Page 679 - Introduction to Business

GLOSSARY G-5

data mining Systematic searching for patterns and trends in depository institutions Financial institutions that hold
business activities that can be exploited by managers to deposit accounts of individuals, business firms, and gov-
gain competitive advantage (Ch 17) ernment (Ch 14)
data warehouse A database used for various business’ analy- depreciating assets Assets that usually decrease in value over
ses that contains current and historical data from various their lifetime (Ch 15)
operational databases (Ch 17) depreciation The accounting process of allocating an asset’s
database Banks of information that companies have about cost to expense over the asset’s useful life (Ch 12)
their individual customers; A group of related files that depressions Long, severe economic downturns that are par-
represents the highest level in the data hierarchy (Ch 8; Ch ticularly damaging to a business economy (Ch 4)
17) design decisions Decisions related to creating the products
database management system The software for creating and and the production system itself (Ch 16)
maintaining a database (Ch 17) development The step in the new product development
dealers Investment managers who buy and sell securities for process in which the design of the new product is final-
customers and hold inventories of stocks, bonds, or other ized (Ch 9)
financial assets (Ch 13) digital cash An electronic payment system that represents
deals Inducements offered to retailers and consumers to pur- currency in an electronic form that moves outside the
chase a certain quantity of a product (Ch 10) normal network of money (Ch 18)
decentralized configuration strategy The strategy where each digital checking An electronic payment system that extends
autonomous business unit at a foreign location develops the functionality of existing checking accounts so that
and operates its own information systems (Ch 17) they can be used for online shopping payments (Ch 18)
decentralized organization An organization where a signifi- digital credit card An electronic payment system that extends
cant amount of delegation of authority has occurred and the functionality of regular credit cards to protect the
authority is spread out (Ch 5) information transmitted among customers, merchant
decision-support systems Information systems for middle sites, and processing banks (Ch 18)
managers that combine data with sophisticated models digital enterprise A business organization where all major
and data analysis tools and help them make non-routine business processes and relationships with suppliers, cus-
decisions (Ch 17) tomers, employees, managers, and shareholders are digi-
decline stage The fourth step of the product life cycle in which tally enabled (Ch 18)
profits and revenues continue to fall (Ch 9) digital era The period of transformation within our lifestyle to
deductible The amount of a loss that an individual must pay make the Internet and related technologies a part of our
before an insurance arrangement compensates him or everyday lives (Ch 1)
her (Ch 15) digital signal An electromagnetic signal of a discrete wave-
default risk The chance that a borrower will go bankrupt and form that can handle data communications (Ch 17)
be unable to pay back a debt (Ch 13) digital wallet An electronic payment system that stores credit
default risk premium The added interest rate charged by card and owner identification information and provides
lenders due to the default risk of the borrower (Ch 13) these data automatically during e-business transactions
defined benefit plan Retirement plans where the benefit is (Ch 18)
based on a formula and precisely known; A type of pen- dilution of ownership control The loss of ownership control
sion plan in which the employer promises to pay out a that occurs as more shareholders own stock, thereby
specified amount of monthly pay to an employee upon reducing the percentage ownership of each individual
their retirement (Ch 6; Ch 14) shareholder (Ch 4)
defined contribution plan Retirement plans where contribu- direct mail A type of advertising that uses personal letters,
tions are known but benefits may vary; A type of pension booklets, and brochures to reach very specific market seg-
plan in which the employee sets aside a portion of her or ments (Ch 10)
his paycheck in a savings plan and the employer provides direct marketing Using telephone and nonpersonal media to
matching funds in many cases (Ch 6; Ch 14) promote products and services (Ch 10)
delegation The assignment by a manager of some of his or her direct selling Nonstore retailing involving salespeople calling
authority or work to other employees (Ch 5) directly on customers in their homes or offices (Ch 10)
demand curve The curve that shows the relationship between directing Guiding, motivating, and leading employees toward
the quantity demanded and the price of a product or ser- what an organization wishes to achieve (Ch 5)
vice for a particular customer, group of consumers, or direct-response marketing Using various media to ask con-
even a whole country (It is downward sloping.) (Ch 1) sumers to purchase products (Ch 10)
democratic style A bottom-up approach to management disability insurance Protection offered by insurance compa-
where management receives input from its members and nies against longer-term expenses resulting from a
major policies are accepted for implementation on the chronic medical condition that prevents a person from
basis of majority vote (Ch 7) continuing to work (Ch 4)
department stores Large stores that sell a wide variety of discount rate Any rate used in present value calculations to
merchandise organized into separate departments (Ch 10) convert money from its future value to its present value;
departmentalization The process of grouping jobs into coor- The interest rate at which banks can borrow from the cen-
dinated units (Ch 5) tral bank’s discount window (Ch 13; Ch 14)
deposit insurance A guarantee on deposits that protects them discount stores Stores that emphasize the sale of hard goods
from losses due to the failure of a bank or other depository at low prices with low levels of service at inexpensive loca-
institution (Ch 14) tions (Ch 10)

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