Glossary

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Words (or words that have the same definition)	The definition is case sensitive	(Optional) Image to display with the definition [Not displayed in Glossary, only in pop-up on pages]	(Optional) Caption for Image	(Optional) External or Internal Link	(Optional) Source for Definition
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Glossary Entries
Word(s)	Definition	Image	Caption	Link	Source
absolute advantage	Condition whereby a country is the only source of a product or is able to make more of a product using the same or fewer resources than other countries.
account payable	Record of cash owed to sellers from whom a business has purchased products on credit.
account receivable	Record of cash that will be received from a customer to whom a business has sold products on credit.
Accountants	Financial advisor responsible for measuring, summarizing, and communicating financial and managerial information.
Accountants	Financial advisor responsible for measuring, summarizing, and communicating financial and managerial information.
accounting	System for measuring and summarizing business activities, interpreting financial information, and communicating the results to management and other decision makers.
accounting	System for measuring and summarizing business activities, interpreting financial information, and communicating the results to management and other decision makers.
accounting equation	Accounting tool showing the resources of a business (assets) and the claims on those resources (liabilities and owner’s equity).
accounting equation	Accounting tool showing the resources of a business (assets) and the claims on those resources (liabilities and owner’s equity).
accrual accounting	Accounting system that records transactions when they occur, regardless of when cash is paid or received.
accrual accounting	Accounting system that records transactions when they occur, regardless of when cash is paid or received.
acquisition	The purchase of one company by another with no new company being formed.
acquisition	The purchase of one company by another with no new company being formed.
adjustable-rate mortgage (ARM)	Mortgage that’s pegged to the increase or decrease of certain interest rates that your lender has to pay.
adjustable-rate mortgage (ARM)	Mortgage that’s pegged to the increase or decrease of certain interest rates that your lender has to pay.
administrative law	Body of law dealing with statutes and regulations related to the activities of administrative agencies.
Advertising	Paid, nonpersonal communication designed to create an awareness of a product or company.
Advertising	Paid, nonpersonal communication designed to create an awareness of a product or company.
advertising agency	Marketing consulting firm that develops and executes promotional campaigns for clients.
advertising agency	Marketing consulting firm that develops and executes promotional campaigns for clients.
agency	Legal relationship in which one party acts on behalf of, and under the control of, another.
agency	Legal relationship in which one party acts on behalf of, and under the control of, another.
American Stock Exchange (AMEX)	Stock market where shares of smaller companies are traded.
American Stock Exchange (AMEX)	Stock market where shares of smaller companies are traded.
amortization	Schedule by which you’ll reduce the balance of your debt.
amortization	Schedule by which you’ll reduce the balance of your debt.
application	Document completed by a job applicant that provides factual information on the person’s education and work background.
application	Document completed by a job applicant that provides factual information on the person’s education and work background.
applications software	Software that performs a specific task, such as word processing or spreadsheet creation.
applications software	Software that performs a specific task, such as word processing or spreadsheet creation.
arbitration	Process of resolving a labor-contract dispute by having a third party study the situation and arrive at a binding agreement.
arbitration	Process of resolving a labor-contract dispute by having a third party study the situation and arrive at a binding agreement.
Artificial intelligence	Science of developing computer systems that can mimic human behavior.
Artificial intelligence	Science of developing computer systems that can mimic human behavior.
assets	Resource from which a business expects to gain some future benefit.
assets	Resource from which a business expects to gain some future benefit.
audits	Accountant’s examination of and report on a company’s financial statements.
audits	Accountant’s examination of and report on a company’s financial statements.
balance of payments	Difference between the total flow of money coming into a country and the total flow of money going out.
balance of payments	Difference between the total flow of money coming into a country and the total flow of money going out.
balance sheet	Report on a company’s assets, liabilities, and owner’s equity at a specific point in time.
balance sheet	Report on a company’s assets, liabilities, and owner’s equity at a specific point in time.
bear market	Period of declining or sluggish stock prices.
bear market	Period of declining or sluggish stock prices.
behavioral segmentation	Process of dividing consumers by behavioral variables, such as attitude toward the product, user status, or usage rate.
behavioral segmentation	Process of dividing consumers by behavioral variables, such as attitude toward the product, user status, or usage rate.
benchmarking	Practice of comparing a company’s own performance with that of a company that excels in the same activity.
benchmarking	Practice of comparing a company’s own performance with that of a company that excels in the same activity.
benefits	Compensation other than salaries, hourly wages, or financial incentives.
benefits	Compensation other than salaries, hourly wages, or financial incentives.
blocking roles	Behavior that inhibits either team performance or that of individual members.
blocking roles	Behavior that inhibits either team performance or that of individual members.
bonds	Debt securities that require annual interest payments to bondholders.
bonds	Debt securities that require annual interest payments to bondholders.
bonuses	Annual income given to employees (in addition to salary) based on company-wide performance.
bonuses	Annual income given to employees (in addition to salary) based on company-wide performance.
boycotting	Method used by union members to voice displeasure with certain organizations by refusing to buy the company’s products and encouraging others to follow suit.
boycotting	Method used by union members to voice displeasure with certain organizations by refusing to buy the company’s products and encouraging others to follow suit.
brand loyalty	Consumer preference for a particular brand that develops over time based on satisfaction with a company’s products.
brand loyalty	Consumer preference for a particular brand that develops over time based on satisfaction with a company’s products.
breakeven analysis	Method of determining the level of sales at which the company will break even (have no profit or loss).
breakeven analysis	Method of determining the level of sales at which the company will break even (have no profit or loss).
breakeven analysis	Method of determining the level of sales at which the company will break even (have no profit or loss).
breakeven analysis	Method of determining the level of sales at which the company will break even (have no profit or loss).
breakeven point in units	Number of sales units at which net income is zero.
breakeven point in units	Number of sales units at which net income is zero.
breakeven point in units	Number of sales units at which net income is zero.
breakeven point in units	Number of sales units at which net income is zero.
browsers	Software (such as Internet Explorer) that locates and displays Web pages.
browsers	Software (such as Internet Explorer) that locates and displays Web pages.
budget	A document that itemizes the sources of income and expenditures for a future period (often a year).
budget	A document that itemizes the sources of income and expenditures for a future period (often a year).
business cycle	Pattern of expansion and contraction in an economy.
business cycle	Pattern of expansion and contraction in an economy.
business ethics	Application of ethical behavior in a business context.
business ethics	Application of ethical behavior in a business context.
business plan	Formal document describing a proposed business concept, description of the proposed business, industry analysis, mission statement and core values, a management plan, a description of goods or services, a description of production processes, and marketing and financial plans.
business plan	Formal document describing a proposed business concept, description of the proposed business, industry analysis, mission statement and core values, a management plan, a description of goods or services, a description of production processes, and marketing and financial plans.
capacity	Maximum number of products that a facility can produce over a given period under normal working conditions.
capacity	Maximum number of products that a facility can produce over a given period under normal working conditions.
capital budget	Budget that shows anticipated expenditures for major equipment.
capital budget	Budget that shows anticipated expenditures for major equipment.
capital structure	Relationship between a company’s debt (funds acquired from creditors) and its equity (funds invested by owners).
capital structure	Relationship between a company’s debt (funds acquired from creditors) and its equity (funds invested by owners).
capitalism	Economic system featuring the lowest level of government control over allocation and distribution.
capitalism	Economic system featuring the lowest level of government control over allocation and distribution.
Cash-flow management	Process of monitoring cash inflows and outflows to ensure that the company has the right amount of funds on hand.
Cash-flow management	Process of monitoring cash inflows and outflows to ensure that the company has the right amount of funds on hand.
cash-flow or income statement	Shows where your money has come from and where it’s slated to go.
cash-flow or income statement	Shows where your money has come from and where it’s slated to go.
cellular layout	Layout in which teams of workers perform all the tasks involved in building a component, group of related components, or finished product.
cellular layout	Layout in which teams of workers perform all the tasks involved in building a component, group of related components, or finished product.
certificate authority	Third-party (such as VeriSign) that verifies the identify of a computer site.
certificate authority	Third-party (such as VeriSign) that verifies the identify of a computer site.
chain of command	Authority and reporting relationships among people working at different levels of an organization.
chain of command	Authority and reporting relationships among people working at different levels of an organization.
civil law	Body of law governing disputes between private parties.
civil law	Body of law governing disputes between private parties.
classified balance sheet	Balance sheet that totals assets and liabilities in separate categories.
classified balance sheet	Balance sheet that totals assets and liabilities in separate categories.
client-server systems	System connecting client machines (which are used by employees for data input and retrieval) and a server (that stores shared databases and programs).
client-server systems	System connecting client machines (which are used by employees for data input and retrieval) and a server (that stores shared databases and programs).
cloud computing	Cloud computing means performing computer tasks using services provided over the Internet.
cloud computing	Cloud computing means performing computer tasks using services provided over the Internet.
code of conduct	Statement that defines the principles and guidelines that employees must follow in the course of all job-related activities.
code of conduct	Statement that defines the principles and guidelines that employees must follow in the course of all job-related activities.
collective bargaining	Process by which management and union-represented workers settle differences.
collective bargaining	Process by which management and union-represented workers settle differences.
Commercial banks	Financial institution that generates profits by lending funds and providing customers with services, such as check processing.
