Business Chapter 2-5

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  1. Standards of conduct and moral values regarding right and wrong action in the work environment.
    Business Ethics
  2. What are the stages of ethical development?
    • Preconventional
    • Conventional
    • Postconventional
  3. Situation in which an employee must choose between a business's welfare and personal gain
    Conflict of Interes
  4. Adhering to deeply felt ethical principles in business situations
  5. Employee's disclosure to company officials, government authorities, or the media of illegal, immoral, or unethical practices committed by an organization
  6. Formal statement that defines how an organization expects its employees to resolve ethical issues
    Code of Conduct
  7. Is the action legal?
    Does it comply with our values?
    If you do it, will you feel bad?
    How will it look in the newspaper?
    If you know it's wrong, don't do it!
    If you're not sure, ask!
    Keep asking until you get an answer.
    Ethical Action
  8. Top management should reflect the same ethical values they want lower division employees to follow
    Ethical Leadership
  9. Business's consideration of society's well being and consumer satisfaction, in addition to profits.
    Social Responsibility
  10. Effort of an organization to make a contribution to the communities in which it earns profit
    Corporate Philanthropy
  11. Public demand that a business consider the wants and needs of its customers in making decisions
  12. Study of small economic units, such as individual consumers, families, and businesses.
  13. Social science that analyzes the choices people and governments make in allocating scarce resources.
  14. Study of a nation's overall economic issues, such as how an economy maintains and allocates resources and how a governments's policies affect the standards of living of its citizens
  15. Willingness and ability of buyers to purchase goods and services
  16. Willingness and ability of sellers to provide goods and services
  17. Graph of the amount of a product that buyers will purchase at different prices. Slopes down and to the right.
    Demand Curve
  18. Graph that shows the relationship between the different prices and the quantities that sellers will offer for sale, regardless of demand. Slopes up and to the right.
    Supply Curve
  19. Prevailing market price at which you can buy an item
    Equilibrium Price
  20. Market structure in which large numbers of buyers and sellers exchange homogeneous products and no single participant has a significant influence on price.
    Pure Competition
  21. Market structure in which large numbers of buyers and sellers exchange heterogeneous products so each participant has some control over price
    Monopolistic Competition
  22. Market situation in which relatively few sellers compete and high start up costs form barriers to keep out new competitors
  23. Market situation in which a single seller dominates trade in a good or service for which buyers can find no close substitutes.
  24. Government controls determine business ownership, profits, and resource allocation to accomplish government goals rather than those set by individual firms
    Planned Economy
  25. Economic system in which all property would be shared equally bu the people of a community under the direction of a strong central government.
  26. Economic system characterized by government ownership and operation of major industries such as communications
  27. Economic system that draws from both types of economies, to different degrees
    Mixed Market Economy
  28. Unemployment remains low, consumer confidence about future leads to more purchases, and businesses expand
  29. Cyclical economic contraction that lasts for six months or longer
  30. Economic slowdown continues in a downward spiral over an extended period of time
  31. The economy emerges from recession and consumer spending picks up steam.
  32. Relationship between the number of units produced and the number of human and other production inputs necessary to produce them
  33. Sum of all goods and services produced within a country's boundaries during a specific time period, such as a year
    Gross Domestic Product (GDP)
  34. Rising prices caused by a combination of excess consumer demand and increases in the costs of raw materials, component parts, human resources, and other factors of production.
  35. Measurement of the monthly average change in prices of goods and services.
    Consumer Price Index (CPI)
  36. Percentage of the total workforce actively seeking work but are currently unemployed
    Unemployment rate
  37. Government actions to increase or decrease the money supply and change banking requirements and interest rates to influence bankers' willingness to make loans
    Monetary Policy
  38. Responsible for formulating and implementing the nation;s monetary policy
    Federal Reserve System
  39. Governments spending and taxation decisions designed to control inflation, reduce unemployment, improve the general welfare of citizens, and encourage economic growth
    Fiscal Policy
  40. Domestically produced goods and services sold in other countries
  41. Foreign goods and services purchased by domestic customers
  42. Making a product for which it can maintain a monopoly or that it can produce at a lower cost than any competitor
    Absolute Advantage
  43. Supplying products more efficiently and at a lower price than it can supply other goods, compared with the outputs of other countries.
    Comparative Advantage
  44. If a country exports more than it imports, it achieves a positive balance of trade
    Trade Surplus
  45. If a country imports more than it exports, it produces a negative balance of trade
    Trade deficit
  46. Difference between a nation;s exports and imports
    Balance of Trade
  47. Overall money flows into and out of a country
    Balance of Payments
  48. Value of one nation's currency relative to the currencies of other countries
    Exchange Rate
  49. Basic systems of communication, transportation, and energy facilities in a country
  50. Tax imposed on imported goods
  51. Limit set on the amounts of particular products that can be imported
  52. Total ban on importing specific products or a total halt to trading with a particular country
  53. Restriction on importation of certain products or against certain companies to reduce trade and expenditures of foreign currency
    Exchange Control
  54. 153 member international institution that monitors GATT agreements and mediates international trade disputes
    World Trade Organization (WTO)
  55. Organization established by industrialized nations to lend money to less developed countries
    World Bank
  56. Organization created to promote trade, eliminate barriers, and make short term loans to member nations that are unable to meet their budgets
    International Monetary Fund (IMF)
  57. Trade freely among themselves without tariffs or trade restrictions
    Free-Trade area
  58. Sets up a free trade area and specifies a uniform tariff structure for members trade with nonmember nations
    Customs Union
  59. Members go beyond a customs union and try to bring all of their trade rules into agreement, Also known as economic union.
    Common Market
  60. When a firm brings in goods produced abroad to sell domestically
  61. When companies produce or purchase goods at home and sell them in overseas markets
  62. Barter agreement whereby trade between two or more nations involves payment made in the form of local products instead of currency
  63. International agreement in which one firm allows another to produce or sell its product. or use its trademark, patent, or manufacturing processes, in a specific geographical area in return for royalties or other compensation
    Foreign License Agreement
  64. Contractual agreement in which a franchise gains the right to produce and/or sell the franchiser's products under that company's brand name if they agree to certain operating requirements
  65. Investing directly in production and marketing operations in a foreign country is the ultimate level of global involvement
    Direct Investment
  66. A company purchases another existing firm in the host country
  67. Partnership between companies formed for a specific undertaking
    Joint Venture
  68. Developing and marketing products to serve different needs and tastes of seperate national markets
    Multidomestic Business Strategy
Card Set:
Business Chapter 2-5
2013-03-20 21:17:04

Business terms
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