Page 714 - Business Principles and Management

Glossary

income tax A tax levied against the intermittent processing Manufacturing job enlargement Making a job more in-
profits of business firms and against process that uses short production runs teresting by adding variety to the tasks.
earnings of individuals. to make predetermined quantities of job enrichment Encouraging employee
indirect distribution Distribution that different products. participation in decision making.
takes place through channel members. international business Business activi- job security The likelihood that employ-
individual career plan Identifies the jobs ties that occur between two or more ment will not be terminated.
that are part of the employee’s career countries. job sharing An employment plan that
path, the training needed to advance international licensing Arrangement in allows two people to share one full-
along the career path, and a tentative which one company allows a different time job.
schedule for the plan’s activities. company in another country to make job specification A list of the qualifica-
industrial businesses Firms that produce and sell its products according to cer- tions a worker needs to do a job.
goods that are often used by other busi- tain specifications. joint venture Two or more businesses
nesses or organizations to make things. International Monetary Fund (IMF) that agree to provide a good or service,
industrial goods Products designed for International institution that helps sharing the costs of doing business and
use by another business. financially strapped countries pay for also the profits.
imports or repay loans.
industry Term often used to refer to all just-in-time (JIT) inventory controls
businesses within a category. Internet (Net) A worldwide network of A method in which the company main-
linked computers that allows data and
inflation A rapid rise in prices caused tains very small inventories and obtains
information to be transferred among
by an inadequate supply of goods and materials just in time for use.
computers.
services.
Internet domain A registered Web site.
informal communication network
Unofficial ways of sharing information Internet Service Provider (ISP) A service K
in an organization. that provides Internet access. knowledge workers People who work
informal training Training and instruc- interstate commerce Business opera- with information.
tion that is unstructured and unplanned tions and transactions that cross over
but developed for specific situations or state lines. L
individuals. intranet A private company network
information Data that has been processed that allows employees to share resources labor The human effort, either physical
in some way that is useful to decision no matter where they are located. or mental, that goes into the production
makers. intrapreneur An employee who is given of goods and services.
funds and freedom to create a special
information liability Responsibility for labor force Most people aged 16 or over
physical or economic injury arising from unit or department within a company in who are available for work, whether
incorrect data or wrongful use of data. order to develop a new product, process, employed or unemployed.
or service.
information system A computer system labor participation rate The percentage
used to process data for the purpose of intrastate commerce Business transacted of the labor force either employed or
generating information from that data. within a state. actively seeking employment.
introduction stage Stage of the product
innovation Something entirely new. layoff A temporary or permanent
life cycle when a brand-new product
installment credit Credit used when a reduction in the number of employees
enters the market.
customer makes a sizable purchase resulting from a change in business
inventory management Planning the conditions.
and agrees to make payments over an
quantities of materials and supplies
extended but fixed period of time. leader A manager who earns the respect
needed for production and the number
insurable interest Any interest in prop- of finished products required to fill and cooperation of employees to effec-
erty that will suffer a possible financial customer orders. tively accomplish the organization’s
loss if there is a loss of or damage to work.
the property. investment The use of money to make leadership The ability to influence
more money.
insurance A risk management tool that individuals and groups to achieve
limits financial loss from uncontrollable investment bank An organization that organizational goals.
events in exchange for regular payments. helps businesses raise capital through leadership style The general way a man-
the sale of stocks and bonds.
insurance agents People who represent ager treats and directs employees.
the insurance company and sell insur- lease A contract that allows the use of
ance to individuals and businesses. J an asset for a fee.
insurance rate The amount charged for job description A list of the basic tasks liabilities Claims against assets or things
a certain value of insurance. that make up a job. owed—the debts of a business.
intangible When applied to services, hav- job design The kinds of tasks that make liability insurance Insurance which
ing no physical form, visibility, or exis- up a job and the way workers perform provides protection for risks involved
tence after consumer has used the service. these tasks. in operating a business.

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