter   a system of exchange in which goods or services are traded directly for other goods and/or services without using money

barter system    a system of exchange in which goods or services are traded directly for other goods or services

behavior modification    a systematic program of reinforcement to encourage desirable behavior

bill of lading   issued by a transport carrier to an exporter to prove merchandise has been shipped

blue-chip stock   a safe investment that generally attracts conservative investors

board of directors   the top governing body of a corporation, the members of which are elected by the stockholders

bond indenture   a legal document that details all the conditions relating to a bond issue

boycott    a refusal to do business with a particular firm

brand    a name, term, symbol, design, or any combination of these that identifies a seller's products as distinct from those of other sellers

brand equity    marketing and financial value associated with a brand's strength in a market

brand extension   using an existing brand to brand a new product in a different product category

brand loyalty    extent to which a customer is favorable toward buying a specific brand

brand mark    the part of a brand that is a symbol or distinctive design

brand name    the part of a brand that can be spoken

breakeven quantity    the number of units that must be sold for the total revenue (from all units sold) to equal the total cost (of all units sold)

broadband technology   A general term referring to higher-speed Internet connections that deliver data, voice, and video material

broker    a middleman that specializes in a particular commodity, represents either a buyer or a seller, and is likely to be hired on a temporary basis

budget   a financial statement that projects income and/or expenditures over a specified future period

bundle pricing    packaging together two or more complementary products and selling them for a single price

bureaucratic structure    a management system based on a formal framework of authority that is outlined carefully and followed precisely

business   the organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs

business buying behavior    the purchasing of products by producers, resellers, governmental units, and institutions

business cycle   the recurrence of periods of growth and recession in a nation's economic activity

business ethics   the application of moral standards to business situations

business model   represents a group of common characteristics and methods of doing business to generate sales revenues and reduce expenses

business plan   a carefully constructed guide for the person starting a business

business product    a product bought for resale, for making other products, or for use in a firm's operations

business service    an intangible product that an organization uses in its operations

business-to-business (B2B) model   firms that conduct business with other businesses

business-to-consumer (B2C) model   firms that focus on conducting business with individual buyers

buying allowance    a temporary price reduction to resellers for purchasing specified quantities of a product

buying behavior    the decisions and actions of people involved in buying and using products

buying long   buying stock with the expectation that it will increase in value and can then be sold at a profit

capacity    the amount of products or services that an organization can produce in a given time

capital budget   a financial statement that estimates a firm's expenditures for major assets and its long-term financing needs

capital gain   the difference between a security's purchase price and selling price

capital-intensive technology    a process in which machines and equipment do most of the work

capitalism   an economic system in which individuals own and operate the majority of businesses that provide goods and services

captioned photograph    a picture accompanied by a brief explanation

captive pricing    pricing the basic product in a product line low, but pricing related items at a higher level

carrier    a firm that offers transportation services

cash budget   a financial statement that projects cash receipts and expenditures over a specified period

cash flow   the movement of money into and out of an organization

catalog marketing    marketing in which an organization provides a catalog from which customers make selections and place orders by mail or telephone

catalog showroom    a retail outlet that displays well-known brands and sells them at discount prices through catalogs within the store

category killer    a very large specialty store that concentrates on a single product line and competes on the basis of low prices and product availability

caveat emptor   a Latin phrase meaning "let the buyer beware"

centralized organization    an organization that systematically works to concentrate authority at the upper levels of the organization

certificate of deposit (CD)    a document stating that the bank will pay the depositor a guaranteed interest rate for money left on deposit for a specified period of time.

certified management accountant (CMA)   an accountant who has met the requirements for education and experience, passed a rigorous exam, and is certified by the Institute of Management Accountants

certified public accountant (CPA)    an individual who has met state requirements for accounting education and experience and has passed a rigorous two-day accounting examination prepared by the AICPA

chain of command    the line of authority that extends from the highest to the lowest levels of an organization

chain retailer    a company that operates more than one retail outlet

channel of distribution    a sequence of marketing organizations that directs a product from the producer to the ultimate user; same as marketing channel

check    a written order for a bank or other financial institution to pay a stated dollar amount to the business or person indicated on the face of the check

chief financial officer (CFO)    a high-level corporate executive who manages a firm's finances and reports directly to the company's chief executive officer or president

closed corporation   a corporation whose stock is owned by relatively few people and is not sold to the general public

closed shop    a workplace in which workers must join the union before they are hired; outlawed by the Taft-Hartley Act

cluster structure    an organization that consists primarily of teams with no or very few underlying departments

code of ethics   a guide to acceptable and ethical behavior as defined by the organization

collaborative learning system    a work environment that allows problem-solving participation by all team members

collateral    real estate or property pledged as security for a loan

collective bargaining    the process of negotiating a labor contract with management

command economy   an economic system in which the government decides what will be produced, how it will be produced, who gets what is produced, and who owns and controls the major factors of production

commercial bank    a profit-making organization that accepts deposits, makes loans, and provides related services to its customers

commercial paper   a short-term promissory note issued by a large corporation

commission    a payment that is a percentage of sales revenue

commission merchant    a middleman that carries merchandise and negotiates sales for manufacturers

common stock   stock owned by individuals or firms who may vote on corporate matters but whose claims on profit and assets are subordinate to the claims of others

common stock   stock whose owners may vote on corporate matters but whose claims on profits and assets are subordinate to the claims of others

community shopping center    a planned shopping center that includes one or two department stores and some specialty stores, along with convenience stores

comparable worth    a concept that seeks equal compensation for jobs requiring about the same level of education, training, and skills

comparative advantage   within a nation, the ability to produce a specific product more efficiently than any other product

comparison discounting    setting a price at a specific level and comparing it with a higher price

compensation    the payment employees receive in return for their labor

compensation system    the policies and strategies that determine employee compensation

competition   rivalry among businesses for sales to potential customers

component part    an item that becomes part of a physical product and is either a finished item ready for assembly or a product that needs little processing before assembly

computer network   A group of two or more computers linked together that allows users to share data and information

computer viruses   software codes that are designed to disrupt normal computer operations

computer-aided design (CAD)    the use of computers to aid in the development of products

computer-aided manufacturing (CAM)    the use of computers to plan and control manufacturing processes

computer-integrated manufacturing (CIM)    a computer system that not only helps to design products but also controls the machinery needed to produce the finished product

conceptual skill    the ability to think in abstract terms

consumer buying behavior    the purchasing of products for personal or household use, not for business purposes

consumer price index (CPI)   a monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area

consumer products   goods and services purchased by individuals for personal consumption

consumer sales promotion method    a sales promotion method designed to attract consumers to particular retail stores and to motivate them to purchase certain new or established products

consumerism   all activities undertaken to protect the rights of consumers

contingency plan    a plan that outlines alternative courses of action that may be taken if an organization's other plans are disrupted or become ineffective

continuous process   a manufacturing process in which a firm produces the same product(s) over a long period of time

