Page 694 - Introduction to Business

G-20 GLOSSARY

systems controls Controls to monitor the accuracy and secu- Theory X The theory that is based on the distrustful vision
rity of the input, processing, storage, and output activi- of human nature in general and employees in particular
ties (Ch 17) (Ch 7)
systems design The description of how the information Theory Y The theory that is based on the positive view of
system will meet the information needs identified by the employees (Ch 7)
systems analysis (Ch 17) three-tier client/server network A client/server network
where the user interface resides on personal computers or
tactical plans Shorter-term (one to three years) plans formu- workstations, the system and application software reside
lated for achieving organizational strategic goals (Ch 5) on midrange computers and the database resides on
Taft-Hartley Act A federal law of 1947 cutting back on the mainframe computers (Ch 18)
power of labor unions (Ch 6) thrift institutions Depository institutions that are primarily
takeover bid An offer made by another company to acquire a home lenders (Ch 14)
company (Ch 3) time horizon The number of years an individual has to
tangibles (of service) The appearance of the service facilities, achieve her or his financial plan (Ch 15)
equipment, and personnel (Ch 16) time preference for consumption The desire by people to
target group A population segment whose members have consume goods and services now rather than in the
more or less similar consumption habits (Ch 1) future (Ch 13)
tariffs Taxes on imports that raise the price of imports and time utility The satisfaction for customers created by products
consequently enable domestic competitors to raise prices being stored until customers want to purchase them (Ch 10)
as well; Taxes on imports (Ch 1; Ch 2) time-and-motion studies Studies that measure the time
tax risk The exposure of earnings from an investment to gov- taken to conduct each subactivity of a job in order to
ernment taxation, including income and capital gains determine the best approach to performing the total job
taxes (Ch 13) efficiently (Ch 7)
technical skills Specific skills needed to perform a specialized top managers The people who run organizations (Ch 5)
task (Ch 5) total net worth The sum of the market values of all financial
technical testing Subjecting a new product to a physical eval- and real assets owned, including cash, bonds, stocks, land,
uation that measures its ability to perform up to expecta- buildings, and other property (Ch 13)
tions (Ch 9) total risk The sum of all risks associated with a security, which
technology The development of new products and processes can be measured as the volatility of the security’s price
(Ch 8) over time (Ch 13)
technology transfer The adoption by one company for the total satisfaction The postpurchase response in which the
development of new products of a technology that origi- customer has no dissatisfaction at all with the product or
nated with another company (Ch 9) service accompanying the product (Ch 8)
telecommunication The communication of information by trade credit A credit system that allows a firm to buy goods
electronic means over some distance (Ch 17) and services from another firm and pay within 30 to 90
telecommunications networks Collections of computer hard- days from the date of purchase (Ch 13)
ware and software arranged to transmit information from trade policy Government policy implemented primarily
one place to another (Ch 17) through changes in tariff rates or quotas with the objec-
telecommunications software The software that provides a tive of encouraging exports or discouraging imports (Ch 2)
variety of communications support services such as estab- trade shows Shows where companies have the opportunity to
lishing transmission speed and protecting the network display their products (Ch 10)
from unauthorized users (Ch 17) transactional leadership The leader providing followers
telecommuting An employee’s working at home for family or rewards for good performance or reprimanding followers
physical reasons while being “virtually” at work with the for unacceptable performance (Ch 7)
help of current information technology (Ch 7) transfer price The price a U.S. company charges its overseas
telemarketing Using the telephone to promote the sales of subsidiary (Ch 9)
products and achieve other marketing objectives (Ch 10) transformational leadership The leader gaining the trust of
television home shopping Shopping from television cable and inspiring followers to work jointly to achieve the
channels that do not have regular programming, but leader’s vision for the organization and to benefit the
instead promote products (Ch 10) members of the organization (Ch 7)
terabyte One trillion bytes (Ch 17) transnational company An organizational structure where
term insurance An insurance policy that offers a lump sum the resources are dispersed in various countries, but each
death benefit to policyholders (Ch 14) business unit in each country is specialized, so as to form
test markets Cities that mirror the entire U.S. market so that an efficient, flexible, and independent network (Ch 17)
companies use them to market their products on a limited treasurer The financial manager responsible for managing
basis to develop a marketing mix for the commercializa- cash, raising funds, and maintaining contacts with the
tion stage (Ch 9) financial marketplace (Ch 13)
testing Making sure that the information system will produce truck wholesalers Limited-service wholesalers that sell lim-
the desired results (Ch 17) ited lines of perishable or semiperishable products to
theory or law of demand The statement, which appears to retailers (Ch 10)
hold, that consumers will buy more when prices fall and twisted-pair wire Copper wires twisted in pairs (Ch 17)
less when prices increase (Ch 1) Type Z firm An ideal U.S. firm that combines the best practices
theory or law of supply The statement, which appears to hold, of U.S. and Japanese management systems and would advo-
that producers will be willing to sell more when prices rise cate lifetime employment, a more specialized career path,
and less when prices fall (Ch 1) collective decision making with corresponding responsibili-

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