accounting (p. 550) 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.

accounting cycle (p. 555) A six-step procedure that results in the preparation and analysis of the two major financial statements: the balance sheet and the income statement.

acquisition (p. 148) A company’s purchase of the property and obligations of another company.

Active Corps of Executives (ACE) (p. 189) SBA volunteers from industry, trade associations, and education who counsel small businesses.

administered distribution system (p. 478) A distribution system in which producers manage all of the marketing functions at the retail level.

administrative agencies (p. 117) Institutions created by Congress or state legislatures with delegated power to pass rules and regulations within their mandated area of authority.

advertising (p. 491) Paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the advertising message.

affirmative action (p. 352) Employment activities designed to "right past wrongs" by increasing opportunities for minorities and women.

agency shop agreement (p. 368) Clause in a labor–management agreement that says employers may hire nonunion workers; employees are not required to join the union but must pay a union fee.

American dream -Americans’ hope for a better quality of life and a higher standard of living than their parents’.

American Federation of Labor (AFL) (p. 364) An organization of craft unions that championed fundamental labor issues; founded in 1886.

annual report (p. 552) A yearly statement of the financial condition and progress of an organization.

annuity (p. 688) A contract to make regular payments to a person for life or for a fixed period.

apprentice programs (p. 339) Training programs involving a period during which a learner works alongside an experienced employee to master the skills and procedures of a craft.

arbitration (p. 369) The agreement to bring in an impartial third party (an arbitrator) to render a binding decision in a labor dispute.

assembly process (p. 276) That part of the production process that puts together components.

assets (p. 556) Economic resources owned by a firm.

auditing (p. 553) The job of reviewing and evaluating the records used to prepare a company’s financial statements.

autocratic leadership (p. 217) Leadership style that involves making managerial decisions without consulting others.

automatically fed to a computer Standard procedure of inputting specific information into a computer on a regular basis.

B2C Business to consumer.

balance of payments (p. 69) The difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investment.

balance of trade (p. 68) A nation’s relationship of exports to imports.

balance sheet (p. 556) The financial statement that reports a firm’s financial condition at a specific time.

banker’s acceptance (p. 665) A promise that the bank will pay some specified amount at a particular time.

bankruptcy (p. 127) The legal process by which a person, business, or government entity unable to meet financial obligations is relieved of those obligations by having the court divide any assets among creditors, freeing the debtor to begin anew.

bargaining zone (p. 369) Range of options between the initial and final offer that each party will consider before negotiations dissolve or reach an impasse.

barter (p. 648) The trading of goods and services for other goods and services directly.

been there, done that Having prior experience with a situation or task.

benefit segmentation (p. 412) Dividing the market by determining which benefits of the product to talk about.

bit of kick A rather strong or spicy taste added to a product or beverage.

black mark A negative evaluation.

blue chip stocks (p. 627) Stocks of high-quality companies that pay regular dividends and generate con sistent growth in the company’s stock price.

blue flu Calling in sick when you’re really not. The blue refers to the color of the uniform some workers wear.

bond (p. 613) A corporate certificate (IOU) indicating that a person has lent money to a firm.

bookkeeping (p. 554) The recording of business transactions.

bossy Telling employees what to do and not listening to their suggestions.

bottom line The last line in a profit and loss statement; it refers to net profit.

bought into To have accepted completely.

bowing to competition Following what competition does.

brand (p. 436) A name, symbol, or design (or combination thereof) that identifies the goods or services of one seller or group of sellers and distinguishes them from the goods and services of competitors.

brand association (p. 438) The linking of a brand to other favorable images.

brand awareness (p. 438) How quickly or easily a given brand name comes to mind when a product category is mentioned.

brand equity (p. 437) The combination of factors such as awareness, loyalty, perceived quality, images, and emotions people associate with a given brand name.

brand loyalty (p. 437) The degree to which customers are satisfied, like the brand, and are committed to further purchase.

brand manager (p. 438) A manager who has direct responsibility for one brand or one product line.

brand name (p. 400) A word, letter, or group of words or letters that differentiates one seller’s goods and services from those of competitors.

breach of contract (p. 122) When one party fails to follow the terms of a contract.

break-even analysis (p. 447) The process used to determine profitability at various levels of sales.

brick-and-mortar store Stores with traditional physical buildings as opposed to stores on the Internet.

broadband technology (p. 526) Technology that delivers voice, video, and data through the Internet.

brokers (p. 461) Marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don’t take title to the goods.

budget (p. 567) A financial plan that sets forth management’s expectations for revenues and, based on those expectations, allocates the use of specific resources throughout the firm.

bureaucracy (p. 236) An organization with many layers of managers who set rules and regulations and oversee all decisions.

business (p. 4) Any activity that seeks profit by providing goods and services to others.

business law (p. 116) Rules, statutes, codes, and regulations that are established to provide a legal framework within which business may be conducted and that are enforceable by court action.

business plan (p. 181) 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 owner(s).

business-to-business (B2B) market (p. 409) All the individuals and organizations that want goods and services for use in producing other goods and services or to sell, rent, or supply to others.

buying on margin (p. 630) Purchasing stocks by borrowing some of the purchase cost from the brokerage firm.

callable bond (p. 616) A bond that gives the issuer the right to pay off the bond before its maturity.

cannibalized business One franchise pulls business away from another franchise.

capital budget (p. 588) A budget that highlights a firm’s spending plans for major asset purchases that often require large sums of money.

capital expenditures (p. 592) Major investments in long-term assets such as land, buildings, equipment, or research and development.

capital gains (p. 626) The positive difference between the purchase price of a stock and its sale price.

capitalism (p. 37) An economic system in which all or most of the factors of production and distribution are privately owned and operated for profit.

cash-and-carry wholesalers (p. 469) Wholesalers that serve mostly smaller retailers with a limited assortment of products.

cash budget (p. 588) A budget that estimates a firm’s projected cash balance at the end of a given period.

cash flow (p. 562) The difference between cash coming in and cash going out of a business.

cash flow forecast (p. 586) Forecast that predicts the cash inflows and outflows in future periods.

category killer stores (p. 472) Large stores that offer wide selection at competitive prices.

celebrity stargazers Customers that attend the opening of a new business hoping to see or meet a celebrity.

centralized authority (p. 244) An organization structure in which decision-making authority is maintained at the top level of management at the company’s headquarters.

certificate of deposit (CD) (p. 657) A time-_deposit (savings) account that earns interest to be delivered at the end of the certificate’s maturity date.

certification (p. 365) Process of a union’s becoming recognized by the National Labor Relations Board as the bargaining agent for a group of employees.

certified internal auditor (p. 553) An accountant who has a bachelor’s degree and two years of experience in internal auditing, and who has passed an exam administered by the Institute of Internal Auditors.

certified management accountant (p. 551) A professional accountant who has met certain educational and experience requirements and been certified by the Institute of Certified Management Accountants.

certified public accountant (CPA) (p. 552) An accountant who passes a series of examinations established by the American Institute of Certified Public Accountants.

channel of distribution (p. 460) A whole set of marketing intermediaries, such as wholesalers and retailers, who join together to transport and store goods in their path (or channel) from producers to consumers.

chicken dance An American dance that involves flapping arms like a bird.

climbed the ladder Promoted to higher level jobs.

closed shop agreement (p. 368) Clause in a labor– management agreement that specified that workers had to be members of a union before being hired (outlawed in 1947).

closing techniques (p. 500) Ways of concluding a sale, including getting a series of small commitments and then asking for the order and showing the client where to sign.

collective bargaining (p. 365) The process whereby union and management representatives form a labor–management agreement, or contract, for workers.

