Page 713 - Business Principles and Management

Glossary

extranet A private network that com- flattened organization An organization growth stage Stage of the product life
panies use to share certain informa- with fewer levels of management than cycle when several brands of the new
tion with selected people outside the traditional structures. product are available.
organization. flex-time A plan that lets employees
choose their own work hours, within H
specified limits.
F foreign goods Products made by firms hardware Equipment that makes up a
factors of production Land, labor, capital in other countries. computer system.
goods, and management—the four basic formal communication network System health insurance Insurance which
resources that are combined to create of official channels that carry organiza- provides protection against the expenses
useful goods and services. tionally approved messages; flows up- of health care.
Fair Labor Standards Act (FLSA) ward, downward, and across the high-context culture A culture in which
Prescribes standards for wages and organization in a prescribed manner. communication occurs through non-
overtime pay. formal training Carefully planned verbal signs and indirect suggestions.
false advertising Advertising that is mis- instruction with a specific curriculum home country The country in which a
leading in a material respect or in any and instructor. multinational corporation has its
way that could influence the customer’s franchise A legal agreement between a headquarters.
purchase or use of the product. company and a distributor to sell a prod- host country The foreign country where
Federal Deposit Insurance Corporation uct or service under special conditions. a multinational firm has production and
(FDIC) A federal agency that insures franchisee The distributor of a fran- service facilities.
deposits in banks and savings institu- chised product or service. human capital Accumulated knowledge
tions up to approximately $100,000 franchisor The parent company of a and skills of human beings; the total
per depositor account. value of each person’s education and
franchise agreement that provides the acquired skills.
Federal Reserve System (Fed) The central product or service.
bank of the United States. human relations How well people get
free-trade agreements International along with each other when working
feedback A receiver’s response to a agreements that eliminate almost all
sender’s message. trade restrictions and subsidies between together.
file server (or simply server) A computer individual countries and groups of human resources management (HRM)
in a LAN that stores data and applica- countries. All activities involved with acquiring,
tion software for all PC workstations. Frost Belt The colder northern half of developing, and compensating the
people who do the company’s work.
finance Business activity that deals with the United States.
human resources planning Determining
all money matters related to running a full disclosure Providing all information
business. necessary for consumers to make an the types of jobs that are required for
each part of the production process and
financial records (accounting records) informed decision. the number of people needed for each
Organized summaries of a business’s job.
financial information and activities. G hygiene factors Job factors that dissat-
financial statements Reports that sum- isfy when absent but do not contribute
marize financial data over a period Generation X People in the post-baby- to satisfaction when they are present.
of time. boom generation. hyperlink A Web page address embed-
financing Providing money that is needed glass ceiling An invisible barrier to job ded in a word, phrase, or graphic that,
to perform various marketing activities, advancement. when clicked, transports users to that
such as obtaining credit when buying and global competition The ability of profit- address.
extending credit when selling. making organizations to compete with
firewall A system using special software other businesses in other countries. I
that screens people who enter or exit a goal A specific statement of a result the
network by requesting passwords. business expects to achieve. identity power Power given to people
fixed assets Expensive assets of a busi- grading and valuing Grouping goods because others identify with and want
ness that are expected to last and be according to size, quality, or other to be accepted by them.
used for a long time. characteristics, and determining an implementing Helping employees to
fixed interest rate An interest rate that appropriate price for products and work effectively.
does not change throughout the life of services. importing Buying goods or services
the loan. grapevine An informal communication made in a foreign country.
flame An electronic message that con- system that develops among workers. income statement (profit and loss
tains abusive, threatening, or offensive gross domestic product (GDP) The total statement) A financial document that
content that may violate company market value of all goods produced and reports total revenue and expenses for
policy or public law. services provided in a country in a year. a specific period.

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