Term
|
Definition
| Accepting the risk of starting and running a business. |
|
|
Term
|
Definition
| A group of experienced people from different areas of business who join together to form managerial team with the skills needed to develop, make, and market a new product. |
|
|
Term
|
Definition
| entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle. |
|
|
Term
|
Definition
| An internet-based marketing strategy in which a business rewards individuals or other businesses for each visitor or customer the affiliate sends to its web site. |
|
|
Term
|
Definition
| Creative people who work as entrepreneurs within corporations. |
|
|
Term
|
Definition
| Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other government support. |
|
|
Term
|
Definition
| Centers that offer new business low-cost offices with basic business services. |
|
|
Term
|
Definition
| A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts. |
|
|
Term
|
Definition
| A detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition, and the resources and qualifications of the owners. |
|
|
Term
|
Definition
| Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses. |
|
|
Term
Small Business Administration
(SBA) |
|
Definition
| A U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans. |
|
|
Term
Small Business Investment Company Program
(SBIC) |
|
Definition
| A program through which private investment companies licensed by the Small Business Administration lend money to small businesses. |
|
|
Term
|
Definition
| People with unsatisfied wants and needs who have both the resources and willingness to buy. |
|
|
Term
Service Corps of Retired Executives
(SCORE) |
|
Definition
| An SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost. |
|
|
Term
|
Definition
| The creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge. |
|
|
Term
|
Definition
| The term used to describe all the activities managers do to help their firms create goods. |
|
|
Term
|
Definition
| A specialized area in management that converts or transforms resources into goods and services. |
|
|
Term
|
Definition
| The value producers add to materials in the creation of finished goods and services. |
|
|
Term
|
Definition
| The part of the production process that physically or chemically changes materials. |
|
|
Term
|
Definition
| That part of production process that puts together components. |
|
|
Term
|
Definition
| A production process in which long production runs turn out finished goods over time. |
|
|
Term
|
Definition
| A production process in which the production run is short and the machines are changed frequently to make different products. |
|
|
Term
computer-aided design
(CAD) |
|
Definition
| The use of computers in the design of products. |
|
|
Term
computer-aided manufacturing
(CAM) |
|
Definition
| The use of computers in the manufacturing of products. |
|
|
Term
computer-intergrated manufacturing
(CIM) |
|
Definition
| The uniting of computer-aided design with computer-aided manufacturing. |
|
|
Term
|
Definition
| Designing machines to do multiple tasks so that they can produce a variety of products. |
|
|
Term
|
Definition
| The production of goods using less of everything compared to mass production. |
|
|
Term
|
Definition
| Tailoring products to meet the needs of individual customers. |
|
|
Term
|
Definition
| The process of selecting a geographic location for a company's operations. |
|
|
Term
|
Definition
| Working from home via computer and modem. |
|
|
Term
|
Definition
| The physical arrangement of resources in the production process. |
|
|
Term
material requirement planning
(MRP) |
|
Definition
| A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place. |
|
|
Term
enterprise resource planning
(ERP) |
|
Definition
| A newer version of materials requirement planning (MRP) that combines the computerized functions of all the divisions and subsidiaries of the firm-such as finance, human resources, and other fulfillment-into a single integrated software program that uses a single database. |
|
|
Term
|
Definition
| The function in a firm that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for goods and services. |
|
|
Term
just-in-time inventory control
(JIT) |
|
Definition
| A production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line. |
|
|
Term
|
Definition
| Consistently producing what the customer wants while reducing errors before and after delivery to the customer. |
|
|
Term
|
Definition
| A quality measure that allows only 3.4 defects per million opportunities. |
