Page 716 - Business Principles and Management

Glossary

N officers Top executives who are hired performance review The process of
to manage the business. assessing how well employees are
natural monopoly Type of monopoly open corporation (publicly owned doing their jobs.
that usually involves providing public corporation) A corporation that offers
services, such as public utilities, which its shares of stock for public sale. performance standards Specific state-
have a fairly stable demand and are ments of the expected results from
costly to create. open leader A manager who gives little critical business activities.
or no direction to workers. personal digital assistant (PDA) A
natural resources Anything provided by
nature that affects the productive ability operating budget A plan showing small, computer-like device that can
of a country. projected sales, costs, expenses, and send and receive messages wirelessly.
profits for the ongoing operations of personal property tax A tax on such
Net Generation Those persons born a business.
between 1977 and 1997. items as furniture, machinery, and
operating expenses The costs of operat- equipment.
net profit The difference between the ing a business.
selling price and all costs and expenses personal selling Promotion through di-
of the business. operating system software A master rect, personal contact with a customer.
control program that manages the piece-rate plan A compensation plan
new task purchase Process when a busi- computer’s internal functions and file
ness is purchasing a product, inventory system. that pays the employee a fixed rate for
item, or supply for the first time. each unit of production.
operational planning Short-term plan- piggyback service A distribution method
no-fault insurance Each insurance com- ning that identifies specific activities
pany is required to pay the losses of its for each area of the business. where truck trailers are loaded and
insured when an accident occurs, regard- placed on railroad cars to be shipped
less of who might have been responsible organization chart A visual device that close to their final destination.
for the loss. shows the structure of an organization pixel One or more dots that act as the
and the relationships among workers smallest unit on a video display screen.
nominal group technique (NGT) Group and divisions of work.
problem-solving method in which group planning Analyzing information and
members write down and evaluate ideas organizational development Carefully making decisions about what needs to
to be shared with the group. planned changes in the structure and be done.
operation of a business so it can
nonbank Financial institution whose adjust successfully to the competitive policies Guidelines used in making
primary purpose is to offer financial environment. decisions regarding specific, recurring
products and services other than de- situations.
posits and loans. organizing Determining how plans position power Power that comes from
can most effectively be accomplished;
noneconomic wants Desires for non- arranging resources to complete work. the position the manager holds in the
material things that are not scarce. organization.
output The quantity, or amount,
nongovernmental organizations (NGOs) produced within a given time. power The ability to control behavior.
Group problem-solving method in which power need In McClelland’s theory,
group members write down and evaluate outsourcing Hiring an outside firm to desire to influence and control others
ideas to be shared with the group. perform specialized tasks for a business. and to be responsible for a group’s
nonprofit corporation An organization activities.
that does not pay taxes and does not P preferred stock Ownership that gives
exist to make a profit. holders preference over the common
Pacific Rim Countries located on the
nontariff barriers Barriers other than western edge of the Pacific Ocean. stockholders when distributing divi-
tariffs that restrict imports. dends or assets.
par value (stated value) A dollar value
nonverbal communication Delivering shown on a share of stock, which is an price The amount of money given to
messages by means other than speaking arbitrarily assigned amount that is used acquire a product.
or writing.
for bookkeeping purposes. price discrimination Setting different
North American Free Trade Agreement parent firm A company that controls prices for different customers.
(NAFTA) A trading bloc consisting of another company. prime rate The lowest rate of interest;
the United States, Canada, and Mexico. the rate at which large banks loan large
partnership A business owned by two
or more persons. sums to the best-qualified borrowers.
O patent An agreement in which the fed- private property Items of value that
objections Concerns or complaints eral government gives an inventor the individuals can own, use, and sell.
expressed by the customer. sole right for 20 years to make, use, privatization Transfer of authority to
Occupational Safety and Health Act and sell an invention. provide a good or service from a gov-
(OSHA) Federal law that regulates pension plan A company-sponsored ernment to individuals or businesses.
safety and health conditions in most retirement plan that makes regular problem A difficult situation requiring a
businesses. payments to employees after retirement. solution.

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