command economies (p. 45) Economic systems in which the government largely decides what goods and services will be produced, who will get them, and how the economy will grow.

commercial and consumer finance companies (p. 660) Organizations that offer short-term loans to businesses or individuals who either can’t meet the credit requirements of regular banks or else have exceeded their credit limit and need more funds.

commercial bank (p. 656) A profit-making organization that receives deposits from individuals and corporations in the form of checking and savings accounts and then uses some of these funds to make loans.

commercial finance companies (p. 660) Organizations that make short-term loans to borrowers who offer tangible assets as collateral.

commercialization (p. 442) Promoting a product to distributors and retailers to get wide distribution and developing strong advertising and sales campaigns to generate and maintain interest in the product among distributors and consumers.

commercial paper (p. 596) Unsecured promissory notes of $25,000 and up that mature (come due) in 270 days or less.

commodity exchange (p. 631) A securities exchange that specializes in the buying and selling of precious metals and minerals (e.g., silver, foreign currencies, gasoline) and agricultural goods (e.g., wheat, cattle, sugar).

common law (p. 117) The body of law that comes from judges’ decisions; also referred to as unwritten law.

common market (p. 84) A regional group of countries that have a common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange; also called a trading bloc; an example is the European Union.

common stock (p. 619) The most basic form of ownership in a firm; it confers voting rights and the right to share in the firm’s profits through dividends, if offered by the firm’s board of directors.

communism (p. 44) An economic and political system in which the state makes all economic decisions and owns all the major forms of production.

comparable worth (p. 377) The concept that people in jobs that require similar levels of education, training, or skills should receive equal pay.

comparative advantage theory (p. 65) Theory which asserts that a country should sell to other countries those products that it produces most efficiently.

competing in time (p. 281) Being as fast or faster than competition in responding to consumer wants and needs and getting goods and services to them.

competitive benchmarking (p. 254) Rating an organization’s practices, processes, and products against the world’s best.

compliance-based ethics codes (p. 101) Ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers.

compressed workweek (p. 348) Work schedule that allows an employee to work a full number of hours per week, but in fewer days.

computer-aided design (CAD) (p. 282) The use of computers in the design of products.

computer-aided manufacturing (CAM) (p. 282) The use of computers in the manufacturing of products.

computer-integrated manufacturing (CIM) (p. 282) The uniting of computer-aided design with computer-aided manufacturing.

concept testing (p. 441) Taking a product idea to consumers to test their reactions.

conceptual skills (p. 224) Skills that involve the ability to picture the organization as a whole and the relationship among its various parts.

conglomerate merger (p. 148) The joining of firms in completely unrelated industries.

Congress of Industrial Organizations (CIO) (p. 364) Union organization of unskilled workers; broke away from the AFL in 1935 and rejoined it in 1955.

consideration (p. 122) Something of value; consideration is one of the requirements of a legal contract.

consultative salesperson (p. 501) A salesperson who begins by analyzing customer needs and then comes up with solutions to those needs.

consumerism (p. 125) A social movement that seeks to increase and strengthen the rights and powers of buyers in relation to sellers.

consumer market (p. 409) All the individuals or households that want goods and services for personal consumption or use.

consumer price index (CPI) (p. 50) Monthly statistics that measure changes in the prices of about 400 goods and services that consumers buy.

contingency planning (p. 210) The process of preparing alternative courses of action that may be used if the primary plans do not achieve the objectives of the organization.

contingent workers (p. 337) Workers who do not have the expectation of regular, full-time employment.

continuous improvement (p. 251) Constantly improving the way the organization does things so that customer needs can be better satisfied.

continuous process (p. 276) A production process in which long production runs turn out finished goods over time.

contract (p. 122) A legally enforceable agreement between two or more parties.

contract law (p. 122) Set of laws that specify what constitutes a legally enforceable agreement.

contract manufacturing (p. 73) A foreign country’s production of private-label goods to which a domestic company then attaches its brand name or trademark; also called outsourcing.

contractual distribution system (p. 477) A distribution system in which members are bound to cooperate through contractual agreements.

controlling (p. 207) A management function that involves determining whether or not an organization is progressing toward its goals and objectives, and taking corrective action if it is not.

convenience goods and services (p. 431) Products that the consumer wants to purchase frequently and with a minimum of effort.

conventional (C) corporation (p. 140) A state-chartered legal entity with authority to act and have liability separate from its owners.

convertible bond (p. 616) A bond that can be converted into shares of common stock in the issuing company.

cookies (p. 541) Pieces of information, such as registration data or user preferences, sent by a website over the Internet to a Web browser that the browser software is expected to save and send back to the server whenever the user returns to that website.

cooling-off period (p. 372) When workers in a critical industry return to their jobs while the union and management continue negotiations.

cooperative (p. 157) A business owned and controlled by the people who use it—producers, consumers, or workers with similar needs who pool their resources for mutual gain.

copyright (p. 121) Exclusive rights to materials such as books, articles, photos, and cartoons.

core competencies (p. 254) Those functions that the organization can do as well or better than any other organization in the world.

core time (p. 348) In a flextime plan, the period when all employees are expected to be at their job stations.

corporate distribution system (p. 477) A distribution system in which all of the organizations in the channel of distribution are owned by one firm.

corporate philanthropy (p. 103) Dimension of social responsibility that includes charitable donations.

corporate policy (p. 103) Dimension of social responsibility that refers to the position a firm takes on social and political issues.

corporate responsibility (p. 103) Dimension of social responsibility that includes everything from hiring minority workers to making safe products.

corporation (p. 134) A legal entity with authority to act and have liability separate from its owners.

cost of goods sold (or cost of goods manufactured) (p. 560) A measure of the cost of merchandise sold or cost of raw materials and supplies used for producing items for resale.

couch potatoes People who sit and watch TV for hours at a time.

countertrading (p. 79) Bartering among several countries.

counting on it Expecting it.

craft union (p. 363) An organization of skilled specialists in a particular craft or trade.

credit unions (p. 659) Nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members.

critical path (p. 283) The sequence of tasks that takes the longest time to complete.

cross-functional teams (p. 248) Groups of employees from different departments who work together on a semipermanent basis.

cumulative preferred stock (p. 619) Preferred stock that accumulates unpaid dividends.

current assets (p. 558) Items that can be converted into cash within one year.

customer relationship management (p. 396) Learning as much as possible about customers and doing everything you can to satisfy them or even delight them with goods and services over time.

cyber shop To shop online.

database (p. 15) Electronic storage file where information is kept.

data processing (DP) (p. 522) Name for business technology in the 1970s; included technology that supported an existing business and was primarily used to improve the flow of financial information.

dead duck Something doomed to failure.

a deal A special price or some other benefit that all people don’t get.

dealer (private) brands (p. 437) Products that don’t carry the manufacturer’s name but carry a distributor or retailer’s name instead.

debenture bonds (p. 615) Bonds that are unsecured (i.e., not backed by any collateral such as equipment).

debit card (p. 664) An electronic funds transfer tool that serves the same function as checks: It withdraws funds from a checking account.

debt capital (p. 592) Funds raised through various forms of borrowing that must be repaid.

decentralized authority (p. 244) An organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarter’s management could be.

decertification (p. 365) The process by which workers take away a union’s right to represent them.

decision making (p. 211) Choosing among two or more alternatives.

deflation (p. 53) A situation where prices are actually declining.

demand (p. 39) The quantity of products that people are willing to buy at different prices at a specific time.

demand deposit (p. 657) The technical name for a checking account; the money in a demand deposit can be withdrawn anytime on demand from the owner.

demographic segmentation (p. 412) Dividing the market by age, income, and education level.

demography (p. 21) The statistical study of human population to learn its size, density, and other characteristics.

denomination (p. 614) The amount of debt represented by one bond.

departmentalization (p. 241) The dividing of organizational functions into separate units.

depreciation (p. 565) The systematic write-off of the cost of a tangible asset over its estimated useful life.

depression (p. 53) A severe recession.

deregulation (p. 129) Government withdrawal of certain laws and regulations that seem to hinder competition.

devaluation (p. 78) Lowering the value of a nation’s currency relative to other currencies.

discount rate (p. 653) The interest rate that the Fed charges for loans to member banks.

disinflation (p. 53) A condition where price increases are slowing (the inflation rate is declining).

diversification (p. 629) Buying several different investment alternatives to spread the risk of investing.

diversity, multiculturalism (p. 21) Words used almost interchangeably to refer to the process of optimizing (in the workplace) the contributions of people from different cultures.

dividends (p. 617) Part of a firm’s profits that may be distributed to stockholders as either cash payments or additional shares of stock.

dot-com company (p. 13) An Internet company whose Web address ends with .com.

double-entry bookkeeping (p. 554) The concept of writing every transaction in two places.