|
|
Term
statistical quality control
(SQC) |
|
Definition
| The process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning. |
|
|
Term
statistical process control
(SPC) |
|
Definition
| The process of testing statistical samples of product samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the test standards. |
|
|
Term
|
Definition
| The common name given to quality management and assurance standards. |
|
|
Term
|
Definition
| A collection of the best practices for managing an organization's impact on the environment. |
|
|
Term
program evaluation and review technique
(PERT) |
|
Definition
| A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project. |
|
|
Term
|
Definition
| Bar graph showing production managers what projects are being worked on and what stage they are in at any given time. |
|
|
Term
|
Definition
| In a PERT network, the sequence of tasks that takes the longest time to complete |
|
|
Term
|
Definition
| The assessment of a firm's financial condition and interpretations of financial ratios developed from the firm's financial statements. |
|
|
Term
|
Definition
| The recording,classifying, summarizing and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions. |
|
|
Term
|
Definition
| Accounting used to provide information and analyses to managers inside the organization to assist them in decision making. |
|
|
Term
| Certified Management Accountant (CMA) |
|
Definition
| A professional accountant who has met certain educational and experience requirements, passed a qualifying exam, and been certified by the Insistute of Certified Management Accountants |
|
|
Term
|
Definition
| Accounting information and analyses preppared for people outside the organization |
|
|
Term
|
Definition
| A yearly statement of the financial condition, progress, and expectations of an organization |
|
|
Term
|
Definition
| An accountant who works for a single firm, government agency, or nonprofit organization. |
|
|
Term
|
Definition
| An accountant who provides accounting services to individuals or businesses on a fee basis. |
|
|
Term
| Certified Public Accountant (CPA) |
|
Definition
| An accountant who passes a series of examiniations established by the American Institute of Certified Public Accountants (AICPA) |
|
|
Term
|
Definition
| The job of reviewing and evaluating information used to prepare a companys financial statements. |
|
|
Term
|
Definition
| An evaluation and unbiased opinion about the accuracy of a companys financial statements. |
|
|
Term
| Certified Internal Auditor (CIA) |
|
Definition
| An accountant who has a bachelor's degree and two years of expierence in internal auditing, and who has passed an exam administered by the Institute of Internal Auditors |
|
|
Term
|
Definition
| An accountant trained in tax law and responsible for preparing tax returns or developing tax strategies |
|
|
Term
| government and not-for-profit accounting |
|
Definition
| Accounting system for organizations whose purpose is not generating a profit but serving ratepayers, taxpayers, and others according to a duly approved budget. |
|
|
Term
|
Definition
| A six-step procedure that results in the preparation and analysis of the major financial statements. |
|
|
Term
|
Definition
| The recording of busniess transactions |
|
|
Term
|
Definition
| The record book or computer program where accounting data are first entered |
|
|
Term
|
Definition
| The practice of writing every business transaction in two places |
|
|
Term
|
Definition
| A specialized accounting book or computer program in which information from accounting journals is accumulated into specific categories and posted so that managers can find all the information about one account in the same place. |
|
|
Term
|
Definition
| A summary of all the financial data in the account ledgers that ensures the figures are correct and balanced |
|
|
Term
|
Definition
| A summary of all the transactions that have occured over a particular period |
|
|
Term
| Fundamental Accounting Equation |
|
Definition
| Assets=Liabilities+Owners Equit; this is the basis for the balance sheet |
|
|
Term
|
Definition
| Financial Statement that reports a firms financial condition at a specific time and is composed of 3 major accounts: aassests, liabilites, and owners equity. |
|
|
Term
|
Definition
| Economic resources( things of value ) owned by a firm. |
|
|
Term
|
Definition
| The ease with which an assest can be converted into cash. |
|
|
Term
|