controlling    the process of evaluating and regulating ongoing activities to ensure that goals are achieved

convenience product    a relatively inexpensive, frequently purchased item for which buyers want to exert only minimal effort

convenience store    a small food store that sells a limited variety of products but remains open well beyond normal business hours

convergence of technologies   the overlapping capabilities and the merging of products and services into one fully integrated interactive system

convertible bond   a bond that can be exchanged, at the owner's option, for a specified number of shares of the corporation's common stock

convertible preferred stock   preferred stock that the owner may exchange for a specified number of shares of common stock

cookie   a small piece of software sent by a website that tracks an individual's Internet use

cooperative   an association of individuals or firms whose purpose is to perform some business function for its members

cooperative advertising    an arrangement whereby a manufacturer agrees to pay a certain amount of the retailer's media cost for advertising the manufacturer's product

copyright   legal right to control content ownership

corporate bond   a corporation's written pledge that it will repay a specified amount of money with interest

corporate charter   a contract between the corporation and the state in which the state recognizes the formation of the artificial person that is the corporation

corporate culture    the inner rites, rituals, heroes, and values of a firm

corporate officers   the chairman of the board, president, executive vice presidents, corporate secretary, treasurer, or any other top executive appointed by the board of directors

corporation   an artificial person created by law with most of the legal rights of a real person, including the rights to start and operate a business, to buy or sell property, to borrow money, to sue or be sued, and to enter into binding contracts

cost of goods sold    the dollar amount equal to beginning inventory plus net purchases less ending inventory

countertrade   an international barter transaction

coupon    reduces the retail price of a particular item by a stated amount at the time of purchase

craft union    an organization of skilled workers in a single craft or trade

creative selling    selling products to new customers and increasing sales to present customers

credit    immediate purchasing power that is exchanged for a promise to repay borrowed money, with or without interest, at a later date

credit union    a financial institution that accepts deposits from and lends money to only those people who are its members

critical path    the sequence of production activities that takes the longest time from start to finish

cross-functional team   a team of individuals with varying specialties, expertise, and skills that are brought together to achieve a common task; a group of employees from different departments who work together on a specific project

cultural (or workplace) diversity   differences among people in a work force owing to race, ethnicity, and gender

currency devaluation   the reduction of the value of a nation's currency relative to the currencies of other countries

current assets    assets that can quickly be converted into cash or that will be used in one year or less

current liabilities    debts that will be repaid in one year or less

current ratio    a financial ratio computed by dividing current assets by current liabilities

customary pricing    pricing on the basis of tradition

customer lifetime value   a combination of purchase frequency, average value of purchases, and brand-switching patterns over the entire span of a customer's relationship with a company

customer relationship management (CRM)   using information about customers to create marketing strategies that develop and sustain desirable customer relationships

customer relationship management (CRM) software   software solutions that incorporate a variety of methods that can be used to manage communication with customers and share important information with all of the firm's employees

data    numerical or verbal descriptions that usually result from some sort of measurement

data mining   the practice of searching through data records looking for useful information

data processing    the transformation of data into a form that is useful for a specific purpose

database    a single collection of data stored in one place that can be used by people throughout an organization to make decisions

database management program    software that allows users to electronically store large amounts of data and to transform the data into information

debenture bond   a bond backed only by the reputation of the issuing corporation

debit card    a card that electronically subtracts the amount of your purchase from your bank account at the moment the purchase is made

debt capital   borrowed money obtained through loans of various types

debt-to-owners' equity ratio    a financial ratio calculated by dividing total liabilities by owners' equity

decentralized organization    an organization in which management consciously attempts to spread authority widely in the lower levels of the organization

decision making    the act of choosing one alternative from among a set of alternatives

decision support system (DSS)   a type of computer program that provides relevant data and information to help a firm's employees make decisions and choose different courses of action

decisional role    a role that involves various aspects of management decision making

deflation   a general decrease in the level of prices

delegation    assigning part of a manager's work and power to other workers

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

demand deposit    an amount on deposit in a checking account

democratic leader    one who holds final responsibility but also delegates authority to others, who help determine work assignments; communication is active upward and downward

department store    a retail store that (1) employs twenty-five or more persons and (2) sells at least home furnishings, appliances, family apparel, and household linens and dry goods, each in a different part of the store

departmentalization    the process of grouping jobs into manageable units

departmentalization by customer    grouping activities according to the needs of various customer populations

departmentalization by function    grouping jobs that relate to the same organizational activity

departmentalization by location    grouping activities according to the defined geographic area in which they are performed

departmentalization by product    grouping activities related to a particular product or service

depreciation    the process of apportioning the cost of a fixed asset over the period during which it will be used

depression   a severe recession that lasts longer than a recession

design planning    the development of a plan for converting a product idea into an actual product

desktop publishing program    a software package that enables users to combine text and graphics in reports, newsletters, and pamphlets

digitized   data that have been converted to a type of signal that computers and telecommunications equipment that make up the Internet can understand

direct marketing    the use of computers, telephones, and nonpersonal media to show products to customers, who can then purchase them by mail, telephone, or online

direct selling    the marketing of products to ultimate consumers through face-to-face sales presentations at home or in the workplace

directing    the combined processes of leading and motivating

direct-mail advertising    promotional material mailed directly to individuals

direct-response marketing    marketing that occurs when a retailer advertises a product and makes it available through mail or telephone orders

discount    a deduction from the price of an item

discount rate    the interest rate the Federal Reserve System charges for loans to member banks

discount store    a self-service general merchandise outlet that sells products at lower-than-usual prices

discretionary income    disposable income less savings and expenditures on food, clothing, and housing

discretionary order   an order to buy or sell a security that lets the broker decide when to execute the transaction and at what price

disposable income    personal income less all additional personal taxes

dividend   a distribution of earnings to the stockholders of a corporation

domestic corporation   a corporation in the state in which it is incorporated

domestic system   a method of manufacturing in which an entrepreneur distributes raw materials to various homes, where families would process them into finished goods to be offered for sale by the merchant entrepreneur

double-entry bookkeeping    a system in which each financial transaction is recorded as two separate accounting entries to maintain the balance shown in the accounting equation

draft   issued by the exporter's bank, ordering the importer's bank to pay for the merchandise, thus guaranteeing payment once accepted by the importer's bank

dumping   exportation of large quantities of a product at a price lower than that of the same product in the home market

earnings per share    a financial ratio calculated by dividing net income after taxes by the number of shares of common stock outstanding

e-business (electronic business)   the organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs through the facilities available on the Internet

e-business (electronic business)   the organized effort of individuals to produce and sell, for a profit, the products and services that satisfy society's needs through the facilities available on the Internet

e-commerce   buying and selling activities conducted online

economic community   an organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies

economic model of social responsibility   the view that society will benefit most when business is left alone to produce and market profitable products that society needs

economics   the study of how wealth is created and distributed

economy   the way in which people deal with the creation and distribution of wealth.