Commercial banks	Financial institution that generates profits by lending funds and providing customers with services, such as check processing.
commission	Compensation paid to employees based on the dollar amount of sales that they make.
commission	Compensation paid to employees based on the dollar amount of sales that they make.
common stock	Stock whose owners bear the ultimate rewards and risks of ownership.
common stock	Stock whose owners bear the ultimate rewards and risks of ownership.
communication	Process of transferring information from a sender to a receiver.
communication	Process of transferring information from a sender to a receiver.
communism	Economic system featuring the highest level of government control over allocation and distribution.
communism	Economic system featuring the highest level of government control over allocation and distribution.
comparative advantage	Condition whereby one nation is able to produce a product at a lower opportunity cost compared to another nation.
comparative advantage	Condition whereby one nation is able to produce a product at a lower opportunity cost compared to another nation.
comparative income statement	Financial statement showing income for more than one year.
comparative income statement	Financial statement showing income for more than one year.
compensatory damages	Monetary awards intended to restore tort victims to the conditions that they would have been in had their injuries never taken place.
compensatory damages	Monetary awards intended to restore tort victims to the conditions that they would have been in had their injuries never taken place.
compound interest	Interest earned on your savings is added to the money in your savings account, and the new total (principle plus interest) earns more interest.
compound interest	Interest earned on your savings is added to the money in your savings account, and the new total (principle plus interest) earns more interest.
computer-aided design (CAD)	System using computer technology to create models representing the design of a product.
computer-aided design (CAD)	System using computer technology to create models representing the design of a product.
computer-aided manufacturing (CAM)	System using computer technology to control production processes and equipment.
computer-aided manufacturing (CAM)	System using computer technology to control production processes and equipment.
conceptual skills	Skills used to reason abstractly and analyze complex situations.
conceptual skills	Skills used to reason abstractly and analyze complex situations.
Conflicts of interest	Situation in which an individual must choose between the promotion of personal interests and the interests of others.
Conflicts of interest	Situation in which an individual must choose between the promotion of personal interests and the interests of others.
consumer behavior	Decision process that individuals go through when purchasing or using products.
consumer behavior	Decision process that individuals go through when purchasing or using products.
consumer confidence index	Measure of optimism that consumers express about the economy as they go about their everyday lives.
consumer confidence index	Measure of optimism that consumers express about the economy as they go about their everyday lives.
consumer market	Buyers who want a product for personal use.
consumer market	Buyers who want a product for personal use.
consumer price index (CPI)	Index that measures inflation by measuring the prices of goods purchased by a typical consumer.
consumer price index (CPI)	Index that measures inflation by measuring the prices of goods purchased by a typical consumer.
contingency planning	Process of identifying courses of action to be taken in the event that a business is adversely affected by a change.
contingency planning	Process of identifying courses of action to be taken in the event that a business is adversely affected by a change.
contingent workers	Temporary or part-time worker hired to supplement a company’s permanent workforce.
contingent workers	Temporary or part-time worker hired to supplement a company’s permanent workforce.
continuous improvement	Company’s commitment to making constant improvements in the design, production, and delivery of its products.
continuous improvement	Company’s commitment to making constant improvements in the design, production, and delivery of its products.
contract	Exchange of promises or exchange of a promise for an act.
contract	Exchange of promises or exchange of a promise for an act.
contribution margin per unit	Excess of revenue per unit over variable cost per unit.
contribution margin per unit	Excess of revenue per unit over variable cost per unit.
contribution margin per unit	Excess of revenue per unit over variable cost per unit.
contribution margin per unit	Excess of revenue per unit over variable cost per unit.
controlling	Management process of comparing actual to planned performance and taking corrective actions when necessary.
controlling	Management process of comparing actual to planned performance and taking corrective actions when necessary.
convertible preferred stock	Preferred stock that gives its owner the option of exchanging it for common stock.
convertible preferred stock	Preferred stock that gives its owner the option of exchanging it for common stock.
cooperative	A business owned and controlled by those who use its services.
cooperative	A business owned and controlled by those who use its services.
Core values	Statement of fundamental beliefs describing what’s appropriate and important in conducting organizational activities and providing a guide for the behavior of organization members.
Core values	Statement of fundamental beliefs describing what’s appropriate and important in conducting organizational activities and providing a guide for the behavior of organization members.
Corporate social responsibility	Approach that an organization takes in balancing its responsibilities toward different stakeholders when making legal, economic, ethical, and social decisions.
Corporate social responsibility	Approach that an organization takes in balancing its responsibilities toward different stakeholders when making legal, economic, ethical, and social decisions.
corporation	Legal entity that is entirely separate from the parties who own it and that is responsible for its own debts.
corporation	Legal entity that is entirely separate from the parties who own it and that is responsible for its own debts.
cost-based pricing	Pricing strategy that bases the selling price of a product on its cost plus a reasonable profit.
cost-based pricing	Pricing strategy that bases the selling price of a product on its cost plus a reasonable profit.
cover letter	A document accompanying your résumé that explains why you’re sending your résumé and highlights your qualifications.
cover letter	A document accompanying your résumé that explains why you’re sending your résumé and highlights your qualifications.
credit union	Financial institution that provides services to only its members (who are associated with a particular organization).
credit union	Financial institution that provides services to only its members (who are associated with a particular organization).
crisis management	Action plans that outline steps to be taken by a company in case of a crisis.
crisis management	Action plans that outline steps to be taken by a company in case of a crisis.
cross-functional teams	Team designed to take advantage of the special expertise of members drawn from different functional areas of the organization.
cross-functional teams	Team designed to take advantage of the special expertise of members drawn from different functional areas of the organization.
Cultural barriers	Barriers that result from differences among people of different cultures.
Cultural barriers	Barriers that result from differences among people of different cultures.
culture	System of shared beliefs, values, customs, and behaviors that govern the interactions of members of a society.
culture	System of shared beliefs, values, customs, and behaviors that govern the interactions of members of a society.
current ratio	Financial ratio showing the relationship between a company’s current assets and current liabilities.
current ratio	Financial ratio showing the relationship between a company’s current assets and current liabilities.
customer division	Organizational structure that groups employees into customer-based business segments.
customer division	Organizational structure that groups employees into customer-based business segments.
customer value triad	Three factors that customers consider in determining the value of a product: quality, service, and price.
customer value triad	Three factors that customers consider in determining the value of a product: quality, service, and price.
customer-relationship management	Strategy for retaining customers by gathering information about them, understanding them, and treating them well.
customer-relationship management	Strategy for retaining customers by gathering information about them, understanding them, and treating them well.
data communication networks	Large network used to transmit digital data from one computer to another using a variety of wired and wireless communication channels.
data communication networks	Large network used to transmit digital data from one computer to another using a variety of wired and wireless communication channels.
data mining	Technique used to search and analyze data to reveal patterns and trends that can be used to predict future behavior.
data mining	Technique used to search and analyze data to reveal patterns and trends that can be used to predict future behavior.
data warehouse	Centralized database that stores data from several databases so they can be easily analyzed.
data warehouse	Centralized database that stores data from several databases so they can be easily analyzed.
databases	Electronic collection of related data accessible to various users.
databases	Electronic collection of related data accessible to various users.
debit card	Pulls money out of your checking account whenever you use the card to buy something or get cash from an ATM.
debit card	Pulls money out of your checking account whenever you use the card to buy something or get cash from an ATM.
decentralization	Decision-making process in which most decision making is spread throughout the organization.
decentralization	Decision-making process in which most decision making is spread throughout the organization.
decision support system	Interactive system that extracts, integrates, and displays data from multiple sources to help managers make nonroutine decisions.
decision support system	Interactive system that extracts, integrates, and displays data from multiple sources to help managers make nonroutine decisions.
decision-making skills	Skills used in defining a problem, analyzing possible solutions, and selecting the best outcome.
decision-making skills	Skills used in defining a problem, analyzing possible solutions, and selecting the best outcome.
defendant	Party charged in a legal complaint; in criminal law, party against whom a criminal charge is brought; in civil law, party being sued for compensation for wrong allegedly done to plaintiff.
defendant	Party charged in a legal complaint; in criminal law, party against whom a criminal charge is brought; in civil law, party being sued for compensation for wrong allegedly done to plaintiff.
defined contribution retirement plan	A form of retirement savings plan in which both the employee and the employer may contribute.
defined contribution retirement plan	A form of retirement savings plan in which both the employee and the employer may contribute.
deflation	Decrease in overall price level.
deflation	Decrease in overall price level.
delegation	Process of entrusting work to subordinates.
delegation	Process of entrusting work to subordinates.
Demand	Quantity of a product that buyers are willing to purchase at various prices.
Demand	Quantity of a product that buyers are willing to purchase at various prices.
demand curve	Graph showing the quantity of a product that will be bought at certain prices.
demand curve	Graph showing the quantity of a product that will be bought at certain prices.
demand deposits	Checking accounts that pay given sums to “payees” when they demand them.
demand deposits	Checking accounts that pay given sums to “payees” when they demand them.
demand-based pricing	Pricing strategy that bases the price of a product on how much people are willing to pay for it.
demand-based pricing	Pricing strategy that bases the price of a product on how much people are willing to pay for it.
Demographic segmentation	Process of dividing the market into groups based on such variables as age and income.
Demographic segmentation	Process of dividing the market into groups based on such variables as age and income.
departmentalization	Process of grouping specialized jobs into meaningful units.
departmentalization	Process of grouping specialized jobs into meaningful units.
depreciation expense	Costs of a long-term or fixed asset spread over its useful life.
depreciation expense	Costs of a long-term or fixed asset spread over its useful life.
depression	Severe, long-lasting recession.
depression	Severe, long-lasting recession.
directing	Management process that provides focus and direction to others and motivates them to achieve organizational goals.
directing	Management process that provides focus and direction to others and motivates them to achieve organizational goals.
discount rate	Rate of interest the Fed charges member banks when they borrow reserve funds.
discount rate	Rate of interest the Fed charges member banks when they borrow reserve funds.