Definition
| Items that can or will be converted into cash within 1 year. |
|
|
Term
|
Definition
| Long-term assests (patents, trademarks,copyrights) that have no real physical form but do have value |
|
|
Term
|
Definition
| Assets that are relatively permanent, such as land, buildings, and equipment |
|
|
Term
|
Definition
| What the business owes to others (debt) |
|
|
Term
|
Definition
| Current liabilities are bills the company owes to others for merchandise or services purchased on credit but not yet paid for |
|
|
Term
|
Definition
| Short-term or long-term liabilities that a business promises to repay by a certain date |
|
|
Term
|
Definition
| Long-term liabilites that represent money lent to the firm that must be paid back. |
|
|
Term
|
Definition
| The amount of the business that belongs to the owners minus any liabilities owed by the business. |
|
|
Term
|
Definition
| The accumulated earnings from a firms profitable operations that were reinvested in the bussiness and not paid out to stockholders in dividends. |
|
|
Term
|
Definition
| The financial statement that shows a firms profit after costs, expenses, and taxes; it summarizes all of the resources that have come into the firm (revenue), all the resources that have left the firm, and the resulting net income |
|
|
Term
|
Definition
| Revenue left over after all costs and expenses, including taxes, are paid. |
|
|
Term
| Costs of goods sold(or cost of goods manufactured) |
|
Definition
| A measure of the cost of merchandise sold or cost of raw materials and supplies used for producing items for resale |
|
|
Term
| Gross Profit (or gross margin) |
|
Definition
| How much a firm earned by buying (or making) and selling merchandise. |
|
|
Term
|
Definition
| Costs involved in operating a business, such as rent, utilities and salaries . |
|
|
Term
|
Definition
| The system write-off of the cost of a tangible assest over its estimated useful life |
|
|
Term
|
Definition
| Financial Statement that reports cash receipts and disbursements related to a firms three major activities: operations, investments, and financing |
|
|
Term
|
Definition
| The difference between cash coming in and cash going out of a business |
|
|
Term
|
Definition
| The assesment of a firms financial condition using calculations and interpretations of financial ratios developed from the firms financial statements |
|
|
Term
| Initial public offering (IPO) |
|
Definition
| The first public offering of a corporations stock |
|
|
Term
|
Definition
| Specialists who assist in the issue and sale of new securities |
|
|
Term
|
Definition
| Large organizations- such as pension funds, mutual funds, and insurance companies- that invest their own funds or the funds of others |
|
|
Term
|
Definition
| An organization whose members can buy and sell (exchange) securities for companies and individual investors |
|
|
Term
| over-the-counter (OTC) market |
|
Definition
| Exchange that provides a means to trade stocks not listed on the national exchanges |
|
|
Term
|
Definition
| A nationwide electronic system that links dealers across the nation so that they can buy and sell securities electronically |
|
|
Term
| Securities and Exchange Commission (SEC) |
|
Definition
| Federal agency that has responsibility for regulating the various stock exchanges |
|
|
Term
|
Definition
| A condensed version of economic and financial information that a company must file with the SEC before issuing stock; Â must be sent to prosoective investors. |
|
|
Term
|
Definition
| Shares of ownership in a company |
|
|
Term
|
Definition
| Evidence of stock ownership that specifies the name of the company, the number of shares it represents, and the type of stock being issued. |
|
|
Term
|
Definition
| Part of a firms profits that the firm may distribute to stockholders as either cash payments of additional shares of stock |
|
|
Term
|
Definition
| The most basic form of ownership in a firm; it confers voting rights and the right to share in the firms profits through dividends, if approved by the firms board of directors |
|
|
Term
|
Definition
| Stock that gives its owners preference in the payment of dividends and an earlier claim on assets than common stock holders if the company is forced out of business and its assests sold |
|
|
Term
|
Definition
| A corporate certificate indicating that a person has lent money to a firm (or a government) |
|
|
Term
|
Definition
| The exact date the issuer of a bond must pay the prinicpal to the bondholder |