electronic check conversion (ECC)   A process used to convert information from a paper check into an electronic payment for merchandise, service, or bills

electronic funds transfer (EFT) system    a means of performing financial transactions through a computer terminal or telephone hookup

embargo   a complete halt to trading with a particular nation or in a particular product

employee benefit    a reward in addition to regular compensation that is provided indirectly to employees

employee ownership    a situation in which employees own the company they work for by virtue of being stockholders

employee training    the process of teaching operations and technical employees how to do their present jobs more effectively and efficiently

empowerment    making employees more involved in their jobs by increasing their participation in decision making

entrepreneur   a person who risks time, effort, and money to start and operate a business

Equal Employment Opportunity Commission (EEOC)   a government agency with power to investigate complaints of employment discrimination and power to sue firms that practice it

equity capital   money received from the owners or from the sale of shares of ownership in a business

equity theory    a theory of motivation based on the premise that people are motivated to obtain and preserve equitable treatment for themselves

esteem needs    our need for respect, recognition, and a sense of our own accomplishment and worth

ethics   the study or right and wrong and of the morality of the choices individuals make

everyday low prices (EDLPs)    setting a low price for products on a consistent basis

exclusive distribution    the use of only a single retail outlet for a product in a large geographic area

executive information system (EIS)   a computer-based system that facilitates and supports the decision-making needs of top managers and senior executives by providing easy access to both internal and external information

expectancy theory    a model of motivation based on the assumption that motivation depends on how much we want something and on how likely we think we are to get it

expert system   a type of computer program that uses artificial intelligence to imitate a human's ability to think

Export-Import Bank of the United States   an independent agency of the U.S. government whose function it is to assist in financing the exports of American firms

exporting   selling and shipping raw materials or products to other nations

express warranty    a written explanation of the responsibilities of the producer in the event that the product is found to be defective or otherwise unsatisfactory

external recruiting    the attempt to attract job applicants from outside the organization

e-zines   small online magazines

factor   a firm that specializes in buying other firms' accounts receivable

factors of production   land and natural resources, labor, capital, and entrepreneurship

factory system   a system of manufacturing in which all the materials, machinery, and workers required to manufacture a product are assembled in one place

family branding    the strategy in which a firm uses the same brand for all or most of its products

family of funds   a group of mutual funds managed by one investment company

feature article    a piece (of up to 3,000 words) prepared by an organization for inclusion in a particular publication

federal deficit   a shortfall created when the federal government spends more in a fiscal year than it receives

federal funds rate   the interest rate at which a bank lends immediately available funds to another bank overnight in order to meet the borrowing bank's reserve requirements

Federal Reserve System    the central bank of the United States responsible for regulating the banking industry

financial accounting   generates financial statements and reports for interested people outside an organization

financial leverage   the use of borrowed funds to increase the return on owners' equity

financial management   all the activities concerned with obtaining money and using it effectively

financial manager    a manager who is primarily responsible for an organization's financial resources

financial plan   a plan for obtaining and using the money needed to implement an organization's goals

financial planner   an individual who has had at least two years of training in investments, insurance, taxation, retirement planning, and estate planning and has passed a rigorous examination

financial ratio    a number that shows the relationship between two elements of a firm's financial statements

first-line manager    a manager who coordinates and supervises the activities of operating employees

fiscal policy   government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending

fixed assets    assets that will be held or used for a period longer than one year

fixed cost    a cost incurred no matter how many units of a product are produced or sold

flexible benefit plan    compensation plan whereby an employee receives a predetermined amount of benefit dollars to spend on a package of benefits he or she has selected to meet individual needs

flexible manufacturing system (FMS)    a single production system that combines robotics and computer-integrated manufacturing

flextime    a system in which employees set their own work hours within employer-determined limits

floor planning   method of financing in which title to merchandise is given to lenders in return for short-term financing

foreign corporation   a corporation in any state in which it does business except the one in which it is incorporated

foreign-exchange control   a restriction on the amount of a particular foreign currency that can be purchased or sold

form utility    utility created by converting production inputs into finished products

franchise   a license to operate an individually owned business as though it were part of a chain of outlets or stores

franchisee   a person or organization purchasing a franchise

franchising   the actual granting of a franchise

franchisor   an individual or organization granting a franchise

free enterprise   the system of business in which individuals are free to decide what to produce, how to produce it, and at what price to sell it.

frequency distribution    a listing of the number of times each value appears in a set of data

frequent-user incentive    a program developed to reward customers who engage in repeat (frequent) purchases

full disclosure   requirement that investors should have access to all important facts about stocks, bonds, and other securities so that they can make informed decisions

full-service wholesaler    a middleman that performs the entire range of wholesaler functions

functional middleman    a middleman that helps in the transfer of ownership of products but does not take title to the products

Gantt chart    a graphic scheduling device that displays the tasks to be performed on the vertical axis and the time required for each task on the horizontal axis

General Agreement on Tariffs and Trade (GATT)   an international organization of 132 nations dedicated to reducing or eliminating tariffs and other barriers to world trade

general journal    a book of original entry in which typical transactions are recorded in order of their occurrence

general ledger    a book of accounts containing a separate sheet or section for each account

general merchandise wholesaler    a middleman that deals in a wide variety of products

general partner   a person who assumes full or shared responsibility for operating a business

general partnership   a business co-owned by two or more general partners who are liable for everything the business does

generally accepted accounting principles (GAAPs)    an accepted set of guidelines and practices for companies reporting financial information and for the accounting profession

generic product (or brand)    a product with no brand at all

goal    an end result that an organization is expected to achieve over a one- to ten-year period

goal-setting theory    a theory of motivation suggesting that employees are motivated to achieve goals they and their managers establish together

goodwill    the value of a firm's reputation, location, earning capacity, and other intangibles that make the business a profitable concern

government-owned corporation   a corporation owned and operated by a local, state, or federal government

grapevine    the informal communications network within an organization

graphics program    software that enables users to display and print pictures, drawings, charts, and diagrams

grievance procedure    a formally established course of action for resolving employee complaints against management

gross domestic product (GDP)   the total dollar value of all goods and services produced by all people within the boundaries of a country during a one-year period

gross profit    a firm's net sales less the cost of goods sold

gross sales    the total dollar amount of all goods and services sold during the accounting period

groupware    one of the latest types of software that facilitates the management of large projects among geographically dispersed employees as well as such group activities as problem solving and brainstorming

hard-core unemployed   workers with little education or vocational training and a long history of unemployment

high-risk investment   an investment made in the uncertain hope of earning a relatively large profit in a short time

hostile takeover   a situation in which the management and board of directors of the firm targeted for acquisition disapprove of the merger

hourly wage    a specific amount of money paid for each hour of work

human resources management (HRM)    all the activities involved in acquiring, maintaining, and developing an organization's human resources

human resources manager    a person charged with managing an organization's human resources programs

