Page 711 - Business Principles and Management

Glossary

comparative advantage theory A theory shipped using a number of transporta- customer oriented Term referring to
which states that to gain a trade advan- tion methods before being unpacked. businesses that direct company activi-
tage, a country should specialize in continuous processing Manufacturing ties at satisfying customers.
products or services that it can provide process in which raw materials con-
more efficiently than other countries. stantly move through specially designed
compensation The money and other equipment that changes their form to D
benefits people receive for work. make them more usable for consump- data Original facts and figures that
compensation plan A system of policies tion or further manufacturing. businesses generate.
and procedures for calculating the controlling Evaluating results to deter- data-processing center A business that
wages and salaries in an organization. mine if the company’s objectives have processes data for other businesses for
competition Rivalry among sellers for been accomplished as planned. a fee.
consumers’ dollars. convenience goods Inexpensive items database A collection of data organized
compromise strategy A strategy in which that consumers purchase regularly in a way that makes data easy to find,
everyone involved in a conflict agrees to without a great deal of thought. update, and manage.
a mutually acceptable solution. cookies Files of information about debentures Bonds that are not secured
computer A machine that processes and a user that some Web sites create by assets but based upon the faith and
stores data according to instructions and store on the user’s own computer. credit of the corporation that issues
stored in it. cooperative A business owned and them.
computer-aided design (CAD) Computer operated by its user-members for the debit card A card which allows a person
application that allows engineers to purpose of supplying themselves with to make cash withdrawals from ATMs,
design and test products before they goods and services. pay bills by phone from bank accounts,
are even built. copyright Sole right given to an author and pay for on-site purchases such as
computer-integrated manufacturing by the federal government to reproduce, food and household items.
Process in which all manufacturing sys- publish, and sell literary or artistic work debt capital (creditor capital) Capital
tems are designed and managed with for the life of the author plus 70 years. loaned to a business by others.
computers. corporation A business owned by a decentralized organization A business
conditions Economic and other matters, group of people and authorized by the which is divided into smaller operating
such as the economic health of a com- state in which it is located to act as units where managers are given almost
munity or nation and the extent of though it were a single person. total responsibility and authority for
business competition, that affect credit corrective advertising New advertising the operation of those units.
decisions. designed to change the false impression decision support system (DSS) A system
conflict A situation that develops when left by misleading information. that helps managers consider alterna-
one person interferes with the achieve- cost of goods sold The cost to produce tives in making specific decisions.
ment of another’s goals. a product or buy it for resale. decline stage A time period when a
consultant An expert who is called credit agency A clearinghouse for new product is introduced that is
upon to study a special problem and information on the creditworthiness much better or easier to use than the
offer solutions. of individuals or businesses. old one, and customers begin to
consumer goods Products produced creditors Those to whom money is owed. switch from the old product to the
for sale to individuals and families for creditworthiness A measure of a person’s new product.
personal use. ability and willingness to repay a loan. deductible An arrangement that permits
consumer goods and services Goods and cross training A process in which the insured to bear part of the loss in
services that satisfy people’s economic employees are trained to perform more return for a lower premium.
wants directly. than one job in the company even demand The number of similar products
consumer loan A loan made to an though they typically perform only one. that will be bought at a given time at a
individual. culture (1) The shared values, beliefs, and given price.
consumer panel A group of people behavior existing in an organization. demand deposit Money put into a
who offer opinions about a product (2) The customs, beliefs, values, and financial institution by depositors
or service. patterns of behavior of the people of a which can be withdrawn at any time
Consumer Price Index (CPI) A mea- country or group. without penalty.
sure of the average change in prices of current account An account that records democratic leader One who encourages
consumer goods and services typically the value of goods and services exported workers to share in making decisions
purchased by people living in urban and those imported from foreigners, as about work-related problems.
areas. well as other income and payments. depreciation Decrease in the value of
containerization A process in which custom manufacturing Process used to an asset due to wear and age.
products are packed in large shipping design and build a unique product to depression A long and severe drop in
containers at the factory and then meet the specific needs of the purchaser. the GDP.

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