Intro to Business

A franchise is a contractual agreement in which a franchisee gains the right to produce and/or sell the franchisor's products under that company's brand name if they agree to certain operating requirements.

The fiscal policy is the government spending and taxation decisions designed to control inflation, reduce unemployment, improve the general welfare of citizens, and encourage economic growth.

GDP is the sum of all goods and services produced within a country's boundaries during a specific time period.

The four basic inputs for effective operation:

• ⇢ natural resources
• ⇢ capital
• ⇢ human resources
• ⇢ entrepreneurship.

NAFTA is an agreement among the United States, Canada, and Mexico to break down tariffs and trade restrictions.

Oligopoly is a market structure in which relatively few sellers compete and high start-up costs form barriers to keep out new competitors.

The monetary policy is the governments actions to increase or decrease the money supply and change banking requirements and interest rates to influence bankers' willingness to make loans. (p. 91)

A recession is a cyclical economic contraction that lasts for six months or longer.

Social responsibility is a business's consideration of society's well-being and consumers satisfaction, in addition to profits.

Economics is the social science that analyzes the choices people and governments make in allocating scarce resources.

A corporation is a legal organization whose assets and liabilities are separate from those of the owner(s).

Business ethics are the standards of conduct and moral values regarding right and wrong actions in the work environment.

A tariff is a tax imposed on imported goods

A social audit is a formal procedure that identifies and evaluates all company activities that relate to social issues such as conservation, employment practices, environmental protection, and philanthropy.

A demand curve is a graph of the amount of a product that buyers will purchase at different prices.

A supply curve is a graph that shows the relationship between different prices and the quantities that sellers will offer for sale, regardless of demand.

A strategic alliance is a partnership formed to create a competitive advantage for the businesses involved; in international business, a business strategy in which a company finds a partner in the country where it wants business .

Relationship management is a collection of activities that build and maintain ongoing, mutually beneficial ties with customers and other parties.

Capitalism is an economic system that rewards firms for their ability to perceive and service the needs and demands of consumers; also called the private enterprise system.

Communism is a economics system in which all property would be shared equally by the people of a community under the direction of a strong central government.

A mixed market economy is an economic system that draws from both types of economies, to different degrees.