human resources planning    the development of strategies to meet a firm's future human resources needs

hygiene factors    job factors that reduce dissatisfaction when present to an acceptable degree but that do not necessarily result in high levels of motivation

import duty (tariff)   a tax levied on a particular foreign product entering a country

import quota   a limit on the amount of a particular good that may be imported into a country during a given period of time

importing   purchasing raw materials or products in other nations and bringing them into one's own country

incentive payment    a payment in addition to wages, salary, or commissions

income statement    a summary of a firm's revenues and expenses during a specified accounting period

independent retailer    a firm that operation only one retail outlet

individual branding    the strategy in which a firm uses a different brand for each of its products

industrial union    an organization of both skilled and unskilled workers in a single industry

inflation   a general rise in the level of prices

infomercial    a program-length televised commercial message resembling an entertainment or consumer affairs program

informal group    a group created by the members themselves to accomplish goals that may or may not be relevant to an organization

informal organization    the pattern of behavior and interaction that stems from personal rather than official relationships

information    data presented in a form that is useful for a specific purpose

information society    a society in which large groups of employees generate or depend on information to perform their jobs

information technology (IT) officer    a manager at the executive level who is responsible for ensuring that a firm has the equipment necessary to provide the information the firm's employees and managers need to make effective decisions

informational role    a role in which the manager either gathers or provides information

initial public offering (IPO)   when a corporation sells common stock to the general public for the first time

injunction    a court order requiring a person or group either to perform some act or to refrain from performing some act

insider trading   the practice of board members, corporate managers, and employees buying and selling a corporation's stock

inspection    the examination of the quality of work in process

institutional advertising    advertising designed to enhance a firm's image or reputation

institutional investors   pension funds, insurance companies, mutual funds, banks, and other organizations that trade large quantities of securities

intangible assets    assets that do not exist physically but that have a value based on the rights or privileges they confer on a firm

integrated marketing communications    coordination of promotion efforts for maximum informational and persuasive impact on customers

intensive distribution    the use of all available outlets for a product

intermittent process   a manufacturing process in which a firm's manufacturing machines and equipment are changed to produce different products

internal recruiting    considering present employees as applicants for available positions

international business   all business activities that involve exchanges across national boundaries

International Monetary Fund (IMF)   an international bank with more than 150 member nations that makes short-term loans to developing countries experiencing balance-of-payment deficits

International Organization for Standardization   a nongovernmental organization in Geneva, Switzerland, with a membership of 156 countries that develops standards for products to facilitate trade across national borders

Internet    a worldwide network of computers linked through telecommunications

Internet service providers (ISPs)   provide customers with a connection to the Internet through various phone plugs and cables

interpersonal role    a role in which the manager deals with people

interpersonal skill    the ability to deal effectively with other people

intranet    a smaller version of the Internet for use only within a firm

intrapreneur    an employee who pushes an innovative idea, product, or process through an organization

inventory control    the process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs

inventory management    the process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs

inventory turnover    a financial ratio calculated by dividing the cost of goods sold in one year by the average value of the inventory

investment banking firm   an organization that assists corporations in raising funds, usually by helping sell new issues of stocks, bonds, or other financial securities

invisible hand   a term created by Adam Smith to describe how an individual's own personal gain benefits others and a nation's economy

job analysis    a systematic procedure for studying jobs to determine their various elements and requirements

job description    a list of the elements that make up a particular job

job enlargement    expanding a worker's assignments to include additional but similar tasks

job enrichment    a motivation technique that provides employees with more variety and responsibility in their jobs

job evaluation    the process of determining the relative worth of the various jobs within a firm

job redesign    a type of job enrichment in which work is restructured to cultivate the worker-job match

job rotation    the systematic shifting of employees from one job to another

job security    protection against the loss of employment

job sharing    an arrangement whereby two people share one full-time position

job specialization    the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people

job specification    a list of the qualifications required to perform a particular job

joint venture   an agreement between two or more groups to form a business entity in order to achieve a specific goal or to operate for a specific period of time

jurisdiction    the right of a particular union to organize particular workers

just-in-time inventory system    a system designed to ensure that materials or supplies arrive at a facility just when they are needed so that storage and holding costs are minimized

knowledge management   a firm's procedures for generating, using, and sharing the data and information contained in the firm's databases

labeling    the presentation of information on a product or its package

labor union    an organization of workers acting together to negotiate their wages and working conditions with employers

labor-intensive technology    a process in which people must do most of the work

laissez-faire leader    one who gives authority to employees and allows subordinates to work as they choose with a minimum of interference; communication flows horizontally among group members

leadership    the ability to influence others

leading    the process of influencing people to work toward a common goal

lease   an agreement by which the right to use real estate, equipment, or other assets is temporarily transferred from the owner to the user

letter of credit    a legal document issued by a financial institution guaranteeing to pay a seller a stated amount for a specified period of time

leveraged buyout (LBO)   a purchase arrangement that allows a firm's managers and employees or a group of investors to purchase the company

liabilities    a firm's debts and obligations

licensing   a contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation

lifestyle shopping center   an open air environment shopping center with upscale chain specialty stores

limit order   a request that a security be bought or sold at a price that is equal to or better than some specified price

limited liability   a feature of corporate ownership that limits each owner's financial liability to the amount of money that he or she has paid for the corporation's stock

limited partner   a person who contributes capital to a business but has no management responsibility or liability for losses beyond the amount he or she invested in the partnership

limited partnership   a business co-owned by one or more general partners who manage the business and limited partners who invest money in it

limited-liability company (LLC)   a form of business ownership that provides limited-liability protection and is taxed like a partnership

limited-line wholesaler    a middleman that stocks only a few product lines but carries numerous product items within each line

limited-service wholesaler    a middleman that assumes responsibility for a few wholesale services only

line extension   development of a new product that is closely related to one or more products in the existing product line but designed specifically to meet somewhat different customer needs

line management position    a position that is part of the chain of command and that includes direct responsibility for achieving the goals of the organization

line of credit    a loan that is approved before the money is actually needed

liquidity    the ease with which an asset can be converted into cash

local-area network (LAN)   A network that connects computers that are in close proximity to each other, such as an office building or a college campus

lockout    a firm's refusal to allow employees to enter the workplace

log-file records   files that store a record of the websites visited

long-term financing   money that will be used for longer than one year

long-term liabilities    debts that need not be repaid for at least one year

lump-sum salary increase    an entire pay raise taken in one lump sum

macroeconomics   the study of the national economy and the global economy

maintenance shop    a workplace in which an employee who joins the union must remain a union member as long as he or she is employed by the firm

major equipment    large tools and machines used for production purposes

Malcolm Baldrige National Quality Award   An award given by the President of the United States to organizations that apply and are judged to be outstanding in specific managerial tasks that lead to improved quality for both products and services

management    the process of coordinating people and other resources to achieve the goals of the organization

management by objectives (MBO)    a motivation technique in which managers and employees collaborate in setting goals

management development    the process of preparing managers and other professionals to assume increased responsibility in both present and future positions

management information system (MIS)    a system that provides managers with the information they need to perform their jobs as effectively as possible

managerial accounting   Provides managers and employees with the information needed to make decisions about a firm's financing, investing, and operating activities.