Dow Jones Industrial Average (p. 636) 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.

downsizing (p. 236) The process of eliminating managerial and non-managerial positions.

drop shippers (p. 469) Wholesalers that solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer.

duck the opportunity Avoid the opportunity.

ducks in row To have all one’s tasks lined up and ready to be executed.

dug down Worked hard and diligently.

dumping (p. 69) Selling products in a foreign country at lower prices than those charged in the producing country.

economic pie The money available in the _economy.

economics (p. 34) The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.

economy of scale (p. 234) The situation in which companies can produce goods more inexpensively if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.

electronic check conversion (ECC) (p. 664) An electronic funds transfer tool that converts a traditional paper check into an electronic transaction at the cash register and processes it through the Federal Reserve’s Automated Clearing House.

electronic funds transfer (EFT) system (p. 664) A computerized system that electronically performs financial transactions such as making purchases, paying bills, and receiving paychecks.

e-mail snooped When someone other than the addresses reads e-mail messages.

embargo (p. 82) A complete ban on the import or export of a certain product.

employee orientation (p. 338) The activity that introduces new employees to the organization; to fellow employees; to their immediate supervisors; and to the policies, practices, and objectives of the firm.

employee stock ownership plans (ESOPs) _(p. 383) Programs that enable employees to buy part or total ownership of the firm.

empowerment (p. 20, 221) Giving employees the authority and responsibility to respond quickly to customer requests.

enabling (p. 221) Giving workers the education and tools they need to assume their new decision-making powers.

enterprise resource planning (ERP) (p. 276) Computer-based production and operations system that links multiple firms into one integrated production unit.

entrepreneur (p. 4) A person who risks time and money to start and manage a business.

entrepreneurial team (p. 168) A group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product.

entrepreneurship (p. 166) Accepting the risk of starting and running a business.

environmental scanning (p. 407) The process of identifying the factors that can affect marketing success.

equity capital (p. 593) Money raised from within the firm or through the sale of ownership in the firm.

equity theory (p. 313) The idea that employees try to maintain equity between inputs and outputs compared to others in similar positions.

e-tailing (p. 473) Selling goods and services to ultimate customers (e.g., you and me) over the Internet.

ethics (p. 96) Standards of moral behavior, that is, behavior that is accepted by society as right versus wrong.

everyday low pricing (EDLP) (p. 448) Setting prices lower than competitors and then not having any special sales.

exchange rate (p. 78) The value of one currency relative to the currencies of other countries.

exclusive distribution (p. 473) Distribution that sends products to only one retail outlet in a given geographic area.

expectancy theory (p. 312) Victor Vroom’s theory that the amount of effort employees exert on a specific task depends on their expectations of the outcome.

expenses (p. 562) Costs involved in operating a business, such as rent, utilities, and salaries.

exporting (p. 64) Selling products to another country.

express warranties (p. 121) Specific representations by the seller regarding the goods.

external customers (p. 223) Dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use.

extranet (p. 250) An extension of the Internet that connects suppliers, customers, and other organizations via secure websites.

extrinsic reward (p. 296) Something given to you by someone else as recognition for good work; extrinsic rewards include pay increases, praise, and promotions.

facility location (p. 266) The process of selecting a geographic location for a company’s operations.

factoring (p. 596) The process of selling accounts receivable for cash.

factors of production (p. 9) The resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge.

The fed Refers to the Federal Reserve Bank.

Federal Deposit Insurance Corporation (FDIC) (p. 661) An independent agency of the U.S. government that insures bank deposits.

finance (p. 585) The function in a business that acquires funds for the firm and manages funds within the firm.

financial accounting (p. 552) Accounting information and analyses prepared for people outside the organization.

financial control (p. 589) A process in which a firm periodically compares its actual revenues, costs, and expenses with its projected ones.

financial management (p. 585) The job of managing a firm’s resources so it can meet its goals and objectives.

financial managers (p. 584) Managers who make recommendations to top executives regarding strategies for improving the financial strength of a firm.

financial statement (p. 555) A summary of all the transactions that have occurred over a particular period.

first in, first out (FIFO) (p. 566) Accounting method for calculating cost of inventory; it assumes that the first goods to come in are the first to go out.

fiscal policy (p. 54) Government efforts to keep the economy stable by increasing or decreasing taxes or government spending.

fixed assets (p. 558) Assets that are relatively permanent, such as land, buildings, and equipment.

flexible manufacturing (p. 280) Designing machines to do multiple tasks so that they can produce a variety of products.

flextime plan (p. 348) Work schedule that gives employees some freedom to choose when to work, as long as they work the required number of hours.

focus group (p. 404) A small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues.

foreign direct investment (p. 75) The buying of permanent property and businesses in foreign nations.

foreign subsidiary (p. 74) A company owned in a foreign country by another company (called the parent company).

form utility (p. 275) The value added by the creation of finished goods and services, such as the value added by taking silicon and making computer chips or putting services together to create a vacation package.

formal organization (p. 255) The structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts.

"fowl" A pun or a play on words, in which the word "fowl" (a bird, such as a duck) was used in place of the similar sounding word "foul" (unpleasant, obstructed).

franchise (p. 150) The right to use a specific business’s name and sell its products or services in a given territory.

franchise agreement (p. 150) An arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory.

franchisee (p. 150) A person who buys a franchise.

franchisor (p. 150) A company that develops a product concept and sells others the rights to make and sell the products.

freelancers People who work independently of a firm and offer their work to anyone who is willing to pay.

free-market economies (p. 45) Economic systems in which decisions about what to produce and in what quantities are decided by the market, that is, by buyers and sellers negotiating prices for goods and services.

free trade (p. 65) The movement of goods and services among nations without political or economic obstruction.

freight forwarder (p. 470) An organization that puts many small shipments together to create a single large shipment that can be transported cost-effectively to the final destination.

fringe benefits (p. 346) Benefits such as sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation to employees beyond base wages.

from scratch To make something completely new.

fundamental accounting equation (p. 556) Assets = liabilities + owners’ equity; this is the basis for the balance sheet.

futures markets (p. 631) The purchase and sale of goods for delivery sometime in the future.

general partner (p. 137) An owner (partner) who has unlimited liability and is active in managing the firm.

general partnership (p. 137) A partnership in which all owners share in operating the business and in assuming liability for the business’s debts.

generic goods (p. 437) Nonbranded products that usually sell at a sizable discount compared to national or private brands.

generic name (p. 437) The name for a product category (versus a brand name).

geographic segmentation (p. 411) Dividing the market by geographic area.

givebacks (p. 373) Concessions made by union members to management; gains from labor negotiations are given back to management to help employers remain competitive and thereby save jobs.

