The amount of money a business earns above and beyond what it spends for salaries and other expenses.

The total amount of money a business takes in during a given period by selling goods and services.

The chance an entrepreneur takes of losing time and money on a business that may not prove profitable.

The amount of goods and services people can buy with the money they have.

Producing the desired result.

Producing goods and services using the least amount of resources.

Giving frontline workers the responsibility, authority, and freedom to respond quickly to customer requests.

The buying and selling of goods online.

The obtaining of individuals’ personal information, such as Social Security and credit card numbers, for illegal purposes.

Emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers.

Define the organization’s guiding values, create an environment that supports ethically sound behavior and stress a shared accountability.

Insiders who report illegal or unethical behavior.

•Includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, and providing a safe work environment.

Insiders using private company information to further their own fortunes or those of their family and friends.

The study of how society employs resources to produce goods and services for consumption among various groups and individuals.

All or most of the land, factories and stores are owned by individuals, not the government, and operated for profit.

When self-directed gain leads to social and economic benefits for the whole community.

The quantities of products businesses are willing to sell at different prices.

The quantities of products consumers are willing to buy at different prices.

Determined by supply and demand, this is the negotiated price.

The market largely determines what goods and services are produced, who gets them, and how the economy grows.

Some allocation of resources is made by the market and some by the government.

Total value of final goods and services produced in a country in a given year. As long as a company is within a country’s border, their numbers go into the country’s GDP (even if they are foreign-owned).

A measure of total sales volume at all stages of production.

The percentage of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks.

The general rise in the prices of goods and services over time.

Monthly statistics that measure the pace of inflation or deflation.

Periodic rises and falls that occur in economies over time.

The federal government’s efforts to keep the economy stable by increasing or decreasing taxes or government spending.

The amount of money the federal government spends beyond what it gathers in taxes.

The management of the money supply and interest rates by the Federal Reserve Bank (the Fed).

Buying products from another country.

A country should sell the products it produces most efficiently and buy from other countries the products it cannot produce as efficiently.

The total value of a nation’s exports compared to its imports measured over a particular period.

When the value of a country’s exports is more than that of its imports.

The difference between money coming into a country (from exports) and money leaving the country (from imports) plus other money flows.

When a firm (licensor) provides the right to manufacture its product or use its trademark to a foreign company (licensee) for a fee (royalty).

A contractual agreement whereby someone with a good idea for a business sells others the rights to use the name and sell a product/service in a given area.

A partnership in which two or more companies join to undertake a major project.

A long-term partnership between two or more companies established to help each company build competitive market advantages.

A company owned in a foreign country by another company called the parent company. The most common form of FDI.

A company that manufactures and markets products in many different countries and has multinational stock ownership and management.

Value of one nation’s currency relative to the currencies of other countries.

Limits the number of products in certain categories a nation can import.

The use of government regulations to limit the import of goods and services.

A complete ban on the import or export of a certain product or the stopping of all trade with a particular country.

A global forum for reducing trade restrictions on goods, services, ideas and cultural problems.

A regional group of countries with a common external tariff, no internal tariffs and coordinated laws to facilitate exchange among members.

Process by which a firm contracts with other companies to do some or all of its functions.