managerial hierarchy    the arrangement that provides increasing authority at higher levels of management

manufacturer brand    a brand that is owned by a manufacturer; same as producer brand

manufacturer's sales office    essentially a sales agent owned by a manufacturer

margin requirement   the portion of the price of a stock that cannot be borrowed

market    a group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase such products

market economy   an economic system in which businesses and individuals decide what to produce and buy, and the market determines quantities sold and prices

market order   a request that a security be purchased or sold at the current market price

market price   the price at which the quantity demanded is exactly equal to the quantity supplied

market segment    a group of individuals or organizations within a market that share one or more common characteristics

market segmentation    the process of dividing a market into segments and directing a marketing mix at a particular segment or segments rather than at the total market

market value   the price of one share of a stock at a particular time

marketing    the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives

marketing concept    a business philosophy that involves the entire organization in the process of satisfying customers' needs while achieving the organization's goals

marketing information system    a system for managing marketing information that is gathered continually from internal and external sources

marketing manager    a manager who is responsible for facilitating the exchange of products between an organization and its customers or clients

marketing mix    a combination of product, price, distribution, and promotion developed to satisfy a particular target market

marketing plan    a written document that specifies an organization's resources, objectives, strategy, and implementation and control efforts to be used in marketing a specific product or product group

marketing research    the process of systematically gathering, recording, and analyzing data concerning a particular marketing problem

marketing strategy    a plan that will enable an organization to make the best use of its resources and advantages to meet its objectives

markup    the amount a seller adds to the cost of a product to determine its basic selling price

Maslow's hierarchy of needs    a sequence of human needs in the order of their importance

mass production   A manufacturing process that lowers the cost required to produce a large number of identical or similar products over a long period of time

master limited partnership (MLP)   a business partnership that is owned and managed like a corporation but taxed like a partnership

materials handling    the actual physical handling of goods, in warehousing as well as during transportation

materials requirements planning (MRP)    a computerized system that integrates production planning and inventory control

matrix structure    an organizational structure that combines vertical and horizontal lines of authority, usually by superimposing product departmentalization on a functionally departmentalized organization

maturity date   the date on which a corporation is to repay borrowed money

measure of value    a single standard or "yardstick" used to assign values to, and compare the values of, products, services, and resources

median    the value at the exact middle of a set of data when the data are arranged in order

mediation    the use of a neutral third party to assist management and the union during their negotiations

medium of exchange    anything accepted as payment for products, services, and resources

merchant middleman    a middleman that actually takes title to products by buying them

merchant wholesaler    a middleman that purchases goods in large quantities and then sells them to other wholesalers or retailers and to institutional, farm, government, professional, or industrial users

merger   the purchase of one corporation by another

microeconomics   the study of the decisions made by individuals and businesses

middle manager    a manager who implements the strategy and major policies developed by top management

middleman    a marketing organization that links a producer and user within a marketing channel; same as marketing intermediary

minority   a racial, religious, political, national, or other group regarded as different from the larger group of which it is a part and that is often singled out for unfavorable treatment

mission    a statement of the basic purpose that makes an organization different from others

missionary salesperson    a salesperson - generally employed by a manufacturer - who visits retailers to persuade them to buy the manufacturer's products

mixed economy   an economy that exhibits elements of both capitalism and socialism

mode    the value that appears most frequently in a set of data

monetary policies   Federal Reserve decisions that determine the size of the supply of money in the nation and the level of interest rates

money    anything a society uses to purchase products, services, or resources

monopolistic competition   a market situation in which there are many buyers along with a relatively large number of sellers who differentiate their products from the products of competitors

monopoly   a market (or industry) with only one seller

morale    an employee's feelings about his or her job and superiors and about the firm itself

mortgage bond   a corporate bond secured by various assets of the issuing firm

motivating    the process of providing reasons for people to work in the best interests of an organization

motivation    the individual internal process that energizes, directs, and sustains behavior; the personal "force" that causes us to behave in a particular way

motivation factors    job factors that increase motivation but whose absence does not necessarily result in dissatisfaction

motivation-hygiene theory    the idea that satisfaction and dissatisfaction are separate and distinct dimensions

multilateral development bank (MDB)   an internationally supported bank that provides loans to developing countries to help them grow

multinational enterprise   a firm that operates on a worldwide scale without ties to any specific nation or region

multiple-unit pricing    the strategy of setting a single price for two or more units

municipal bond   sometimes called a muni, a debt security issued by a state or local government

mutual fund   a professionally managed investment vehicle that combines and invests the funds of many individual investors

Nasdaq   computerized electronic exchange system through which most over-the-counter securities are traded

National Alliance of Business (NAB)   a joint business-government program to train the hard-core unemployed

national bank    a commercial bank chartered by the U.S. Comptroller of the Currency

national debt   the total of all federal deficits

National Labor Relations Board (NLRB)    the federal agency that enforces the provisions of the Wagner Act

natural monopoly   an industry requiring huge investments in capital and within which duplication of facilities would be wasteful and thus not in the public interest

need    a personal requirement

negotiated pricing    establishing a final price through bargaining

neighborhood shopping center    a planned shopping center consisting of several small convenience and specialty stores

net asset value (NAV)   current market value of a mutual fund's portfolio minus the mutual fund's liabilities and divided by the number of outstanding shares

net income    occurs when revenues exceed expenses

net loss    occurs when expenses exceed revenues

net sales    the actual dollar amounts received by a firm for the goods and services it has sold, after adjustment for returns, allowances, and discounts

network structure    an organization in which administration is the primary function and most other functions are contracted out to other firms

news release    a typed page of about 300 words provided by an organization to the media as a form of publicity

nonprice competition    competition based on factors other than price

nonstore retailing    a type of retailing whereby consumers purchase products without visiting a store

nontariff barrier   a nontax measure imposed by a government to favor domestic over foreign suppliers

notes payable    obligations that have been secured with promissory notes

not-for-profit corporation   a corporation organized to provide a social, educational, religious, or other service rather than to earn a profit

