Chapter 8
A group of people with complementary skills who work together to achieve a specific goal
What is a "team"?
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.
What is "marketing"?
Overseeing the process of transforming resources into goods and services.
What is "operations management"?
A medium of exchange, a measure of value, a store of value.
What is "money"?
Paying your bills on time, paying more than the minimum balance due, keeping your card balances low, and paying your debts off as quickly as possible build
What is a "credit score"?
A team designed to take advantage of the special expertise of members drawn from different functional areas of the company.
What is a "cross-functional team"?
Starting off with the highest price that keenly interested customers are willing to pay. This approach yields early profits but invites competition.
What is the "skimming approach"?
Where high-volume goods are produced in assembly-line fashion—that is, a series of workstations at which already-made parts are assembled.
What is a "product layout"?
The central banking system most large banks are members of.
What is the "Federal Reserve System"?
The application of financial principles to the monetary decisions that you make either for your individual benefit or for that of your family.
What is "personal finance"?
The tendency to conform to group pressure in making decisions, while failing to think critically or to consider outside influences.
What is "groupthink"?
A good or a service that is new to the company but has been sold by a competitor in the past.
What is a "new to the company product"?
Two of the most common graphical tools used by operations managers to diagram the activities involved in producing goods.
What are "Gantt and PERT charts"?
A document that performs two functions:
What is a "financial plan"?
The principle whereby a dollar received in the present is worth more than a dollar received in the future.
What is the "time value of money"?
Communication that flows across the organization, among personnel on the same level.
What is "lateral communication"?
A group of related businesses that do similar things and compete with each other.
What is an "industry"?
What provides information not only to internal managers, but also to people outside the organization (such as investors, creditors, government agencies, suppliers, employees, and labor unions) to assist them in assessing a firm’s financial performance.
What is "financial accounting"?
When the stock market is enjoying a period of large increases in prices
What is a "bull market"?
A document that itemizes the sources of your income and expenditures for a future period (often a year).
What is a "budget"?
Messages communicated through facial expressions, posture, gestures, and tone of voice.
What is "non-verbal" communication?
A series of activities that transform a product idea into a final product.
What is a "product development process"?
A system in which the accountant records a transaction when it occurs, without waiting until cash is paid out or received.
What is "accrual accounting"?
Forms of commercial banking, corporate finance, and the investment industry.
What are "positions in finance"?
The difference between your assets and your liabilities. Equals assets − liabilities
What is "net worth"?