Page 717 - Business Principles and Management

Glossary

procedure A list of steps to be followed property tax A levy on material goods researching Studying buyer interests and
for performing certain work. owned. needs, testing products, and gathering
process improvement Efforts to increase proportional tax (flat tax) Tax rate that facts needed to make good marketing
the effectiveness and efficiency of specific remains the same regardless of the decisions.
business operations. amount on which the tax is imposed. responsibility The obligation to do an
producer Anyone who aids in creating proprietor The owner-manager of a assigned task.
a utility. business. responsiveness SERVQUAL dimension;
product All attributes that customers re- prospectus A formal summary of the the willingness to help customers and
ceive in exchange for the purchase price. chief features of the business and its provide prompt service.
product assortment The complete set of stock offering. retailers Businesses that sell directly to
all products a business offers to a market. proxy A written authorization for some- final consumers.
product development Process of creating one to vote on behalf of the person retained earnings Profits that are put
or improving a product or service. signing the proxy. aside to run a business.
product life cycle The four stages of public franchise A contract that permits revolving credit A credit plan that
sales and profit performance through a person or organization to use public combines the features of regular
which all brands of a product progress. property for private profit. charge credit and installment credit.
product life cycle theory Theory that pure research Research done without a reward power Power based on the
companies look for new markets when specific product in mind. ability to control resources, rewards,
products are in the maturity and decline and punishments.
stages of the product life cycle. Q risk taking Assuming the risk of losses
product line A group of similar prod- that may occur from fire, theft, damage,
ucts with obvious variations in the quality standard Describes expected con- or other circumstances.
design and quality to meet the needs sistency in production or performance. Rust Belt The north central and
of distinct customer groups. quantity discount Discount used by northeastern states where major
production Making a product or pro- sellers to encourage customers to buy manufacturing centers were once
viding a service. in large quantities. dominant.
production oriented Term referring to quantity standard Establishes the
businesses that emphasize decisions expected amount of work to be S
about what and how to produce and completed.
then how to sell the products. quasi-public corporation A business salary Compensation paid on a basis
production scheduling Identifying the that is important but lacks the profit other than hourly, such as weekly
steps required in a manufacturing potential to attract private investors or monthly.
process, the time required to complete and is often operated by local, state, sales budget A forecast of the sales for
each step, and the sequence of the steps. or federal government. a month, a few months, or a year.
productivity Producing the largest quan- quotas Limits placed on the quantity sales oriented Term referring to busi-
tity in the least time by using efficient or value of units permitted to enter a nesses that emphasize distribution and
methods and modern equipment. country. promotion to sell their products.
profit the incentive, as well as the reward, sales promotions Any promotional
for producing goods and services. R activities other than advertising and
profit-sharing plan A benefit plan that personal selling intended to motivate
pays employees a small percentage real property tax A tax levied on land customers to buy.
of the company’s profits at the end and buildings. sales tax A tax levied on the retail price
of the year. recession A decline in the GDP that of goods and services at the time they
continues for six months or more. are sold.
progressive tax Tax based on the ability
to pay. recycling The reuse of products or prod- sanctions A milder form of embargo
uct packaging whenever possible. that bans specific business ties with a
promissory note An unconditional
written promise to pay a certain sum regressive tax Taxation wherein the foreign country.
of money, at a particular time or on actual tax rate decreases as the taxable savings account An account that allows
demand, to the order of one who has amount increases. the customer to make deposits, earn
obtained the note. reliability SERVQUAL dimension; the interest, and make withdrawals at any
promotion (1) Providing information to ability to perform the promised service time without financial penalties.
consumers that will assist them in mak- dependably and accurately. savings bonds Non-negotiable securities
ing a decision to purchase a product or repetitive production Manufacturing sold by the U.S.Treasury in small
service. (2) The advancement of an em- process in which the same thing is denominations to individual investors.
ployee within a company to a position done over and over to produce a schedule A time plan for reaching
with more authority and responsibility. product. objectives.

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