Bus 101 Definitions

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  • Topic: Trade union, Types of business entity, Union shop
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  • Published : February 26, 2013
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Business 101

Chapter 1-
1. Business- Any activity that seeks to provide goods and services to others while operating at a profit 2. Revenue- The total amount of money a business takes in during a given period by selling goods and services 3. Goods- Tangible products such as computers, food, clothing, cars, and appliances 4. Database- An electronic storage file where information is kept; one use of database is to store vast amounts of information about consumers 5. Standard of living- The amount of goods and services people can buy with the money they have 6. Demography- The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income 7. Stakeholders- All the people who stand to gain or lose by the policies and activities of a business 8. Profit- The amount of money a business rearns above and beyond what it spends for salaries and other expenses 9. Entrepreneur- A person who risks time and money to start and manage a business 10. Business environment- The surrounding factors that either help or hinder the development of business

Chapter 2-
1. Economics -- The study of how society employs resources to produce goods and services for consumption among various groups and individuals. 2. Macroeconomics -- Concentrates on the operation of a nation’s economy as a whole. 3. Microeconomics -- Concentrates on the behavior of people and organizations in markets for particular products or services. 4. Resource Development -- The study of how to increase resources and create conditions that will make better use of them. 5. Capitalism -- All or most of the land, factories and stores are owned by individuals, not the government, and operated for profit. 6. Socialism -- An economic system based on the premise that some basic businesses, like utilities, should be owned by the government in order to more evenly distribute profits among the people. 7. Mixed Economies -- Some allocation of resources is made by the market and some by the government. 8. Gross Domestic Product (GDP) -- Total value of final goods and services produced in a country in a given year. As long as a company is within a country’s border, their numbers go into the country’s GDP (even if they are foreign-owned). 9. Business Cycles -- Periodic rises and falls that occur in economies over time. 10. Fiscal Policy -- The federal government’s efforts to keep the economy stable by increasing or decreasing taxes or government spending.

Chapter 3-
1. Importing -- Buying products from another country.
2. Exporting -- Selling products to another country.
3. Comparative Advantage -- A country should sell the products it produces most efficiently and buy from other countries the products it cannot produce as efficiently. 4. Absolute Advantage -- A country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries. 5. Balance of Trade -- The total value of a nation’s exports compared to its imports measured over time. 6. Trade Surplus -- When the value of a country’s exports is more than that of its imports. 7. Trade Deficit -- When the value of a country’s exports is less than that of its imports. 8. Exchange Rate -- The value of one nation’s currency relative to the currencies of other countries. 9. Devaluation -- Lowers the value of a nation’s currency relative to others. 10. Countertrading -- Complex form of bartering in which several countries each trade goods or services for other goods or services.

Chapter 4-
1. Ethics -- The standards of moral behavior. Behaviors that are accepted by society as right versus wrong. 2. Compliance-Based Ethics Code -- Emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers. 3. Integrity-Based Ethics Code -- Define the organization’s guiding values, create an...
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