goals (p. 208) The broad, long-term accomplishments an organization wishes to attain.

goal-setting theory (p. 310) The idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, are accompanied by feedback, and are facilitated by organizational conditions.

go for the gold To work to be the very best (figuratively winning a gold medal).

goods (p. 24) Tangible products such as computers, food, clothing, cars, and appliances.

goof off 1. To take unauthorized time off from work. 2. Doing things at work not associated with the job, such as talking with others at the drinking fountain.

go out with me Go with me to dinner or to a movie or some other entertainment.

green product (p. 419) A product whose production, use, and disposal don’t damage the environment.

grievance (p. 369) A charge by employees that management is not abiding by the terms of the negotiated labor–management agreement.

gross domestic product (GDP) (p. 49) The total value of goods and services produced in a country in a given year.

gross margin (gross profit) (p. 561) How much a firm earned by buying (or making) and selling merchandise.

growth stocks (p. 626) Stocks of companies whose earnings are expected to grow faster than other stocks or the overall economy.

health maintenance organizations (HMOs) (p. 704) Health care organizations that require members to choose from a restricted list of doctors.

heavy hitters People with power and influence— and probably money.

helped turn around Helped reverse the downward trend.

hierarchy (p. 236) A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.

high gear Going at full strength.

high–low pricing strategy (p. 449) To set prices that are higher than EDLP stores, and to have many special sales where the prices are lower than competitors.

high tech Anything having to do with advances in technology, such as computers, computer software, pagers, scanners, and the like.

horizontal merger (p. 148) The joining of two firms in the same industry.

hot second Immediately.

human relations skills (p. 224) Skills that involve communication and motivation; they enable managers to work through and with people.

human resource management (p. 328) The process of evaluating human resource needs, finding people to fill those needs, and getting the best work from each employee by providing the right incentives and job environment, all with the goal of meeting the needs of the firm.

hygiene factors (p. 307) Job factors that can cause dissatisfaction if missing but do not necessarily motivate employees if increased.

importing (p. 64) Buying products from another country.

import quota (p. 82) A limit on the number of products in certain categories that can be imported.

income statement (p. 560) The financial statement that shows a firm’s 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.

income stocks (p. 627) Stocks that offer investors a high dividend.

incubators (p. 175) Centers that offer new businesses low-cost offices with basic business services.

indenture terms (p. 599) The terms of agreement in a bond issue.

independent audit (p. 553) An evaluation and unbiased opinion about the accuracy of a company’s financial statements.

individual retirement account (IRA) (p. 696) Traditionally, a tax-deferred investment plan that enables you (and your spouse, if you are married) to save part of your income for retirement.

industrial goods (p. 434) Products used in the production of other products.

industrial unions (p. 364) Labor organizations of unskilled and semiskilled workers in mass-production industries such as automobiles and mining.

inflation (p. 53) A general rise in the prices of goods and services over time.

infomercial (p. 494) A TV program devoted exclusively to promoting goods and services.

informal organization (p. 255) The system of relationships and lines of authority that develops spontaneously as employees meet and form power centers; that is, the human side of the organization that does not appear on any organization chart.

information systems (IS) (p. 522) Technology that helps companies do business; includes such tools as automated teller machines (ATMs) and voice mail.

information technology (IT) (p. 522) Tech- nology that helps companies change business by allowing them to use new methods.

information utility (p. 467) Adding value to products by opening two-way flows of information between marketing participants.

initial public offering (IPO) (p. 612) The first public offering of a corporation’s stock.

injunction (p. 373) A court order directing someone to do something or to refrain from doing something.

insider trading (p. 106) A form of investment in which insiders use private company information to further their own fortunes or those of their family and friends.

institutional investors (p. 613) Large organizations—such as pension funds, mutual funds, insurance companies, and banks—that invest their own funds or the funds of others.

insurable interest (p. 703) The possibility of a policyholder to suffer a loss.

insurable policy (p. 703) A written contract between the insured and an insurance company that promises to pay for all or part of a loss.

insurable risk (p. 703) A risk that the typical insurance company will cover.

intangible assets (p. 558) Items of value such as patents and copyrights that have no real physical form.

integrated marketing communication (IMC) (p. 490) A technique that combines all the promotional tools into one comprehensive and unified promotional strategy.

integrity-based ethics codes (p. 101) Ethical standards that define the organization’s guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees.

intensive distribution (p. 473) Distribution that puts products into as many retail outlets as possible.

interactive marketing program (p. 510) A system in which consumers can access company information on their own and supply information about themselves in an ongoing dialogue.

interactive promotion (p. 490) Changing the promotion process from a monologue, where sellers tried to persuade buyers to buy things, to a dialogue in which buyers and sellers can work to-gether to create mutually beneficial exchange relationships.

interest (p. 614) The payment the issuer of the bond makes to the bondholders for use of the borrowed money.

intermittent process (p. 276) A production process in which the production run is short and the machines are changed frequently to make different products.

intermodal shipping (p. 481) The use of multiple modes of transportation to complete a single long-distance movement of freight.

internal customers (p. 223) Individuals and units within the firm that receive services from other individuals or units.

International Monetary Fund (IMF) (p. 667) Organization that assists the smooth flow of money among nations.

Internet 2 (p. 526) The new Internet system that links government supercomputer centers and a select group of universities; it will run more than 22,000 times faster than today’s public infrastructure and will support heavy-duty applications.

in the right hands To the person who can give you the most help.

intranet (p. 250, 525) 1. A companywide network, closed to public access, that uses Internet-type technology. 2. A set of communications links within one company that travel over the Internet but are closed to public access.

intrapreneurs (p. 174) Creative people who work as entrepreneurs within corporations.

intrinsic reward (p. 296) The good feeling you have when you have done a job well.

inventory financing (p. 595) The process of using inventory such as raw materials as collateral for a loan.

inverted organization (p. 252) An organization that has contact people at the top and the chief executive officer at the bottom of the organization chart.

investment bankers (p. 613) Specialists who assist in the issue and sale of new securities.

invisible hand (p. 36) A phrase coined by Adam Smith to describe the process that turns self-directed gain into social and economic benefits for all.

involuntary bankruptcy (p. 127) Bankruptcy procedures filed by a debtor’s creditors.

IOUs Debt; abbreviation for "I owe you."

is the heart The most important part of something; the central force or idea.

ISO 9000 (p. 271) The common name given to quality management and assurance standards.

ISO 14000 (p. 272) A collection of the best practices for managing an organization’s impact on the environment.

job description (p. 332) A summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions.

job enlargement (p. 310) A job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment.

job enrichment (p. 309) A motivational strategy that emphasizes motivating the worker through the job itself.

job rotation (p. 310) A job enrichment strategy that involves moving employees from one job to another.

job sharing (p. 349) An arrangement whereby two part-time employees share one full-time job.

job simplification (p. 309) The process of producing task efficiency by breaking down a job into simple steps and assigning people to each of those steps.

job simulation (p. 340) The use of equipment that duplicates job conditions and tasks so that trainees can learn skills before attempting them on the job.

job specifications (p. 332) A written summary of the minimum qualifications required of workers to do a particular job.

joint venture (p. 73) A partnership in which two or more companies (often from different countries) join to undertake a major project.

joke around Tell jokes and generally act less than professional.

journal (p. 554) The book where accounting data are first entered.

judiciary (p. 116) The branch of government chosen to oversee the legal system through the court system.

jump at the idea Respond positively to a new idea.

jumped headfirst Began quickly and eagerly without hesitation.

junk bonds (p. 630) High-risk, high-interest bonds.

just-in-time (JIT) inventory control (p. 279) 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.

kick back and relax To take a rest.