Distribution	All activities involved in getting the right quantity of a product to the right customer at the right time and at a reasonable cost.
Distribution	All activities involved in getting the right quantity of a product to the right customer at the right time and at a reasonable cost.
distribution center	Location where products are received from multiple suppliers, stored temporarily, and then shipped to their final destinations.
distribution center	Location where products are received from multiple suppliers, stored temporarily, and then shipped to their final destinations.
dividends	Earnings distributed to stockholders.
dividends	Earnings distributed to stockholders.
dividends	Earnings distributed to stockholders.
dividends	Earnings distributed to stockholders.
divisional organizations	Form of organization that groups people into several smaller, self-contained units, or divisions, which are accountable for their own performance.
divisional organizations	Form of organization that groups people into several smaller, self-contained units, or divisions, which are accountable for their own performance.
Dow Jones Industrial Average (DJIA)	Market index that reflects the total value of a “market basket” of thirty large U.S. companies.
Dow Jones Industrial Average (DJIA)	Market index that reflects the total value of a “market basket” of thirty large U.S. companies.
downsizing	Practice of eliminating jobs to cut costs.
downsizing	Practice of eliminating jobs to cut costs.
downward communication	Communication flow from higher to lower organizational levels.
downward communication	Communication flow from higher to lower organizational levels.
dumping	Practice of selling exported goods below the price that producers would normally charge home markets.
dumping	Practice of selling exported goods below the price that producers would normally charge home markets.
e-commerce	Business conducted over the Internet.
e-commerce	Business conducted over the Internet.
economic indicator	Statistic that provides information about trends in the economy.
economic indicator	Statistic that provides information about trends in the economy.
economic system	Means by which a society makes decisions about allocating resources to produce and distribute products.
economic system	Means by which a society makes decisions about allocating resources to produce and distribute products.
electronic data interchange	Computerized exchange of business transaction documents.
electronic data interchange	Computerized exchange of business transaction documents.
electronic data interchange (EDI)	Computerized exchange of business transaction documents.
electronic data interchange (EDI)	Computerized exchange of business transaction documents.
embargo	Extreme form of quota that bans the import or export of certain goods to a country for economic or political reasons.
embargo	Extreme form of quota that bans the import or export of certain goods to a country for economic or political reasons.
employment-at-will	Legal doctrine that allows an employer to fire an employee at will.
employment-at-will	Legal doctrine that allows an employer to fire an employee at will.
encryption	Process of encoding data so that only individuals or computers armed with a secret code (or key) can decode it.
encryption	Process of encoding data so that only individuals or computers armed with a secret code (or key) can decode it.
enterprise resource planning (ERP) system	Integrated computer system used to channel information to multiple users.
enterprise resource planning (ERP) system	Integrated computer system used to channel information to multiple users.
entrepreneur	Individual who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it.
entrepreneur	Individual who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it.
Equal Employment Opportunity Commission (EEOC)	Federal agency in charge of enforcing federal laws on employment discrimination.
Equal Employment Opportunity Commission (EEOC)	Federal agency in charge of enforcing federal laws on employment discrimination.
equilibrium price	Price at which buyers are willing to buy exactly the amount that sellers are willing to sell.
equilibrium price	Price at which buyers are willing to buy exactly the amount that sellers are willing to sell.
equity theory	Theory of motivation that focuses on our perceptions of how fairly we’re treated relative to others.
equity theory	Theory of motivation that focuses on our perceptions of how fairly we’re treated relative to others.
ethical dilemma	Morally problematic situation.
ethical dilemma	Morally problematic situation.
ethical lapse	Situation in which an individual makes a decision that’s unmistakably unethical or illegal.
ethical lapse	Situation in which an individual makes a decision that’s unmistakably unethical or illegal.
European Union (EU)	Association of European countries that joined together to eliminate trade barriers among themselves.
European Union (EU)	Association of European countries that joined together to eliminate trade barriers among themselves.
exchange rate	Value of one currency relative to another.
exchange rate	Value of one currency relative to another.
executive information system	System that provides senior managers with strategic information customized to meet their needs and presented in a convenient format.
executive information system	System that provides senior managers with strategic information customized to meet their needs and presented in a convenient format.
executive summary	Overview emphasizing the key points of a business plan to get the reader excited about the business’s prospects.
executive summary	Overview emphasizing the key points of a business plan to get the reader excited about the business’s prospects.
expectancy theory	Theory of motivation that proposes that employees will work hard to earn rewards they value and consider obtainable.
expectancy theory	Theory of motivation that proposes that employees will work hard to earn rewards they value and consider obtainable.
expenses	Costs incurred by selling products to customers.
expenses	Costs incurred by selling products to customers.
Expert systems	Program that mimics the judgment of experts.
Expert systems	Program that mimics the judgment of experts.
exporting	Practice of selling domestic products to foreign customers.
exporting	Practice of selling domestic products to foreign customers.
express warranty	Warranty created when a seller affirms that a product meets certain standards of quality, description, performance, or condition.
express warranty	Warranty created when a seller affirms that a product meets certain standards of quality, description, performance, or condition.
External communication	Channel through which communication occurs between parties inside a company and parties outside it.
External communication	Channel through which communication occurs between parties inside a company and parties outside it.
external marketing environment	Factors external to the firm that present threats and opportunities and that require shifts in marketing plans.
external marketing environment	Factors external to the firm that present threats and opportunities and that require shifts in marketing plans.
externalities	Cost that doesn’t show up as part of the market price for a product.
externalities	Cost that doesn’t show up as part of the market price for a product.
extranet	Intranet that’s partially available to certain parties outside the organization.
extranet	Intranet that’s partially available to certain parties outside the organization.
factors of production	Resources consisting of land, labor, capital (money, buildings, equipment), and entrepreneurial skills combined to produce goods and services.
factors of production	Resources consisting of land, labor, capital (money, buildings, equipment), and entrepreneurial skills combined to produce goods and services.
fair market value	The price you could get by selling assets at their present price.
fair market value	The price you could get by selling assets at their present price.
Federal Depository Insurance Corporation (FDIC)	Government agency that regulates banks and insures deposits in its member banks up to $250,000.
Federal Depository Insurance Corporation (FDIC)	Government agency that regulates banks and insures deposits in its member banks up to $250,000.
federal funds rate	The interest rate that a Federal Reserve member bank pays when it borrows from other member banks to meet reserve requirements.
federal funds rate	The interest rate that a Federal Reserve member bank pays when it borrows from other member banks to meet reserve requirements.
Federal Reserve System	U.S. central banking system, which has three goals: price stability, sustainable economic growth, and full employment.
Federal Reserve System	U.S. central banking system, which has three goals: price stability, sustainable economic growth, and full employment.
fiduciary responsibility	Duty of management to safeguard a company’s assets and handle its funds in a trustworthy manner.
fiduciary responsibility	Duty of management to safeguard a company’s assets and handle its funds in a trustworthy manner.
Finance	Activities involved in planning for, obtaining, and managing a company’s funds.
Finance	Activities involved in planning for, obtaining, and managing a company’s funds.
Finance companies	Nondeposit financial institution that makes loans from funds acquired by selling securities or borrowing from commercial banks.
Finance companies	Nondeposit financial institution that makes loans from funds acquired by selling securities or borrowing from commercial banks.
financial plan	Planning document that shows the amount of funds a company needs and details a strategy for getting those funds.
financial plan	Planning document that shows the amount of funds a company needs and details a strategy for getting those funds.
financial planning	The process of managing your personal finances to meet goals that you’ve set for yourself or your family.
financial planning	The process of managing your personal finances to meet goals that you’ve set for yourself or your family.
financing activities	Activity that creates cash inflows or outflows through the obtaining or repaying of borrowed or invested funds.
financing activities	Activity that creates cash inflows or outflows through the obtaining or repaying of borrowed or invested funds.
firewall	Software program that controls access to a company’s intranet.
firewall	Software program that controls access to a company’s intranet.
First-line managers	Those at the bottom of the management hierarchy who supervise employees and coordinate their activities.
First-line managers	Those at the bottom of the management hierarchy who supervise employees and coordinate their activities.
fiscal policy	Governmental use of taxation and spending to influence economic conditions.
fiscal policy	Governmental use of taxation and spending to influence economic conditions.
fiscal year	Company’s designated business year.
fiscal year	Company’s designated business year.
fixed costs	Costs that don’t change when the amount of goods sold changes.
fixed costs	Costs that don’t change when the amount of goods sold changes.
fixed costs	Costs that don’t change when the amount of goods sold changes.
fixed costs	Costs that don’t change when the amount of goods sold changes.
fixed-position layout	Layout in which workers are moved to the product, which stays in one place.
fixed-position layout	Layout in which workers are moved to the product, which stays in one place.
fixed-rate mortgage	A mortgage on which the interest rate remains the same regardless of changes in market interest rates.
fixed-rate mortgage	A mortgage on which the interest rate remains the same regardless of changes in market interest rates.
flexible manufacturing system	System in which computer-controlled equipment is programmed to handle materials used in manufacturing.
flexible manufacturing system	System in which computer-controlled equipment is programmed to handle materials used in manufacturing.
flexible manufacturing systems (FMS)	System in which computer-controlled equipment is programmed to handle materials used in manufacturing.
flexible manufacturing systems (FMS)	System in which computer-controlled equipment is programmed to handle materials used in manufacturing.
flexible spending account	Allows a specified amount of pretax dollars to be used to pay for qualified expenses, including health care and child care.
flexible spending account	Allows a specified amount of pretax dollars to be used to pay for qualified expenses, including health care and child care.
flextime	Alternative work arrangement that allows employees to designate starting and quitting times.
flextime	Alternative work arrangement that allows employees to designate starting and quitting times.
foreign subsidiary	Independent company owned by a foreign firm (called its parent).
foreign subsidiary	Independent company owned by a foreign firm (called its parent).
formal communication network	Network consisting of all communications that flow along an organization’s official lines of authority.
formal communication network	Network consisting of all communications that flow along an organization’s official lines of authority.
franchise	Form of business ownership in which a franchiser (a seller) grants a franchisee (a buyer) the right to use a brand name and to sell its products or services.
franchise	Form of business ownership in which a franchiser (a seller) grants a franchisee (a buyer) the right to use a brand name and to sell its products or services.
full employment	Condition under which about 95 percent of those who want to work are employed.
full employment	Condition under which about 95 percent of those who want to work are employed.
functional organization	Form of business organization that groups together people who have comparable skills and perform similar tasks.
functional organization	Form of business organization that groups together people who have comparable skills and perform similar tasks.
