Page 677 - Introduction to Business

GLOSSARY G-3

est, the freedom to choose, and the ability to borrow command, or planned, economic system The economic
money (Ch 1) system in which the ownership and control of the fac-
cash flow The flow of money into (inflows) and out of (out- tors of production are totally in government hands
flows) accounts (Ch 15) (Ch 1)
cash flow budget A budget that shows what cash came in and commercial banks The most dominant type of depository
what went out during a selected time period (Ch 15) institution that takes public deposits of funds and chan-
cash-and-carry wholesalers Limited-service wholesalers that nels these savings to loans and investments (Ch 14)
do not provide their customers with credit or transporta- commercial paper Short-term, unsecured debt securities nor-
tion (Ch 10) mally issued by large, financially sound firms to raise
catalog marketing Offering consumers sales of merchandise funds (Ch 13)
from catalogs containing information about products commercialization Strategies employed to introduce a new
from which they can order (Ch 10) product and to monitor its performance (Ch 9)
category killer A store that dominates its segment of the commission merchants Sellers that have power over prices
retailing industry (Ch 10) and terms of sale and specialize in providing transpor-
central processing unit (CPU) The computer hardware ele- tation and arranging delivery for agricultural products
ment that controls other elements of a computer system (Ch 10)
(Ch 17) committee authority The right of committees to run an
centralized configuration strategy The strategy where the organization (Ch 5)
development and operation of all information systems is commodity money Coins that are made out of precious
done at a home base (Ch 17) metals (Ch 14)
centralized organization An organization where relatively common carriers Trucks not owned by shippers on which
little delegation of authority occurs and authority is con- they can ship their products for a fee (Ch 10)
centrated at the top (Ch 5) common market or single market A market formed when
Certified Public Accountants (CPAs) Accountants licensed member countries of a customs union remove all barriers
by the state to provide accounting services, including to the movement of capital and labor within the customs
external audits of a business firm’s financial statements union (Ch 2)
(Ch 12) common stock Securities issued by firms that represent own-
chain of command The lines of authority or reporting rela- ership claims on the earnings of the firm (Ch 13)
tionships that exist within an organization (Ch 5) communicability The ease with which it is possible to convey
chaos theory The theory based on the assumption that organ- the benefits of a new product to the market (Ch 9)
izations are multifaceted and complex and operate in a communications channels The physical means by which
disorderly business environment (Ch 7) information is transmitted (Ch 17)
character The most basic data element—a number, letter or communications devices Computer system devices that pro-
other symbol—that can be observed and manipulated vide connections between the computer and other com-
(Ch 17) puters via telecommunications networks (Ch 17)
charismatic leaders Energetic transformational leaders who communications processors Devices that support the trans-
are often considered heroes by the organization in their mission and reception of information in a telecommuni-
pursuit of a rosy vision for the future (Ch 7) cations network (Ch 17)
chase strategy An extreme strategy where production rate company credo A business philosophy that provides an ethi-
adjustments come exclusively from hiring and firing work- cal standard for a firm, as well as its managers and
ers (Ch 16) employees (Ch 4)
chief executive officer (CEO) The top officer of a corporation company unions Unions that are supported and dominated
(Ch 3) by the employer (Ch 6)
chief financial officer (CFO) The top corporate financial offi- comparable worth The principle that men and women should
cer (Ch 3) be paid the same for comparable work (Ch 6)
circuit breakers Temporarily stopping or slowing down the comparative advantage The ability of one country that has an
trading of stocks and bonds by a securities exchange absolute advantage in the production of two or more
(Ch 14) goods (or services) to produce one of them relatively more
client/server network A telecommunications network where efficiently than the other (Ch 2)
some computers are “clients” and some computers are compatibility The extent to which a new product allows con-
“servers” (Ch 18) sumers to operate as they have in the past (Ch 9)
clients Personal computers or workstations in a client/server competitive competitor intelligence (CI) Information about
network that provide user interfaces and perform some competitors (Ch 8)
processing on an application (Ch 18) compliance audit The audit done to ensure that the organiza-
closely held firms Firms that are owned by a relatively small tion is in compliance with laws, rules, regulations, and
number of shareholders who do not openly trade their contractual agreements (Ch 12)
shares (Ch 13) compound interest Interest that is earned on previous inter-
closing Efforts by a salesperson designed to get a prospect to est, also known as the force of interest (Ch 13)
purchase a product or service (Ch 10) computer contingency plan A comprehensive plan of action
closing time The time prior to publication by which an adver- designed to safeguard critical accounting information
tisement must be submitted (Ch 10) from loss, destruction, theft, and other threats (Ch 11)
coaxial cable Sturdy copper or aluminum wire wrapped with computer crime The use of computers to perpetrate or facili-
spacers to insulate it (Ch 17) tate illegal activity (Ch 11)

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