Knights of Labor (p. 364) The first national labor union; formed in 1869.

knockoff brands (p. 436) Illegal copies of national brand-name goods.

knowledge management (p. 221, 528) Sharing, organizing and disseminating information in the simplest and most relevant way possible for the users of the information.

knowledge technology (KT) (p. 523) Technology that adds a layer of intelligence to information technology, to filter appropriate information and deliver it when it is needed.

knowledge walk out the door Lose knowledge that employees have because they don’t share it with others before they leave the company.

last in, first out (LIFO) (p. 566) Accounting method for calculating cost of inventory; it assumes that the last goods to come in are the first to go out.

the last laugh This comes from the expression, "He who laughs last, laughs loudest" because he or she has been proven right.

law of large numbers (p. 704) Principle that if a large number of people are exposed to the same risk, a predictable number of losses will occur during a given period of time.

leading (p. 207) Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization’s goals and objectives.

lean manufacturing (p. 280) The production of goods using less of everything compared to mass production.

ledger (p. 554) A specialized accounting book 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.

letter of credit (p. 665) A promise by the bank to pay the seller a given amount if certain conditions are met.

leverage (p. 602) Raising needed funds through borrowing to increase a firm’s rate of return.

leveraged buyout (LBO) (p. 150) An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing.

liabilities (p. 558) What the business owes to others.

licensing (p. 71) An act by which a producer (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (a royalty).

limited liability company (LLC) (p. 146) A company similar to an S corporation but without the special eligibility requirements.

limited liability partnership (LLP) (p. 138) A partnership that limits partners’ risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision.

limited liability (p. 137) The responsibility of business’s owners for losses only up to the amount they invest; limited partners and shareholders have limited liability.

limited partner (p. 137) An owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment.

limited partnership (p. 137) A partnership with one or more general partners and one or more limited partners.

limit order (p. 627) Instructions to a broker to buy or sell a particular stock at a specific price, if that price becomes available.

line of credit (p. 595) A given amount of unsecured short-term funds a bank will lend to a business, provided the funds are readily available.

line organization (p. 245) An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.

line personnel (p. 245) Employees who perform functions that contribute directly to the primary goals of the organization.

liquidity (p. 556) How fast an asset can be converted into cash.

lockout (p. 373) An attempt by management to put pressure on unions by temporarily closing the business.

long-term financing (p. 592) Borrowed capital that will be repaid over a specific time period longer than one year.

long-term forecast (p. 587) 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.

loss (p. 7) When a business’s costs and expenses are more than its revenues.

M-2 (p. 650) Money included in M-1 plus money that may take a little more time to raise (savings accounts, money market accounts, mutual funds, certificates of deposit, etc.).

macroeconomics (p. 34) That part of economic study that looks at the operation of a nation’s economy as a whole.

management (p. 206) The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.

management by objectives (MBO) (p. 311) A system of goal setting and implementation that involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees.

management development (p. 340) The process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time.

managerial accounting (p. 551) Accounting used to provide information and analyses to managers within the organization to assist them in decision making.

managing diversity (p. 215) Building systems and a climate that unite different people in a common pursuit without undermining their individual strengths.

manufacturers’ brand names (p. 436) The brand names of manufacturers that distribute products nationally.

market (p. 186) People with unsatisfied wants and needs who have both the resources and the willingness to buy.

marketing (p. 396) The process of determining customer wants and needs and then providing customers with goods and services that meet or exceed their expectations.

marketing concept (p. 396) A three-part business philosophy: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation.

marketing intermediaries (p. 460) Organ-_izations that assist in moving goods and services from producers to industrial and consumer users.

marketing management (p. 397) The pro-cess of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services (products) to create mutually beneficial exchanges.

marketing mix (p. 398) The ingredients that go into a marketing program: product, price, place, and promotion.

marketing research (p. 402) The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions.

market order (p. 627) Instructions to a broker to buy or sell a stock immediately at the best price available.

market price (p. 41) The price determined by supply and demand.

market segmentation (p. 410) The process of dividing the total market into several groups whose members have similar characteristics.

marriage of software, hardware, etc. Combination of various technologies.

Maslow’s hierarchy of needs (p. 300) Theory of motivation that places different types of human needs in order of importance, from basic physiological needs to safety, social, and esteem needs to self-actualization needs.

mass customization (p. 281) Tailoring products to meet the needs of individual customers.

mass marketing (p. 413) Developing products and promotions to please large groups of people.

mass production (p. 278) The process of making a large number of a limited variety of products at very low cost.

master limited partnership (MLP) (p. 137) A partnership that looks much like a corporation in that it acts like a corporation and is traded on the stock exchanges like a corporation, but is taxed like a partnership and thus avoids the corporate income tax.

materials handling (p. 482) The movement of goods within a warehouse, factory, or store.

materials requirement planning (MRP) _(p. 276) A computer-based production management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place.

matrix organization (p. 246) An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a traditional line-and-staff structure.

maturity date (p. 614) The exact date the issuer of a bond must pay the principal to the bondholder.

measuring stick Tool used to evaluate or compare something.

mediation (p. 369) The use of a third party, called a mediator, who encourages both sides to continue negotiating and often makes suggestions for resolving the dispute.

mentor (p. 341) An experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor.

merchant wholesalers (p. 469) Indepen-dently owned firms that take title to (own) the goods they handle.

merger (p. 148) The result of two firms forming one company.

microeconomics (p. 34) That part of economic study that looks at the behavior of people and organizations in particular markets.

micropreneur (p. 169) An entrepreneur 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.

middle management (p. 212) The level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling.

mine the knowledge Make maximum use of the knowledge employees have.

mission statement (p. 208) An outline of the fundamental purposes of an organization.

mixed economies (p. 46) Economic systems in which some allocation of resources is made by the market and some is made by the government.

monetary policy (p. 53) The management of the money supply and interest rates.

money (p. 648) Anything that people generally accept as payment for goods and services.

money laundering When illegal money is made to appear legal by passing it through a bank or legal business.

money supply (p. 650) How much money there is to buy available goods and services.

monopolistic competition (p. 41) The market situation in which there are a large number of sellers that produce similar products, but the products are perceived by buyers as different.

monopoly (p. 42) A market in which there is only one seller.

more than meets the eye There’s more to something than can be seen.

motivators (p. 307) Job factors that cause employees to be productive and that give them satisfaction.

muddy the water Make things unclear.

multinational corporation (MNC) (p. 86) An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management.

mutual fund (p. 627) An organization that buys stocks and bonds and then sells shares in those securities to the public.

mutual insurance company (p. 704) A type of insurance company owned by its policyholders.

national debt (p. 54) The result of a series of government deficits (when the government spends more money than it collects in taxes) over time.

negligence (p. 118) Behavior that causes unintentional harm or injury.

negotiable instruments (p. 121) Forms of commercial paper (such as checks) that are transferable among businesses and individuals and represent a promise to pay a specified amount.

negotiated labor–management agreement (labor contract) (p. 366) Agreement that sets the tone and clarifies the terms under which management and labor agree to function over a period of time.

net income or net loss (p. 560) Revenue minus expenses.

network computing system (client/server computing) (p. 532) Computer systems that allow personal computers (clients) to obtain needed information from huge databases in a central computer (the server).

networking (p. 249) Using communications technology and other means to link organizations and allow them to work together on common objectives.

networking (personal) (p. 249) The process of establishing and maintaining contacts with key managers in one’s own organization and other organizations and using those contacts to weave strong relationships that serve as informal development systems.

niche marketing (p. 412) The process of finding small but profitable market segments and designing custom-made products for them.