Gantt chart	Graphical tool for determining the status of projects.
Gantt chart	Graphical tool for determining the status of projects.
General Agreement on Tariffs and Trade (GATT)	International trade agreement that encourages free trade by regulating and reducing tariffs and provides a forum for resolving trade disputes.
General Agreement on Tariffs and Trade (GATT)	International trade agreement that encourages free trade by regulating and reducing tariffs and provides a forum for resolving trade disputes.
generally accepted accounting principles (GAAP)	Uniform set of rules for financial reporting issued by an independent agency called the Financial Accounting Standards Board (FASB).
generally accepted accounting principles (GAAP)	Uniform set of rules for financial reporting issued by an independent agency called the Financial Accounting Standards Board (FASB).
generic branding	Product with no branding information attached to it except a description of its contents.
generic branding	Product with no branding information attached to it except a description of its contents.
Geographic segmentation	Process of dividing a market according to such variables as climate, region, and population density.
Geographic segmentation	Process of dividing a market according to such variables as climate, region, and population density.
Geographical division	Organizational structure that groups people into divisions based on location.
Geographical division	Organizational structure that groups people into divisions based on location.
goods-producing sector	All businesses whose primary purpose is to produce tangible goods.
goods-producing sector	All businesses whose primary purpose is to produce tangible goods.
grievances	Union worker complaints on contract-related matters.
grievances	Union worker complaints on contract-related matters.
gross domestic product (GDP)	Measure of the market value of all goods and services produced by a nation’s economy in a given year.
gross domestic product (GDP)	Measure of the market value of all goods and services produced by a nation’s economy in a given year.
gross profit or gross margin	Positive difference between revenues and cost of goods sold.
gross profit or gross margin	Positive difference between revenues and cost of goods sold.
group cohesiveness	Principle that groups are most effective when members like being members.
group cohesiveness	Principle that groups are most effective when members like being members.
groupthink	Tendency to conform to group pressure in making decisions while failing to think critically or to consider outside influences.
groupthink	Tendency to conform to group pressure in making decisions while failing to think critically or to consider outside influences.
hierarchy-of-needs theory	Theory of motivation that holds that people are motivated by a hierarchical series of unmet needs.
hierarchy-of-needs theory	Theory of motivation that holds that people are motivated by a hierarchical series of unmet needs.
high-context cultures	Cultures in which personal and family connections have an effect on most interactions, including those in business.
high-context cultures	Cultures in which personal and family connections have an effect on most interactions, including those in business.
human resource management (HRM)	All actions that an organization takes to attract, develop, and retain quality employees.
human resource management (HRM)	All actions that an organization takes to attract, develop, and retain quality employees.
implied warranties	Warranty arising automatically out of a transaction.
implied warranties	Warranty arising automatically out of a transaction.
incentive programs	Program designed to financially reward employees for good performance.
incentive programs	Program designed to financially reward employees for good performance.
individual retirement account (IRA)	Personal retirement account set up by an individual to save money tax free until retirement.
individual retirement account (IRA)	Personal retirement account set up by an individual to save money tax free until retirement.
industrial market	Buyers who want a product for use in making other products.
industrial market	Buyers who want a product for use in making other products.
industrial robots	Computer-controlled machine used to perform repetitive tasks that are also hard or dangerous for human workers.
industrial robots	Computer-controlled machine used to perform repetitive tasks that are also hard or dangerous for human workers.
industry	Group of businesses that compete with one another to market products that are the same or similar.
industry	Group of businesses that compete with one another to market products that are the same or similar.
informal communication network (or grapevine)	Network that carries information whenever two or more employees get together and start talking about the company and their jobs.
informal communication network (or grapevine)	Network that carries information whenever two or more employees get together and start talking about the company and their jobs.
information	Data that have been processed or turned into some useful form.
information	Data that have been processed or turned into some useful form.
information managers	Manager with responsibility for determining the information needs of members of the organization and meeting those needs.
information managers	Manager with responsibility for determining the information needs of members of the organization and meeting those needs.
insider trading	Practice of buying or selling of securities using important information about the company before it’s made public.
insider trading	Practice of buying or selling of securities using important information about the company before it’s made public.
insider trading	Practice of buying or selling of securities using important information about the company before it’s made public.
insider trading	Practice of buying or selling of securities using important information about the company before it’s made public.
Insurance companies	Nondeposit institution that collects premiums from policyholders for protection against losses and invests these funds.
Insurance companies	Nondeposit institution that collects premiums from policyholders for protection against losses and invests these funds.
intentional tort	Intentional act that poses harm to another person or another person’s property.
intentional tort	Intentional act that poses harm to another person or another person’s property.
Interest	Cost charged to use someone else’s money.
Interest	Cost charged to use someone else’s money.
interest coverage ratio	Financial ratio showing a company’s ability to pay interest on its debts from its operating income.
interest coverage ratio	Financial ratio showing a company’s ability to pay interest on its debts from its operating income.
intermediary	Wholesaler or retailer who helps move products from their original source to the end user.
intermediary	Wholesaler or retailer who helps move products from their original source to the end user.
International Financial Reporting Standards (IFRS)	A set of worldwide accounting rules and guidelines used by companies to prepare financial statements that can be compared with those of other countries.
International Financial Reporting Standards (IFRS)	A set of worldwide accounting rules and guidelines used by companies to prepare financial statements that can be compared with those of other countries.
international franchise	Agreement in which a domestic company (franchiser) gives a foreign company (franchisee) the right to use its brand and sell its products.
international franchise	Agreement in which a domestic company (franchiser) gives a foreign company (franchisee) the right to use its brand and sell its products.
international licensing agreement	Agreement that allows a foreign company to sell a domestic company’s products or use its intellectual property in exchange for royalty fees.
international licensing agreement	Agreement that allows a foreign company to sell a domestic company’s products or use its intellectual property in exchange for royalty fees.
International Monetary Fund (IMF)	International organization set up to lend money to countries with troubled economies.
International Monetary Fund (IMF)	International organization set up to lend money to countries with troubled economies.
Internet service providers	Company, such as America Online, that links into the Internet infrastructure to connect paying subscribers.
Internet service providers	Company, such as America Online, that links into the Internet infrastructure to connect paying subscribers.
interpersonal skills	Skills used to get along with and motivate other people.
interpersonal skills	Skills used to get along with and motivate other people.
interruption marketing	Marketing that interrups people to get their attention (with the hope they will listen to the ad), such as TV advertising.
interruption marketing	Marketing that interrups people to get their attention (with the hope they will listen to the ad), such as TV advertising.
interview	Formal meeting during which the employer learns more about an applicant and the applicant learns more about the prospective employer.
interview	Formal meeting during which the employer learns more about an applicant and the applicant learns more about the prospective employer.
inventory	Goods that a business has made or bought and expects to sell in the process of normal operations.
inventory	Goods that a business has made or bought and expects to sell in the process of normal operations.
inventory control	Management of inventory to ensure that a company has enough inventory to keep operations flowing smoothly but not so much that money is being wasted in holding it.
inventory control	Management of inventory to ensure that a company has enough inventory to keep operations flowing smoothly but not so much that money is being wasted in holding it.
inventory turnover ratio	Financial ratio that shows how efficiently a company turns over its inventory.
inventory turnover ratio	Financial ratio that shows how efficiently a company turns over its inventory.
investing activities	Activity that creates cash inflows or outflows through the selling or buying of long-term assets.
investing activities	Activity that creates cash inflows or outflows through the selling or buying of long-term assets.
investment banking firm	Financial institution that specializes in issuing securities.
investment banking firm	Financial institution that specializes in issuing securities.
ISO 14000	Set of international standards for environmental management established by the International Organization for Standardization.
ISO 14000	Set of international standards for environmental management established by the International Organization for Standardization.
job analysis	Identification of the tasks, responsibilities, and skills of a job, as well as the knowledge and abilities needed to perform it.
job analysis	Identification of the tasks, responsibilities, and skills of a job, as well as the knowledge and abilities needed to perform it.
job description	Outline of the duties and responsibilities of a position.
job description	Outline of the duties and responsibilities of a position.
job enlargement	Job redesign strategy in which management enhances a job by adding tasks at similar skill levels.
job enlargement	Job redesign strategy in which management enhances a job by adding tasks at similar skill levels.
Job enrichment	Job redesign strategy in which management enriches a job by adding tasks that increase both responsibility and opportunity for growth.