NOW account    an interest-bearing checking account; NOW stands for negotiable order of withdrawal

objective    a specific statement detailing what an organization intends to accomplish over a shorter period of time

odd-number pricing    the strategy of setting prices using odd numbers that are slightly below whole-dollar amounts

off-price retailer    a store that buys manufacturers' seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts

oligopoly   a market (or industry) in which there are few sellers

online communities   groups of individuals or firms that want to exchange information, products, or services over the Internet

online retailing    presenting and selling products through computer connections

open corporation   a corporation whose stock is bought and sold on security exchanges and can be purchased by any individual

open-market operations    the buying and selling of U.S. government securities by the Federal Reserve System for the purpose of controlling the supply of money

operating expenses    all business costs other than the cost of goods sold

operational plan    a type of plan designed to implement tactical plans

operations management    all activities managers engage in to produce goods and services

operations manager    a manager who manages the systems that convert resources into goods and services

order getter    a salesperson who is responsible for selling a firm's products to new customers and increasing sales to present customers

order processing    activities involved in receiving and filling customers' purchase orders

order taker    a salesperson who handles repeat sales in ways that maintain positive relationships with customers

organization    a group of two or more people working together to achieve a common set of goals

organization chart    a diagram that represents the positions and relationships within an organization

organizational height    the number of layers, or levels, of management in a firm

organizing    the grouping of resources and activities to accomplish some end result in an efficient and effective manner

orientation    the process of acquainting new employees with an organization

out-of-home advertising    short promotional messages on billboards, posters, signs, and transportation vehicles

outsourcing   the process of finding outside vendors and suppliers that provid e professional help, parts, or materials at a lower cost

over-the-counter (OTC) market   a network of dealers who buy and sell the stocks of corporations that are not listed on a securities exchange

overtime    time worked in excess of forty hours in one week; under some union contracts, time worked in excess of eight hours in a single day

owners' equity    the difference between a firm's assets and its liabilities - what would be left for the owners if assets were used to pay off its liabilities

packaging    all the activities involved in developing and providing a container with graphics for a product

par value   an assigned (and often arbitrary) dollar value printed on a stock certificate

partnership   a voluntary association of two or more persons to act as co-owners of a business for profit

part-time work    permanent employment in which individuals work less than a standard work week

penetration pricing    the strategy of setting a low price for a new product

perfect (or pure) competition   the market situation in which there are many buyers and sellers of a product, and no single buyer or seller is powerful enough to affect the price of that product

performance appraisal    the evaluation of employees' current and potential levels of performance to allow managers to make objective human resources decisions

periodic discounting    temporary reduction of prices on a patterned or systematic basis

personal budget   A specific plan for spending your income

personal income    the income an individual receives from all sources less the Social Security taxes the individual must pay

personal investment   the use of your personal funds to earn a financial return

personal selling    personal communication aimed at informing customers and persuading them to buy a firm's products

PERT (Program Evaluation and Review Technique)    a scheduling technique that identifies the major activities necessary to complete a project and sequences them based on the time required to perform each one

physical distribution    all those activities concerned with the efficient movement of products from the producer to the ultimate user

physiological needs    the things we require for survival

picketing    marching back and forth in front of a place of employment with signs informing the public that a strike is in progress

piece-rate system    a compensation system under which employees are paid a certain amount for each unit of output they produce

place utility    utility created by making a product available at a location where customers wish to purchase it

plan    an outline of the actions by which an organization intends to accomplish its goals and objectives

planning    establishing organizational goals and deciding how to accomplish them

planning horizon    the period during which a plan will be in effect

plant layout    the arrangement of machinery, equipment, and personnel within a production facility

point-of-purchase display    promotional material placed within a retail store

pollution   the contamination of water, air, or land through the actions of people in an industrialized society

positioning    the development of a product image in buyers' minds relative to the images they have of competing products

possession utility    utility created by transferring title (or ownership) of a product to the buyer

preferred stock   stock owned by individuals or firms who usually do not have voting rights but whose claims on dividends are paid before those of common-stock owners

premium    a gift that a producer offers the customer in return for buying its product

premium pricing    pricing the highest quality or most versatile products higher than other models in the product line

prepaid expenses    assets that have been paid for in advance but have not yet been used

press conference    a meeting at which invited media personnel hear important news announcements and receive supplementary textual materials and photographs

price    the amount of money a seller is willing to accept in exchange for a product at a given time and under given circumstances

price competition    an emphasis on setting a price equal to or lower than competitors' prices to gain sales or market share

price leaders    products priced below the usual markup, near cost, or below cost

price lining    setting a limited number of prices for selected groups or lines of merchandise

price skimming    the strategy of charging the highest possible price for a product during the introduction stage of its life cycle

primary market   a market in which an investor purchases financial securities (via an investment bank) directly from the issuer of those securities

primary-demand advertising    advertising whose purpose is to increase the demand for all brands of a product within a specific industry

prime interest rate   the lowest rate charged by a bank for a short-term loan

private accountant    an accountant employed by a specific organization

private placement   occurs when stock and other corporate securities are sold directly to insurance companies, pension funds, or large institutional investors

problem    the discrepancy between an actual condition and a desired condition

problem-solving team   a team of knowledgeable employees brought together to tackle a specific problem

process material    a material that is used directly in the production of another product but is not readily identifiable in the finished product

producer brand    a brand that is owned by a manufacturer; same as manufacturer brand

producer price index (PPI)   an index that measures prices at the wholesale level

product    everything one receives in an exchange, including all tangible and intangible attributes and expected benefits; it may be a good, service, or idea

product deletion    the elimination of one or more products from a product line

product design    the process of creating a set of specifications from which a product can be produced

product differentiation   the process of developing and promoting differences between one's products and all similar products

product differentiation    the process of developing and promoting differences between one's product and all similar products

product life cycle    a series of stages in which a product's sales revenue and profit increase, reach a peak, and then decline

product line    a group of similar products that differ only in relatively minor characteristics

product line    a group of similar products that differ only in relatively minor characteristics

product mix    all the products a firm offers for sale

product modification    the process of changing one or more of a product's characteristics

productivity   the average level of output per worker per hour

profit   what remains after all business expenses have been deducted from sales revenue

profit sharing    the distribution of a percentage of the firm's profit among its employees

program trading   a computer-driven program to buy or sell selected stocks

promissory note   a written pledge by a borrower to pay a certain sum of money to a creditor at a specified future date

promotion    communication about an organization and its products that is intended to inform, persuade, or remind target market members

promotion mix    the particular combination of promotion methods a firm uses to reach a target market

promotional campaign    a plan for combining and using the four promotional methods - advertising, personal selling, sales promotion, and publicity - in a particular promotion mix to achieve one or more marketing goals

prospectus   a detailed written description of a new security, the issuing corporation, and the corporation's top management

proxy   a legal form listing issues to be decided at a stockholders' meeting and enabling stockholders to transfer their voting rights to some other individual or individuals

proxy fight   a technique used to gather enough stockholder votes to control the targeted company

public accountant    an accountant who provides services to clients on a fee basis

public relations    communication activities used to create and maintain favorable relations between an organization and various public groups, both internal and external

publicity    communication in news-story form about an organization, its products, or both

purchasing    all the activities involved in obtaining required materials, supplies, and parts from other firms

qualitative research    a process that involves the descriptive or subjective reporting of information discovered by a researcher

quality circle    a group of employees who meet on company time to solve problems of product quality

