Page 710 - Business Principles and Management

Glossary

business cycles A pattern of irregular career-level occupations An occupation check A written order on a financial
but repeated expansion and contraction in which the employee has the authority institution to pay previously deposited
of the GDP. to control some of their work and make money to a third party on demand.
business ethics A collection of principles some decisions. chief information officer (CIO) The top
and rules of conduct based on what is career path A progression of related computer executive.
right and wrong for an organization. jobs with increasing skill requirements close corporation (closely held
business plan (1) A written description and responsibility needed to advance corporation) A corporation that
of the business and its operations with along the career path, and a tentative does not offer its shares of stock for
an analysis of the opportunities and schedule for the plan’s activities. public sale.
risks it faces. (2) A written guide career portfolio An organized collection co-branded credit cards Credit cards
that helps the entrepreneur during of information and materials you cosponsored by two companies which
the design and start-up phases of the develop to represent yourself, your have benefits and rewards designed
business. preparation, and your accomplishments. specifically for their joint customers.
buying Obtaining goods to be resold. carpal tunnel syndrome (CTS) Type of code of ethics A formal, published col-
buying motives The reasons people buy. injury that can occur from repetitive lection of values and rules used to guide
motion such as using a computer key- the behavior of an organization toward
C board or playing video games. its various stakeholders.
cash budget An estimate of cash collateral Property a borrower pledges
cafeteria plan A benefit program in received and paid out.
which employees can select the benefits to assure repayment of a loan.
that meet their personal needs. cash discount A discount given if pay- combination plan A pay plan that pro-
ment is received by a certain date. vides each employee a small wage or
capacity Earning power.
cash flow The movement of cash into salary and adds incentive pay based
capital (net worth, owner’s equity, stock- and out of a business. on the person’s performance.
holders’ equity) (1) What a business is
worth after subtracting liabilities from cease-and-desist order Legal penalty command economy An economic sys-
assets. (2) A measure of the credit appli- requiring that a company stop using tem in which the method for determin-
cant’s current financial worth or ability specific advertisements. ing what, how, and for whom goods
to pay based on assets. centralized organization Business struc- and services are produced is decided
ture in which a few top managers do all by a central planning authority.
capital account An account that records
investment funds coming into and going the major planning and decision making. commercial businesses Firms engaged in
out of a country. certificate of deposit (CD) A savings marketing, in finance, and in furnishing
account that requires an investor to services.
capital budget A financial plan for
replacing fixed assets or acquiring deposit a specified sum for a fixed commercial loan A loan made to a
new ones. period at a fixed interest rate. business.
certified public accountant (CPA)
capital formation The production of commission plan A compensation plan
capital goods. A person who has met a state’s educa- in which employees are paid a percent-
tion, experience, and examination age of the volume of business for which
capital goods Buildings, tools, machines, requirements in accounting.
and other equipment that are used to they are responsible.
produce other goods but do not directly channel integration When one business common stock Ownership that gives
satisfy human wants. owns the organizations at other levels holders the right to participate in man-
of the channel. aging the business by having voting
capitalism An economic-political system
in which private citizens are free to go channel members Businesses that privileges and by sharing in the profits
into business for themselves, to produce participate in activities transferring (dividends) if there are any.
whatever they choose to produce, and goods and services from the producer communication The sharing of informa-
to distribute what they produce as they to the user. tion which results in a higher degree of
please. channel of communication The means understanding between the message
capital stock (or simply stock) The by which a message is conveyed. sender and receiver.
general term applied to the shares of channels of distribution (marketing communication network A structure
ownership of a corporation. channels) The routes products and ser- through which information flows in a
career centers Facilities where career vices follow, including the activities and business.
development activities are managed. participating organizations, while mov- communism Forced socialism where
ing from the producer to the consumer.
career development A program that all or almost all the productive re-
provides a long-term focus on a com- character An indication of one’s moral sources of a nation are owned by the
pany’s employment needs combined obligation to pay debts. government.
with support for employees so they charter (certificate of incorporation) comparable worth Paying workers
can prepare for future jobs in the An official document granted by a state equally for jobs with similar but not
company. giving power to run a corporation. identical job requirements.

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