Job enrichment	Job redesign strategy in which management enriches a job by adding tasks that increase both responsibility and opportunity for growth.
job redesign	Management strategy used to increase job satisfaction by making jobs more interesting and challenging.
job redesign	Management strategy used to increase job satisfaction by making jobs more interesting and challenging.
job rotation	Job redesign strategy that allows employees to rotate from one job to another on a systematic basis.
job rotation	Job redesign strategy that allows employees to rotate from one job to another on a systematic basis.
job sharing	Work arrangement in which two people share one full-time position.
job sharing	Work arrangement in which two people share one full-time position.
job specification	Detailed list of the qualifications needed to perform a job, including required skills, knowledge, and abilities.
job specification	Detailed list of the qualifications needed to perform a job, including required skills, knowledge, and abilities.
joint ventures	Alliances in which the partners fund a separate entity (partnership or corporation) to manage their joint operations.
joint ventures	Alliances in which the partners fund a separate entity (partnership or corporation) to manage their joint operations.
just-in-time (JIT) production	System for reducing inventories and costs by requiring suppliers to deliver materials just in time to go into the production process.
just-in-time (JIT) production	System for reducing inventories and costs by requiring suppliers to deliver materials just in time to go into the production process.
just-in-time production	System for reducing inventories and costs by requiring suppliers to deliver materials just in time to go into the production process.
just-in-time production	System for reducing inventories and costs by requiring suppliers to deliver materials just in time to go into the production process.
Labeling	Information on the package of a product that identifies the product and provides details of the package contents.
Labeling	Information on the package of a product that identifies the product and provides details of the package contents.
labor union	Organized group of workers that bargains with employers to improve its members’ pay, job security, and working conditions.
labor union	Organized group of workers that bargains with employers to improve its members’ pay, job security, and working conditions.
law	Body of enforceable rules and principles of conduct.
law	Body of enforceable rules and principles of conduct.
layout	Arrangement in a facility of equipment, machinery, and people to make a production process as efficient as possible.
layout	Arrangement in a facility of equipment, machinery, and people to make a production process as efficient as possible.
leadership style	Particular approach used by a manager to interact with and influence others.
leadership style	Particular approach used by a manager to interact with and influence others.
leading economic indicators	Statistical data that predict the status of the economy three to twelve months in the future.
leading economic indicators	Statistical data that predict the status of the economy three to twelve months in the future.
legal monopoly	Monopoly in which one seller supplies a product or technology to which it holds a patent.
legal monopoly	Monopoly in which one seller supplies a product or technology to which it holds a patent.
legal system	Institutions and processes that enforce laws.
legal system	Institutions and processes that enforce laws.
liabilities	Debt owed by a business to an outside individual or organization.
liabilities	Debt owed by a business to an outside individual or organization.
limited liability	Legal condition under which an owner or investor can’t lose more than the amount invested.
limited liability	Legal condition under which an owner or investor can’t lose more than the amount invested.
limited partnership	Partnership made up of a single general partner (who runs the business and is responsible for its liabilities) and any number of limited partners.
limited partnership	Partnership made up of a single general partner (who runs the business and is responsible for its liabilities) and any number of limited partners.
limited-liability company	Corporation whose members are not personally liable for company debts and whose earnings are taxed only once, when they are paid out as dividends. It has fewer rules and restrictions than does an S-corporation.
limited-liability company	Corporation whose members are not personally liable for company debts and whose earnings are taxed only once, when they are paid out as dividends. It has fewer rules and restrictions than does an S-corporation.
lines of credit	Commitment by a bank that allows a company to borrow up to a specified amount of money as the need arises.
lines of credit	Commitment by a bank that allows a company to borrow up to a specified amount of money as the need arises.
liquidity	Speed with which an asset can be converted into cash.
liquidity	Speed with which an asset can be converted into cash.
local area network (LAN)	Network that links computers that are in close proximity.
local area network (LAN)	Network that links computers that are in close proximity.
low-context cultures	Cultures in which personal and work relationships are compartmentalized.
low-context cultures	Cultures in which personal and work relationships are compartmentalized.
M-1	Measure of the money supply that includes only the most liquid forms of money, such as cash and checking-account funds.
M-1	Measure of the money supply that includes only the most liquid forms of money, such as cash and checking-account funds.
make-to-order strategy	Production method in which products are made to customer specification.
make-to-order strategy	Production method in which products are made to customer specification.
management	Process of planning for, organizing, directing, and controlling a company’s resources so that it can achieve its goals.
management	Process of planning for, organizing, directing, and controlling a company’s resources so that it can achieve its goals.
Management	Process of planning for, organizing, directing, and controlling a company’s resources so that it can achieve its goals.
Management	Process of planning for, organizing, directing, and controlling a company’s resources so that it can achieve its goals.
Management accounting	Branch of accounting that provides information and analysis to decision makers inside the organization to help them operate the business.
Management accounting	Branch of accounting that provides information and analysis to decision makers inside the organization to help them operate the business.
management information system	System used to extract data from a database and compile reports that help managers make routine decisions.
management information system	System used to extract data from a database and compile reports that help managers make routine decisions.
manager	Individual in an organization who is responsible for making a group of people more effective and efficient.
manager	Individual in an organization who is responsible for making a group of people more effective and efficient.
manager-led team	Team on which a manager defines goals and methods and is solely responsible for interactions with higher-level management.
manager-led team	Team on which a manager defines goals and methods and is solely responsible for interactions with higher-level management.
manufacturer branding	Branding strategy in which a manufacturer sells one or more products under its own brand names.
manufacturer branding	Branding strategy in which a manufacturer sells one or more products under its own brand names.
manufacturing resource planning (MRP II)	System for coordinating a firm’s material requirements planning activities with the activities of its other functional areas.
manufacturing resource planning (MRP II)	System for coordinating a firm’s material requirements planning activities with the activities of its other functional areas.
market indexes	Measure for tracking stock prices.
market indexes	Measure for tracking stock prices.
market segments	Group of potential customers with common characteristics that influence their buying decisions.
market segments	Group of potential customers with common characteristics that influence their buying decisions.
market share	Company’s portion of the market that it has targeted.
market share	Company’s portion of the market that it has targeted.
Marketing	Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Marketing	Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Marketing	Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Marketing	Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
marketing concept	Basic philosophy of satisfying customer needs while meeting organizational goals.
marketing concept	Basic philosophy of satisfying customer needs while meeting organizational goals.
marketing mix	Combination of product, price, place, and promotion (often called the four Ps) used to market products.
marketing mix	Combination of product, price, place, and promotion (often called the four Ps) used to market products.
marketing research	Process of collecting and analyzing data that’s relevant to a specific marketing situation.
marketing research	Process of collecting and analyzing data that’s relevant to a specific marketing situation.
marketing strategy	Plan for selecting a target market and creating, pricing, promoting, and distributing products that satisfy customers.
marketing strategy	Plan for selecting a target market and creating, pricing, promoting, and distributing products that satisfy customers.
mass customization	Production method in which fairly high volumes of customized products are made at fairly low prices.
mass customization	Production method in which fairly high volumes of customized products are made at fairly low prices.
mass production (or make-to-stock strategy)	Production method in which high volumes of products are made at low cost and held in inventory in anticipation of future demand.
mass production (or make-to-stock strategy)	Production method in which high volumes of products are made at low cost and held in inventory in anticipation of future demand.
master production schedule (MPS)	Timetable that specifies which and how many products will be produced and when.
master production schedule (MPS)	Timetable that specifies which and how many products will be produced and when.
material requirements planning (MRP)	Technique of using a computerized program to calculate the quantity of materials needed for production and to reschedule inventory ordering.
material requirements planning (MRP)	Technique of using a computerized program to calculate the quantity of materials needed for production and to reschedule inventory ordering.
materials handling	Process of physically moving or carrying goods during production, warehousing, and distribution.
materials handling	Process of physically moving or carrying goods during production, warehousing, and distribution.
materials management	All decisions pertaining to the purchase of inputs, the inventory of components and finished products, and the scheduling of production processes.
materials management	All decisions pertaining to the purchase of inputs, the inventory of components and finished products, and the scheduling of production processes.
matrix structure	Structure in which employees from various functional areas form teams to combine their skills in working on a specific project.
matrix structure	Structure in which employees from various functional areas form teams to combine their skills in working on a specific project.
middle managers	Those in the middle of the management hierarchy who report to top management and oversee the activities of first-line managers.
middle managers	Those in the middle of the management hierarchy who report to top management and oversee the activities of first-line managers.
misdemeanor	Crime that’s not “inherently evil” but that’s nevertheless prohibited by society.
misdemeanor	Crime that’s not “inherently evil” but that’s nevertheless prohibited by society.
mission statement	Statement describing an organization’s purpose or mission—its reason for existence—and telling stakeholders what the organization is committed to doing.
mission statement	Statement describing an organization’s purpose or mission—its reason for existence—and telling stakeholders what the organization is committed to doing.
Money	Anything commonly accepted as a medium of exchange, measure of value, and store of value.
Money	Anything commonly accepted as a medium of exchange, measure of value, and store of value.
money market funds	Fund invested in safe, highly liquid securities.
money market funds	Fund invested in safe, highly liquid securities.
money market mutual funds	Accounts that pay interest to investors who pool funds to make short-term loans to businesses and the government.
money market mutual funds	Accounts that pay interest to investors who pool funds to make short-term loans to businesses and the government.
money multiplier	The amount by which an initial bank deposit will expand the money supply.
money multiplier	The amount by which an initial bank deposit will expand the money supply.
monopolistic competition	Market in which many sellers supply differentiated products.
monopolistic competition	Market in which many sellers supply differentiated products.
monopoly	Market in which there is only one seller supplying products at regulated prices.
monopoly	Market in which there is only one seller supplying products at regulated prices.