quality control    the process of ensuring that goods and services are produced in accordance with design specifications

quantitative research    a process that involves the collection of numerical data for analysis through a survey, experiment, or content analysis

random discounting    temporary reduction of prices on an unsystematic basis

range    the difference between the highest value and the lowest value in a set of data

rate of return   the total income you receive on an investment over a specific period of time divided by the amount invested

ratification    approval of a labor contract by a vote of the union membership

raw material    a basic material that actually becomes part of a physical product; usually comes from mines, forests, oceans, or recycled solid wastes

rebate    a return of part of the purchase price of a product

recession   two or more consecutive three-month periods of decline in a country's gross domestic product

recruiting    the process of attracting qualified job applicants

reference pricing    pricing a product at a moderate level and positioning it next to a more expensive model or brand

regional shopping center    a planned shopping center containing large department stores, numerous specialty stores, restaurants, movie theaters, and sometimes even hotels

registered bond   a bond registered in the owner's name by the issuing company

registered representative   an individual who buys and sell securities for clients, also called an account executive or stockbroker

reinforcement theory    a theory of motivation based on the premise that behavior that is rewarded is likely to be repeated, whereas behavior that is punished is less likely to recur

relationship marketing    developing mutually beneficial long-term partnerships with customers to enhance customer satisfaction and to stimulate long-term customer loyalty

replacement chart    a list of key personnel and their possible replacements within a firm

research and development (R&D)    a set of activities intended to identify new ideas that have the potential to result in new goods and services

reserve requirement    the percentage of its deposits a bank must retain, either in its own vault or on deposit with its Federal Reserve District Bank

responsibility    the duty to do a job or perform a task

retailer    a middleman that buys from producers or other middlemen and sells to consumers

retained earnings   the portion of a business's profits not distributed to stockholders

retained earnings    the portion of a business's profits not distributed to stockholders

return on owners' equity    a financial ratio calculated by dividing net income after taxes by owners' equity

return on sales    a financial ratio calculated by dividing net income after taxes by net sales; also profit margin

revenue stream   a source of revenue flowing into a firm

revenues    the dollar amounts earned by a firm from selling goods, providing services, or performing business activities

revolving credit agreement   a guaranteed line of credit

risk-return ratio   a ratio based on the principle that a high-risk decision should generate higher financial returns for a business and more conservative decisions often generate lesser returns

robotics    the use of programmable machines to perform a variety of tasks by manipulating materials and tools

safety needs    the things we require for physical and emotional security

salary    a specific amount of money paid for an employee's work during a set calendar period, regardless of the actual number of hours worked

sales forecast    an estimate of the amount of a product that an organization expects to sell during a certain period of time based on a specified level of marketing effort

sales promotion    the use of activities or materials as direct inducements to customers or salespersons

sales support personnel    employees who aid in selling but are more involved in locating prospects, educating customers, building goodwill for the firm, and providing follow-up service

sample    a free product given to customers to encourage trial

Sarbanes-Oxley Act of 2002   provides sweeping new legal protection for employees who report corporate misconduct

savings and loan association (S&L)    a financial institution that offers checking and savings accounts and certificates of deposit and that invests most of its assets in home mortgage loans and other consumer loans

scheduling    the process of ensuring that materials and other resources are at the right place at the right time

scientific management    the application of scientific principles to management of work and workers

S-corporation   a corporation that is taxed as though it were a partnership

secondary market   a market for existing financial securities that are traded between investors

secondary-market pricing    setting one price for the primary target market and a different price for another market

secure electronic transaction (SET)   an encryption process developed by MasterCard, Visa, IBM, Microsoft, and Netscape that prevents merchants from ever actually seeing any transaction data, including the customer's credit card number

Securities and Exchange Commission (SEC)   the agency that enforces federal securities regulations

securities exchange   a marketplace where member brokers meet to buy and sell securities

security average (or security index)   an average of the current market prices of selected securities

selection    the process of gathering information about applicants for a position and then using that information to choose the most appropriate applicant

selective distribution    the use of only a portion of the available outlets for a product in each geographic area

selective-demand advertising    advertising that is used to sell a particular brand of product; same as brand advertising

self-actualization needs    the need to grow and develop and to become all that we are capable of being

self-managed work teams    groups of employees with the authority and skills to manage themselves

selling short   the process of selling stock that an investor does not actually own but has borrowed from a brokerage firm and will repay at a later date

seniority    the length of time an employee has worked for an organization

serial bonds   bonds of a single issue that mature on different dates

Service Corps of Retired Executives (SCORE)   a group of retired business people who volunteer their services to small businesses through SBA

service economy    an economy in which more effort is devoted to the production of services than to the production of goods

shop steward    an employee elected by union members to serve as their representative

shopping product    an item for which buyers are willing to expend considerable effort on planning and making the purchase

short-term financing   money that will be used for one year or less

sinking fund   a sum of money to which deposits are made each year for the purpose of redeeming a bond issue

Six Sigma   A disciplined approach that relies on statistical data and improved methods to eliminate defects for a firm's products and services

skills inventory    a computerized data bank containing information on the skills and experience of all present employees

slowdown    a technique whereby workers report to their jobs but work at a slower pace than normal

small business   one that is independently owned and operated for profit and is not dominant in its field

Small Business Administration (SBA)   a governmental agency that assists, counsels, and protects the interests of small businesses in the United States

Small Business Development Center (SBDC)   a university-based group that provides individual counseling and practical training to owners of small businesses

Small Business Institute (SBI)   a group of senior and graduate students in business administration who provide management counseling to small businesses

small-business investment companies (SBICs)   privately owned firms that provide venture capital to small enterprises that meet their investment standards

social audit   a comprehensive report of what an organization has done and is doing with regard to social issues that affect it

social needs    our requirements for love and affection and a sense of belonging

social responsibility   the recognition that business activities have an impact on society and the consideration of that impact in business decision making

socioeconomic model of social responsibility   the concept that business should emphasize not only profits but also the impact of its decisions on society

sole proprietorship   a business that is owned (and usually operated) by one person

spamming   the sending of massive amounts of unsolicited e-mail

span of control    the number of workers who report directly to one manager; same as span of management

span of management    the number of workers who report directly to one manager

special-event pricing    advertised sales or price cutting linked to a holiday, season, or event

specialization   the separation of a manufacturing process into distinct tasks and the assignment of different tasks to different individuals

specialty product    an item that possesses one or more unique characteristics for which a significant group of buyers is willing to expend considerable purchasing effort

specialty-line wholesaler    a middleman that carries a select group of products within a single line

speculative production   the time lag between the actual production of goods and when the goods are sold

spreadsheet program    a software package that allows users to organize numerical data into a grid of rows and columns

staff management position    a position created to provide support, advice, and expertise within an organization

stakeholders   all the different people or groups of people who are affected by the policies and decisions made by an organization

standard of living   a loose, subjective measure of how well off an individual or a society is mainly in terms of want satisfaction through goods and services

