Page 685 - Introduction to Business

GLOSSARY G-11

internet service provider (ISP) A business organization with just cause provision The labor contract provision stating that
a permanent connection to the Internet that sells tempo- an employer can only fire or discharge an employee for a
rary connections to subscribers (Ch 18) legitimate business reason (Ch 6)
internetworking The linking of separate networks into an
interconnected network, where each network retains its key accounts Accounts that represent a large percentage of a
own identity (Ch 18) company’s revenues and profits (Ch 10)
intranet An internal network in a business organization that is kilobyte One thousand bytes (Ch 17)
used by employees to collaborate, share information, and knowledge- or skill-based pay Pay for individuals for having
access internal websites (Ch 18) or obtaining specific knowledge or skills (Ch 6)
intrapreneur A person within a large corporation who takes knowledge workers Employees whose jobs require formal and
the responsibility to develop a new product through inno- advanced schooling (Ch 1)
vation and risk taking (Ch 4)
intrinsic motivation Motivation for which the reward is pro- labor arbitration The resolution of a labor dispute by a neu-
vided by the activity itself (Ch 7) tral outside third party (Ch 6)
introduction stage The first phase of the product life cycle in labor organization Any sort of employee organization that
which revenues and profits are low but begin to deals with the employer about working conditions (Ch 6)
increase (Ch 9) lag demand strategy A strategy where capacity is increased
inventory Unsold goods in stock (Ch 1) after demand increases (Ch 16)
investment The amount spent by private firms on new plant laissez faire The economic doctrine that advocates total gov-
and equipment for future production and profit (Ch 1) ernment inaction in business, so businesses are free to do
investment bankers Investment managers who assist firms what and as they please (Ch 1)
seeking to raise debt or equity funds from the financial Landrum Griffin Act A federal law of 1959 regulating internal
marketplace (Ch 13) union activities (Ch 6)
investment companies or mutual funds Financial institu- lead demand strategy A strategy where capacity is increased
tions that pool the savings of thousands of customers, before demand increases (Ch 16)
issue unit shares of ownership to their customers, and lead users High-profile firms in an industry that are good
invest the savings in securities portfolios (Ch 14) sources for new industrial products because their busi-
investment grade Bonds with lower default risk that are rated ness methods are often emulated by other firms in the
in the top four letter grades by Moody’s and Standard & industry (Ch 9)
Poor’s rating services (Ch 13) leadership The art of motivating employees to enhance their
investment risk The probability that an individual will lose all performance in order to achieve corporate goals ethi-
or part of an investment (Ch 15) cally (Ch 7)
investors Those who have a financial stake in a business, leadership style The behavior that top managers exhibit when
small or large, and expect to receive a return on their dealing with their employees and professional staff (Ch 7)
invested capital (Ch 1) learning Acquiring information, preferences, and habits that
determine what, why, and how consumers purchase
job analysis A systematic evaluation of the elements and goods and services (Ch 8)
requirements needed for a job (Ch 6) legacy systems Any and all information systems that an ERP
job description A list of the duties of the job, working condi- system replaces (Ch 18)
tions, responsibilities, people to be supervised, and so level strategy An extreme strategy where the workforce remains
on (Ch 6) stable and production rate adjustments come from overtime
job enlargement The practice where employees are assigned or undertime, and subcontracting (Ch 16)
to manage and run related tasks that lead to job enrich- liabilities The debts or economic obligations of the firm (Ch 12)
ment (Ch 7) liability insurance Insurance coverage of employees under
job evaluation The process of determining the relative worth worker compensation laws that require employers to pay
of different jobs (Ch 6) health and disability costs to injured employees and of lia-
job process A process where the product is produced in rela- bility losses in court decisions against a firm (Ch 4)
tively low volumes with relatively high levels of customiza- licensing The practice by governments of selecting investors
tion (Ch 16) to operate certain types of businesses, thereby restricting
job redesign Redefining jobs to keep employees satisfied and entry into those businesses and reducing competition;
to enhance their creativity and performance (Ch 7) The practice in which a company or individual provides
job rotation Periodically shifting employees from one job to the foreign partner the technology (patented technology,
another; The practice where employees are periodically copyright, process, trademark, etc.) to manufacture and
moved through different operations in a company to sell products or services for an annual license fee (Ch 1;
break job monotony and to provide employees the oppor- Ch 2)
tunity to learn different skills and obtain a feel for all the life insurance Protection offered by insurance companies
operations of the company (Ch 5; Ch 7) intended to pay a death benefit to a beneficiary (e.g., a
job specialization Organizational activities are broken down family member or friend) (Ch 4)
into specific tasks and different people designated to per- lifetime value (LTV) The future value of a customer based on
form those tasks (Ch 5) recency, frequency, and dollar amount of past purchases
job specification A detailed listing of the individual qualifica- (Ch 8)
tions needed for a job (Ch 6) limit order A securities transaction that sets a specific buy-or-
junk bonds Bonds with higher default risk that are rated below sell price to execute a buy-or-sell order for a security (Ch 13)
the top four letter grades by Moody’s and Standard & limited liability The principle that shareholders are not gener-
Poor’s rating services (Ch 13) ally liable for the debts or actions of the corporation (Ch 3)

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