no haggle pricing Situation where prices are fixed and cannot be negotiated with the seller.

nonbanks (p. 656) Financial organizations that accept no deposits but offer many of the services provided by regular banks (pension funds, insurance companies, commercial finance companies, consumer finance companies, and brokerage houses).

nonprofit organization (p. 5) An organization whose goals do not include making a personal profit for its owners.

not bat an eye To not seem to see; to not react.

odd lots (p. 627) Purchases of less than 100 shares of stock at a time.

off-the-job training (p. 339) Training that occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development.

oligopoly (p. 41) A form of competition in which the market is dominated by just a few sellers.

one-to-one marketing (p. 412) Developing a unique mix of goods and services for each individual customer.

online training (p. 339) Training programs in which employees "attend" classes via the Internet.

on-the-job training (p. 338) Training program in which the employee immediately begins his or her tasks and learns by doing, or watches others for a while and then imitates them, all right at the workplace.

open-market operations (p. 652) The buying and selling of U.S. government securities by the Fed with the goal of regulating the money supply.

open shop agreement (p. 368) Agreement in right-to-work states that gives workers the option to join or not join a union, if one exists in their workplace.

operating (master) budget (p. 588) The budget that ties together all of a firm’s other budgets; it is the projection of dollar allocations to various costs and expenses needed to run the business, given projected revenues.

operational planning (p. 210) The process of setting work standards and schedules necessary to implement the tactical objectives.

operations management (p. 265) A specialized area in management that converts or transforms resources (including human resources) into goods and services.

organizational design (p. 236) The structuring of workers so that they can best accomplish the firm’s goals.

organizational (or corporate) culture _(p. 254) Widely shared values within an organization that provide coherence and cooperation to achieve common goals.

organization chart (p. 211) A visual device which shows the relationship and divides the organization’s work: it shows who is accountable for the completion of specific work and who reports to whom.

organizing (p. 206) A management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization’s goals and objectives.

out of the office loop Not included in everyday workplace communication.

outsourcing (p. 254) Assigning various functions, such as accounting and legal work, to outside organizations.

over-the-counter (OTC) market (p. 620) Exchange that provides a means to trade stocks not listed on the national exchanges.

owners’ equity (p. 559) Assets minus liabilities.

partnership (p. 134) A legal form of business with two or more owners.

par value (p. 617) A dollar amount assigned to each share of stock by the corporation’s charter.

patent (p. 120) A document that gives inventors exclusive rights to their inventions for 20 years.

penetration strategy (p. 448) Strategy in which a product is priced low to attract many customers and discourage competition.

penny stocks (p. 627) Stocks that sell for less than $2 (some analysts say $5); considered risky investments.

pension funds (p. 660) Amounts of money put aside by corporations, nonprofit organizations, or unions to cover part of the financial needs of members when they retire.

perfect competition (p. 41) The market situation in which there are many sellers of nearly identical products and no seller is large enough to dictate the price of the product.

performance appraisal (p. 342) An evaluation in which the performance level of employees is measured against established standards to make decisions about promotions, compensation, additional training, or firing.

perks Short for perquisites; compensation in addition to salary, such as day care or a company car.

personal selling (p. 498) The face-to-face presentation and promotion of products and services.

pick up the tab Pay for something.

piece of the action Part of the opportunities.

pink slip To be fired from a job; derived from the days when employers gave workers written notices (on pink paper) that their jobs were terminated.

pitch in To help as needed.

place utility (p. 467) Adding value to products by having them where people want them.

planning (p. 206) A management function that involves anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.

played his last card Tried the last thing he could think of.

pledging (p. 595) The process of using accounts receivable or other assets as collateral for a loan.

pool their creative juices To combine their talents; to work together.

possession utility (p. 467) Doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up service.

precedent (p. 117) Decisions judges have made in earlier cases that guide the handling of new cases.

preemptive right (p. 619) Common stockholders’ right to purchase any new shares of common stock the firm decides to issue.

preferred provider organizations (PPOs) _(p. 705) Health care organizations similar to HMOs except that they allow members to choose their own physicians (for a fee).

preferred stock (p. 617) Stock that gives its owners preference in the payment of dividends and an earlier claim on assets than common stockholders if the company is forced out of business and its assets sold.

premium (p. 705) The fee charged by an insurance company for an insurance policy.

price leadership (p. 450) The procedure by which one or more dominant firms set the pricing practices that all competitors in an industry follow.

primary boycott (p. 373) When a union encourages both its members and the general public not to buy the products of a firm involved in a labor dispute.

principal (p. 614) The face value of a bond.

principle of motion economy (p. 297) Theory developed by Frank and Lillian Gilbreth that every job can be broken down into a series of elementary motions.

private accountants (p. 552) Accountants who work for a single firm, government agency, or nonprofit organization.

process manufacturing (p. 276) That part of the production process that physically or chemically changes materials.

process planning (p. 275) Choosing the best means for turning resources into useful goods and services.

producer price index (PPI) (p. 51) An index that measures prices at the wholesale level.

product (p. 400) Any physical good, service, or idea that satisfies a want or need.

product analysis (p. 440) Making cost estimates and sales forecasts to get a feeling for profitability of new product ideas.

product differentiation (p. 430) The creation of real or perceived product differences.

production (p. 264) The creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge.

productivity (p. 23) The total output of goods and services in a given period of time divided by work hours (output per work hour).

product liability (p. 118) Part of tort law that holds businesses liable for harm that results from the production, design, sale, or use of products they market.

product life cycle (p. 442) A theoretical model of what happens to sales and profits for a product class over time.

product line (p. 430) A group of products that are physically similar or are intended for a similar market.

product mix (p. 430) The combination of product lines offered by a manufacturer.

product screening (p. 440) A process designed to reduce the number of new-product ideas being worked on at any one time.

profit (p. 4) The amount a business earns above and beyond what it spends for salaries and other expenses.

program evaluation and review technique (PERT) (p. 282) 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.

program trading (p. 638) Giving instructions to computers to automatically sell if the price of a stock dips to a certain point to avoid potential losses.

promissory note (p. 594) A written contract with a promise to pay.

promotion (p. 402, 490) 1. All the techniques sellers use to motivate people to buy products or services. 2. An attempt by marketers to inform people about products and to persuade them to participate in an exchange.

promotion mix (p. 490) The combination of promotional tools an organization uses.

prospecting (p. 499) Researching potential buyers and choosing those most likely to buy.

prospects (p. 499) People with the means to buy a product, the authority to buy, and the willingness to listen to a sales message.

prospectus (p. 622) A condensed version of economic and financial information that a company must file with the SEC before issuing stock; the prospectus must be sent to potential stock purchasers.

provided the spark Supplied the energy that motivated others.

psychographic segmentation (p. 412) Dividing the market using the group’s values, attitudes, and interests.

public accountant (p. 552) An accountant who provides his or her accounting services to individuals or businesses on a fee basis.

public domain software (freeware) (p. 534) Software that is free for the taking.

publicity (p. 503) Any information about an individual, product, or organization that’s distributed to the public through the media and that’s not paid for or controlled by the seller.

public relations (PR) (p. 502) The management function that evaluates public attitudes, changes policies and procedures in response to the public’s requests, and executes a program of action and information to earn public understanding and acceptance.

pull strategy (p. 509) Promotional strategy in which heavy advertising and sales promotion efforts are directed toward consumers so that they’ll request the products from retailers.

purchasing (p. 279) The function in a firm that searches for quality material resources, finds the best suppliers, and negotiates the best price for goods and services.

pure risk (p. 701) The threat of loss with no chance for profit.

push strategy (p. 509) Promotional strategy in which the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise.

