BUS101 Study Guide: Glossary

Glossary

4Ps of marketing: The four key elements of a marketing strategy that businesses use to meet customer needs and achieve goals: product, price, place, and promotion.
asset: Anything of value owned by a business, such as cash, equipment, inventory, or property, that can be used to generate income or provide future economic benefit.
balance sheet: A financial statement showing a company's assets, liabilities, and owner's equity at a specific point in time, often summarized by the equation assets = liabilities + owner's equity.
brand: The name, design, symbol, or reputation that identifies a product or company and distinguishes it from competitors in the minds of consumers.
break-even analysis: A financial calculation that determines the point at which total revenue equals total costs. It shows when a business begins to make a profit.
business plan: A written document that outlines a company's goals, strategies, target market, and financial forecasts. It serves as a roadmap for starting and managing a business.
cash flow: The movement of money into and out of a business. It shows how much cash is available to meet expenses, repay debt, and invest in growth.
consumer price index (CPI): A measure that tracks changes in the average price of a fixed basket of consumer goods and services. It is used to gauge inflation and cost-of-living trends.
corporate culture: The shared values, beliefs, and behaviors that shape how employees interact and how the organization conducts business. It is often described as the company's personality.
corporate social responsibility (CSR): A business' commitment to act ethically, contribute to economic development, and improve the quality of life of employees, communities, and society at large.
corporation: A legally recognized business entity that is separate from its owners. It offers shareholders limited liability and the ability to raise capital through stock.
currency exchange rate: The value of one country's currency in terms of another's. It determines how much one currency can be traded for another in global markets.
economic indicator: A statistic or measure that provides insight into the state of the economy, such as gross domestic product (GDP), unemployment rates, or retail sales figures.
four functions of management: The core activities of management (planning, organizing, leading, and controlling) that guide how a business sets goals, coordinates resources, motivates employees, and evaluates performance.
gross domestic product (GDP): The total market value of all finished goods and services produced within a country's borders during a specific time period. GDP is a common measure of overall economic activity and health.
human resource management (HRM): The process of recruiting, training, evaluating, compensating, and retaining employees to ensure that an organization's workforce effectively supports its goals.
income statement: A financial report summarizing a company's revenues, expenses, and profits over time and showing how well the business performed financially.
inflation: The rate at which the general level of prices for goods and services increases over time, thereby reducing the purchasing power of money.
interest rate: The percentage charged by a lender for the use of borrowed money, or the percentage paid by a borrower to a lender.
liability: A legal or financial obligation that a business or individual is responsible for paying, such as debts or damages.
limited liability company (LLC): A business structure that combines the flexibility of a partnership with the tax benefits and limited liability protection of a corporation.
market analysis: The process of researching and evaluating a market to understand customer needs, industry trends, competitors, and opportunities for growth.
profit margin: A measure of profitability showing what percentage of revenue remains after all expenses are deducted, indicating how efficiently a company turns sales into profit.
strategic plan: A long-term roadmap that defines an organization's goals and the necessary actions, resources, and timelines to achieve them.
US Federal Reserve: The central bank of the United States that is responsible for setting monetary policy, regulating banks, and maintaining economic stability through tools such as interest rates and managing the money supply.