Motivation	Internally generated drive to achieve a goal or follow a particular course of action.
Motivation	Internally generated drive to achieve a goal or follow a particular course of action.
multinational corporation (MNC)	Large corporation that operates in many countries.
multinational corporation (MNC)	Large corporation that operates in many countries.
NASDAQ	Best-known over-the-counter, electronic exchange system.
NASDAQ	Best-known over-the-counter, electronic exchange system.
national debt	Total amount of money owed by the federal government.
national debt	Total amount of money owed by the federal government.
Natural monopolies	Monopoly in which, because of the industry’s importance to society, one seller is permitted to supply products without competition.
Natural monopolies	Monopoly in which, because of the industry’s importance to society, one seller is permitted to supply products without competition.
negligence tort	Tort resulting from carelessness.
negligence tort	Tort resulting from carelessness.
net income	Positive difference between gross profit and total expenses.
net income	Positive difference between gross profit and total expenses.
net worth	The difference between an individual’s assets and liabilities.
net worth	The difference between an individual’s assets and liabilities.
net worth statement	A personal balance sheet that lists the value of the things you own, the amounts owed to others, and the difference, called “net worth.”
net worth statement	A personal balance sheet that lists the value of the things you own, the amounts owed to others, and the difference, called “net worth.”
niche	Narrowly defined group of potential customers with a fairly specific set of needs.
niche	Narrowly defined group of potential customers with a fairly specific set of needs.
nonverbal communication	“Nonword” messages communicated through facial expressions, posture, gestures, and tone of voice.
nonverbal communication	“Nonword” messages communicated through facial expressions, posture, gestures, and tone of voice.
North American Free Trade Association (NAFTA)	Agreement among the governments of the United States, Canada, and Mexico to open their borders to unrestricted trade.
North American Free Trade Association (NAFTA)	Agreement among the governments of the United States, Canada, and Mexico to open their borders to unrestricted trade.
not-for-profit (or nonprofit) organizations	Organization that has a purpose other than returning profits to owners.
not-for-profit (or nonprofit) organizations	Organization that has a purpose other than returning profits to owners.
not-for-profit corporation	An organization formed to serve some public purpose rather than for financial gain.
not-for-profit corporation	An organization formed to serve some public purpose rather than for financial gain.
Objectives	Intermediate-term performance targets that direct the activities of an organization toward the attainment of a goal.
Objectives	Intermediate-term performance targets that direct the activities of an organization toward the attainment of a goal.
Occupational Health and Safety Administration (OSHA)	Federal administrative agency empowered to set workplace safety and health standards and to ensure that employers take appropriate steps to meet them.
Occupational Health and Safety Administration (OSHA)	Federal administrative agency empowered to set workplace safety and health standards and to ensure that employers take appropriate steps to meet them.
odd-even pricing	Practice of pricing products a few cents (or dollars) under an even number.
odd-even pricing	Practice of pricing products a few cents (or dollars) under an even number.
offshoring	Setting up facilities in a foreign country that replace U.S. manufacturing facilities to produce goods that will be sent back to the United States for sale.
offshoring	Setting up facilities in a foreign country that replace U.S. manufacturing facilities to produce goods that will be sent back to the United States for sale.
Oligopoly	Market in which a few sellers supply a large portion of all the products sold in the marketplace.
Oligopoly	Market in which a few sellers supply a large portion of all the products sold in the marketplace.
on-the-job training	Employee training (often informal) that occurs while the employee is on the job.
on-the-job training	Employee training (often informal) that occurs while the employee is on the job.
open market operations	The sale and purchase of U.S. government bonds by the Fed in the open market.
open market operations	The sale and purchase of U.S. government bonds by the Fed in the open market.
operating activities	Activity that creates cash inflows or outflows through day-to-day operations.
operating activities	Activity that creates cash inflows or outflows through day-to-day operations.
operational plans	Detailed action steps to be taken by individuals or groups to implement tactical plans.
operational plans	Detailed action steps to be taken by individuals or groups to implement tactical plans.
operations management (OM)	Management of the process that transforms resources into products.
operations management (OM)	Management of the process that transforms resources into products.
operations manager	Person who designs and oversees the process that converts resources into goods or services.
operations manager	Person who designs and oversees the process that converts resources into goods or services.
Operations support systems	Information system used by lower-level managers to assist them in running day-to-day operations and making routine decisions.
Operations support systems	Information system used by lower-level managers to assist them in running day-to-day operations and making routine decisions.
organization chart	Diagram representing the interrelationships of positions within an organization.
organization chart	Diagram representing the interrelationships of positions within an organization.
organizing	Management process of allocating resources to achieve a company’s plans.
organizing	Management process of allocating resources to achieve a company’s plans.
orientation	Activities involved in introducing new employees to the organization and their jobs.
orientation	Activities involved in introducing new employees to the organization and their jobs.
outsourcing	Practice of using outside vendors to manufacture all or part of a company’s actual products.
outsourcing	Practice of using outside vendors to manufacture all or part of a company’s actual products.
outsourcing	Practice of using outside vendors to manufacture all or part of a company’s actual products.
outsourcing	Practice of using outside vendors to manufacture all or part of a company’s actual products.
owner’s equity	Amount which is invested in a business by its owners and which owners can claim from its assets.
owner’s equity	Amount which is invested in a business by its owners and which owners can claim from its assets.
partnership (or general partnership)	Business owned jointly by two or more people.
partnership (or general partnership)	Business owned jointly by two or more people.
patent	Grant of the exclusive right to produce or sell a product, process, or invention.
patent	Grant of the exclusive right to produce or sell a product, process, or invention.
penetration pricing	Pricing strategy in which the seller charges a low price on a new product to discourage competition and gain market share.
penetration pricing	Pricing strategy in which the seller charges a low price on a new product to discourage competition and gain market share.
pension funds	Fund set up to collect contributions from participating companies for the purpose of providing its members with retirement income.
pension funds	Fund set up to collect contributions from participating companies for the purpose of providing its members with retirement income.
Perfect competition	Market in which many consumers buy standardized products from numerous small businesses.
Perfect competition	Market in which many consumers buy standardized products from numerous small businesses.
performance appraisals	Formal process in which a manager evaluates an employee’s work performance.
performance appraisals	Formal process in which a manager evaluates an employee’s work performance.
personal finance	The application of financial principles to the monetary decisions of an individual or a family.
personal finance	The application of financial principles to the monetary decisions of an individual or a family.
Personal selling	One-on-one communication with customers or potential customers.
Personal selling	One-on-one communication with customers or potential customers.
PERT charts	Tool for diagramming the activities required to produce a product, specifying the time required to perform each activity in the process, and organizing activities in the most efficient sequence.
PERT charts	Tool for diagramming the activities required to produce a product, specifying the time required to perform each activity in the process, and organizing activities in the most efficient sequence.
physical distribution	Activities needed to get a product from where it was manufactured to the customer.
physical distribution	Activities needed to get a product from where it was manufactured to the customer.
picketing	Union tactic of parading with signs outside a factory or other facility to publicize a strike.
picketing	Union tactic of parading with signs outside a factory or other facility to publicize a strike.
planning	Process of setting goals and determining the best way to achieve them.
planning	Process of setting goals and determining the best way to achieve them.
platform as a service (PaaS)	Those offering the platform as a service category of cloud computing provide services that enable users to develop customized web applications.
platform as a service (PaaS)	Those offering the platform as a service category of cloud computing provide services that enable users to develop customized web applications.
precedent	Rule of case law that must be used by lower courts in deciding future cases.
precedent	Rule of case law that must be used by lower courts in deciding future cases.
Preferred stock	Stock that pays owners a fixed dividend annually.
Preferred stock	Stock that pays owners a fixed dividend annually.
premises liability	The duty of innkeepers to take reasonable care in preventing customers and third parties from being injured on their property.
prestige-pricing	Practice of setting a price artificially high to foster the impression that it is a product of high quality.
prestige-pricing	Practice of setting a price artificially high to foster the impression that it is a product of high quality.
primary data	Newly collected marketing information that addresses specific questions about the target market.
primary data	Newly collected marketing information that addresses specific questions about the target market.
primary market	Market that deals in the sale of newly issued securities.
primary market	Market that deals in the sale of newly issued securities.
prime rate	Rate that banks charge their best customers.
prime rate	Rate that banks charge their best customers.
private accountants	Accountant who works for a private organization or government agency.
private accountants	Accountant who works for a private organization or government agency.
private branding	Product made by a manufacturer and sold to a retailer who in turn resells it under its own name.
private branding	Product made by a manufacturer and sold to a retailer who in turn resells it under its own name.
privatization	Process of converting government-owned businesses to private ownership.
privatization	Process of converting government-owned businesses to private ownership.
Process control	Application of technology to monitor and control physical processes.
Process control	Application of technology to monitor and control physical processes.
process division	Organizational structure that groups people into operating units based on various stages in the production process.
process division	Organizational structure that groups people into operating units based on various stages in the production process.
process layout	Layout that groups together workers or departments that perform similar tasks.
process layout	Layout that groups together workers or departments that perform similar tasks.
product	Something that can be marketed to customers because it provides a benefit and satisfies a need.
product	Something that can be marketed to customers because it provides a benefit and satisfies a need.
product concept	Description of what a new product will look like and how it will work.
product concept	Description of what a new product will look like and how it will work.
product development process	Series of activities by which a product idea is transformed into a final product.
product development process	Series of activities by which a product idea is transformed into a final product.
Product division	Organizational structure made up of divisions based on product lines.