push technology (p. 528) Web software that delivers information tailored to a previously defined user profile; it pushes the information to users so that they don’t have to pull it out.

quality control (p. 270) The measurement of products and services against set standards.

quality of life (p. 4) The general well-being of a society.

quite a stir A situation where people are all excited about something.

real time (p. 249) The present moment or the actual time in which something takes place; data sent over the Internet to various organizational partners as they are developed or collected are said to be available in real time.

recession (p. 53) Two or more consecutive quarters of decline in the GDP.

recruitment (p. 333) The set of activities used to obtain a sufficient number of the right people at the right time; its purpose is to select those who best meet the needs of the organization.

reengineering (p. 252) The fundamental rethinking and radical redesign of organizational processes to achieve dramatic improvements in critical measures of performance.

relationship marketing (p. 413) Marketing whose goal is to keep individual customers over time by offering them products that exactly meet their requirements.

reserve requirement (p. 652) A percentage of commercial banks’ checking and savings accounts that must be physically kept in the bank.

resource development (p. 35) The study of how to increase resources and to create the conditions that will make better use of those resources.

the rest is history What happens next is well known.

restructuring (p. 238) Redesigning an organization so that it can more effectively and efficiently serve its customers.

retailer (p. 460) An organization that sells to ultimate consumers.

retail sale (p. 469) The sale of goods and services to consumers for their own use.

Return on investment (ROI) (p. 11) The return a businessperson gets on the money he and other owners invest in the firm; for example, a business that earned $100 on a $1,000 investment would have a ROI of 10 percent: 100 divided by 1000.

revenue (p. 7, 560) 1. The total amount of money a business earns in a given period by selling goods and services. 2. The value of what is received for goods sold, services rendered.

reverse discrimination (p. 352) Discrimina-tion against whites or males in hiring or promoting.

revolving credit agreement (p. 595) A line of credit that is guaranteed by the bank.

right-to-work laws (p. 368) Legislation that gives workers the right, under an open shop, to join or not join a union if it is present.

risk (p. 7, 701) 1. The change of loss, the degree of probability of loss, and the amount of possible loss. 2. The chance an entrepreneur takes of losing time and money on a business that may not prove profitable.

risk/return trade-off (p. 599) The principle that the greater the risk a lender takes in making a loan, the higher the interest rate required.

robot (p. 280) A computer-controlled machine capable of performing many tasks requiring the use of materials and tools.

roller coaster ride Volatile; refers to the resemblance to the rapid change between extreme high and low points on an amusement park ride.

rookie mistakes A newcomer’s errors; errors made by someone inexperienced.

round lots (p. 627) Purchases of 100 shares of stock at a time.

rule of indemnity (p. 704) Rule says that an insured person or organization cannot collect more than the actual loss from an insurable risk.

run on the banks When people are uncertain whether or not their funds are safe in banks, they may rush to take their money out before other people do and there is none left for them.

sampling (p. 505) A promotional tool in which a company lets consumers have a small sample of a product for no charge.

savings and loan association (S&L) (p. 658) A financial institution that accepts both savings and checking deposits and provides home mortgage loans.

Savings Association Insurance Fund (SAIF) (p. 661) The part of the FDIC that insures holders of accounts in savings and loan associations.

S corporation (p. 145) A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships.

scab A person who crosses a union picket line to assume the job of a striking worker.

scientific management (p. 297) Studying workers to find the most efficient ways of doing things and then teaching people those techniques.

sea of information Lots of information; often too much to process.

seat-of-the-pants start-up A new business that has very few resources.

second thoughts Rethinking a decision based on more information being available.

secondary boycott (p. 373) An attempt by labor to convince others to stop doing business with a firm that is the subject of a primary boycott; prohibited by the Taft-Hartley Act.

secured bond (p. 599) A bond issued with some form of collateral.

secured loan (p. 595) A loan backed by something valuable, such as property.

Securities and Exchange Commission (SEC) (p. 621) Federal agency that has responsibility for regulating the various exchanges.

selection (p. 335) The process of gathering information and deciding who should be hired, under legal guidelines, for the best interests of the individual and the organization.

selective distribution (p. 473) Distribution that sends products to only a preferred group of retailers in an area.

self-insurance (p. 702) The practice of setting aside money to cover routine claims and buying only "catastrophe" policies to cover big losses.

Service Corps of Retired Executives (SCORE) (p. 189) An SBA service with 13,000 volunteers who provide consulting services for small businesses free of charge (except for expenses).

services (p. 25) Intangible products such as education, health care, and insurance.

service utility (p. 467) Providing fast, friendly service during and after the sale and by teaching customers how to best use products over time.

sexual harassment (p. 378) Unwelcome sexual advances, requests for sexual favors, and other conduct (verbal or physical) of a sexual nature.

shareware (p. 534) Software that is copyrighted but distributed to potential customers free of charge.

shopping goods and services (p. 432) Those products that the consumer buys only after comparing value, quality, and price from a variety of sellers.

shop stewards (p. 369) Union officials who work permanently in an organization and represent employee interests on a daily basis.

short-term financing (p. 592) Borrowed capital that will be repaid within one year.

short-term forecast (p. 586) Forecast that predicts revenues, costs, and expenses for a period of one year or less.

sift through mountains of information Sort through large volumes of information.

sinking fund (p. 615) Special provision of a bond that requires the issuer to retire (put in a trust fund), on a periodic basis, some part of the bond principal prior to maturity.

skimming price strategy (p. 448) Strategy in which a new product is priced high to make optimum profit while there’s little competition.

small business (p. 176) A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size (set by the Small Business Administration) in terms of employees or annual receipts.

Small Business Investment Company (SBIC) Program (p. 185) A program through which private investment companies licensed by the Small Business Administration lend money to small businesses.

smart card (p. 664) An electronic funds transfer tool that is a combination credit card, debit card, phone card, and more.

social audit (p. 108) A systematic evaluation of an organization’s progress toward implementing programs that are socially responsible and responsive.

socialism (p. 43) An ecomonic system based on the premise that most basic businesses should be owned by the government so that profits can be evenly distributed among the people.

social responsibility (p. 95) A business’s concern for the welfare of society as a whole.

Social Security (p. 690) The term used to describe the Old-Age, Survivors, and Disability Insurance Program established by the Social Security Act of 1935.

sole proprietorship (p. 134) A business that is owned, and usually managed, by one person.

span of control (p. 239) The optimum number of subordinates a manager supervises or should supervise.

specialty goods and services (p. 432) Products that have a special attraction to consumers who are willing to go out of their way to obtain them.

speculative risk (p. 701) A chance of either profit or loss.

spruce up To make something look nice.

squeezing franchisees’ profits Tightening or reducing profits.

staffing (p. 214) A management function that includes hiring, motivating, and retaining the best people available to accomplish the companies _objectives.

staff personnel (p. 246) Employees who perform functions that assist line personnel in achieving their goals.

stakeholder marketing (p. 419) Establishing and maintaining mutually beneficial exchange relationships over time with all the stakeholders of the organization.

stakeholders (p. 19) Those people who stand to gain or lose by the policies and activities of an organization.

standard of living (p. 4) The amount of goods and services people can buy with the money they have.

start-up business A new company.

statement of cash flows (p. 564) Financial statement that reports cash receipts and disbursement related to a firm’s three major activities: operations, investment, and financing.

statutory law (p. 117) State and federal constitutions, legislative enactments, treaties, and ordinances—in other words, written laws.

stockbroker (p. 623) A registered representative who works as a market intermediary to buy and sell securities for clients.

stock certificate (p. 617) Evidence of stock ownership that specifies the name of the company, the number of shares it represents, and the type of stock being issued.

stock exchange (p. 619) An organization whose members can buy and sell (exchange) securities for companies and investors.

stock insurance company (p. 704) A type of insurance company owned by stockholders.

stocks (p. 617) Shares of ownership in a company.

stock splits (p. 627) An action by a company that gives stockholders two or more shares of stock for each one they own.

strategic alliance (p. 74) A long-term partnership between two or more companies established to help each company build competitive market advantages.

strategic planning (p. 209) The process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals.

strict product liability (p. 118) Legal responsibility for harm or injury caused by a product regardless of fault.

strike (p. 371) A union strategy in which workers refuse to go to work; the purpose is to further workers’ objectives after an impasse in collective bargaining.

strikebreakers (p. 373) Workers hired to do the jobs of striking workers until the labor dispute is resolved.

supervisory management (p. 212) Man-agers who are directly responsible for supervising workers and evaluating their daily performance.

supply (p. 39) The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time.

supply chain (p. 478) The sequence of linked activities that must be performed by various organizations to move goods from the sources of raw materials to ultimate consumers.

supply-chain management (p. 479) The process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all the organizations involved in the supply chain; managing the return of such goods, if necessary.

