Page 709 - Business Principles and Management

Glossary

A assets Things owned, such as cash and basic product The physical product in
buildings. its simplest form.
accountability The obligation to accept assurance SERVQUAL dimension; the beneficiaries Persons who receive a life
responsibility for the outcomes of knowledge and courtesy of employees insurance payment on the death of an
assigned tasks.
and their ability to convey trust and insured person.
accounting equation Assets = Liabilities confidence. board of directors (directors or board)
+ Capital
authority The right to make decisions Ruling body of a corporation.
accounts payable record A record show- about work assignments and to require bond A long-term written promise to
ing money owed and payments made by other employees to perform assigned pay a definite sum of money at a
the business. tasks. specified time.
accounts receivable record A record autocratic leader One who gives direct, bonding The process which provides
showing what each customer owes clear, and precise orders with detailed payment of damages to people who
and pays. instructions as to what, when, and how have losses resulting from the negli-
achievement need In McClelland’s theory, work is to be done. gence or dishonesty of an employee
the need to take personal responsibility automatic teller machine (ATM) A or from the failure of the business to
for work, set personal goals, and have computer that enables bank customers complete a contract.
immediate feedback on work. to deposit, withdraw, or transfer funds bonus Money paid at the end of a spe-
actuaries Persons who calculate by using a bank-provided plastic card. cific period of time for performance
insurance rates. avoidance strategy A strategy for that exceeds the expected standard.
administered channel A channel in which resolving conflict that takes a neutral book value The value of a share of
one organization takes a leadership posi- position or agrees with another person’s stock that is found by dividing the net
tion to benefit all channel members. position even though it differs from worth (assets minus liabilities) of the
advertising All forms of paid promotion your personal belief. corporation by the total number of
that deliver a message to many people shares outstanding.
at the same time. brainstorming A group discussion
advertising budget A plan of the amount B technique that is used to generate as
of money a firm should spend for adver- baby boom The high birth rate period many ideas as possible for solving a
tising based on estimated sales. from 1945 to 1965. problem.
advertising media The methods of deliv- baby bust The low birth rate period brand A name, symbol, word, or design
ering the promotional message to the following the baby boom period. that identifies a product, service, or
intended audience. balance of payments Accounting state- company.
affiliation need In McClelland’s theory, ment in which all international transac- bricks-and-click businesses Businesses
motivation related to relationships with tions are recorded; consists of current that use the Internet to support their
others and fitting in with a group. account and capital account. bricks-and-mortar businesses.
affinity credit cards Cards associated with balance sheet (statement of financial bricks-and-mortar businesses Businesses
specific organizations and offered to position) A financial statement that that complete most of their business
people affiliated with those organizations. lists the assets, liabilities, and capital activities at a physical location rather
aging the accounts Analyzing customers’ of a business. than through the Internet.
account balances within categories based bank A financial institution that accepts browser A program that permits you to
upon the number of days each customer’s demand deposits, makes consumer and navigate and view Web pages.
balance has remained unpaid. commercial loans, and buys and sells budget A financial plan usually extend-
application software Software which currency and government securities. ing for one year.
consists of instructions for performing bankruptcy A legal process that allows building codes Codes that regulate
various types of tasks. selling assets to pay off debts. physical features of structures.
applied research Research that studies banner ad A Web advertising unit, like business An organization that produces
existing product problems or possible a placement ad in a newspaper. or distributes a good or service for
design improvements for current bar codes Product identification labels profit.
products. containing a unique set of vertical bars business buying process A set of formal
assessed valuation The value of prop- that can be read using computer procedures followed by a business when
erty determined by tax officials. scanning equipment. it decides to purchase a product.

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