|
|
Term
|
Definition
| The payment the issuer of the bond makes to the bondholders for use of the borrowed money |
|
|
Term
|
Definition
| Bonds, that are unsecured (ie- not backed by any collateral) |
|
|
Term
| Secure Bonds (Mortgage Bonds) |
|
Definition
| Bonds that are backed by collateral |
|
|
Term
|
Definition
| A reserve account in which the issuer of a bond periodically retires some part of the bond principal prior to maturity so that enough capital will be accumulated by the maturity date to pay off the bond |
|
|
Term
|
Definition
| A registered representative who works as a market intermediary to buy and sell securites for clients. |
|
|
Term
|
Definition
| Buying several different investment alternatives to spread the risk of investing |
|
|
Term
|
Definition
| The positive difference between the purchase price of a stock and its sale price |
|
|
Term
|
Definition
| An action by a company that gives stockholders two or more shares of stock for each one they own |
|
|
Term
|
Definition
| Purchasing stocks by borrowing some of the purchase cost from the brokerage firm |
|
|
Term
|
Definition
| High-risk, high-interest bonds |
|
|
Term
|
Definition
| An organization that buys stocks and bonds and then sells shares in those securities to the public |
|
|
Term
| exchange-traded funds (ETFs) |
|
Definition
| Collections of stocks and bonds that are traded on exchanges but are traded more like individual sotcks than like mutual funds |
|
|
Term
| Dow Jones Industrial Average (the Dow) |
|
Definition
| The average cost of 30 selected industrial stocks, used to give an indication of the direction (up or down) of the stock market over time. |
|
|
Term
|
Definition
| Giving instructions to computers to automatically sell if the price of a stock dips to a certain point to avoid potential losses. |
|
|
Term
|
Definition
| Security market that handles the sale of new securities |
|
|
Term
|
Definition
| Security market that handles the trading of sold securities between investors, with the proceeds of the sale going to the investor selling the stock, not the corporation whose stock is sold |
|
|
Term
|
Definition
| Investment banking firm buys the entire stock or bond issue at an agreed-on discount, which can be quite sizable, and then sells the issue to private or institutional investors at full price |
|
|
Term
|
Definition
| Dollar ammount assigned to each share of stock by the corporations charter |
|
|
Term
|
Definition
| Stock that can be required that the stockholder has to sell their shares back to the corporation |
|
|
Term
|
Definition
| if one or more dividends are not paid when promised to prefered stockholders, they accumulate and the corporation must pay them later before it can distribute any common stock dividends |
|
|
Term
|
Definition
|
|
Term
|
Definition
| permits the bond issuer to pay off the principal before its maturity date |
|
|
Term
|
Definition
| investors can convert shares of common stock in the issuing company |
|
|
Term
|
Definition
| The chance an investment will be worth less at some future time than its worth now |
|
|
Term
|
Definition
| The expected rate of return on an investment, such as an interest or dividends usually over a period of one year |
|
|
Term
|
Definition
| The length of time your money is committed to an investment |
|
|
Term
|
Definition
| How quickly you can get back your invested funds if you want or need them |
|
|
Term
|
Definition
| How the investment will affect your tax situation |
|
|
Term
|
Definition
| Belief that stock prices are going to rise; they buy stock in anticipation of the increase |
|
|
Term
|
Definition
| belief that stock prices will decline and sell their stock in anticipation of falling prices |
|
|
Term
|
Definition
| Stocks issued by higher-quality companies that pay regular dividends and generally expierence consistent stock price appreciation |
|
|
Term
|
Definition
| Stocks of corporations in emerging fields whose earnings are expected to grow at a faster rate then other stocks. Riskier stocks that offer the potential for higher returns. |
|
|
Term
|
Definition
| Stocks of public utilities that offer investors a high dividend yield that generally keeps pace with inflation. |
|
|
Term
|
Definition
| risky investments in stock of companies that compete in high-risk industries (ie-oil companies) |
|
|
Term
|
Definition
| purchasing 100 shares at a time |
|
|
Term
|
Definition
| purchasing fewer than 100 shares at a time |
|
|
Term
|