SWOT analysis (p. 208) An analysis of an organization’s strengths, weaknesses, opportunities, and threats.

to take a break To slow down and do something besides work.

take the plunge To finally get started.

talking the talk Promising things to people, but not following through with action.

target costing (p. 446) Designing a product so that it satisfies customers and meets the profit margins desired by the firm.

target marketing (p. 411) Marketing directed toward those groups (market segments) an organization decides it can serve profitably.

tariff (p. 82) A tax imposed on imported products.

tax accountant (p. 553) An accountant trained in tax law and responsible for preparing tax returns or developing tax strategies.

taxes (p. 125) How the government (federal, state, and local) raises money.

technical skills (p. 224) Skills that involve the ability to perform tasks in a specific discipline or department.

teens Young people between the ages of 13 and 19.

telecom Short for telecommunications.

telecommute (p. 22) To work at home and keep in touch with the company through telecommunications.

telemarketing (p. 475) The sale of goods and services by telephone.

telephone tag To leave a telephone message when you attempt to return a message left for you.

term insurance (p. 687) Pure insurance protection for a given number of years.

term-loan agreement (p. 598) A promissory note that requires the borrower to repay the loan in specified installments.

test marketing (p. 400) The process of testing products among potential users.

thorny issue An issue that can cause pain (as a thorn on a rose bush may).

time deposit (p. 657) The technical name for a savings account; the bank can require prior notice before the owner withdraws money from a time deposit.

time in the trenches Working out with the other employees and experiencing what they content with as opposed to managing from an office and relying solely on reports about what is happening in the workplace.

time-motion studies (p. 297) Studies, begun by Frederick Taylor, of which tasks must be performed to complete a job and the time needed to do each task.

time utility (p. 466) Adding value to products by making them available when they’re needed.

tip of the iceberg There is much more to the issue than what appears on the surface.

top management (p. 212) Highest level of management, consisting of the president and other key company executives who develop strategic plans.

tort (p. 117) A wrongful act that causes injury to another person’s body, property, or reputation.

total fixed costs (p. 447) All the expenses that remain the same no matter how many products are sold.

total quality management (TQM) (p. 251) The practice of striving for customer satisfaction by ensuring quality from all departments in an organization.

trade credit (p. 593) The practice of buying goods and services now and paying for them later.

trade deficit (p. 68) An unfavorable balance of trade; occurs when the value of a country’s imports exceeds that of its exports.

trademark (p. 121, 436) 1. A brand that has been given exclusive legal protection for both the brand name and the pictorial design. 2. A legally protected name, symbol, or design (or combination of these) that identifies the goods or services of one seller and distinguishes them from those of competitors.

trade protectionism (p. 82) The use of government regulations to limit the import of goods and services; advocates believe that it allows domestic producers to survive and grow, producing more jobs.

training and development (p. 338) All attempts to improve productivity by increasing an employee’s ability to perform.

transparency (p. 249) A concept that describes a company being so open to other companies working with it that the once-solid barriers between them become "see-through" and electronic information is shared (often on extranets) as if the companies were one.

trial balance (p. 555) A summary of all the data in the account ledgers to show whether the figures are correct and balanced.

turn the work off Stop working.

Uniform Commercial Code (UCC) (p. 121) A comprehensive commercial law adopted by every state in the United States; it covers sales laws and other commercial laws.

uninsurable risk (p. 703) A risk that no insurance company will cover.

unions (p. 362) Employee organizations that have the main goal of representing members in employee–management bargaining over job-related issues.

union security clause (p. 367) Provision in a negotiated labor–management agreement that stipulates that employees who benefit from a union must either officially join or at least pay dues to the union.

union shop agreement (p. 368) Clause in a labor–management agreement that says workers do not have to be members of a union to be hired, but must agree to join the union within a prescribed period.

unlimited liability (p. 136) The responsibility of business owners for all of the debts of the business.

unsecured bond (p. 599) A bond backed only by the reputation of the issuer.

unsecured loan (p. 595) A loan that’s not backed by any specific assets.

unsought goods and services (p. 433) Products that consumers are unaware of, haven’t necessarily thought of buying, or find that they need to solve an unexpected problem.

up front To be forthcoming, to be honest from the start.

utility (p. 466) An economic term that refers to the value or want-satisfying ability that’s added to goods or services by organizations when the products are made more useful or accessible to consumers than before.

value package (p. 428) Everything that consumers evaluate when deciding whether to buy something; also called the total product offer.

value pricing (p. 446) When marketers provide consumers with brand-name goods and services at fair prices.

variable costs (p. 447) Costs that change according to the level of production.

variable life insurance (p. 688) Whole life insurance that invests the cash value of the policy in stocks or other high-yielding securities.

venture capital (p. 601) Money that is invested in new companies that have great profit potential.

venture capitalists (p. 184) Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

vertical merger (p. 148) The joining of two companies involved in different stages of related businesses.

vestibule training (p. 340) Training done in schools where employees are taught on equipment similar to that used on the job.

viral marketing (p. 507) The term now used to describe everything from paying people to say positive things on the Internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific websites.

virtual bank A bank with no building to go to.

virtual corporation (p. 250) A temporary, networked organization made up of replaceable firms that join the network and leave it as needed.

virtualization (p. 523) Accessibility through technology that allows business to be conducted independent of location.

virtual private network (VPN) (p. 526) A private data network that creates secure connections, or "tunnels," over regular Internet lines.

virus (p. 538) A piece of programming code inserted into other programming to cause some unexpected and, for the victim, usually undesirable event.

vision (p. 207) An explanation of why the organization exists and where it’s trying to head.

volume segmentation (p. 412) Dividing the market by usage (volume of use).

wannabes Individuals who want to be something.

watching over your shoulder Someone look- ing at everything you do.

voluntary bankruptcy (p. 127) Legal procedures initiated by a debtor.

whole life insurance (p. 688) Life insurance that stays in effect until age 100.

wholesaler (p. 460) A marketing intermediary that sells to other organizations.

wholesale sale (p. 469) The sale of goods and services to businesses and institutions (e.g., hospitals) for use in the business or to wholesalers or retailers for resale.

word-of-mouth promotion (p. 506) A promotional tool that involves people telling other people about products they’ve purchased.

World Bank (p. 666) The bank primarily responsible for financing economic development; also known as the International Bank for Reconstruction and Development.

World Trade Organization (WTO) (p. 83) The international organization that replaced the General Agreement on Tariffs and Trade, and was assigned the duty to mediate trade disputes among nations.

you get what you pay for If you pay a low price, you’ll probably get a low-quality product.