standardization    the guidelines that let products, services, materials, and processes perform their purposes

standing committee    a relatively permanent committee charged with performing some recurring task

state bank    a commercial bank chartered by the banking authorities in the state in which it operates

statement of cash flows    a statement that illustrates how the operating, investing, and financing activities of a company affect cash during an accounting period

statistic    a measure that summarizes a particular characteristic of an entire group of numbers

statistical process control (SPC)    a system that uses random sampling to obtain data that are plotted on control charts and graphs to see if the production process is operating as it should and to pinpoint problem areas

statistical quality control (SQC)    a set of specific statistical techniques used to monitor all aspects of the production process to ensure that both work in progress and finished products meet the firm's quality standards

stock   the shares of ownership of a corporation

stock dividend   a dividend in the form of additional stock

stock split   the division of each outstanding share of a corporation's stock into a greater number of shares

stockbroker   an individual who buys and sell securities for clients, also called an account executive or registered representative

stockholder   a person who owns a corporation's stock

store brand    a brand that is owned by an individual wholesaler or retailer; same as private brand

store of value    a means of retaining and accumulating wealth

strategic alliance   a partnership formed to create competitive advantage on a worldwide basis

strategic plan   an organization's broadest plan, developed as a guide for major policy setting and decision making

strategic planning    the process of establishing an organization's major goals and objectives and allocating the resources to achieve them

strike    a temporary work stoppage by employees, calculated to add force to their demands

strikebreaker    a nonunion employee who performs the job of a striking union member

supermarket    a large self-service store that sells primarily food and household products

superstore    a large retail store that carries not only food and nonfood products ordinarily found in supermarkets but also additional product lines

supply   the quantity of a product that producers are willing to sell at each of various prices

supply    an item that facilitates production and operations but does not become part of the finished product

supply    the quantity of a product that producers are willing to sell at each of various prices

supply-chain management    long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies while creating a competitive advantage and satisfying customers

supply-chain management (SCM) software   software solutions that focus on ways to improve communication between the suppliers and users of materials and components

syndicate   a temporary association of individuals or firms organized to perform a specific task that requires a large amount of capital

synthetic process    a process in operations management in which raw materials or components are combined to create a finished product

tactical plan    a smaller-scale plan developed to implement a strategy

target market    a group of individuals or organizations, or both, for which a firm develops and maintains a marketing mix suitable for the specific needs and preferences of that group

task force    a committee established to investigate a major problem or pending decision

team   a group of workers functioning together as a unit to complete a common goal or purpose

technical salesperson    a salesperson who assists a company's current customers in technical matters

technical skill    a specific skill needed to accomplish a specialized activity

telecommuting    working at home all the time or for a portion of the work week

telemarketing    the performance of marketing-related activities by telephone

television home shopping    selling in which products are displayed to television viewers, who can then order them by calling a toll-free number and paying by credit card

tender offer   an offer to purchase the stock of a firm targeted for acquisition at a price just high enough to tempt stockholders to sell their shares

term-loan agreement   a promissory note that requires a borrower to repay a loan in monthly, quarterly, semiannual, or annual installments

Theory X    a concept of employee motivation generally consistent with Taylor's scientific management; assumes that employees dislike work and will function only in a highly controlled work environment

Theory Y    a concept of employee motivation generally consistent with the ideas of the human relations movement; assumes that employees accept responsibility and work toward organizational goals if by so doing they also achieve personal rewards

Theory Z    the belief that some middle ground between Ouchi's type A and type J practices is best for American business

time deposit    an amount on deposit in an interest-bearing savings account

time utility    utility created by making a product available when customers wish to purchase it

top manager    an upper-level executive who guides and controls the overall fortunes of an organization

total cost    the sum of the fixed costs and the variable costs attributed to a product

total quality management (TQM)    the coordination of efforts directed at improving customer satisfaction, increasing employee participation, strengthening supplier partnerships, and facilitating an organizational atmosphere of continuous quality improvement

total revenue    the total amount received from sales of a product

trade credit   a type of short-term financing extended by a seller who does not require immediate payment after delivery of merchandise

trade deficit   a negative balance of trade

trade name    the complete and legal name of an organization

trade sales promotion method    a sales promotion method designed to encourage wholesalers and retailers to stock and actively promote a manufacturer's product

trade salesperson    a salesperson - generally employed by a food producer or processor - who assists customers in promoting products, especially in retail stores

trade show    an industry-wide exhibit at which many sellers display their products

trademark    a brand name or brand mark that is registered with the U.S. Patent and Trademark Office and is thus legally protected from use by anyone except its owner

trading company   provides a link between buyers and sellers in different countries

traditional specialty store    a store that carries a narrow product mix with deep product lines

transfer pricing    prices charged in sales between an organization's units

transportation    the shipment of products to customers

trial balance    a summary of the balances of all general ledger accounts at the end of the accounting period

trustee   an individual or an independent firm that acts as a bond owner's representative

undifferentiated approach    directing a single marketing mix at the entire market for a particular product

union security    protection of the union's position as the employees' bargaining agent

union shop    a workplace in which new employees must join the union after a specified probationary period

union-management (labor) relations    the dealings between labor unions and business management, both in the bargaining process and beyond it

unlimited liability   a legal concept that holds a business owner personally responsible for all the debts of the business

unsecured financing   financing that is not backed by collateral

utility    the ability of a good or service to satisfy a human need

variable cost    a cost that depends on the number of units produced

venture capital   money that is invested in small (and sometimes struggling) firms that have the potential to become very successful

vertical channel integration    the combining of two or more stages of a distribution channel under a single firm's management

vertical marketing system (VMS)    a centrally managed distribution channel resulting from vertical channel integration

virtual team   a team consisting of members who are geographically dispersed but communicate electronically

virtuoso team   a team of exceptionally highly skilled and talented individuals brought together to produce significant change

wage survey    a collection of data on prevailing wage rates within an industry or a geographic area

warehouse club    a large-scale members-only establishment that combines features of cash-and-carry wholesaling with discount retailing

warehouse showroom    a retail facility in a large, low-cost building with large on-premises inventories and minimal service

warehousing    the set of activities involved in receiving and storing goods and preparing them for reshipment

whistle-blowing   informing the press or government officials about unethical practices within one's organization

wholesaler    a middleman that sells products to other firms

wide-area network (WAN)   a network that connects computers over a large geographic area, such as a state, province, or country

wildcat strike    a strike not approved by the strikers' union

word-processing program    software that allows a user to prepare and edit written documents and to store them in the computer or on a disk

working capital    the difference between current assets and current liabilities

World Trade Organization (WTO)   powerful successor to GATT that incorporates trade in goods, services, and ideas

World Wide Web (the web)    the Internet's multimedia environment of audio, visual, and text data

Yellow Pages advertising    simple listings or display advertisements presented under specific product categories appearing in print and online telephone directories

For Layout