Definition
| Bonds that do not have features that make it attractive to investors may have to sell bonds at a? |
|
|
Term
|
Definition
| Bonds that have features that make it attractive to investors could be sold at a? |
|
|
Term
|
Definition
| charges investors a comission to buy or sell its shares |
|
|
Term
|
Definition
|
|
Term
|
Definition
| mutual funds that accept the investments of any interested investors |
|
|
Term
|
Definition
| limit the number of shares; once the fund reaches its target number, no new investors can buy into the fund |
|
|
Term
|
Definition
| caused when too many investors drive the price of something unrealistcally high |
|
|
Term
|
Definition
| The function in a business that acquires funds for the firm and manages thoose funds within the firm |
|
|
Term
|
Definition
| The job of managing a firms resources so it can meet its goals and objectives |
|
|
Term
|
Definition
| Managers who examine financial data prepared by accountants and reccomend strategies for improving the financial performance of the firm |
|
|
Term
|
Definition
| Forecast that predicts revenues, costs, and expenses for a period of one year or less |
|
|
Term
|
Definition
| Forecast that predicts the cash inflows and outflows in future periods, usually months or quarters |
|
|
Term
|
Definition
| Forecast that predicts revenues, costs and expenses for a period longer than 1 year, and sometimes as far as 5 or 10 years into the future |
|
|
Term
|
Definition
| A financial plan that sets forth managements expectations, and, on the basis of those expectations, allocates the use of specific resources throughout the firm |
|
|
Term
|
Definition
| A budget that highlights a firms spending plans for major assest purchases that often require large sums of money |
|
|
Term
|
Definition
| A budget that estimates cash inflows and outflows during a particular period like a month or a quarter |
|
|
Term
| Operating (or master) budget |
|
Definition
| The budget that ties together the firms other budgets and summarizes its proposed financial activities |
|
|
Term
|
Definition
| A process in which a firm periodically compares its actual revenues, costs and expenses with a budget |
|
|
Term
|
Definition
| Major investments in either tangiable long-term assests such as land, buildings, and equipment or intangible assests such as patents, trademarks and copyrights |
|
|
Term
|
Definition
| Funds raised through various forms of borrowing that must be repaid |
|
|
Term
|
Definition
| Money raised from within the firm, from operations or through the sale of ownership in the firm (stock) |
|
|
Term
|
Definition
| Funds needed for a year or less |
|
|
Term
|
Definition
| Funds needed for more than a year (usually 2 to 10) |
|
|
Term
|
Definition
| The practice of buying goods and services now and paying for them later. |
|
|
Term
|
Definition
| A written contract with a promise to pay a supplier a specific sum of money at a definite time |
|
|
Term
|
Definition
| A loan backed by collateral, something valuable such as property |
|
|
Term
|
Definition
| A loan that doesnt require any collateral |
|
|
Term
|
Definition
| A given amount of unsecured short-term funds a bank will lend to a business, provided the funds are readily available |
|
|
Term
|
Definition
| A line of credit thats guaranteed but usally comes with a fee |
|
|
Term
| Commercial Finance Companies |
|
Definition
| Organizations that make short-term loans to borrowers who offer tangible assets as collateral |
|
|
Term
|
Definition
| The process of selling accounts recievable for cash |
|
|
Term
|
Definition
| Unsecured promissory notes of 100,000$ and up that mature(come due) in 270 days or less |
|
|
Term
|
Definition
| A promissory note that requires the borrower to repay the loan in specified installments. |
|
|
Term
|
Definition
| The principle that the greater the risk a lender takes in making a loan, the hight the interest rate required. |
|
|
Term
|
Definition
| The terms of agreement in a bond issue |
|
|
Term
|
Definition
| A bond with some form of collateral |
|
|
Term
|
Definition
| A bond backed by only the reputation of the issuer; also called a debenture bond |
|
|
Term
|
Definition
| Money that is invested in new or emerging companies that are perceived as having great profit potential |
|
|
Term
|
Definition
| Raising needed funds through borrowing to increase a firms rate of return |
|
|
Term
|
Definition
| The rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holders |
|
|