Product division	Organizational structure made up of divisions based on product lines.
product layout	Layout in which products are produced by people, equipment, or departments arranged in an assembly line.
product layout	Layout in which products are produced by people, equipment, or departments arranged in an assembly line.
product liability	Claim of injury suffered because of a defective product.
product liability	Claim of injury suffered because of a defective product.
product life cycle	Four stages that a product goes through over its life: introduction, growth, maturity, and decline.
product life cycle	Four stages that a product goes through over its life: introduction, growth, maturity, and decline.
profit	Difference between the revenue that a company brings in from selling goods and services and the costs of generating this revenue.
profit	Difference between the revenue that a company brings in from selling goods and services and the costs of generating this revenue.
profit margin	Amount that a company earns on each unit sold.
profit margin	Amount that a company earns on each unit sold.
profit-sharing plan	Incentive program that uses a predetermined formula to distribute a share of company profits to eligible employees.
profit-sharing plan	Incentive program that uses a predetermined formula to distribute a share of company profits to eligible employees.
project team	Individuals from different functional areas assigned to work together throughout the product development process.
project team	Individuals from different functional areas assigned to work together throughout the product development process.
promotion mix	Various ways to communicate with customers, including advertising, personal selling, sales promotion, and publicity.
promotion mix	Various ways to communicate with customers, including advertising, personal selling, sales promotion, and publicity.
prospectus	Written offer to sell securities that provides useful information to prospective buyers.
prospectus	Written offer to sell securities that provides useful information to prospective buyers.
protectionism	Use of trade controls to reduce foreign competition in order to protect domestic industries.
protectionism	Use of trade controls to reduce foreign competition in order to protect domestic industries.
prototype	Physical model of a new product.
prototype	Physical model of a new product.
Psychographic segmentation	Process of classifying consumers on the basis of individual lifestyles as reflected in people’s interests, activities, attitudes, and values.
Psychographic segmentation	Process of classifying consumers on the basis of individual lifestyles as reflected in people’s interests, activities, attitudes, and values.
public corporations	Corporation whose stock is available to the general public.
public corporations	Corporation whose stock is available to the general public.
public law	Body of law dealing with the relationship of government to private individuals and other private entities.
public law	Body of law dealing with the relationship of government to private individuals and other private entities.
public relations	Communication activities undertaken by companies to garner favorable publicity for themselves and their products.
public relations	Communication activities undertaken by companies to garner favorable publicity for themselves and their products.
publicity	Form of promotion that focuses on getting a company or product mentioned in a newspaper, on TV, or in some other news media.
publicity	Form of promotion that focuses on getting a company or product mentioned in a newspaper, on TV, or in some other news media.
punitive damages	Monetary awards to tort victims intended to deter similar injurious conduct in the future.
punitive damages	Monetary awards to tort victims intended to deter similar injurious conduct in the future.
purchasing	Process of acquiring materials and services to be used in production.
purchasing	Process of acquiring materials and services to be used in production.
quality	Ability of a product to satisfy customer needs.
quality	Ability of a product to satisfy customer needs.
quality circles	Employees who perform similar jobs and work as teams to identify quality, efficiency, and other work-related problems; to propose solutions; and to work with management in implementing their recommendations.
quality circles	Employees who perform similar jobs and work as teams to identify quality, efficiency, and other work-related problems; to propose solutions; and to work with management in implementing their recommendations.
quota	Government-imposed restrictions on the quantity of a good that can be imported over a period of time.
quota	Government-imposed restrictions on the quantity of a good that can be imported over a period of time.
ramp-up stage	Stage in the product development process during which employees are trained in necessary production processes and new products are tested.
ramp-up stage	Stage in the product development process during which employees are trained in necessary production processes and new products are tested.
ratio analysis	Technique for financial analysis that shows the relationship between two numbers.
ratio analysis	Technique for financial analysis that shows the relationship between two numbers.
recession	Economic slowdown measured by a decline in gross domestic productivity.
recession	Economic slowdown measured by a decline in gross domestic productivity.
Recruiting	Process of identifying suitable candidates and encouraging them to apply for openings in the organization.
Recruiting	Process of identifying suitable candidates and encouraging them to apply for openings in the organization.
relationship-building role	Member role that helps a team maintain or improve group cohesiveness.
relationship-building role	Member role that helps a team maintain or improve group cohesiveness.
reporting relationships	Patterns of formal communication among members of an organization.
reporting relationships	Patterns of formal communication among members of an organization.
Resources	Inputs used to produce outputs.
Resources	Inputs used to produce outputs.
restructuring	Process of altering an existing organizational structure to become more competitive under changing conditions.
restructuring	Process of altering an existing organizational structure to become more competitive under changing conditions.
Retailers	Intermediaries who buy goods from producers and sell them to consumers.
Retailers	Intermediaries who buy goods from producers and sell them to consumers.
rule of law	Principle by which government legitimately exercises its authority only in accordance with publicly declared laws that are adopted and enforced according to established procedure.
rule of law	Principle by which government legitimately exercises its authority only in accordance with publicly declared laws that are adopted and enforced according to established procedure.
salary	Compensation paid for fulfilling the responsibilities of a position regardless of the number of hours required to do it.
salary	Compensation paid for fulfilling the responsibilities of a position regardless of the number of hours required to do it.
sales promotion	Sales approach in which a company provides an incentive for potential customers to buy something.
sales promotion	Sales approach in which a company provides an incentive for potential customers to buy something.
Sarbanes-Oxley Act (SOX)	A federal law enacted to encourage ethical corporate behavior and discourage fraud and other wrongdoing.
Sarbanes-Oxley Act (SOX)	A federal law enacted to encourage ethical corporate behavior and discourage fraud and other wrongdoing.
Savings banks	Financial institution originally set up to provide mortgages and encourage saving, which now offers services similar to those of commercial banks.
Savings banks	Financial institution originally set up to provide mortgages and encourage saving, which now offers services similar to those of commercial banks.
search engine	Software program that scans Web pages for specified kewords and provides a list of documents containing them.
search engine	Software program that scans Web pages for specified kewords and provides a list of documents containing them.
secondary data	Information used in marketing decisions that has already been collected for other purposes.
secondary data	Information used in marketing decisions that has already been collected for other purposes.
Securities and Exchange Commission (SEC)	Government agency that enforces securities laws.
Securities and Exchange Commission (SEC)	Government agency that enforces securities laws.
selection	Process of gathering information on candidates, evaluating their qualifications, and choosing the right one.
selection	Process of gathering information on candidates, evaluating their qualifications, and choosing the right one.
Self-managing teams	Team on which employees control the activities needed to meet overall goals.
Self-managing teams	Team on which employees control the activities needed to meet overall goals.
Service Corps of Retired Executives (SCORE)	SBA program in which a businessperson needing advice is matched with a member of a team of retired executives working as volunteers.
Service Corps of Retired Executives (SCORE)	SBA program in which a businessperson needing advice is matched with a member of a team of retired executives working as volunteers.
service-producing sector	All businesses whose primary purpose is to provide a service rather than make tangible goods.
service-producing sector	All businesses whose primary purpose is to provide a service rather than make tangible goods.
skimming pricing	Pricing strategy in which a seller generates early profits by starting off charging the highest price that customers will pay.
skimming pricing	Pricing strategy in which a seller generates early profits by starting off charging the highest price that customers will pay.
small business	According to the SBA, a business that is independently operated, exerts little influence in its industry, and employs fewer than five hundred people.
small business	According to the SBA, a business that is independently operated, exerts little influence in its industry, and employs fewer than five hundred people.
Small Business Administration (SBA)	Government agency that helps prospective owners set up small businesses, obtain financing, and manage ongoing operations.
Small Business Administration (SBA)	Government agency that helps prospective owners set up small businesses, obtain financing, and manage ongoing operations.
Small Business Development Center (SBDC)	SBA program in which centers housed at colleges and other locations provide free training and technical information to current and prospective small business owners.
Small Business Development Center (SBDC)	SBA program in which centers housed at colleges and other locations provide free training and technical information to current and prospective small business owners.
social media marketing	The practice of including social media as part of a company’s marketing program.
social media marketing	The practice of including social media as part of a company’s marketing program.
socialism	Economic system falling between communism and capitalism in terms of government control over allocation and distribution.
socialism	Economic system falling between communism and capitalism in terms of government control over allocation and distribution.
sole proprietorship	Business owned by only one person.
sole proprietorship	Business owned by only one person.
span of control	Number of people reporting to a particular manager.
span of control	Number of people reporting to a particular manager.
specialization	Process of organizing activities into clusters of related tasks that can be handled by specific individuals or groups.
specialization	Process of organizing activities into clusters of related tasks that can be handled by specific individuals or groups.
stakeholders	Parties who are interested in the activities of a business because they’re affected by them.
stakeholders	Parties who are interested in the activities of a business because they’re affected by them.
Standard & Poor’s Composite Index (S&P 500)	Market index of the stocks of five hundred large U.S. companies.
Standard & Poor’s Composite Index (S&P 500)	Market index of the stocks of five hundred large U.S. companies.
statement of cash flows	Financial statement reporting on cash inflows and outflows resulting from operating, investing, and financing activities.
statement of cash flows	Financial statement reporting on cash inflows and outflows resulting from operating, investing, and financing activities.
statement of owner’s equity	A financial statement that details changes in owner’s equity for a specified period of time.
statement of owner’s equity	A financial statement that details changes in owner’s equity for a specified period of time.
statistical process control	Technique for monitoring production quality by testing sample outputs to ensure that they meet specifications.
statistical process control	Technique for monitoring production quality by testing sample outputs to ensure that they meet specifications.
stock-option plans	Incentive program that allows eligible employees to buy a specific number of shares of company stock at a set price on a specified date.
stock-option plans	Incentive program that allows eligible employees to buy a specific number of shares of company stock at a set price on a specified date.
stockholders’ equity	Amount invested in a corporation by its shareholders.
stockholders’ equity	Amount invested in a corporation by its shareholders.
strategic alliance	Agreement between two companies (or a company and a nation) to pool resources in order to achieve business goals that benefit both partners.
strategic alliance	Agreement between two companies (or a company and a nation) to pool resources in order to achieve business goals that benefit both partners.
strategic human resource planning	Process of developing a plan for satisfying an organization’s human resource needs.
strategic human resource planning	Process of developing a plan for satisfying an organization’s human resource needs.
strategic planning	Process of establishing an overall plan or course of action for an organization.
strategic planning	Process of establishing an overall plan or course of action for an organization.
strict liability torts	Tort resulting from actions that are inherently dangerous and for which a party may be liable no matter how carefully he or she performs them.
strict liability torts	Tort resulting from actions that are inherently dangerous and for which a party may be liable no matter how carefully he or she performs them.
strike	Union tactic by which workers walk away from their jobs and refuse to return until a labor-management dispute has been resolved.
strike	Union tactic by which workers walk away from their jobs and refuse to return until a labor-management dispute has been resolved.
strikebreakers	Nonunion workers who are willing to cross picket lines to replace strikers.
strikebreakers	Nonunion workers who are willing to cross picket lines to replace strikers.
subprime mortgage loan	Mortgage loans made to borrowers who don’t qualify for market-set interest rates because of one or more risk factors.
subprime mortgage loan	Mortgage loans made to borrowers who don’t qualify for market-set interest rates because of one or more risk factors.
subsidies	Government payments given to certain industries to help offset some of their costs of production.
subsidies	Government payments given to certain industries to help offset some of their costs of production.
Supply	Quantity of a product that sellers are willing to sell at various prices.
Supply	Quantity of a product that sellers are willing to sell at various prices.
supply chain management (SCM)	Process of integrating all the activities in the supply chain.
supply chain management (SCM)	Process of integrating all the activities in the supply chain.
supply curve	Graph showing the quantity of a product that will be offered for sale at certain prices.
supply curve	Graph showing the quantity of a product that will be offered for sale at certain prices.
sustainability	The principle of providing products today that don’t compromise the ability of future generations to meet their needs.
sustainability	The principle of providing products today that don’t compromise the ability of future generations to meet their needs.
SWOT analysis	Approach used to assess a company’s fit with its environment by analyzing its strengths, weaknesses, opportunities, and threats.
SWOT analysis	Approach used to assess a company’s fit with its environment by analyzing its strengths, weaknesses, opportunities, and threats.
tactical plans	Short-term plans that specify the activities and resources needed to implement a company’s strategic plan.
tactical plans	Short-term plans that specify the activities and resources needed to implement a company’s strategic plan.
target costing	Pricing strategy that determines how much to invest in a product by figuring out how much customers will pay and subtracting an amount for profit.
target costing	Pricing strategy that determines how much to invest in a product by figuring out how much customers will pay and subtracting an amount for profit.
target market	Specific group of customers who should be interested in your product, have access to it, and have the means to buy it.
target market	Specific group of customers who should be interested in your product, have access to it, and have the means to buy it.
Tariffs	Government taxes on imports that raise the price of foreign goods and make them less competitive with domestic goods.
Tariffs	Government taxes on imports that raise the price of foreign goods and make them less competitive with domestic goods.
Task-facilitating roles	Member role that helps a team accomplish its goals.
Task-facilitating roles	Member role that helps a team accomplish its goals.
team	Group of people with complementary skills who work together to achieve a specific goal.
team	Group of people with complementary skills who work together to achieve a specific goal.
technical skills	Skills needed to perform specific tasks.
technical skills	Skills needed to perform specific tasks.
Telecommuting	Work arrangement in which the employee regularly works from home.
Telecommuting	Work arrangement in which the employee regularly works from home.
time value of money	The principle whereby a dollar received in the present is worth more than a dollar received in the future.
time value of money	The principle whereby a dollar received in the present is worth more than a dollar received in the future.
time-management skills	Skills used to manage time effectively.
time-management skills	Skills used to manage time effectively.
Top managers	Those at the top of the management hierarchy who are responsible for the health and performance of the organization.
Top managers	Those at the top of the management hierarchy who are responsible for the health and performance of the organization.
tort	Civil wrong; injury done to someone’s person or property.
tort	Civil wrong; injury done to someone’s person or property.
tort reform	A movement to stem the swelling tide of personal-injury litigation in the United States.
Total quality management (TQM)	All the steps taken by a company to ensure that its products satisfy customer needs.
Total quality management (TQM)	All the steps taken by a company to ensure that its products satisfy customer needs.
trade credit	Credit given to a company by its suppliers.
trade credit	Credit given to a company by its suppliers.
trade deficit	Condition whereby a country buys more products than it sells, resulting in an unfavorable trade balance.
trade deficit	Condition whereby a country buys more products than it sells, resulting in an unfavorable trade balance.
trademark	Word, symbol, or other mark used to identify and legally protect a product from being copied.
trademark	Word, symbol, or other mark used to identify and legally protect a product from being copied.
trading blocs	Groups of countries that have joined together to allow goods and services to flow without restrictions across their mutual borders.
trading blocs	Groups of countries that have joined together to allow goods and services to flow without restrictions across their mutual borders.
transactions	Financial and nonfinancial events that affect a business.
transactions	Financial and nonfinancial events that affect a business.
transformational leaders	Managers who mentor and develop subordinates and stimulate them to look beyond personal interests to those of the group.
transformational leaders	Managers who mentor and develop subordinates and stimulate them to look beyond personal interests to those of the group.
turnover	Permanent separation of an employee from a company.
turnover	Permanent separation of an employee from a company.
two-factor theory	Theory that holds that motivation involves both motivation factors (which contribute to job satisfaction) and hygiene factors (which help to prevent job dissatisfaction).
two-factor theory	Theory that holds that motivation involves both motivation factors (which contribute to job satisfaction) and hygiene factors (which help to prevent job dissatisfaction).
unemployment rate	Percentage of the total labor force that’s currently unemployed and actively seeking work.
unemployment rate	Percentage of the total labor force that’s currently unemployed and actively seeking work.
Uniform Commercial Code (UCC)	U.S. system of statutes designed to make commercial transactions consistent in all fifty states.
Uniform Commercial Code (UCC)	U.S. system of statutes designed to make commercial transactions consistent in all fifty states.
unlimited liability	Legal condition under which an owner or investor is personally liable for all debts of a business.
unlimited liability	Legal condition under which an owner or investor is personally liable for all debts of a business.
unsecured loan	Loan given by a bank that doesn’t require the borrower to put up collateral.
unsecured loan	Loan given by a bank that doesn’t require the borrower to put up collateral.
value chain	Entire range of activities involved in delivering value to customers.
value chain	Entire range of activities involved in delivering value to customers.
variable costs	Costs that vary, in total, as the quantity of goods sold changes but stay constant on a per-unit basis.
variable costs	Costs that vary, in total, as the quantity of goods sold changes but stay constant on a per-unit basis.
variable costs	Costs that vary, in total, as the quantity of goods sold changes but stay constant on a per-unit basis.
variable costs	Costs that vary, in total, as the quantity of goods sold changes but stay constant on a per-unit basis.
variance	Difference between the actual amount and the budgeted amount.
variance	Difference between the actual amount and the budgeted amount.
Venture capitalists	Individual who pools funds from private and institutional sources and invests them in businesses with strong growth potential.
Venture capitalists	Individual who pools funds from private and institutional sources and invests them in businesses with strong growth potential.
vertical percentage analysis	Analysis of an income statement treating the relationship of each item as a percentage of a base (usually sales).
vertical percentage analysis	Analysis of an income statement treating the relationship of each item as a percentage of a base (usually sales).
virtual company	Company without a significant physical presence that relies on third parties to produce, warehouse, price, and deliver the products it sells over the Internet.
virtual company	Company without a significant physical presence that relies on third parties to produce, warehouse, price, and deliver the products it sells over the Internet.
virtual teams	Teams whose geographically dispersed members interact electronically in the process of pursuing a common goal.
virtual teams	Teams whose geographically dispersed members interact electronically in the process of pursuing a common goal.
whistle-blower	Individual who exposes illegal or unethical behavior in an organization.
whistle-blower	Individual who exposes illegal or unethical behavior in an organization.
wholesalers	Intermediaries who buy goods from suppliers and sell them to businesses that will either resell or use them.
wholesalers	Intermediaries who buy goods from suppliers and sell them to businesses that will either resell or use them.
wide area network (WAN)	Network that links computers that are spread over a relatively large geographical area.
wide area network (WAN)	Network that links computers that are spread over a relatively large geographical area.
World Bank	International financial institution that provides economic assistance to poor and developing countries.
World Bank	International financial institution that provides economic assistance to poor and developing countries.
World Trade Organization (WTO)	International organization that monitors trade policies and whose members work together to enforce rules of trade and resolve trade disputes.
World Trade Organization (WTO)	International organization that monitors trade policies and whose members work together to enforce rules of trade and resolve trade disputes.
World Wide Web	Subsystem of computers on the Internet that communicate with each other using a special language called HTTP.
World Wide Web	Subsystem of computers on the Internet that communicate with each other using a special language called HTTP.

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